Central Coast Community Energy (3CE) Operations Board
May 27, 2026

4 CENTRAL COAST COMMUNITY ENERGY
Central Coast Community Energy (3CE) is a Joint Powers Authority (JPA) comprised of 35 local government agencies across the jurisdictions of California’s Central Coast. These 35 agencies joined 3CE with a shared goal of gaining more control over their electricity needs to reduce greenhouse gas emissions, support the growth of clean and renewable energy, and access additional economic and environmental benefits. Currently, 3CE serves over 1.2 million residents across Monterey, San Benito, San Luis Obispo, Santa Cruz, and Santa Barbara counties.

In addition to providing clean and renewable power, managing 3CE’s Energy Programs Portfolio is a foundational component of meeting the agency’s core JPA goals. 3CE’s FY 2024-25 Energy Programs Portfolio was designed to bring meaningful decarbonization and climate action throughout 3CE’s service area via transportation, building, and agricultural electrification along with energy optimization initiatives.

This FY 2024-25 evaluation report assesses 3CE’s portfolio design, access, and impact across 3CE’s service area. The recommendations made in this report include immediate and long-term improvements to program design, implementation, and outreach. Through annual evaluation, 3CE’s programs continue to empower customers to take part in the central coast’s collective renewable energy transition.

INTRODUCTION

2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION
As part of 3CE’s evaluation criteria, 3CE measured progress toward ensuring access to energy programs for all customers. 3CE continues to provide enhanced support and assistance to underserved communities, which is defined in 3CE’s Underserved Communities Outreach and Engagement Plan as communities that face limited access to public investments, energy- related resources, and information. The report considers factors such as geographic location, cultural differences, socioeconomic status, health risks, the digital divide, and exposure to environmental hazards. As part of 3CE’s program impact assessment, 3CE tracks program utilization by underserved communities, specified in the following manners:
1 3CE’s FY 2024-25 Energy Programs Portfolio Evaluation assessed all programs according to four measures – Program Participation, Program Performance, Program Impact, and Internal Resources. The evaluation measures incorporated metrics from state energy reporting standards to accurately demonstrate program objectives across customers’ income levels and geographic areas. The evaluation framework aligns with broader efforts to implement energy programs that enable an accessible renewable energy transition for all 3CE customers and communities. Individual program evaluations include a program description, program goals, key performance indicators, observed successes, and observed opportunities.
5 APPROACH & METHODOLOGY
EQUITY

CRITERIA PURPOSE KEY PERFORMANCE INDICATORS
Program
Participation
Where are 3CE’s incentives
being distributed?
Average $ funded per application
% funding distributed per county
$ incentives distributed
Program
Performance
Is the program being utilized
as predicted by FY plan?
$ incentives distributed
% allocated budget utilized
Achievement of FY 2024-25 program goals
Program
Impact
Is the program making a
positive contribution to the
3CE community?
$ in all-electric purchases/support enabled
Greenhouse gas emissions avoided
% of funding distributed to underserved communities
Internal
Resources
Are 3CE resources being
used effectively?
Average days to fund a project
Conversion rate from vendors providing technical assistance % of applications approved

PROGRAM UNDERSERVED COMMUNITY DESIGNATION
Electrify Your Ride
Tier 1 — household income within 400-201% (Tier 1) Federal Poverty Level 2 Tier 2 — 200% and below federal poverty level and/or CARE/FERA enrolled E-Bus Program Title 1 School or CCI Low-income community 3 Electrify Your Home
CARE/FERA enrolled
Affordable housing projects by authority granting jurisdiction New Construction Elect. Program Affordable housing projects by authority granting jurisdiction Ag Electrification Program Small business defined in Government Code Section 14837(d)(1) 4 Residential Battery Rebate Program CARE/FERA enrolled, or Medical Baseline qualified

1. https://pub-3ce.escribemeetings.com/filestream.ashx?DocumentId=4461

2. https://aspe.hhs.gov/sites/default/files/documents/dd73d4f00d8a819d10b2fdb70d254f7b/detailed-guidelines-2025.pdf

3. https://www.caclimateinvestments.ca.gov/priority-populations

4. https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Apply-for-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise#:~:text=In%20order%20for%20a%20small,with%2025%20or%20fewer%20employees.

6 CENTRAL COAST COMMUNITY ENERGY
For this evaluation, GHG emissions avoided were estimated based on emissions from conventional fuel-based systems compared with the electric-based alternatives and the calculations and conversion factors found in Appendix A. In accordance with best practices, all GHG emission estimates are displayed using metric tons of carbon dioxide equivalent (CO2e) as the unit of measure.

GHG emission measurements excluded non-3CE owned EV chargers, new construction units, and residential batteries. 3CE is actively researching sources to accurately quantify emissions avoided by these sources and will include these measurements once available. GHG emission reductions and grid load reductions were conservatively estimated for the following programs:

GREENHOUSE GAS (GHG) EMISSIONS ACCOUNTING

COMMUNITY ENGAGEMENT
40 local & diverse organization memberships
180 community events hosted and/or supported
90 meetings with City & County staff
4 energy programs community workshops hosted

CUSTOMER SERVICE & EDUCATION
7 webinars and workshops focused on
programs, rates, billing, and electrification
32 Member Agency presentations
18 Farmworker outreach events

MARKETING & COMMUNICATIONS
$1.6 million dedicated
$210k dedicated to program campaigns
690 posts on social media
576K website views

PROGRAM EQUIPMENT MEASURED TYPE OF EMISSION
Electrify Your Ride Passenger Vehicles On Road Gas
E-Bus Program School & Transit buses On Road Diesel
Electrify Your Fleet Passenger Vehicles On Road Gas
EV Charger Asset Pilot Level 2 EV Charger Usage On Road Gas Electrify Your Home Heat Pump Water Heaters & HVAC units BTU Natural Gas Ag Electrification Program UTVs, compact & standard tractors Off Road Diesel Residential Battery Rebate kWh daily load shifted TBD

COMMUNICATIONS & OUTREACH
Focused outreach, marketing, and communications are critical to driving awareness and participation in Energy Programs. 3CE’s strategies to build agency awareness and promote Energy Programs include:

3CE’s Energy Programs support 3CE’s commitment to invest in our communities to drive local economic development and reduce greenhouse gas emissions in the transportation, building, and agricultural sectors. 3CE is actively exploring opportunities to identify additional revenue streams that will allow 3CE to expand programs without impacting customer rates. Initiatives to maximize budget and diversify the portfolio’s revenue streams in FY 2024-25 included:

DIVERSIFYING REVENUE STREAMS
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 7
3CE continues to evaluate additional revenue streams to cost-effectively support electrification projects for 3CE customers. 3CE is actively applying for federal and state grants to fund EV charging sites and microgrid development, refining pricing models for 3CE-owned public EV chargers, and connecting customers with low-interest financing for electrification purchases. Furthermore, 3CE is exploring virtual power plant (VPP) pilot opportunities to manage customer load. The VPP pilot would incorporate a pay-for-performance programmatic design to provide rebates during demand response events for customers who load shift with their electric thermostats, battery systems, and EV chargers.

Hourly Flex Pricing Pilot: potential reduction in procurement costs through load shifting and CPUC automation rebate funding
Residential Battery Rebate: expected reduction in procurement costs and customer bill savings through load shifting during peak hours; load shifting also results in individual customer bill savings
EV Charger Asset Pilot: approval of $268,400 in grant funding to support EV charger construction at 3CE’s San Luis Obispo office and of a public lot in Santa Maria Electrify Your Home: projected 10% administrative cost reduction through transition to in-house administration

FY 2024-25
ENERGY

PROGRAMS

TRANSPORTATION

ELECTRIFICATION

AGRICULTURAL

ELECTRIFICATION
Supports
customers to
transition
from fossil
fuels to
electricity for
all vehicles
including
charging
infrastructure
Supports
agricultural
customers to
transition
from fossil
fuel to
electric
equipment
and
automation
options

E-BUS PROGRAM

EV CHARGER ASSET PILOT

PLAN, CHARGE, AND

ELECTRIFY YOUR FLEET

ELECTRIFY YOUR RIDE
AGRICULTURAL ELECT. PROGRAM
HOURLY FLEX PRICING PILOT 1

BUILDING

ELECTRIFICATION
ENERGY

OPTIMIZATION
Supports
customers to
transition
from fossil
fuels to
electricity for
various end
uses in new
and existing
residential
buildings
Supports grid
reliability
through
batteries and
customer load
modification
strategies
NEW CONSTRUCTION ELECT.

REACH CODES

ELECTRIFY YOUR HOME
HOURLY FLEX PRICING PILOT 2

RESIDENTIAL BATTERY REBATE
3CE’s Energy Programs Portfolio, through its multifaceted electrification efforts, promotes affordable electrification and greenhouse gas reductions. FY 2024-25 was 3CE’s fifth full year of administering and implementing energy programs. 3CE offered 11 Energy Programs and 2 pilots across the transportation electrification, building electrification, agricultural electrification, and energy optimization categories, as indicated below. The incentives available through these programs supported 3CE customers in transitioning their homes, workplaces, and transportation from fossil-fuel powered to clean-energy solutions.

ENERGY PROGRAMS OVERVIEW
FY 2024-25 ENERGY PROGRAMS PORTFOLIO
8 CENTRAL COAST COMMUNITY ENERGY

In FY 2024-25, 3CE distributed approximately $15 million in incentives and services across 11 programs and 2 pilots, a $4.1M (38%) increase from FY 2023-24.

Table 1: Energy Programs FY 2024-25 Portfolio Metrics
*Some programs allow customers to receive multiple rebates within one application. See program’s metrics page for total rebates **Excludes 3CE funding towards technical assistance
***3CE reduced administrative costs within overall programs budget to be able to pay incentives in excess of budget FY 2024-25 ENERGY PROGRAMS HIGHLIGHTS
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 9
ACHIEVEMENTS IN FY 2024-25

TRANSPORTATION BUILDING AGRICULTURE ENERGY OPTIMIZATION Incentivized 1,025 EVs and
1,062 EV chargers
Launched six, 3CE-owned
EV charging stations at
two sites
Funded 1,146 heat pump
water heater & hvac units
Supported all-electric
construction of 302
housing units, 86% of
them affordable
Incentivized 22 agricultural
projects, 90% to small
businesses
Enrolled customers in real
time pricing
Achieved 2.3MWh of load
shift daily through
residential battery discharge
Launched hourly flex pricing
pilot to test real time
pricing on energy use

PROGRAM
UNIQUE

APPLICATIONS
APPROVED*
# OF EQUITY-QUALIFIED

PROJECTS
% INCENTIVES

TO EQUITY
PROJECTS**
BUDGET
SPENT (%)

GHG IMPACT (MT
CO2e avoided)
Electrify Your Ride 1,588 416 32% 102% 4,200
E-Bus Program 8 4 47% 115% 410
Plan, Charge, and
Electrify Your Fleet
19 - N/A 28% 94
Grants - - N/A 85% N/A
Electrify Your Home 944 696 59% 527% 1,156
New Construction Elect. 44 261 73% 91% N/A
Reach Codes 3 - N/A 106% N/A
Agricultural Elect.

Program
20 20 96% 81% 182
Residential Battery
Rebate
243 35 20% 81% 2.3MWh load shift daily
Pilots - - N/A 20% .2
TOTAL 2,869 1,432 42% 102%*** 6,042

E-BUS

PROGRAM
Incentives for
all-electric buses
in public schools
& districts,
public and
farmworker
transit agencies
Budget: $1.4M

EV CHARGER

ASSET PILOT
Construction of
3CE-owned
workplace and
public EV
chargers
Budget: $700k

PLAN, CHARGE,

AND ELECTRIFY

YOUR FLEET
Incentives and
technical
assistance for zero
emission fleet
planning and
implementation
Budget: $2.8M

ELECTRIFY

YOUR RIDE
Residential &
commercial
incentives for
electric vehicles
and charger
installations
Budget: $4.2M
GRANTS
Grants for
planning,
implementation,
and innovation
projects in
electrification &
energy
Budget: $735k

PROGRAM DESIGN IMPROVEMENT
EV Charger Asset Pilot
Awarded $268k in grants towards EV charger projects in San Luis Obispo and Santa Maria
EVs EV Chargers

FISCAL YEAR
T
O
TA
L
R
E
B
AT
E
S
2021-2022 2022-2023 2023-2024 2024-2025
400
500
600
700
800
900
1000
1100
1200
Over 4,704 MT CO2e avoided in FY 2024-25
Equivalent to 1,097 gas powered vehicles driven for one year Program Design Improvements Implemented in FY 2024-25

TRANSPORTATION ELECTRIFICATION

EQUIPMENT INCENTIVIZED
10 CENTRAL COAST COMMUNITY ENERGY
Approximately 200% increase in participation over three years

Santa Cruz County
San Benito County
Monterey County
SLO County
Santa Barbara
County
22 5 11
0-0.5%
1-1.5%
2%
Participation
Monterey County
San Luis Obispo County
Santa Barbara County
San Benito County
Santa Cruz County
Incentivize 650 EVs and 475 EV Chargers
Distribute 40% of incentives to income-qualified
customers
in incentives distributed

PERFORMANCE
GOALS
$4.2M
“I must say, we are truly enjoying having an electric car!... thanks to the rebate from you, I now feel above water can stop stressing and just enjoy going electric!”
Figure 1.2: % participation of total active
residential meters, per zip
Monterey County
San Luis Obispo County
Santa Barbara County
San Benito County
Santa Cruz County
IMPACT
in all-electric purchases enabled
Figure 1.3: All-electric purchases enabled by equipment type MT CO2e avoided in FY 2024-25
incentives distributed to income qualified applicants
Figure 1.4: % of income-qualified rebates by county
Nonresidential customers engaged
in technical assistance
4,200
22 Residential & commercial incentives for electric vehicles, chargers, and infrastructure upgrades

1. ELECTRIFY YOUR RIDE
- Mrs. Ferell, 3CE Residential Customer
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 11

KEY TAKEAWAYS
Success in FY 2024-25: For the first time in agency history, 3CE program incentive budget fully distributed to customers
Opportunity in FY 2025-26: Increase equitable access and offering to income-qualified customers through enhanced outreach and updated rebate structure.

PARTICIPATION
2,768 Total equipment & assistance approved across
1,588 customers in 3CE service area
Figure 1.1: Unique applications by County
Application
Received
Final Docs
Received
Submitted for
Payment
Paid

INTERNAL
38 Average days to fund project

CRITERIA
$47M
32%

85 7 2
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 11
Santa Barbara
SLO
Monterey
San
Benito
Santa Cruz
57%
53%
100%
100%
0%

PERFORMANCE
GOALS
“The E-Bus application process was straightforward, and the support we received throughout was excellent. For those concerned about the initial investment of electrification, this program provides a practical pathway to sustainable fleet management." IMPACT
Incentives distributed to
disadvantaged communities
- Aromas-San Juan Unified School District

KEY TAKEAWAYS
Success in FY 2024-25: Nearly 50% of incentivized buses were from transit agencies due to design changes which expanded eligibility to fleets
Opportunity in FY 2025-26: Increase equitable access through enhanced outreach to schools/ transit agencies in low-income areas.

PARTICIPATION
Application
Received
Final Docs
Received
Submitted for
Payment
Paid

INTERNAL
94 Average days to fund project

CRITERIA
Incentives for all-electric buses in public schools, school districts, farmworker transit orgs, and public transit agencies

2.E-BUS PROGRAM
Incentivize 16 Electric Buses
Incentivize at least five electric buses serving a Title 1 school or low-income community.
$1.6M in incentives distributed
Figure 2.1: Applications by County
6 school districts & 2 transit agencies across 5 counties Monterey County
San Luis Obispo County
Santa Barbara County
San Benito County
Santa Cruz County
0%
100%
Funding to low income/Title 1
School
Figure 2.2:% of funding to low income/Title 1 School per county 47%
$14M in all-electric purchases enabled
FIgure 2.3: Quantity of e-buses rebated, by type
MT CO2e avoided in FY 2024-25,
equal to taking 17 Type A diesel
buses off the road for one year
Average purchase cost incentivized
410
35%
12 CENTRAL COAST COMMUNITY ENERGY

CRITERIA

INTERNAL
43% PYF participants also participated in EYF and/or CYF IMPACT
Paid Fleet
Replacement
Plan
Charging
Infrastructure
Plan
EV Charging
Site Design
14 85 60 20
Application
Received /
Start PYF

PARTICIPATION
City of Santa Cruz
City of Capitola
1 3
Sand City
City of Soledad
City of Monterey
City of Salinas
City of SLO
SLO County
City of Guadalupe City of Santa Maria
City of Goleta
Santa Barbara County
12 cities and counties engaged across 3CE service area
Program Engagements
Figure 3.1: Cities and counties engaged in fleet electrification

PERFORMANCE
GOALS
Deliver technical assistance service to a
minimum of 10 Member Agencies
Incentivize 25 electric vehicles
Fund at least one project within a low income
or disadvantaged community
Incentivize 100 L2 chargers
Incentivize 5 DC fast chargers
Fund at least 1 publicly available project
$160k To support fleet planning
$300k To support EV charger purchases
$321k To support electric vehicle purchases
All-electric purchases enabled
EV charging capacity installed

2.4M
900kW
Figure 3.2: Equipment rebated
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 13
PLAN (PYF):

Technical assistance for zero
emission fleet planning
CHARGE (CYF):

Incentives for purchase and
installation of EV chargers
ELECTRIFY (EYF):

Incentives for purchase of light,
medium, and heavy duty vehicles

KEY TAKEAWAYS
Success in FY 2024-25: Over 45% of all 3CE member agencies participated in programs since launch; most unique engagements in FY 24-25.

Opportunity in FY 2025-26: Increase participation in Electrify and Charge Your Fleet programs through funding cap flexibility and understanding of agency budgeting timelines.

3. PLAN CHARGE AND ELECTRIFY YOUR FLEET
“3CE staff and programs have been key contributors to the City of Santa Cruz’s efforts to electrify our fleet... 3CE funding was instrumental in the procurement of an all-electric garbage truck, DC Fast Charging for our fleet, and EV Chargers at our parking garages and public libraries. I am extremely grateful because, without 3CE's support, several of our projects would have never happened." -Andy Shatney, Energy Project Coordinator, City of Santa Cruz

Grant
Recipient/
Project
Partner
Grant
Purpose
Approval
Date
Grant
Status
Center for
Sustainable
Energy
California Vehicle
Infrastructure
Project - Central
Coast Incentive
5/10/2019
Completed
9/30/2025
Center for
Sustainable
Energy
California Vehicle
Infrastructure
Project - South
Central Coast
Incentive
6/30/2021
Completed
9/30/2025
City of
Watsonville
Development of
an EV
masterplan with
building
electrification
analysis
9/28/2022
Active until
6/30/2026
County of
Monterey
Development of a
holistic, County-wide deep
decarbonization
framework to
electrify Monterey
County facilities
10/6/2022
Active until
12/31/2025

PERFORMANCE
in grants distributed to support EV charging
infrastructure across central coast $626k
IMPACT
ports across
18 DC Fast
Chargers
funded
ports across 23
L2 Chargers
funded
31 36
Allocation to public agencies and nonprofits to plan, innovate, and implement new electrification

KEY TAKEAWAYS
Success in FY 2024-25: Grant partnerships with external agencies helped to expand DCFC EV charger deployment in 3CE service area.

Opportunity in FY 2025-26: Timelines to complete grants frequently extended. With grant program ending 2026, opportunity to evaluate comprehensive impact of previously funded grant plans.

PARTICIPATION

INTERNAL

5.4 years to complete average grant project

CRITERIA

4.ELECTRIFICATION GRANTS
Table 3: Active and Completed Grants in FY 2024-25
Grant
Approval
Grant
Completion
Grant
Approval
FY end
3 years of ongoing support for grants still active
14 CENTRAL COAST COMMUNITY ENERGY

PERFORMANCE
GOALS
“Having access to Level 2 charging at work saves me time and money, and it shows 3CE’s real commitment to reducing emissions and supporting EV-driving employees.”
IMPACT
- Jeff Railsback, Customer Accounts Manager, 3CE

KEY TAKEAWAYS
Success in FY 2024-25: Deployed workplace EV charging at 3CE offices, optimizing for off-peak renewable energy use and establishing internal end-to-end project management capability.

Opportunity in FY 2025-26: Establish access and pricing policies, standardize designs from lessons learned, and scale to future public deployments.

PARTICIPATION

INTERNAL

CRITERIA
98% Average charger uptime
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 15
Construction of 3CE-owned workplace and public EV chargers

5. EV CHARGER ASSET PILOT
Launch 3CE-owned EVSEs at one-two pilot sites
in 3CE service area
Figure 5.1: 3CE EV Charging Station Location Map
Figure 5.3: Monthly Average
Uptime

0.2 54 Charging sessions
Figure 5.4: Charging
Sessions/Month
EV Adoption Rate by Staff:
71% SLO Office
57% Soquel Office
MT of CO2e avoided
in first two months - comparable to
planting 60 trees grown for 10 years
Figure 5.5: Energy Dispensed/Month
Grants Awarded from local
Air Pollution Control Districts:
$68,400 for workplace charging in San Luis Obispo
$200,000 for public charging in Santa Maria Figure 5.2: 3CE EV charging Asset Pilot Project Timeline

ELECTRIFY

YOUR HOME
Incentives for
replacement of
gas appliances
with electric heat
pump appliances
for residential and
multifamily
projects
Budget: $800k
NEW

CONSTRUCTION
ELECT.

Incentives for
development of
all-electric
residential, multi-family, and
agricultural
housing
Budget: $1M

REACH CODES
Technical
assistance for
cities and
counties
to adopt and
codify reach
codes that
promote
electrification
Budget: $150k

PROGRAM DESIGN IMPROVEMENT

ELECTRIFY YOUR HOME
Transitioned rebate checks to be sent from 3CE directly to contractor; reduced customer wait time by 2 weeks
Hosted community workshops to gather feedback on opportunities to support building electrification
REACH CODES Expanded technical support to assist with code updates & education Water Heaters HVAC

FISCAL YEAR
T
O
TA
L
R
E
B
AT
E
S
2021-20222022-2023
2023-2024
2024-2025
0 200
400
600
800
1000

NEW CONSTRUCTION UNITS

FISCAL YEAR
T
O
TA
L
R
E
B
AT
E
S
2022-2023 2023-2024 2024-2025
0 100
200
300
400
500
16 CENTRAL COAST COMMUNITY ENERGY
Over 1,156 MT CO2e avoided in FY 2024-25
Equivalent to powering 155 homes for a year

BUILDING ELECTRIFICATION
Program Design Improvements Implemented in FY 2024-25

HEAT PUMP REBATES DISTRIBUTED ALL-ELECTRIC HOUSING FUNDED

Santa Barbara County
Monterey County
San Luis Obispo County
Santa Cruz County
San Benito County
Figure 6.2: Count of heat pumps incentivized, by zip code 93434
93458
93454
93455
Santa Cruz County
San Benito County
Monterey County
SLO County
Santa Barbara County
63 81% total applications were eligible and received a rebate

PERFORMANCE
GOALS
“...We are happily creating electricity through our solar panels, charging and driving our new EV, and enjoying a warm house for the first time. This was all made possible thanks to 3CE, 3C-REN, and the state of California...it feels good doing our part to reduce pollution and reduce our carbon footprint in the fight against climate change.” IMPACT
of installed units for income-qualified applicants
-Carter and Wendy Morgan, 3CE residential customers

KEY TAKEAWAYS
Success in FY 2024-25: Program saw over 200% increase in the number of applications paid.

Opportunity in FY 2025-26: Due to budget limitations, the program was paused in July.

PARTICIPATION

INTERNAL
Average days to fund project

CRITERIA
60%
$3.9M in incentives distributed
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 17
Incentives for replacement of gas appliances with electric heat pump appliances

6. ELECTRIFY YOUR HOME
944 applications approved across 3CE service area
Figure 6.1: # Applications by County
Heat pump count
5 150+
Fund 250 cumulative heat pump water heaters and
heat pump HVAC electrification projects
Support 10 projects at income-qualified project sites
Support at least three multifamily projects
in all-electric purchases enabled
1,100 MT CO2e avoided in FY 2024-25
$12M
Figure 6.3: Heat Pump Purchases Incentivized
Figure 6.4: Income Qualified Units by County
45 local contractors engaged
Figure 6.5: Unsuccessful Applications

Application
Received
18 9 4
Final Docs
Received
Submitted for
Payment
Paid
152
1 Number of units
incentivized
San Luis Obispo County
Santa Cruz County
Monterey County
Santa Barbara County
302 All-electric units incentivized including
261 Affordable housing units
Average days 31 to fund project

PERFORMANCE
GOALS
“With HASLO’s overarching mission to provide housing for all, the objective to create housing that reduces greenhouse gas emissions, improves the health of residents, and furthers clean energy technologies. Partnering with 3CE on Sunset Terrace in Pismo Beach gave us the flexibility to explore options to achieve these objectives and create a more resilient community.” - Michael B Burke, Director of Construction and Development, Housing Authority of San Luis Obispo

KEY TAKEAWAYS
Success in FY 2024-25: 72% of funds distributed to affordable housing projects in FY 2024-25.

Opportunity in FY 2025-26: Reach out to developers to discuss support opportunities through long timelines.

PARTICIPATION

INTERNAL

CRITERIA
$912k in incentives distributed
Incentives for new, all-electric residential construction

7. NEW CONSTRUCTION ELECTRIFICATION
18 CENTRAL COAST COMMUNITY ENERGY
Figure 7.1: # Applications by County
44 applications approved across 3CE service area
Figure 7.2: Total number of units incentivized, by zip code Support 200 new, all-electric affordable housing units
Support one or more farmworker housing projects
Support projects in all 5 counties
IMPACT
Figure 7.3: Units Incentivized by County
Figure 7.4: $ Incentivized by Type
21 Local contractors engaged
Applications were
eligible and received a
rebate
85%
Figure 7.5: Rejection Reason
San Benito County

Interest in
code
170 241
*

PERFORMANCE
GOALS
IMPACT
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION

KEY TAKEAWAYS
Success in FY 2024-25: Achieved consistent code updating and adoption among participants.

Opportunity in FY 2025-26: Find new code options and support agencies in the face of legislative changes.

PARTICIPATION
Code passes second
reading & is implemented
Code readopted or state
code meets requirements

INTERNAL

CRITERIA
Program funds distributed for adopting, updating,
and implementing codes $160k
Technical assistance for Member Agencies to adopt and codify building codes that go beyond state requirements to promote building electrification and EV infrastructure

8. REACH CODES
19 Provide support for at least 1 new reach code type
Support reach code adoption for 6 member agencies
5 Reach Codes updated or adopted by 3 member agencies
Figure 8.1: Number of code efforts across agencies
Nonresidential:

Property owners follow
energy efficiency
measures or install heat
pump technology at time
of replacement
New Construction:

Flexible menu of energy
efficiency, electrification,
and electric readiness
requirements for new
buildings
Existing Buildings:

Flexible menu of energy
efficiency, electrification,
and electric readiness
requirements for major
renovations
Single-FamilyMulti-Family
Figure 8.2: Description of each reach code type
New Construction
Existing Buildings-Single Family
*2-Way AC and Existing Buildings- Multi Family in
development for FY 25-26
Figure 8.3: Number of code efforts by code type
310 Permits impacted per year
2 New reach code types in development

AGRICULTURAL
ELECT. PROGRAM
Rebates for all-electric, agricultural
equipment for
business in or
directly
supporting the
agriculture industry
Budget: $800k

HOURLY FLEX
PRICING PILOT 1*
Real time pricing and
pumping automation
rebates for
agricultural meters
Budget: $100k

PROGRAM DESIGN IMPROVEMENT

AG ELECTRIFICATION

PROGRAM
Redefined equipment funding tiers with consideration of GHG avoidance potential and barriers to entry
Clarified definition of eligible businesses to include food systems and businesses on an ag rate
Ag Equipment

FISCAL YEAR
T
O
TA
L
R
E
B
AT
E
S
2020-2021
2021-20222022-2023
2023-2024
2024-2025
0 5
10 15
20 25
30 35
40 Over 182 MT CO2e avoided in FY 2024-25

AGRICULTURAL ELECTRIFICATION
Program Design Improvements Implemented in FY 2024-25
*See Energy Optimization section for metrics relating to Hourly Flex Pricing Pilot

AG REBATES DISTRIBUTED
20 CENTRAL COAST COMMUNITY ENERGY

Paid
91%
31 6 9
San Benito County
Monterey County
SLO County
Santa Barbara County
Santa Cruz County
1 Forklift
4 Harvest
Pieces
2 Irrigation
Pumps
13 Tractors
(Standard/
Compact)
2 Other
Electric
Items

PERFORMANCE
GOALS
“The support we received from 3CE allowed us to purchase a fully electric excavator to help trench new irrigation lines to support our expansion efforts. This is a critical part of our growth. Without the Ag program, we would have struggled to maintain our farm, let alone expand it."
IMPACT
- Our Parent Company, Watsonville
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION

KEY TAKEAWAYS
Success in FY 2024-25: Over 90% small business participation supported both large & small equipment purchases.

Opportunity in FY 2025-26: Low overall program participation indicates a need to redesign the program to maximize GHG reduction potential.

PARTICIPATION
Application
Received
Final Docs
Received
Submitted for
Payment

INTERNAL

CRITERIA
$646k in incentives distributed
Incentives for the purchase of all-electric agricultural equipment

9. AG ELECTRIFICATION PROGRAM
21 Incentivize at least 13 projects
Provide at least 50% of funding to small businesses
Support at least one DC Fast Charger project
20 customers supported across 22 equipment purchases
Monterey County
San Luis Obispo County
Santa Barbara County
San Benito County
Santa Cruz County
Figure 9.1: % applications by County
601
3500
Ag meter
count:

Figure 9.2. Top zip codes receiving 3CE funding
across ag meter density count
All-electric purchases enabled
MT CO2e avoided in FY 2024-25, equal to taking
12 diesel tractors off the fields for one year
incentives distributed to small businesses
182
$1.7M
Figure 9.4. Equipment types funded
Not a small business
Figure 9.5. Small business total, by county
Monterey County
San Luis Obispo County
Santa Barbara County
San Benito County
Santa Cruz County
Average days 46 to fund projectApplications were eligible 45% and received a rebate Project Complete
Awaiting Purchase
Incomplete
Denied: Opt-Out
Denied: Ineligible
Purchase Date
Figure 9.3. Applications per status

RESIDENTIAL

BATTERY REBATE
Rebates to install
residential, behind-the-meter battery
storage systems and
discharge during
peak hours
Budget: $2M

HOURLY FLEX
PRICING PILOT 2
Real time pricing and
automated load
shifting for
residential and
commercial meters
Budget: $100k

PROGRAM DESIGN IMPROVEMENT

RESIDENTIAL BATTERY
REBATE
Expanded program to allow leased battery systems, developed automated load shifting via scheduling

HOURLY FLEX PRICING
PILOT 2 Created enrolled customer guides to enable smoother load shifting set up MONTH
k
W
h
o
f lo
a
d
s
hift
e
d
d
aily
(
4 -
9 P
M
P
T
)
FY 23-24 Total
Oct
'24
Nov
'24
Dec
'24
Jan
'25
Feb
'25
Mar
'25
Apr
'25
May
'25
Jun
'25
Jul
'25
Aug
'25
Sep
'25
0 500
1000
1500
2000
2500
Over 2.3 MWh of load shifted daily during 4-9 PM peak hours

ENERGY OPTIMIZATION
Program Design Improvements Implemented in FY 2024-25

LOAD SHIFTED DAILY DURING PEAK PERIOD
2,354 kWh (2.3 MWh)
90 22 CENTRAL COAST COMMUNITY ENERGY

93446
93401
93420
93 11 9

CARE/FERA
NBT Switch
Standard
Medical Baseline
Monterey County
San Luis Obispo County
Santa Barbara County
San Benito County
Santa Cruz County

PERFORMANCE
GOALS
“I’m excited to be able to support myself and others with cleaner energy, and I am so very happy about getting my batteries! Thanks 3CE, for all the help."
IMPACT
incentives distributed to income qualified applicants
- Jessica Hanson, 3CE Residential Customer, Santa Cruz
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION

KEY TAKEAWAYS
Success in FY 2024-25: 200% increase in applications received; over 2.3 MWh of load shifted daily during peak hours.

Opportunity in FY 2025-26: Improve customer understanding of program requirements and benefits through increased communication and contractor outreach.

PARTICIPATION

INTERNAL

CRITERIA
32%
$1.6M in incentives distributed
Incentives to install residential, behind-the-meter battery storage systems

10. RESIDENTIAL BATTERY REBATE
Incentivize 400 battery systems
Distribute 15% of incentives to CARE/FERA or
medical baseline customers
Figure 10.1: % Applications by county
243 applications approved across 3CE service area
Figure 10.2: Total battery capacity installed, per zip code Battery capacity (kWh)
Indicates a zip
code with over
300kWh of
added capacity
5 613
23 Application
Received
Final Docs
Received
Submitted for
Payment
Paid
113 Average days to fund project
97% Manufacturer types supported on load shift tracking platform Figure 10.4: Applicants connected to load tracking
10 Unique battery manufacturer types rebated
23% Total project cost supported, on average
52 local contractors engaged

2.3MWh Load shifted daily during peak hours
Figure 10.3: Applications rebated by applicant type

Agricultural
Commercial
Residential

INTERNAL
average days
to complete
application
43 Figure 11.3: All received applications, by status
Top reasons for ineligible /waitlist:
23% already enrolled in a demand-response program
10% Net Energy Metering customers

PERFORMANCE
GOALS

KEY TAKEAWAYS
Success in FY 2024-25: Over 16 GWh of enrolled annual load across all three customer classes within first year of the three year pilot, with majority participation from commercial meters.

Opportunity in FY 2025-26: Low to no savings for residential and agricultural meters to date; Encourage enrollment with automated service providers to better optimize load flex & energy savings

PARTICIPATION

CRITERIA

11. HOURLY FLEX PRICING PILOT 1 & 2
Dynamic pricing for eligible agricultural, residential, and commercial customers to enable load flex 3-year pilot in partnership with PG&E
24 CENTRAL COAST COMMUNITY ENERGY
Enroll at least three customers in first three months
with potential show of irrigation pump load flex
Achieve load shifting capacity of approximately 3-
5MW at the end of the 3-year pilot
Enrolled Load (GWh) Target Enrolled Load (GWh)
Figure 11.4: % ratio of total enrolled annual load
compared to target load (GWh)
Agricultural $88
Commercial $138,066
Residential $(254)
Total $137,900
IMPACT
Table 11.1: Total customer credits, by
customer segment (Feb-Sept 2025)*
*Subject to change
*combination of 3CE (generation) & PG&E (T&D) bill credits 69 enrolled meters across 27 unique customers
Figure 11.1: % Applications by County
Enrolled with an ASP
Not enrolled with an ASP
Figure 11.2: % of enrolled customers enrolled with an
Automated Service Provider (ASP)
Ineligible
Enrolled
Unerolled
Waitlist
Cancelled

2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 25

FINDINGS & RECOMMENDATIONS
In FY 2024-25, 3CE distributed approximately $15 million in incentives and support across its service area, a $4 million increase from the previous fiscal year. For the first time in agency history, 3CE’s energy programs portfolio maximized budget and participation, leading to over 6,042 MT CO2e avoided, and 2.3 MWh load shifted daily. Preliminary findings and recommendations from the data collected for this portfolio evaluation show a continued need to expand access to the portfolio’s offerings for all customer types, to increase information and education to customers considering electrification projects, and to develop pathways for customers to optimize their individual energy usage to lower cost and maximize use of renewable energy resources.

PARTICIPATION
Equal Accessibility: While programs served over 2,869 unique applicants across five counties, participation remains concentrated in urbanized areas of Monterey, Santa Cruz, and San Luis Obispo counties. Overall participation is growing, but there is a continued need for education and outreach across 3CE’s rural and unincorporated service area to improve accessibility for customers.

Member Agency Engagement: Over 45% of Member Agencies have now engaged with 3CE's energy programs. Ten Member Agencies participated in Plan Your Fleet in FY 2024-25, though only 43% of past participants report partial completion, which may be due to long procurement timelines, budgetary restrictions and lack of technical support.

Future initiatives should focus on developing comprehensive support in fleet transition and charging infrastructure development, including RFP and procurement support.

PERFORMANCE
Budget Utilization: 3CE distributed the total Energy Programs incentive budget for fiscal year 2024-25, a 40% increase from the prior fiscal year. Several programs exceeded budget expectations:

Electrify Your Ride
E-bus Program
Electrify Your Home
Reach Codes Program
3CE continues to refine programmatic design to maximize support for customers pursuing electrification projects.

Portfolio Goals Achievements:

Transportation: Incentivized over 1,025 EVs and 1,062 chargers; launched six 3CE-owned EV charging stations Building: Funded over 1,146 heat pump water heater and HVAC units; supported 302 all-electric housing units (86% affordable housing)
Agriculture: Incentivized 22 ag projects (90% to small businesses); engaged Ag customers with real-time pricing Energy Optimization: Achieved 2.3 MWh of daily load shifting through residential battery discharge.

Active development of new programs to support customers at various stages of electrifying.

IMPACT
Equity Distribution: 42% of incentive budget went to equity-qualified projects, a 17% increase from the prior year. This included:
73% of New Construction funding for affordable housing
96% of Ag Electrification funds to small businesses
60% of Electrify Your Home participants were income-qualified (up from 6% prior year) The Residential Battery Rebate Program requires additional communication and technical support for participants.

Environmental Impact: The portfolio avoided over 6,042 MT CO2e in FY 2024-25—equivalent to:

Taking 1,409 gas-powered passenger vehicles off the road Avoiding nearly 15.4 million gas-powered miles driven
1,259 homes' electricity use for one year
Economic Impact: Over 118 local contractors and developers engaged with 3CE customers to complete over $77 million in electrification projects and purchases.

INTERNAL RESOURCES
Processing Efficiency: On average, customers received rebates within 16 days after submitting final documents for active programs. However, customers take an average of 42 days to submit documents, suggesting opportunities to streamline the application process through website updates, automated reminders, and enhanced customer service.

Enhance program design and
increase outreach to maximize
accessibility for 3CE’s
underserved communities
Develop comprehensive EV and
EV charger technical assistance to
provide continuous support for
customers from electrification
planning to project completion
Improve EV charger access
through EV Charger Asset Pilot
that includes 3CE-owned and
operated workplace and publicly
accessible charging
3CE's transportation electrification programs reduced over 4,704 MT CO2e through incentivizing 1,025 EVs and 1,062 EV chargers. Electrify Your Ride supported over $47 million in purchases across the central coast, with about a third of funds distributed to income-qualified customers. In FY 2024-25, the program received its highest participation since launch, supporting 1,588 unique customers across all five counties, consistent with EVs representing up to 29% of new car sales in California. 3CE's bilingual marketing encouraged customers to capitalize on federal tax credits before they sun-setted in September 2025. Continued growth is expected in FY 2025-26, with targeted outreach to San Benito, Monterey, and Santa Barbara counties, which had lowest participation.
1 The E-bus Program supported 17 E-bus purchases across six school districts and two transit agencies, allowing customers to assign rebates directly to manufacturers to reduce upfront costs.

Electrify Your Ride concierge service supported over 22 commercial, multifamily, and agricultural customers in EV charger planning. Plan, Charge, and Electrify Your Fleet supported 12 cities and counties, with 43% completing electrification projects. Many agencies have multi-year implementation plans due to long procurement timelines, limitations in resources, and changing regulations, which we hope to shorten through launch of comprehensive technical assistance for all nonresidential customers.

Along with technical assistance, 3CE is addressing the existing gaps in publicly accessible and workplace charging availability across the central coast through 3CE’s EV Charger Asset Pilot. Launched in FY 2024-25, the pilot completed installation of six Level 2 chargers at 3CE’s San Luis Obispo and Soquel offices, with a public EV charging project planned in Santa Maria in FY 2025-26. EV charger availability has doubled EV adoption across the agency’s staff, reinforcing the value of accessible workplace charging. Data collected from the pilot should inform a potential EV charger masterplan supporting California's goal of installing two million charging stations by 2035. 2 TRANSPORTATION ELECTRIFICATION
LOOKING AHEAD...
26 CENTRAL COAST COMMUNITY ENERGY

1.https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator

2.Electric Vehicle Charging Infrastructure Assessment - AB 2127 Electrify Your Ride
Electric Bus
Plan, Charge, and Electrify Your Fleet
Transportation Grants
EV Charger Asset Pilot
Electrify Your Ride
EV Charger Asset Program
Publix Agency Fleet Elect.

Develop virtual home
assessments pilot

BUILDING ELECTRIFICATION
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 27
Electrify Your Home saw over 200% participation growth, supporting 944 heat pump water heaters and 204 heat pump HVAC purchases. Income-qualified participation grew to 60% in FY 2024-25 from 6% the prior year. Due to overwhelming demand, the program paused new applications in July 2025, relaunching with expanded eligibility for purchases made in 2025.
3CE transitioned to delivering rebates in-house, enabling faster processing and funding stability. A year-long Community Advisory Council review began in October 2024, including four community workshops to gather feedback from contractors, builders, and customers. This informed Electrify Your Home V2.0, featuring expanded offerings such as contractor eligibility, new induction cooktop rebates and renter participation through portable space conditioners. A home assessment pilot is currently under development to provide comprehensive assistance to customers planning home electrification projects, including personalized information about home electrification options, costs, and resources.

The New Construction Electrification Program distributed over $1 million for 261 all-electric housing units, although participation decreased 31% compared to prior year, indicating need for improved outreach on all-electric housing benefits. 3CE is actively pursuing opportunities for feedback from housing developers, county planning departments, and key agricultural stakeholders, to gain visibility into the housing landscape, development timelines, and barriers to electrification to inform program design improvements that encourage all-electric housing adoption. 3CE’s Reach Codes Program achieved high participation this fiscal year; however, newly introduced statewide legislation led to restrictions in the adoption of state and county reach codes. 3CE continues to monitor court challenges to residential electrification building codes and will extend its support for code updates and education.

Launch Electrify Your Home V2.0
in house with expanded contractor
eligibility, additional rebates, and
customer support
Engage with housing developers,
county planning departments, and
key agricultural stakeholders to
support new all-electric housing
developments
LOOKING AHEAD...

Electrify Your Home
New Construction Elect.

Reach Codes
Electrify Your Home V2.0
New Construction Elect.

Reach Codes

Facilitate enrollment in Hourly Flex
Pricing Pilot to enable cost
savings and load away from peak
hours
Review Ag Electrification program
through customer feedback and
research on ag electrification
opportunities, informing an
improved Ag Electrification V2.0
Continue outreach and education
for ag customers around benefits
of electrification and the emerging
technologies
LOOKING AHEAD...

AGRICULTURAL ELECTRIFICATION
28 CENTRAL COAST COMMUNITY ENERGY
The Ag Electrification Program provided 22 rebates supporting $1.7 million in all-electric purchases, distributing 46% more funds than the prior year. The program was adjusted to support food system businesses and those on ag rates, with recategorized equipment incentives aligned to GHG avoidance and upfront costs. Despite growing momentum in electric ag machinery (anticipated to grow 12% between 2026-2033) we see untapped opportunities to engage agricultural customers in electrification, as they represent over 16% of 3CE’s total load demand. Barriers include grid access challenges, high costs, lack of regulatory enforcement, and reliability concerns. 1 In collaboration with the Community Advisory Council, Ag Electrification V2.0 outreach began in October 2025 with the aim of improving program design. Feedback will inform potential elements like rebates for emerging technologies, technical assistance, and demonstrative electric-farm case studies. The current small-business requirement for enhanced incentives will also be re-examined to reduce the burden of proof for growers and consider different crop type cost-yield ratios.

The Hourly Flex Pricing Expanded Pilot encouraged agricultural customers to shift operations away from hours with high grid demand through access to real time pricing and hourly forecasts. This three-year pilot is implemented in partnership with PG&E, and Polaris, the largest developer of agricultural demand response projects in California. In its first year, customers enrolled 4.1 GWh load across 7 meters, meeting 44% of 3CE's target. No customers utilized the automation rebate, possibly due to limited education and vendor opportunities. 3CE continues advocating for improved education and data access to evaluate pilot impact.

1.https://www.verifiedmarketreports.com/product/electrification-of-agricultural-machinery-market/ Ag. Electrification Program
Hourly Flex Pricing Pilot 1
Ag. Electrification V2.0
Ag. Automation Pilot
Hourly Flex Pricing Pilot 1

Facilitate enrollment in Hourly Flex
Pricing Pilot to enable cost
savings and load shifting of
operations during peak times
Scale customer load shifting
through active control of EV
chargers, battery systems, and
thermostats
Enhance energy resiliency through
a grid-connected microgrid at
critical public facilities across
3CE’s service area
LOOKING AHEAD...
3CE’s Residential Battery Rebate Program completed its first full year of operation and supported over 243 customers in the adoption of residential battery storage systems. 3CE introduced multiple program enhancements to improve program accessibility and the application process. These improvements included expanding the program to allow leased battery systems, providing an installer toolkit, and launching an opt-in scheduling service for customers’ daily battery discharge. As a result, the program contributes to over 2.3MWh of load shift daily during the peak hours of 4pm-9pm.

As customers’ adoption of electrification technologies accelerates, 3CE sees opportunities to scale the program’s impact through a distributed energy resource management system (DERMS) pilot that will optimize grid operations and customer benefits through active control. Along with residential batteries, the DERMS would include active control of additional electrification assets such as thermostats and EV chargers to form a virtual power plant (VPP) that would provide real-time visibility into grid conditions and centralized coordination through demand response capabilities. 3CE’s residential and commercial customers have also engaged in the Hourly Flex Pricing Pilot (HFP) Expanded Pilot, administered in partnership with PG&E. Similarly to HFP for agricultural customers, this pilot provides dynamic pricing signals for eligible customers to enable load optimization and potential bill savings. While the first year of the hourly Flex Pricing pilot resulted in over $137k in total customer bill savings, savings can be enhanced through greater participation in automation services, requiring additional customer education and outreach. 3CE continues to develop energy optimization resources for reducing cost and maximizing renewable energy. These include introducing a bi-directional charging rebate as part of the Electrify Your Ride program and a Microgrid pilot that can utilize battery storage and behind the meter distributed energy resources (DERs) to enhance energy resiliency, reduce utility costs, and support a transition to 100% renewable energy.

ENERGY OPTIMIZATION
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 29
Residential Battery Rebate
Hourly Flex Pricing Pilot 2
Virtual Power Plant Pilot
Microgrid Pilot
Hourly Flex Pricing Pilot 2

FOCUS IN 2025-26

LOOKING AHEAD & CONCLUSION
30 CENTRAL COAST COMMUNITY ENERGY

TRANSPORTATION
Improve programs’ design, education, & outreach to maximize accessibility for 3CE’s underserved communities Develop comprehensive EV and EV charger technical assistance from electrification planning to project completion Improve EV charger access through EV Charger Asset Pilot that includes 3CE-owned workplace and public charging

BUILDING
Bring Electrify Your Home administration in house with expanded contractor eligibility, and additional rebates Develop virtual home assessments pilot
Engage with housing developers and county planning departments to support new, all-electric housing developments

AGRICLUTURAL
Review Ag Electrification program with community advisory council and gather customer feedback to improve program design Facilitate enrollment in Hourly Flex Pricing Pilot to enable cost savings and operational load shifting Continue outreach and education to ag customers around benefits of electrification and emerging technologies

ENERGY OPTIMIZATION
Scale customer load shifting via Distributed Energy Resource Management System and Virtual Power Plant pilot Facilitate enrollment in Hourly Flex Pricing Pilot to enable cost savings and operational load shifting during peak times Enhance energy resiliency through microgrids with battery storage at critical public facilities In FY 2024-25, Central Coast Community’s Energy Programs invested $15 million to support customers in avoiding over 6,042 MT CO2e emissions through rebates, technical assistance, and electrification pilots. 3CE is scaling impact across the Central Coast with energy programs that reduce greenhouse gas emissions and support local economic development. 3CE will continue to enhance its Energy Programs portfolio to increase participation, maximize performance, and expand impact. The path below illustrates 3CE’s short term portfolio enhancement strategies to support the agency’s core mission of reducing reliance of fossil fuels on our energy grid. With input from customers, board members, and stakeholders, 3CE will develop a long-term programs strategic plan supporting the agency’s goal of 100% clean, renewable, and affordable energy.

The ongoing success of 3CE’s Energy Programs relies on community feedback from customers, community members, Member Agencies, and board and council members, to inform future program design, implementation, outreach, budgeting, and evaluation as part of 3CE’s commitment to continual improvement.

Please direct comments and feedback to: [email protected] CURRENT 3CE ENERGY PROGRAMS PORTFOLIO
Electrify Your Ride
Electric Bus
Plan, Charge, and Electrify
Your Fleet
Transportation Grants
EV Charger Asset Pilot

TRANSPORTATION

ELECTRIFICATION

BUILDING

ELECTRIFICATION

AGRICULTURAL

ELECTRIFICATION
ENERGY

OPTIMIZATION
Electrify Your Home
New Construction Elect.

Reach Codes
Ag. Electrification Program
Hourly Flex Pricing Pilot 1
Residential Battery Rebate
Hourly Flex Pricing Pilot 2

TRANSPORTATION

ELECTRIFICATION
RECOMMENDED 3CE ENERGY PROGRAMS PORTFOLIO

BUILDING

ELECTRIFICATION

AGRICULTURAL

ELECTRIFICATION
ENERGY

OPTIMIZATION
Electrify Your Ride
EV Charger Asset Program
Public Agency Fleet Elect.

Electrify Your Home V2.0
New Construction Elect.

Reach Codes
Ag. Electrification V2.0
Ag. Automation Pilot
Hourly Flex Pricing Pilot 1
Virtual Power Plant Pilot
Microgrid Pilot
Hourly Flex Pricing Pilot 2

CALCULATION INPUT VALUE UNIT SOURCE
Gasoline 8.78 kgCO2e/gal 1
Diesel 10.21 kgCO2e/gal 1
Average Emissions Intensity 1 0.247 mtCO2e/MWH 2
Average Emissions Intensity 2 0.189 mtCO2e/MWH 3
E-Bus - Type A/B
Average Fuel Economy 6.2 miles per gallon 5(2), 7
Miles/year 14302 miles/year 5(1)
Gallons gasoline/year 2306.77 gasoline gallon equivalent 5(3), 5(4) EV efficiency 2.84 kWh/mile 8
E-Bus - Type C/D
Average Fuel Economy 6 miles per gallon 5(2), 7
Miles/year 6993 miles/year 5(1)
Gallons gasoline/year 1165 gasoline gallon equivalent 5(3), 5(4) EV efficiency 4.2 kWh/mile 8
E-Bus - Transit Bus
Average Fuel Economy 3.4 miles per gallon 5(2)
Miles/year 42940 miles/year 5(1)
Gallons gasoline/year 9605 gasoline gallon equivalent 5(3), 5(4) EV efficiency 3.6 kWh/mile 8
Passenger Vehicle
Average fuel economy 25 miles per gallon 4, 5(2)
Miles driven per year 10000 miles/year 5(1), 6
Metric tons CO2e/year 4.6 mtCO2e/year 6
Gallons gasoline/year 400 gallons/year 5(1), 6
EV kWh per year 3460 kWh/year conversion
Ag equipment (50 HP equipment)
Annual hours used 1000 hours/year 9
CO2e equivalent 1 32.9 lbs CO2e/hour 9
1 HP equivalency 0.736 kW conversion
Energy economy ratio 3.8 - 10
Diesel energy content 11.6 kWh/kg 11
Residential Heat Pump
Annual natural gas space heating 207 therms/home/year 12 Annual Natural gas water heating 259 therms/home/year 12 Natural Gas CO2 emissions 52.9 kgCO2/mmBTU 13
Coefficient of performance HP HVAC 3.5 COP 14
Efficiency of natural gas furnace 88% - 15
Coefficient of performance HPWH 2.8 COP 16
Efficiency of natural gas water heater 62% - 17
APPENDIX A1: GREENHOUSE GAS EMISSIONS

INPUTS & CONVERSION FACTORS
For transportation and agricultural electrification projects, the annual energy consumption was calculated for both conventional and electric systems in terms of kilowatt-hours (kWh). The emissions associated with gasoline (passenger vehicles) and diesel (all Type A, C buses, transit buses, and off-road mobile agricultural equipment) were then converted to their CO2 equivalencies based on emissions factors and the carbon intensity of the local grid. Greenhouse gas emission avoidances in the building sector were calculated for projects replacing natural gas furnaces and water heaters with electric alternatives. Average gas consumption for homes in PG&E territory was used to calculate the emissions attributed to retired natural gas appliances, compared to heating load produced from installed heat pumps. Staff used emissions factors specific to the 3CE service area and employed modified State protocols for emissions calculations to ensure conservative and transparent reporting.
2024-2025 ENERGY PROGRAMS PORTFOLIO EVALUATION 31

APPENDIX A2: SOURCES
32 CENTRAL COAST COMMUNITY ENERGY
SOURCE # NAME LINK
1 EPA https://www.epa.gov/system/files/documents/2022-04/ghg_emission_factors_hub.pdf 2 3CE PCL (2021) https://www.energy.ca.gov/filebrowser/download/4606 3 3CE PCL (2024) https://3cenergy.org/wp-content/uploads/2025/01/3CE-2024-PCL-R7-FINAL.pdf 4 United States Department
of Transportation
https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicles 5 EVCAP GHG Emissions https://na.chargepoint.com/admin/dashboard 5(1) AFDC https://afdc.energy.gov/data/widgets/10309
5(2) Pfleet https://www.pfleet.com/
5(3) Fuel consumption https://www.sciencedirect.com/science/article/pii/S0016236125016631 5(4) Argonne National Lab https://afleet.esia.anl.gov/hdv-emissions-calculator/ 6 EPA https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle 7 CARB ZEB Pilot
Deployment Project
https://ww2.arb.ca.gov/sites/default/files/2021-
10/sac%20ze%20school%20bus%20deployment%20project%20final%20report.pdf 8 CARB SDMTS ZEB
Transition
https://ww2.arb.ca.gov/sites/default/files/2020-
12/SDMTS_ZEB_Fleet%20Transition%20StudyADA12072020.pdf
9 CARB Ag Equipment
Emissions Inventory
https://ww2.arb.ca.gov/sites/default/files/2021-
07/AG2021_Technical_Documentation_Final_DRAFT_ADA_PDFA.pdf 10 CARB GHG Quantification
Methodology – Off Road
https://ww2.arb.ca.gov/sites/default/files/auction-proceeds/carb_offatd_finalqm_16-17.pdf 11 US DOE Fuel Properties
comparison
https://afdc.energy.gov/fuels/properties
12 2019 RASS study https://www.energy.ca.gov/sites/default/files/2021-08/CEC-200-2021-005-PO.pdf 13 EIA https://www.eia.gov/environment/emissions/co2_vol_mass.php 14 Rocky Mountain Institute https://rmi.org/now-is-the-time-to-go-all-in-on-heat-pumps/ 15 2019 CA Building Efficiency
Standard
https://www.energy.ca.gov/sites/default/files/2021-
07/2019_Residential_Compliance_Manual-Complete_without_forms_ada.pdf 16 CPUC
https://sonomacleanpower.org/uploads/documents/Task-4.1-Efficiency-Optimizing-Control-Strategies-for-Grid-Integrated-Heat-Pump-Water-Heater-Report.pdf 17 Energy Star
https://www.energystar.gov/sites/default/files/specs//private/WaterHeaterDraftCriteriaAnal ysis.pdf

CONTACT
1026 Palm Street
3CE NORTHERN OFFICE
70 Garden Court Suite 300
Monterey, CA 93940
For all PG&E customers
Email: [email protected]
3CESOUTHERN OFFICE
San Luis Obispo, CA 93401
For all SCE customers
Email: [email protected]

Staff Report Item 15
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Gina Urmatan, Senior Accountant
SUBJECT: Financial Report for the period of October 1, 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 will be monitored as historically energy costs trend higher over the remainder of the fiscal year and rates were adjusted downward on February 15, 2026.

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 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 held 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

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

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

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

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

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

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

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.

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

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)

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

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

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

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

Staff Report Item 16
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Thomas White, Accountant
SUBJECT: Investment Performance Report for the period of October 1, 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

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%

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.

Staff Report Item 17
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Jerri Strickland, Director of Regulatory Affairs and Compliance SUBJECT: CPUC Regulatory Update
DATE: May 27, 2026
RECOMMENDATION:

This recommends the Operations Board receive the attached CPUC Regulatory Update.

DISCUSSION/ANALYSIS:

Please find attached 3CE’s Regulatory Update, providing the latest information on the following:
 Resource Adequacy (RA)
 Disconnections
 New Power Charge Indifference Adjustment (PCIA) Rulemaking  Integrated Resource Planning (IRP)
 PG&E Rule 30 Application for Transmission Service
 Improvements to Climate Credit
 Integrated Energy Policy Report (IEPR)
 California Advanced Electric Rate Design
 Order Instituting Rulemaking (OIR) to Expand Load Management Standards FISCAL IMPACT:

No financial impact by receiving this report.

CONCLUSION:

This is an informational item only.

ATTACHMENT(S):

CPUC Regulatory Update

Regulatory Operations Board Update
May 27, 2026

Table of Contents
Contents
REGULATORY UPDATE.......................................................................................................................................................32 Resource Adequacy (RA)...............................................................................................................................................33 Disconnections...................................................................................................................................................................33 New Power Charge Indifference Adjustment (PCIA) Rulemaking...............................................................44 Integrated Resource Planning (IRP).........................................................................................................................44 Renewables Portfolio Standard (RPS) – R.24-01-017.....................................................................................55 PG&E Rule 30 Application for Transmission Service ........................................................................................56 Improvements to the Climate Credit........................................................................................................................66 Integrated Energy Policy Report (IEPR).................................................................................................................77 California Advanced Electric Rate Design ..............................................................................................................77 OIR to Improve Implementation and Expand Participation Under the Load Management Standards ..................................................................................................................................................................................................88

REGULATORY UPDATE
Resource Adequacy (RA) - R.25-10-003
Issue
The Resource Adequacy (RA) program is the California Public Utilities Commission’s (CPUC) main grid reliability planning program. All load serving entities (LSEs) under the CPUC’s jurisdiction, including CCAs, must demonstrate purchase of a specified amount of eligible RA generation capacity each month and year to comply with RA program requirements. The current proceeding will address the 2027 and 2028 RA compliance year and consider further refinements to the slice-of-day (SOD) framework.

Status
3CE continued its regulatory advocacy on Resource Adequacy and market design issues, focusing on cost containment and improved procurement efficiency. In March, 3CE submitted comments supporting PG&E’s proposal to allow Energy Only resources to count toward charging sufficiency requirements, citing affordability benefits from expanding eligible resources. 3CE also participated in stakeholder efforts led by CalCCA to support hourly load obligation trading, which could reduce over-procurement and lower system costs; despite an Energy Division report raising implementation concerns, CalCCA filed comments challenging its assumptions and highlighting potential ratepayer savings. Following procedural disputes over late arguments introduced by IOUs, the Administrative Law Judge allowed additional responses, and CalCCA, with 3CE support, reinforced the benefits of voluntary trading mechanisms. Separately, 3CE also supported CalCCA comments on the CPUC’s draft Inputs and Assumptions report, recommending improved load forecasting methodologies to better inform future Planning Reserve Margin (PRM) and Resource Adequacy requirements, while the California Independent System Operator released its draft 2027 local capacity needs assessment, which will inform upcoming local RA requirements.

Next Steps
CalCCA will seek to file a sur-reply to the IOUs’ reply comments opposing hourly load obligation trading in order to respond to their arguments prior to the Commission’s Proposed Decision on all Track 1 issues in May. ] Once the Inputs and Assumptions for the 2028 LOLE study are finalized, parties will begin to draft and serve their Planning Reserve Margin (PRM) proposals in August. The PRM is a buffer applied on top of RA procurement; 3CE will work with other CCAs to investigate the CPUC’s PRM study methodology to eliminate any errors unnecessarily inflating the PRM before adopting further increases to procurement requirements.

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

Status
The CPUC held a workshop on March 11, 2026, on the future of disconnections caps and the pilot programs created in the proceeding to minimize arrears and protect customers from disconnections. CalCCA provided comments advocating for the continuation of balanced reforms that maintain strong protections for vulnerable

customers while ensuring programs are cost-effective and administratively workable.

Next Steps
3CE will continue tracking proposals related to potential changes to the disconnection caps, upcoming program sunsets, and possible “circuit breaker” safeguards to prevent rapid increases in shutoffs. The Commission is expected to release a Proposed Decision on phase 2 issues by the end of this year, which will conclude the proceeding.

New Power Charge Indifference Adjustment (PCIA) Rulemaking – R.25-02-005 Issue
On February 20, 2025 the CPUC opened a new proceeding to update policies and procedures related to the IOUs’ Energy Resource Recovery Accounts (ERRA) and the Power Charge Indifference Adjustment (PCIA). The PCIA is a fee that all customers, bundled or unbundled, pay to ensure the IOUs remain indifferent to the loss of customers for legacy procurement done prior to customers having the choice to choose their energy provider.

The rulemaking will address near- and long-term changes impacting the PCIA, a ratemaking element designed to ensure customer indifference to retail load departure. The CPUC calculates the PCIA using market price benchmarks (MPBs) to establish the market value of the IOUs’ PCIA-eligible portfolio. However, in recent ERRA proceedings, the IOUs have proposed new policies related to the calculation of MPBs, citing concerns with the accuracy and volatility of the current methodology.

Status
Track 2 of this proceeding focuses on how pre-2019 banked Renewable Energy Credits (RECs) should be valued.

In Rebuttal Testimony filed on March 23, CalCCA argued that RECs are utilized for compliance with California’s Renewable Portfolio Standard (RPS) requirements and are most accurately valued at the RPS Market Price Benchmark (MPB). The Rebuttal Testimony does so by refuting IOU claims that the pre-2019 Banked RECs had already been valued, are categorically different than other RECs, or that valuation of these resources at a non-zero value would harm the RPS market. Most notably, the IOU do not address their statutory obligation which requires that net unavoidable costs paid by CCA customers be reduced by the value of benefits that remain with bundled service customers. The resulting misalignment between who funded the attributes and who now benefits from them creates a cost shift between bundled and unbundled customers, precisely the type of imbalance the PCIA was designed to address.

The scope for Track 3 is being developed, but is expected to consider a larger reform of the PCIA Framework.

Next Steps
Opening Briefs are due on June 16 for Track 2. For Track 3, the Administrative Law Judge issued an email stating that a Track 3 Scoping Ruling will be forthcoming, but that parties should save the following dates for Track 3 Workshops, in person at the CPUC, to address the many questions raised in comments on the scoping ruling order: June 8, 2026 (afternoon); June 9, 2026 (morning); and June 15, 2026 (all day).

Integrated Resource Planning (IRP) – R.20-05-003; R.25-06-019 Issue
Integrated Resource Planning (IRP) is the CPUC’s greenhouse gas (GHG) reduction planning program. LSEs must submit IRPs every two years demonstrating that planned future procurement will produce GHG emissions below an assigned benchmark while contributing to a resource fleet that meets sector-wide GHG targets and maintaining grid reliability. Previous IRP cycles have produced three procurement mandates, which apply to 3CE

and other CCAs. On April 18, the CPUC issued an Amended Scoping Memo stating its intent to address additional issues in the IRP proceeding, including implementation of Assembly Bill (AB) 1373 which allows the Commission to request that the Department of Water Resources (DWR) serve as a central procurement entity (CPE) for certain long-lead time (LLT) resources, as well as development of a long term procurement framework entitled the Reliable and Clean Power Procurement Program (RCPPP) that would replace the CPUC’s current ad hoc mandate structure.

Status
On March 9, the Commission granted a request submitted by CalCCA and several other parties for a delay to the June 1 deadline for filing individual integrated resource plans (IRP). Individual IRPs will now be due on August 10.

Separately, on March 19, the Commission released updated 2026 IRP filing materials, including tools, templates, and instructions for how to consider potential allocations from DWR central procurement into long-term planning. The finalization of these materials and the updated deadline provide certainty for 3CE’s plan to achieve its proportional share of GHG emission reduction targets and support state goals.

Next Steps
3CE’s next mid-term reliability procurement compliance filing deadline is June 1. 3CE continues to prepare for its upcoming IRP filings and monitor for any further development of the Reliable and Clean Power Procurement Program (RCPPP), intended to eventually replace ad hoc procurement orders.

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

Status
On March 2, the Commission issued the content requirements and schedule for 2026 RPS Procurement Plans.

These filings include information on load-serving entities’ renewable portfolios, solicitation plans, and long-term planning for renewable energy procurement. The deadline for 2026 RPS Procurement Plans is June 12.

Next Steps
3CE has initiated work on its 2026 RPS Procurement Plan in preparation for the June 12 filing. After plans are submitted, parties will have the opportunity to submit comments by July 13. The Commission will then issue a proposed decision on RPS Procurement Plans in Q4 of 2026 to accept the plans as submitted or direct LSEs to make amendments.

PG&E Rule 30 Application for Transmission Service – A.24-11-007 Issue
On November 21, 2024, PG&E submitted an Application to the CPUC requesting approval of a new rule for non-residential customers requesting interconnection at transmission-level voltages, citing a recent increase in customers such as data centers requesting transmission-level interconnections. Current PG&E rules are focused on distribution-level interconnections. Under the proposed rule, the transmission-level customer would pay interconnection costs in advance until their forecasted load materializes, at which point the costs would be

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

Status
On March 13, parties submitted limited opening testimony in response to the Administrative Law Judge’s questions related to cost causation, financing, apportionment of facility costs, and refund processes. Separately, an all-party settlement conference took place on March 27. CalCCA attended on behalf of the CCAs to help present the terms of the settlement agreement it has reached. The agreement will be submitted to the Commission for approval.

Next Steps
After parties submit rebuttal testimony related to cost causation questions, reply briefs on all Rule 30 issues will be due May 22. CalCCA’s advocacy in the proceeding has centered around ensuring adequate information-sharing practices for CCAs, especially given the role of CCAs as default generation providers. 3CE will continue to engage in the proceeding through CalCCA and will monitor for a new CPUC rulemaking related to large load rate design, anticipated to open later this year.

Improvements to the Climate Credit – R.25-07-013
Issue
The California Cap-and-Trade program, which was renamed Cap-and-Invest under AB-1207, requires power plants, fuel providers, and large industrial facilities that emit greenhouse gases (GHGs) to retire allowances to cover their emissions. The sale of these allowances is used to benefit ratepayers by funding the California Climate Credit. A twice-per-year lump-sum bill credit delivered in April and October, automatically provided to all bundled and unbundled residential electric customers. On July 28, 2025, the CPUC initiated a rulemaking to consider ways to improve the effectiveness of the Climate Credit in support of customer affordability. The preliminary scope of the rulemaking includes potential modifications to customer eligibility criteria, distribution timing, and customer outreach related to the Climate Credit.

Status
On April 30, the California Public Utilities Commission voted to approve a Proposed Decision ordering the IOUs to distribute the 2026 Residential Electric Climate Credits in the summer. Historically issued in April and October, the credits will now be provided to 3CE customers in August and September; a change the CPUC finds necessary to maximize the affordability impact of the credits by aligning distribution with the average statewide peak for electric bills.

Next Steps
While the first several months of the proceeding focused on modifying when customers would receive the credit, Phase 1B, which will consider broader changes to the residential climate credit, will begin later this quarter.

Phase 1B will address broader changes to eligibility, timing, number of annual distributions, calculation methodology, as well as impact on ESJ communities and costs for implementing changes to credit distribution.

Phase 2 was scheduled to allow time for the California Air Resources Board (CARB) to complete its new regulations concerning the Cap-and-Invest program. 3CE will continue to advocate in this phase to ensure that all residential customers continue to receive their share of the credit to help address challenges with affordability.

The Commission expects to reach a decision on these broader changes to the Climate Credit early next year.

Integrated Energy Policy Report (IEPR) –25-IEPR-03
Issue
The Integrated Energy Policy Report (IEPR) is the California Energy Commission’s (CEC) biannual report, with an update every other year, to forecast energy demand and make other considerations on the State’s energy policies and goals. The IEPR forecast is a key input in the electric system planning and is used by the CPUC to inform procurement obligations for LSEs. The report is developed through a collaborative process where the CEC hosts a series of workshops and solicits stakeholder feedback.

Status
On April 17, the CEC issued its proposed final Scoping Order for the 2026 IEPR. The updated forecast will include scenarios that estimate the potential impacts of the state’s decarbonization strategies and other sources of load growth, such as increases in the number of data centers in the state. In addition to establishing the electricity demand forecast, the 2026 IEPR will assess the challenges and opportunities for geothermal development in California.

Next Steps
The policy recommendations featured in the final IEPR, to be adopted in February of 2027, will be informed through a collaborative process which begins with public workshops and comment opportunities starting over the summer. 3CE is collaborating with other CCAs to determine how to develop advocacy and engagement strategies in the IEPR process, ensuring that CCAs are included in information-sharing and forecasting efforts given their localized knowledge and role as default generation providers.

California Advanced Electric Rate Design –R.26-04-009
Issue
On April 9, the CPUC opened a new rulemaking, R.26-04-009, to establish advanced electric rate design policies to update residential and non-residential rate structures and their underlying cost inputs so that rates more accurately reflect the cost of providing service, send price signals that support efficient use of grid infrastructure, and allocate costs fairly across all customers. The CPUC’s primary focus is on amending policies around the delivery portion of customers' bills to improve reliability and affordability, while ensuring costs to manage the grid are allocated fairly. The OIR responds to increasing affordability pressures driven by wildfire related costs and rapid load growth, while also advancing prior efforts to remove fixed costs out of volumetric rates. This proceeding will look to both develop new rates and policies for emerging issues around large loads like data centers and Commercial and Industrial customers, while also addressing electric rate design issues remaining from previous rulemakings to reform rates for residential customers. The CPUC Investor-owned utilities are the primary respondents in the Rulemaking, but CCA participation is imperative to ensure any modifications to delivery costs are equitable for CCA customers.

Status
CalCCA, in coordination with 3CE, filed comments on May 11, supporting the new rulemaking and making recommendations to help minimize the preliminary scope to ensure measured and impactful reforms can be accomplished. 3CE’s advocacy will focus on establishing policies to improve information sharing between the IOUs and CCAs regarding new transmission interconnected large load customers, mitigating cost shifts from future data center development, and establishing rate reforms that incentivize electrification across the Central Coast.

Next Steps
A scoping memo and ruling will be issued following a Prehearing Conference, expected sometime in Q2 2026. It is the Commissions intent to complete this proceeding with 24 months.

OIR to Improve Implementation and Expand Participation Under the Load Management Standards –26-OIR-001
Issue
The California Energy Commission’s (CEC) updated Load Management Standards (LMS) require IOUs, municipal utilities, and CCAs with load greater than 700 GWh/year to upload time-dependent rates to the CEC’s Market Informed Demand Automation Server (MIDAS) platform, develop and maintain an LMS Compliance Plan, and jointly develop a single statewide standard tool (SST) for authorized rate data access by third parties that is compatible with each of those entities' systems. 3CE submitted its board approved LMS plan to the CEC in March of 2024 and continues to participate in the CEC’s framework to encourage load flexibility across California.

Previous updates to the LMS regulations sought to establish a foundation for expanding load flexibility across California. However, data access remains a major barrier to 3CE offering its own rate. CCAs would require the capability to combine generation rates with the IOU’s transmission and distribution components. While 3CE currently fulfills its LMS requirements through participation in PG&E’s dynamic rate pilots, issues around CCA autonomy and long-term compliance with LMS regulations remain.

Status
On April 8, the California Energy Commission (CEC) voted to approve 26-OIR-01, an Order Instituting Rulemaking (OIR) to consider targeted amendments to its Load Management Standards (LMS). The purpose of the proceeding is to update and amend LMS regulations that increase participation among customers and third-party service providers. Additionally, the new rulemaking seeks to develop centralized data sharing infrastructure, amend or replace LSE requirements around the Single Statewide Tool requirements, and remove obsolete regulations. 3CE will participate in a pre-rulemaking process featuring workshops, stakeholder comments, culminating in an Energy Commission Staff Report later this year, setting the parameters for a formal process to begin in 2027.

Next Steps
In addition to addressing CCA data barriers, 3CE will advocate for the Energy Commission to grant more flexibility for CCAs to comply with the LMS through their own existing programs. Considering the state’s goal of developing 7 GW of load shift resources by 2030, the Energy Commission should enable CCAs to innovate based of their specific strengths and customer needs, instead of narrowly defining load shift in an overly complex and costly manner.

Staff Report Item 18
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
SUBJECT: CEO Report
DATE: May 27, 2026
3CE ADVOCACY SUPPORTS LONG DURATION STORAGE AND FLEXIBILITY The California Public Utilities Commission’s Revised Procurement Order, approved at its Feb. 26, 2026 meeting, reflects several key recommendations advanced through 3CE Regulatory staff’s independent comments and direct engagement with Commission staff.

Most notably, the Commission removed the proposed 50% cap on storage procurement, acknowledging concerns that such a cap could discourage development of longer-duration energy storage (LDES) resources. Instead, the decision adopts a more flexible framework requiring that at least one-quarter of procurement by 2032 come from clean firm resources and/or long-duration energy storage. Removing the cap allows 3CE to count the full value of eligible LDES resources already in its portfolio, avoiding the need to sign additional PPAs solely to meet this Procurement Order. The decision also clarifies that “good faith efforts” will be considered in compliance evaluations, allowing load serving entities (LSEs) to demonstrate when solicitations produce high or non-competitive pricing, and reinstates former alternative compliance provisions.

Together, these changes provide important flexibility for LSE compliance while helping protect customer affordability and reflect the proposals advanced by 3CE.

STATE LEGISLATIVE UPDATE
3CE joined fellow Community Choice Aggregators (CCAs) at CalCCA’s Lobby Day, held February 4, 2026.

The event followed productive internal discussions, which had resulted, by the end of December 2025, in a finalized, coordinated CCA legislative strategy. The alignment and advanced preparation contributed to a successful and effective day of advocacy in Sacramento in February. 3CE’s Policy Board Chair, Mayor Fred Keeley, led a delegation of five 3CE staff members in 17 meetings with state elected officials, their staff, and leadership from key policy committees.

Following Lobby Day and continued engagement, authors have been secured for two key bill proposals:

1. Assembly Bill 1761, authored by Assemblymember Chris Rogers, would require public disclosure of any data provided by an investor-owned utility (IOU) or the California Public Utilities Commission (CPUC) that is used in the formulation of the Power Charge Indifference Adjustment (PCIA) or other cost recovery mechanisms. This is essential for 3CE to assess the management of IOU legacy resources and the fairness of regulatory charges imposed on utility ratepayers. AB 1761 passed Appropriations Committee and is pending consideration on the floor.

2. Senate Bill 1138 - Resource Adequacy (RA) Transactability bill, authored by Senator Alex Padilla, would allow CCAs and other load-serving entities to trade RA on an hourly basis, consistent with the requirement to demonstrate sufficient capacity for every hour of the day. This added flexibility would reduce costs. 3CE has experienced years in which RA expenses have constituted one-third of total procurement costs. SB 1138 overwhelmingly passed off the Senate floor this week.

Staff is also working with our federal trade association to oppose a draft Federal Energy Regulatory Commission rule that would supersede emerging state rules for large load interconnection. 3CE OFFICE UPDATES
Santa Barbara
3CE celebrated the establishment of an office at 820 State Street in Santa Barbara, CA, generally between the County Administration Building and Santa Barbara City Hall.

A grand opening held May 18 to celebrate the opportunity for future partnership and strategic opportunities engagement with local stakeholders was attended by over 60 customers, stakeholders, and elected officials attended our opening. US Congressman Salud Carabjal provided context for the start of CCAs in Santa Barbara when he approved the feasibility study to evaluate CCAs during his time as a member of the Santa Barbara County Board of Supervisors. 3CE was represented by members of our Policy Board (Silva, Hartman), our Ops Board (Imhof), along with key partners like the South Coast Chamber of Commerce (Harms-Romo), and staff.

Monterey
3CE executed its lease for 20 Ryan Ranch Road in early May and tenant improvements are underway to support our move from 70 Garden Court to our new location.

Soquel
Staff is anticipating bids for tenant improvements that will make the office more functional for the employees currently located in our 2601 Porter office location.

WEBSITE REDESIGN
3CE has selected a vendor to redesign, develop, and maintain its website, with a target launch of October 1, 2026. The redesign will improve community education, simplify messaging, improve navigation and functionality, and expand in-house editing capabilities. The new site will feature dedicated tracks for residential, agricultural, and commercial customers to quickly find relevant rates, programs, and engagement opportunities. Future phases will integrate connectivity to an in-house customer portal / resource management platform for bill access and energy programs applications.

Overall, the website redesign shifts 3CE from enrollment-focused information and experience to highlighting 3CE's value proposition, community resources, and progress toward agency goals.

AGRICULTURAL ELECTRIFICATION REDESIGN
Over the last few months, 3CE has been collaborating with its Community Advisory Council (CAC) to review 3CE’s Ag Electrification Program. At the February CAC meeting, staff presented findings from nine focus groups held in November and December, along with preliminary new program concepts, including additional rebates, technical assistance, and equipment demonstration events. In March and April 2026, 3CE conducted a second round of stakeholder engagement sessions to build on prior input and CAC guidance across the identified focus areas. Staff presented refined program concepts and gathered additional feedback from growers and industry partners to inform final program pathways.

Staff will present the feedback and recommended program elements to the CAC in June including expanded rebates, technical assistance, and future equipment demonstration opportunities.

IOU BASE SERVICE CHARGE NOW ON CUSTOMER BILLS
Starting in March, residential customers in Pacific Gas and Electric Company’s service territory began seeing the new Base Services Charge (formerly the income-graduated fixed charge) on the transmission and delivery portion of their bills; customers served by Southern California Edison began receiving this charge in November. Authorized by Assembly Bill 205, the California Public Utilities Commission implemented this charge as part of a broader restructuring of Investor-Owned Utility (IOU) residential transmission and delivery rates, shifting recovery of certain fixed grid costs from volumetric (per-kWh) rates to a flat monthly fee. This change lowers per-unit electricity prices while introducing a fixed monthly charge. Customers enrolled in California Alternate Rates for Energy and Family Electric Rate Assistance receive discounted charges of $6 and $12 per month, respectively, while all other residential customers are charged about $24.15 per month. The total monthly Base Services Charge cost may vary slightly month-to-month based on total days per billing period.

POWER SUPPLY UPDATES
Angela Power Project Begins Delivery
The Angela Solar + Storage Project in Tulare County has begun delivering renewable solar energy to 3CE. The project represents approximately 1% of 3CE’s load at 20 MW of solar generation plus 10 MW of battery storage.

SunZia Wind Project set to begin Delivery
The SunZia Wind Project in New Mexico will begin delivering renewable wind energy to 3CE at the end of May. The project represents approximately 11.5% of 3CE’s load at 205 MW of wind generation.

Aratina Power Project set to begin Delivery
The Aratina Solar + Storage Project in Kern County will begin delivering renewable solar energy to 3CE in June. The project represents approximately 7% of 3CE’s load at 120 MW of solar generation plus 75 MW of battery storage.

SunZia Auction Participation
3CE initiated participation in the SunZia auction for a potential 15-year procurement of wind energy and associated PCC1 RECs as part of ongoing portfolio diversification. The auction structure allows 3CE to evaluate multiple procurement rounds while maintaining pricing discipline and flexibility based on market clearing results and overall portfolio value. Any awarded volumes would remain subject to Operations Board approval prior to execution or commitment.

ATTACHMENT(S):

1. Contract List

CCCE Contracts < $200k
Vendor Total Engagement Amount From To Service Scope Remarks 1 Phoenix America Group 4,000 $ 2/4/2026 3/1/2029 Subscription for the door and camera system at the 3CE San Luis Obispo Office. This subscription provides access to a cloud-based video surveillance platform for video
processing, analytics, and event storage. It also includes cloud access and Bluetooth access for four doors.
2 Central Coast Security 67,886 $ 9/24/2024 12/31/2026 Building Security Services for 3CE SLO office.

Renewal and Amendment No.1 to extend the term of the
agreement until 12/31/26 and increase the total contract amount by $35,000 for a total not to exceed the amount
of $67,886.00.
3 Best Best & Krieger LLP 200,000 $ 3/18/2026 as needed Engagement letter for Legal Services on back-up, as-needed legal support

Staff Report Item 19
TO: 3CE Operations Board of Directors
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

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

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

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 Audit and Finance Committee will receive the Forecast at its May 27, 2026 meeting and the Policy Board will receive it at its June 17, 2026 meeting.

ATTACHMENT(S):

None.

Staff Report Item 20
TO: 3CE Operations Board of Directors
FROM: Robert M. Shaw, Chief Executive Officer
PREPARED BY: Ana Capstick, Energy Programs Analyst
Christopher Cook, Director of Energy Programs
SUBJECT: Authorize the Chief Executive Officer to execute a Main Services Agreement (MSA) with Lunar Energy, and associated Scopes, to implement a Distributed Energy Resource Management System (DERMS) for a term ending September 30, 2029, with an option to extend for one (1) additional year, in an amount not to exceed $3,862,057 DATE: May 27, 2026
RECOMMENDATION:

This memorandum recommends that the Operations Board consider staff’s recommendation to authorize the Chief Executive Officer to execute a Main Services Agreement (MSA) and associated Scopes, with Lunar Energy, to implement a Distributed Energy Resource Management System (DERMS) for a term ending September 30, 2029, with an option to extend for one (1) additional year, in an amount not to exceed $3,862,057.

BACKGROUND:

In June 2024, the Policy Board approved the establishment of 3CE’s Residential Battery Rebate Program (RBRP) as a first step towards providing a Demand Response customer program. The RBRP did result in customer load shift, however, 3CE currently lacks the capability to monitor, optimize, and dispatch these resources in real time at scale, restricting the ability to fully capture the potential grid and operational benefits.

Implementing DERMS addresses this limitation by enabling centralized control, monitoring, and optimization of behind-the-meter (BTM) resources. Paired with a VPP framework, 3CE can aggregate and actively dispatch these assets as a flexible grid resource. With a DERMs system, 3CE can control customer’s batteries and other DER resources, offering payment for load shifting, which reduces customer bills. This transition shifts 3CE from a static incentive model to a performance-based approach, enabling real-time visibility, coordination, and dispatch of BTM DERs to support grid reliability, reduce costs, and advance 3CE’s decarbonization goals.

Strategic Case for a VPP
California's grid is undergoing a fundamental transformation, with growing reliance on intermittent renewable generation, which increases demand for flexible, dispatchable resources during peak hours. The California Independent System Operator (CAISO) has identified demand flexibility as one of the most cost-effective tools for managing grid stress events. For 3CE, a VPP represents an opportunity to generate Resource Adequacy (RA) value, reduce wholesale energy costs, and deliver customer bill savings through participation in demand response programs. Staff is targeting 5 MW of dispatchable VPP capacity by end of 2026, scaling to 30 MW by 2030, as additional DER types and program integrations are phased in through subsequent scopes.

Through the MSA and subsequent scopes, Lunar Energy would deploy the core DERMS platform, including OEM device integrations, customer onboarding, dispatch capability, reporting, VPP pilot operations, and ongoing support. 3CE will establish the framework for enrolling devices deployed through 3CE-administered programs.

Contract Structure
The proposed agreement with Lunar Energy is structured as an MSA with an initial Scope of Work for a term ending September 30, 2029, with an option to extend for one (1) additional year. This approach, consistent with industry practice among California CCAs, separates overarching legal and commercial terms from program-specific implementation details, enabling 3CE to expand the DERMS platform as the VPP pilot scales over time.

The MSA establishes legal, commercial, and service terms between 3CE and Lunar Energy for the duration of the contract. Additional scopes will provide DERMS platform deployment, OEM device integrations, customer onboarding, dispatch capability, reporting, VPP pilot operations, and ongoing technical support. Subsequent scopes will phase integration of existing 3CE customer programs, such as Electrify Your Ride (EYR) and Electrify Your Home (EYH), under the DERMS platform. These scopes establish the framework for enrolling devices deployed through 3CE-administered programs. Below are the scopes covered under the attached draft Lunar MSA.
 Scope 1 – DERMS Platform Development
 Scope 2 – Integration of Existing Programs (Phased)
 Scope 3 – Service Provider Capacity Contribution
 Scope 4 – Third Party Administered Programs
Service Fees and Budget
The fee structure under Scope 1 incorporates both fixed and volumetric cost components. Fixed fees cover platform setup and annual licensing; volumetric Connected Capacity Fees are assessed per enrolled device and decrease as total managed capacity grows, incentivizing both parties to scale enrollment. All API fees charged by OEMs for device integration are billed by Lunar as pass-through expenses.

The total contract NTE of $3,862,057 covers the overall five-year term, with costs structured so that the majority are incurred only as devices are enrolled and dispatched under the platform. Fixed setup and licensing fees are estimated at approximately $1,860,000 over the five-year term; the remaining budget is reserved for Connected Capacity and OEM fees that scale with pilot growth. The tiered Connected Capacity Fee structure is designed to align with 3CE’s capacity ramp target of 5 MW by the end of 2026 – growing to 30 MW by 2030, with per-unit fees decreasing as enrollment scales. This fee structure allows for growth adjacent to Lunar’s proposed capacity targets across the five years, with potential growth to approximately 44 MW.

This structure aligns 3CE’s expenditures with program outcomes and protects the agency’s budget in the early phases of the pilot. The current Fiscal Year VPP development costs have already been accounted for in the approved Energy Programs budget. The following fiscal year’s recommended VPP program budget would be approved as part of the agency budget adoption and is anticipated to replace the now closed RBRP in those future 3CE program portfolios. If the contract is extended beyond the overall five-year term, NTE adjustments will be brought to the Board for approval.

FISCAL IMPACT:

The fiscal impact of the DERMS agreement with Lunar Energy will not exceed $3,862,057 over the five-year term of the agreement. Current fiscal year expenditures are within the FY 2025-26 budget and future expenses will be incorporated into future annual budget recommendations.

CONCLUSION:

Procurement of a DERMS platform and launch of a VPP pilot represents a critical next step in 3CE’s transition from passive DER incentive programs to active, grid-integrated customer energy management. By authorizing the CEO to execute the MSA and additional Scopes with Lunar Energy, the Operations Board will enable 3CE to scale the impact of its existing residential battery program, develop new dispatch-capable customer offerings, generate Resource Adequacy value, and deliver measurable cost-saving benefits to the communities it serves.

ATTACHMENT(S):

1. Draft Main Services Agreement (MSA) – Lunar Energy

5/19/2026 1 Contract Number: EP-2026-02
CENTRAL COAST COMMUNITY ENERGY (3CE) MAIN SERVICES AGREEMENT

FOR PROFESSIONAL SERVICES WITH DISTRIBUTED ENERGY RESOURCE

MANAGEMENT PROVIDER
This main services agreement (“Agreement”) is made and effective on the date of last signature below (“Effective Date”), by and between Central Coast Community Energy, a joint powers authority of the state of California (“3CE”) with a registered address at 70 Garden Court, Suite 300, Monterey, CA 93940, USA and Lunar Energy, Inc., a Delaware corporation with a principal place of business at 755 Ravendale Drive, Mountain View CA 94043 (“Service Provider”), with 3CE’s signature occurring last. 3CE and Service Provider may be referred to herein in the singular as “Party” or jointly as “Parties”.

RECITALS
WHEREAS, 3CE requires distributed energy resources management services, including Service Provider hosted “software as a service” services, as further described herein, with respect to certain of its information technology needs;
WHEREAS, 3CE requested a proposal from Service Provider for the Services (defined below);
WHEREAS, Service Provider has experience and expertise in the business of providing the Services;
WHEREAS, Service Provider submitted a Distributed Energy Resource Management System proposal to 3CE to perform such Services on behalf of 3CE; WHEREAS, based on Service Provider’s knowledge and experience relating to such Services 3CE has selected Service Provider to provide and manage the Services; WHEREAS, Service Provider wishes to perform the Services and acknowledges that the successful performance of the Services and the security and availability of 3CE’s data are critical to the operation of 3CE’s business; and,
WHEREAS, Service Provider has agreed to provide the Services to 3CE, all on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and representations set forth in this Agreement and each Scope, the Parties hereby agree as follows:

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 2 Contract Number: EP-2026-02

1. Term of Agreement. This Agreement is legally binding as of the Effective Date and shall continue until terminated as provided for herein. For the avoidance of doubt, this Agreement is of no force or effect until signed by both Parties and Lunar may not commence work under this Agreement before 3CE signs this Agreement. Unless this Agreement is terminated earlier in accordance with the terms set forth herein, the initial term (the “Initial Term”) shall commence on the Effective Date and continue through September 30, 2029. Following the Initial Term and unless otherwise terminated as provided for in this Agreement, this Agreement may be renewed for one (1) one (1) year term upon mutual written agreement of the Parties.

2. Payment Provisions. 3CE shall pay the Service Provider in accordance with the payment provisions set forth in Section 11. The total amount payable by 3CE to the Service Provider for all Services provided under this Agreement (“Services Fees”) shall not exceed $3,862,057 (the “NTE Amount”). For the avoidance of doubt, the NTE Amount applies to all Services Fees that become payable under any Scope incorporated herein during the Initial Term.

3. Termination of Scopes. Unless otherwise provided herein, termination of the Agreement shall mean termination of the Agreement and all Scopes (as defined in Section 4).

Notwithstanding anything to the contrary herein, in the event that 3CE terminates Scope One for cause pursuant to the terms herein or therein, 3CE may, at its sole election and in its sole discretion, terminate one or more other Scopes for cause. In the event that 3CE terminates all Scopes pursuant to the terms herein or therein, then 3CE may, at its sole election and in its sole discretion, terminate the Agreement.

4. The Services. This Agreement sets forth the terms and conditions under which Service Provider agrees to provide distributed energy resource management services to 3CE for distributed energy resources such as residential solar battery systems, electric vehicles, electric vehicle supply equipment, smart thermostats, heat pump water heaters and to license certain Service Provider hosted software, for the visibility and performance tracking of such management services including, customization / integration, user identification and password change management, data import / export, monitoring, technical support, maintenance, training, backup and recovery, and change management services (collectively, the “Services”) as generally described in Exhibit A attached hereto and incorporated by reference herein and as more specifically defined and set forth in various “Scopes” in writing from time to time, for the provision of, access to and use of the Services (as appropriate), each Scope defining the specific Services to be provided, and any other terms the Parties mutually agree to, excepting any delays impacted by Force Majeure events and Excused Events (as defined in the Scope). The Agreement and the Scopes, taken together but without reference to Exhibit A, constitute the complete and controlling description of the Services. Services include any software as a service (“Software Services”, as may be more particularly defined or identified in the applicable Scope). Once duly executed by both parties, each Scope shall be incorporated herein by reference and shall stand alone with respect to any other Scope. If there is a conflict Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 3 Contract Number: EP-2026-02
between the terms of this Agreement (including, for the avoidance of doubt, Exhibit A) and the terms of a Scope, the terms of the Scope will take precedence over the Agreement.

Except as otherwise set forth herein, a breach or default by one Party under one Scope shall not automatically result in a breach or default by the same Party under a separate Scope unless the same circumstances result independently in a breach or default of such other independent Scope and the matter is separately enforced by the Parties to such Scope. Any amendment or modification made by the Parties to one Scope in accordance with its terms shall not serve to amend or modify this Agreement as it pertains to any other separate and independent Scope. Any amendment or modification by the Parties to a Scope, or waiver given by a Party under one Scope, shall only apply to amend, modify, or waive provisions of the separate and independent Scope to which it relates. The first Scopes issued pursuant to this Section, or forms thereof which may be issued pursuant to this Section, are attached hereto.

4.1 Compliance with All Laws. During the Term, Service Provider shall keep itself informed of all applicable federal, state and local laws, ordinances, codes, regulations and requirements which may, in any manner, affect those employed by it or in any way affect the performance of its services pursuant to this Agreement (and the Scopes). 3CE, and its officers and employees, shall not be liable at law or in equity by reason of the failure of the Service Provider to comply with this paragraph.

4.2 Subcontractors. During the Term, Service Provider shall not enter into any subcontracts for the performance of the Services, or assign or transfer any of its rights or obligations under this Agreement (or any Scope), without 3CE’s prior written consent and any attempt to do so shall be void and without further effect and shall be a material breach of this Agreement and shall give 3CE the right to automatically and immediately terminate this Agreement (or any applicable Scope) without penalty or advance notice. Service Provider’s use of subcontractors shall not relieve Service Provider of any of its duties or obligations under this Agreement (or any Scope). Service Provider shall ensure that all subcontractors comply with the terms and conditions of this Agreement, carry the insurance required of Service Provider as set forth in Section 17.6 and make the representations and warranties applicable to Service Provider set forth in Section 12. Service Provider shall be fully responsible and liable for the works, services, and materials furnished by and the acts, defaults and neglects of any subcontractor, its agents or employees as fully as if they were Service Provider’s own or those of Service Provider’s agents or employees. For avoidance of doubt, a breach by a subcontractor of any provision of this Agreement shall be considered a breach by Service Provider, and 3CE may obtain complete relief from Service Provider arising out of any breach of this Agreement as a result of such breach without the need to pursue the subcontractor directly. Service Provider shall only subcontract with subcontractors that are suitably qualified, experienced and duly licensed to perform the Services as Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 4 Contract Number: EP-2026-02
required by applicable law and that have posted license bonds as required by applicable law.

4.3 Software Services. Notwithstanding anything to the contrary, the following terms of this Section 4.3 are only applicable to the Software Services (as may be defined in the applicable Scope):

4.3.1 Authorized Users. During the term of the Agreement, Service Provider grants 3CE a irrevocable, nonexclusive, royalty-free, and worldwide right and license for any 3CE employee, contractor, or agent, or any other individual or entity authorized by 3CE to access and use the Software Services on behalf of 3CE and within the scope of authorization granted by 3CE (each, an “Authorized User”); provided that no Authorized Users are permitted without Service Provider’s express written consent to (i) copy, transmit or modify the Software Services; (ii) decompile or reverse engineer the Software Services; (iii) use the Software Services to provide services to third parties; or (iv) sell or sublicense the Software Services. Other than any limitations otherwise described herein, Authorized Users will have no other limitations on their access to or use of the Software Services.

4.3.2 Unauthorized Use. 3CE will use commercially reasonable efforts to supervise and manage its Authorized Users and is responsible for the actions and omissions of its Authorized Users as if such actions and omissions were those of 3CE, provided such Authorized Users have accessed the Software Services by virtue of their employment or contract with 3CE. If there is unauthorized access and/or use by anyone who obtained access to the Software Services and/or Documentation (defined below) directly or indirectly through 3CE, 3CE will notify Service Provider and take all steps reasonably necessary promptly to terminate such unauthorized access and/or use. 3CE will cooperate and assist with any actions taken by the Service Provider to prevent or terminate unauthorized access and/or use of the Software Services and/or any Documentation. The Service Provider reserves the right to suspend (i) 3CE’s access to, or its account on, the Software Services if 3CE materially breaches this Agreement, and (ii) one or more Authorized User’s access to, or their account on, the Software Services if the Service Provider reasonably believes that such Authorized User(s)’s continued access to the Software Services would cause harm to the Service Provider’s or a third party’s network or cause Service Provider to breach its obligations hereunder.

4.3.3 Acknowledgement of License Grant. For the purposes of 11 U.S.C. § 365(n), the Parties acknowledge and agree that this Agreement Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 5 Contract Number: EP-2026-02
constitutes a grant of license to use intellectual property in software form, to 3CE by Service Provider.

4.3.4 Control and Location of Services. The method and means of providing the Software Services shall be under the exclusive control, management, and supervision of Service Provider, giving due consideration to the written requests of 3CE. The Parties hereby acknowledge and agree that Service Provider will use cloud-based storage in the provision of the Software Services. Such cloud-based storage shall be in compliance with ISO 27001 or successor standards thereto. The 3CE Data will at all times be stored and processed on servers located within the continental United States, and all such data storage locations shall be disclosed to 3CE annually and within thirty (30) days of the Effective Date of this Agreement. Service Provider personnel located outside the continental United States may access 3CE Data remotely solely for the purpose of providing the Software Services, provided that such access is subject to the data privacy and information security requirements set forth in Section 15.

4.3.5 Storage. The Software Services shall include the applicable allocation of base data storage.

4.3.6 Test Environment. In addition to production use of the Software Services, 3CE is entitled to one test environment for use by Authorized Users at no additional charge. Service Provider shall cooperate with 3CE’s requests in managing the non-production environments such as refreshing 3CE Data upon request.

4.3.7 Documentation. The documentation for the Software Services (“Documentation”) will accurately and completely describe the functions and features of the Software Services, including all subsequent revisions thereto. The Documentation shall be understandable by a typical end user and shall provide Authorized Users with sufficient instruction such that an Authorized User can become self-reliant with respect to access and use of the Software Services. 3CE shall have the right to make any number of additional copies of the Documentation at no additional charge.

4.3.8 Changes in Functionality. During the term of this Agreement, Service Provider shall not reduce or eliminate functionality in the Software Services without 3CE’s prior written consent. For the avoidance of doubt, Section 5.3 shall control with respect to Service Provider’s failure to meet a Service Level Standard. Where Service Provider has introduced like functionality in other similar services, 3CE shall have Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 6 Contract Number: EP-2026-02
an additional license and subscription right to use and access the new services, at no additional charge, with the same rights, obligations, and limitations as for the Software Services. Where Service Provider increases functionality in the Software Services, such functionality shall be provided to 3CE without any increase in the Services Fees.

4.3.9 No Effect of Click-Through Terms and Conditions. Where an Authorized User is required to “click through” or otherwise accept or made subject to any online terms and conditions in accessing or using the Software Services, such terms and conditions are not binding and shall have no force or effect as to the Software Services or this Agreement.

4.3.10 Modification of the Services. 3CE’s Director of Data and Technology, or another person authorized by 3CE, shall be authorized to (i) waive, in writing, any of the Service Provider’s obligations with respect to the Software Services, where deemed to be in 3CE’s best interests, and (ii) direct Service Provider to suspend, reduce, or otherwise modify the Software Services to comply with any change in law (including, for the avoidance of doubt, any statute, rule, regulation, decision, writ, order, decree, judgment, or interpretation thereof) applicable to the Services, Service Provider, or 3CE; provided that, if such change in law applies solely to 3CE, then any reasonable, documented costs incurred by Service Provider in implementing such compliance shall be at 3CE’s sole expense; provided, further, that, in either case (i) or (ii), no such modification shall result in any increase in the amount of the Services Fees.

5. Service Level Standards. Notwithstanding anything to the contrary, the following terms of this Section 5 are only applicable to the Software Services.

5.1 Service Levels. For the term of this Agreement, Service Provider shall provide the Software Services, Force Majeure events and Excused Events (as defined in the applicable Scope) excepted, in accordance with the applicable Service Level Standards, each as described the applicable Scope.

5.2 Cure Plan; Historical Reports. On (a) a biannual basis, commencing on the date that is six (6) months after the Effective Date, in arrears and no later than the sixtieth (60th) calendar day after the end of each biannual period, provided Performance Credits have been included or deemed included on an invoice provided in accordance with Section 11.2 during such biannual period, and (b) upon 3CE’s reasonable request if Performance Credits have been included or deemed included on an invoice provided in accordance with Section 11.2, Service Provider shall provide a cure plan to 3CE, in a form mutually agreed by 3CE and Service Provider, Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 7 Contract Number: EP-2026-02
describing (x) the cause or basis for not meeting the Service Level Standard, and (y) the specific remedial actions Service Provider has undertaken or will undertake to ensure that the Service Level Standard will be subsequently achieved. Service Provider and 3CE will meet as often as shall be reasonably requested by 3CE to review the performance of Service Provider as it relates to the Service Level Standards. Service Provider shall, without charge, make 3CE’s historical Service Level Standard reports available to 3CE upon request.

5.3 Failure to Meet Service Level Standards. In the event Service Provider does not meet a Service Level Standard, Service Provider shall: (a) owe to 3CE any applicable Performance Credit, as liquidated damages and not as a penalty; and (b) use commercially reasonable efforts to ensure that any unmet Service Level Standard is subsequently met. Notwithstanding the foregoing, Service Provider will use commercially reasonable efforts to minimize the impact or duration of any outage, interruption, or degradation of Service. In no case shall 3CE be required to notify Service Provider that a Performance Credit is due as a condition of payment of the same. Except as set forth in Section 5.4, this Section sets forth the Service Provider’s sole and exclusive remedy with respect to failure to meet Service Level Standards.

5.4 Termination for Repeated Failures. 3CE shall have, in addition to any other rights and remedies under this Agreement (or applicable Scope), the right to immediately terminate this Agreement (or applicable Scope) in accordance with the following sentence, and be entitled to a return of any prepaid Services Fees where Service Provider fails to meet any Service Level Standard for Critical and High Service Errors for four (4) months out of any twelve (12) month period. If 3CE exercises its termination right under this Section 5.4, 3CE may, at its sole discretion, elect to terminate the Agreement with respect to any of the Scope(s).

5.5 Audit of Service Levels. At a commercially reasonable interval and at a mutually agreed upon time and place, 3CE or 3CE’s agent shall have the right to audit Service Provider’s books, records, and measurement and auditing tools to verify Service Level Standard achievement and to determine correct payment of any Performance Credit on giving at least ten (10) Business Days’ prior notice in writing and during normal business hours; provided, if 3CE has cause to believe that Service Provider has not accurately reported the Service Level Standard achievement and/or determined any Performance Credit due to 3CE, 3CE may exercise the audit right described in this sentence more frequently. Where it is determined that any Performance Credit was due to 3CE but not paid, Service Provider shall immediately owe to 3CE such Performance Credit. As used herein, “Business Day” means any day other than a Saturday, Sunday, or a United States of America Federal Reserve Bank holiday.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 8 Contract Number: EP-2026-02

6. Support; Maintenance; Additional Services.

6.1 Technical Support. Service Provider shall provide the technical support as defined and described in each Scope. The Services Fees shall be inclusive of the fees for the technical support.

6.2 Maintenance. Service Provider shall provide bug fixes, corrections, modifications, enhancements, upgrades, and new releases to the Services to ensure: (a) the functionality of the Services, as described in the Documentation, is available to Authorized Users; (b) the functionality of the Services in accordance with the representations and warranties set forth herein, including but not limited to, the Services conforming in all material respects to the specifications, functions, descriptions, standards, and criteria set forth in the Scopes and the Documentation; (c) the Service Level Standards can be achieved; and, (d) the Services work with the then-current version of Internet Explorer, Mozilla Firefox, and Google Chrome Internet browsers. The Services Fees shall be inclusive of the fees for maintenance.

6.2.1 Required Notice of Maintenance. Unless as otherwise agreed to by 3CE on a case-by-case basis, Service Provider shall provide no less than thirty (30) calendar day’s prior written notice to 3CE of all non-emergency major maintenance to be performed on the Services involving code interfacing with 3CE and the management system directly and which would have the effect of taking the management system offline, such written notice including a detailed description of all such non-emergency major maintenance to be performed. For emergency maintenance, Service Provider shall provide as much prior notice as commercially practicable to 3CE and shall provide a detailed description of all such emergency maintenance performed no greater than one (1) calendar day following the implementation of the emergency maintenance.

6.2.2 Acceptance of Non-Emergency Major Maintenance. Unless as otherwise agreed to by 3CE on a case-by-case basis, for major non-emergency maintenance described in Section 6.2.1, 3CE shall have a ten (10) Business Day period to test any such major non-emergency maintenance changes prior to Service Provider introducing such maintenance changes into production (the “Maintenance Acceptance Period”). In the event that 3CE rejects, for good cause, any such major non-emergency maintenance changes during the Maintenance Acceptance Period, Service Provider shall not introduce such rejected maintenance changes into production. At the end of the Maintenance Acceptance Period, if 3CE has not rejected the major non-emergency maintenance changes, the maintenance changes shall be deemed to be Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 9 Contract Number: EP-2026-02
accepted by 3CE and Service Provider shall be entitled to introduce the maintenance changes into production.

7. Audit Rights of Service Provider. Service Provider shall have no right to conduct an on-premises audit of 3CE’s compliance with the use of the Services.

8. Change Control Procedure. 3CE may, upon written notice, request changes to any applicable Scope. If 3CE requests any changes to an applicable Scope, 3CE shall notify Service Provider, and, not more than five (5) Business Days (or other mutually agreed upon period) after receiving the request, Service Provider shall notify 3CE whether or not the change has an associated cost impact that will require an adjustment to the relevant Services Fees. If 3CE approves, 3CE shall issue a change order, which will be executed by the Service Provider.

9. Termination; Renewals.

9.1 Termination for Convenience. Without limiting the right of a Party to terminate this Agreement as provided for in this Agreement, either Party may terminate this Agreement with respect to some or all of the Scopes, for convenience upon not less than ninety (90) days’ prior written notice to the Service Provider, which written notice shall set forth the effective date of termination; provided, in the event that Service Provider is the terminating party, the first two (2) months of Transition Services shall be provided at Service Provider’s sole cost and expense as set forth in Section 10. If Service Provider is directed by 3CE to use a certain subcontractor to perform a Scope, and 3CE elects to terminate the applicable agreement between such subcontractor and Service Provider by exercising its rights as a third party beneficiary thereunder, then Service Provider may immediately terminate or suspend the performance of its obligations under this Agreement with respect to such Scope without liability.

9.2 Termination for Cause. If either Party makes any material misrepresentation or materially breaches any of its duties, obligations, or warranties under this Agreement and such misrepresentation or breach is not cured, or the misrepresenting or breaching Party is not diligently pursuing a cure to the other Party’s sole satisfaction, within sixty (60) calendar days after written notice of such breach, other Party may terminate this Agreement, with respect to some or all of the Scopes, for cause as of a date specified in such notice.

9.3 Payments upon Termination. If 3CE terminates this Agreement (or applicable Scope) in accordance with Section 9.1, 3CE shall pay two (2) months’ worth of additional Services Fees for the terminated Scope(s) calculated based on the most recent month’s Services Fees for such terminated Scope(s); provided that if such termination is less than six (6) months after the Effective Date, then 3CE shall pay one (1) month’s worth of additional Services Fees for the terminated Scope(s) for Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 10 Contract Number: EP-2026-02
every month that the termination date is shy of the six (6) month anniversary of the Effective Date, based on the most recent month’s Services Fees for such terminated Scope(s). Any remaining prepaid funds shall be refunded to 3CE.

9.4 Return of 3CE Data. Upon the termination of this Agreement (or an applicable Scope), Service Provider shall, within thirty (30) days following the termination of this Agreement (or applicable Scope), provide 3CE, without charge and without any conditions or contingencies whatsoever (including but not limited to the payment of any Services Fees due to Service Provider), with a final extract of the 3CE Data in the format reasonably specified by 3CE. Further, Service Provider shall certify to 3CE the destruction of any 3CE Data within the possession or control of Service Provider, in accordance with Section 14.5, but such destruction shall occur only after the 3CE Data has been returned to 3CE.

9.5 Renewals. Should the Services continue beyond the Initial Term by mutual written agreement, Services Fees shall remain as set forth in this Agreement unless (1) negotiations for Services Fees changes are commenced by Service Provider no less than ninety (90) days prior to the expiration of the Initial Term, and (2) Service Provider and 3CE mutually agree upon any changes to Services Fees in writing.

10. Transition Services. Provided that this Agreement (or applicable Scope) has been terminated by (i) Service Provider under Section 9.1, or (ii) by 3CE, Service Provider will provide to 3CE and/or to the service provider selected by 3CE (“Successor Service Provider”) assistance reasonably requested by 3CE to effect the orderly transition of the applicable Services, in whole or in part, to 3CE or to Successor Service Provider (“Transition Services”) following the termination of this Agreement (or such Scope), in whole or in part. The Transition Services shall be provided for a period of no greater than six (6) months from the date of termination and may include: (a) developing a plan for the orderly transition of the terminated Services from Service Provider to 3CE or Successor Service Provider; (b) if required, transferring the 3CE Data to Successor Service Provider; (c) using commercially reasonable efforts to assist 3CE in acquiring any necessary rights to legally and physically access and use any third-party technologies and documentation then being used by Service Provider in connection with the applicable Services; (d) using commercially reasonable efforts to make available to 3CE, pursuant to mutually agreeable terms and conditions, any third-party services then being used by Service Provider in connection with the terminated Services; and, (e) such other activities upon which the Parties may agree. In the event of termination by Service Provider under Section 9.1, the first two (2) months of Transition Services shall be provided at Service Provider’s sole cost and expense. In the event of termination by 3CE, the Transition Services shall be provided at the Services Fees for the applicable Services current at the time of termination. All applicable terms and conditions of this Agreement shall apply to the Transition Services.

11. Fees; Billing. 3CE shall be responsible for and shall pay to Service Provider the Services Fees as may be further described in each Scope, in accordance with the payment provisions Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 11 Contract Number: EP-2026-02
set forth in Exhibit B attached hereto and incorporated by reference herein, subject to the terms and conditions contained in this Agreement (and any Scope). Except as otherwise provided herein or in any Scope, Services Fees are due and payable thirty (30) days after receipt by 3CE of an invoice from Service Provider.

11.1 NTE Amount. The total amount payable by 3CE to Service Provider under this Agreement shall not exceed NTE Amount set forth in Section 2. The NTE Amount expressly includes, without limitation, all one-time and ongoing fees and all hourly work, whether such fees or work are invoiced on pass-through basis or hourly basis. 3CE does not guarantee any minimum amount of dollars to be spent under this Agreement, and all Services Fees set forth herein or any Scope shall remain fixed for the duration of the Initial Term, except as expressly provided in Exhibit B for hourly work. For the avoidance of doubt, customer performance payments for dispatchable capacity shall be borne exclusively by 3CE and shall not be construed as compensation payable to Service Provider under this Agreement.

11.2 Billing Procedures. Except as otherwise provided herein or in a Scope, Service Provider shall, on a monthly basis in arrears and within fifteen (15) days after the end of each month, provide 3CE a Service Level Standard report and bill to 3CE the sums due pursuant to each Scope by Service Provider’s invoice, which shall contain: (a) 3CE’s purchase order number, if any, and Service Provider’s invoice number; (b) description of Services for which an amount is due; (c) a statement of the Services Fees or portion thereof that are due; (d) a statement of taxes, if any; (e) a statement of actual performance compared to the Service Level Standards; (f) a statement of any credit for failing to meet the Service Level Standard, as determined in accordance with the applicable Scope (“Performance Credits”) or other credits as required by a Scope due to 3CE; (g) total amount due from 3CE; and (h) any other information reasonably requested by 3CE. Where Service Provider fails to timely provide an invoice meeting the requirements set forth in (e) and (f) of the foregoing sentence, the Service Level Standard shall be deemed unmet for the purpose of calculating Performance Credits, and such Performance Credits shall be deemed included on such invoice. Service Provider shall forward invoices in digital format to [email protected]. Service Provider shall submit a completed W-9 form electronically to the same email addresses. Service Provider understands that no invoice will be paid by 3CE unless and until a W-9 form is received by 3CE.

11.3 Invoice Disputes. If 3CE disputes any invoice, or part thereof, payment of the undisputed portion of the invoice shall be required to be made when due. Any invoice dispute shall be made only in good faith, in writing and shall state the basis for the dispute. The Parties shall seek to resolve all such disputes expeditiously and in good faith within two (2) months. Upon resolution of the dispute, any required payment shall be made (or any inadvertent overpayment shall be returned) within five (5) Business Days of such resolution. Except for invoiced payments that 3CE has successfully disputed, all late payments shall bear interest at lower of (a) the Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 12 Contract Number: EP-2026-02
rate of four per cent (4%) per month, or (b) the highest rate permissible under applicable law, calculated daily and compounded monthly.

11.4 Taxes. Service Provider represents and warrants that it is an independent contractor for purposes of federal, state, and local taxes. Service Provider agrees that 3CE is not responsible to collect or withhold any such taxes, including income tax withholding and social security contributions, for Service Provider. Any and all taxes, interest, or penalties, including any federal, state, or local withholding or employment taxes, imposed, assessed, or levied as a result of this Agreement shall be paid or withheld by Service Provider.

11.5 Credits. Any amounts due to 3CE, such as Performance Credits, from Service Provider may be applied by 3CE, at the sole election of 3CE, against any current or future Services Fees due to Service Provider. Any such amounts that are not so applied by 3CE shall be paid to 3CE by Service Provider within thirty (30) Business Days following Service Provider’s delivery of the invoice detailing such amounts.

11.6 Non-binding Terms. Any terms and conditions included in a Service Provider invoice shall be deemed to be solely for the convenience of the Service Provider, and no such term or condition shall be binding upon the 3CE.

11.7 Auditable Records. Service Provider shall maintain accurate records relating to the Services and records of all fees billable to, and payments made by, 3CE in a format that will permit audit by 3CE for a period of no less than five (5) years, for records relating to the Services, and three (3) years, for records of all fees billable to, and payments made by, 3CE, after 3CE makes final payment and all other pending matters are closed, and Service Provider shall be subject to the examination and/or audit by 3CE, a Federal grantor agency, and the State of California. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the five-year or three-year period, as applicable, then Service Provider shall retain said records until such action is resolved. Service Provider shall use reasonable commercial efforts to comply with all program and fiscal reporting requirements set forth by applicable Federal, State, and local agencies and as required by 3CE. Service Provider agrees upon reasonable notice to provide to 3CE, to any Federal, State, or local department having monitoring or review authority, to 3CE’s authorized representative, and/or to any of their respective audit agencies access to and the right to examine all records and documents necessary to determine compliance with relevant Federal, State, and local statutes, rules, and regulations, to determine compliance with this Agreement, and to evaluate the quality, appropriateness, and timeliness of services performed.

For the term of this Agreement, upon 3CE’s written request, Service Provider shall provide 3CE with a copy of its annual American Institute of Certified Public Accountants Service Organization Control (SOC) 2 Type 1 report and SOC 2 Type 2 report (for at least three (3) SOC 2 Trust Services Criteria), or successor form of Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 13 Contract Number: EP-2026-02
SOC reports. The Parties acknowledge that, pursuant to Government Code section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the parties to this Agreement may be subject, at the request of 3CE or as part of any audit of 3CE, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

12. Representations and Warranties.

12.1 Mutual. 3CE and Service Provider represent and warrant that:

12.1.1 it is a public entity or business duly incorporated, validly existing, and in good standing under the laws of its country or state of incorporation (as applicable) and is authorized to do business and in good standing in the state of California;

12.1.2 it has all requisite authority to execute, deliver, and perform its obligations under this Agreement and each Scope;

12.1.3 the execution, delivery, and performance of this Agreement has been (and for each Scope, will be) duly authorized by it, and this Agreement constitutes (and for each Scope, will constitute) the legal, valid, and binding agreement of it and is enforceable against it in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, moratoriums, and similar laws affecting creditors’ rights generally and by general equitable principles;

12.1.4 it shall comply with all applicable federal, state, local, or other laws and regulations applicable to the performance by it of its obligations under this Agreement (and Scope) and shall obtain at its own expense and prior to the commencement of the Services all applicable permits and licenses required of it in connection with its obligations under this Agreement (and each Scope);

12.1.5 there is no outstanding litigation or arbitrated matter to which it is a party which, if decided unfavorably to it, would reasonably be expected to have a potential or actual material adverse effect on its ability to fulfill its obligations under this Agreement or any Scope; and

12.1.6 no Event of Bankruptcy has occurred. As used herein “Event of Bankruptcy” means the occurrence of any of the following events:
(i) the filing by such Party of a voluntary case or the seeking of relief under any chapter of Title 11 of the United States Bankruptcy Code, as now constituted or hereafter amended (the “Bankruptcy Code”), (ii) the Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 14 Contract Number: EP-2026-02
making by such Party of a general assignment for the benefit of its creditors, (iii) the admission in writing by such Party of its inability to pay its debts as they mature, (iv) the filing by such Party of an application for, or consent to, the appointment of any receiver or a permanent or interim trustee of such Party or of all or any portion of its property, including the appointment or authorization of a trustee, receiver or agent under applicable law or under a contract to take charge of its property for the purposes of enforcing a lien against such property or for the purpose of general administration of such property for the benefit of its creditors, (v) the filing by such Party of a petition seeking a reorganization of its financial affairs or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of a petition filed against it in any proceeding under any such law or statute, (vi) an involuntary case is commenced against such Party by the filing of a petition under any chapter of Title 11 of the Bankruptcy Code and within ninety (90) calendar days after the filing thereof either the petition is not dismissed or the order for relief is not stayed or dismissed, (vii) an order, judgment or decree is entered appointing a receiver or a permanent or interim trustee of such Party or of all or any portion of its property, including the entry of an order, judgment or decree appointing or authorizing a trustee, receiver or agent to take charge of the property of such Party for the purpose of enforcing a lien against such property or for the purpose of general administration of such property for the benefit of the creditors of such Party, and such order, judgment or decree shall continue unstayed and in effect for a period of sixty (60) calendar days, or (viii) an order, judgment or decree is entered, without the approval or consent of such Party, approving or authorizing the reorganization, insolvency, readjustment of debt, dissolution or liquidation of such Party under any such law or statute, and such order, judgment or decree shall continue unstayed and in effect for a period of sixty (60) calendar days.

12.2 By Service Provider. Service Provider represents and warrants that:

12.2.1 it is in the business of providing the Services;

12.2.2 EXCEPT AS EXPRESSLY SET FORTH HEREIN AND TO THE

FULLEST EXTENT PERMITTED BY LAW, THE SERVICES AND
DOCUMENTATION ARE PROVIDED “AS IS” WITHOUT

WARRANTIES OF ANY KIND (EXPRESS, STATUTORY OR

IMPLIED) INCLUDING WITHOUT LIMITATION, ANY
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 15 Contract Number: EP-2026-02

WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE;

12.2.3 it is the exclusive owner of all rights, title, and interest in the Services to be provided;

12.2.4 the Services and any other work performed by Service Provider hereunder shall not infringe upon any United States or foreign copyright, patent, trade secret, or other intellectual proprietary right, or misappropriate any trade secret, of any third-party, and that it has neither assigned nor otherwise entered into an agreement by which it purports to assign or transfer any right, title, or interest to any technology or intellectual property right that would conflict with its obligations under this Agreement or any Scope;

12.2.5 it shall disclose any third-party (which shall, for purposes of this Agreement and any Scope, be deemed a subcontractor) who is necessary for the performance of the Services and it shall maintain in-force written agreements with such third-party, if any, for the term of this Agreement;

12.2.6 it and its agents, employees and subcontractors (i) are experienced, competent, and appropriately licensed, as applicable, to perform the Services in a safe, skillful, competent, workmanlike, and professional manner and in accordance with the highest professional standards, and (ii) are not employees of 3CE or immediate family of an employee of 3CE;

12.2.7 it will use its commercially reasonable efforts, consistent with prudent industry standards, to ensure that no computer viruses, worms, malware, or similar items (collectively, a “Virus”) are introduced into 3CE’s computing and network environment by the Services, and that, where it transfers a Virus to 3CE through the Services as a result of its failure to exercise such commercially reasonable efforts, it shall reimburse 3CE the actual reasonable documented cost incurred by 3CE to remove or recover from the Virus, including the costs of persons employed by 3CE to perform such services, subject to Section 17.5.3;

12.2.8 to Service Provider’s knowledge, the Services are free of any mechanism which may disable the Services and Service Provider warrants that no loss of 3CE Data will result from such items if present in the Services;
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 16 Contract Number: EP-2026-02

12.2.9 it shall furnish, at its own expense, all materials, equipment, and personnel necessary to carry out the terms of this Agreement, except as otherwise set forth herein, and it shall not use 3CE premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement; and,

12.2.10 the Services will conform in all material respects to the specifications, functions, descriptions, standards, and criteria set forth in the applicable Scope and the Documentation.

13. 3CE Data.

13.1 Ownership. 3CE’s data (“3CE Data”, which shall also be known and treated by Service Provider as Confidential Information) shall include any and all data, including Covered Information as defined in Exhibit C attached hereto and incorporated by reference herein, originating from 3CE and/or from any Authorized User, that is collected, accessed, transmitted, used, processed, stored, or generated by Service Provider, or that is otherwise made accessible to Service Provider, as the result of or in connection with 3CE’s use, or Service Provider’s provision of the Services, and any data sets generated therefrom. Except where subject to a third party’s intellectual property rights, all 3CE Data is and shall remain the sole and exclusive property of 3CE and all right, title, and interest in the same belongs to 3CE.

13.2 Service Provider Use of 3CE Data. Service Provider is provided a limited license to access 3CE Data for the sole and exclusive purpose of providing the Services, including a license to collect, process, store, generate, and display 3CE Data only to the extent necessary in the providing of the Services. Service Provider shall: (a) keep and maintain 3CE Data in strict confidence, maintaining reasonable and appropriate security measures and using such degree of care as is appropriate and consistent with its obligations as further described in this Agreement, each Scope and applicable law to avoid unauthorized access, use, disclosure, or loss; (b) use and disclose 3CE Data solely and exclusively for the purpose of providing the Services, such use and disclosure being in accordance with this Agreement, such Scope, and applicable law; (c) allow access to 3CE Data only to those employees of Service Provider who are directly involved with and responsible for providing the Services; and (d) not use, sell, rent, transfer, distribute, or otherwise disclose or make available 3CE Data for Service Provider’s own purposes or for the benefit of anyone other than 3CE without 3CE’s prior written consent. For the purposes of this Section 13.2, security procedures are “reasonable and appropriate” when Service Provider complies with ISO27001 and SOC 2 Type 1, and Type 2 controls in connection with its access of PPI. Notwithstanding anything to the contrary, Service Provider may use the 3CE Data to create anonymized, deidentified datasets Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 17 Contract Number: EP-2026-02
(“Resulting Data”), provided that (a) Service Provider shall not use any PPI or data sets generated from PPI to create Resulting Data, (b) the 3CE Data used shall have been made “anonymous” using technology that irreversibly alters data in such a way that the data subject can no longer be identified directly or indirectly, either by the data controller alone or in collaboration with any other party, and such data is thereby rendered “anonymized data”, as generally described in ISO 29100:2024, Section 3.3, (c) the Resulting Data shall not identify 3CE as the source thereof and shall not include any non-anonymized or individual identifiable information of any person, and (d) Service Provider may use the Resulting Data for its business purposes, only to improve its products and services, including the provision of the Services to 3CE, and may not, for the avoidance of doubt, use the Resulting Data for direct marketing.

13.3 Access to, and Extraction of 3CE Data. 3CE shall have full and complete virtual access to, and ability to virtually download (with Service Provider’s assistance but without the need for physical access), as applicable, all Confidential Information and its 3CE Data twenty-four (24) hours per day, seven (7) days per week, except during periods of maintenance conducted by Service Provider pursuant to Section 6.2. Further, Service Provider shall, within ten (10) Business Days of 3CE’s request, provide 3CE, without charge and without any conditions or contingencies whatsoever (including, but not limited to, the payment of any Services Fees due to Service Provider), an extract of the 3CE Data in the format reasonably specified by 3CE, provided Service Provider shall within a reasonable amount of additional time, if necessary, furnish such extract if needed to support the format type specified by 3CE. In the event 3CE gives Service Provider written notice of a “litigation hold” or request under the California Public Records Act (Gov. Code § 7920.000 et seq., “Public Records Act”), then as to all data identified in such notice or request, Service Provider shall, at no additional cost to 3CE, isolate and preserve all such data pending receipt of further direction from 3CE.

13.4 Backup and Recovery of 3CE Data. As a part of the Services, Service Provider is responsible for maintaining a backup of 3CE Data and for an orderly and timely recovery of such data in the event that the Services may be interrupted. Service Provider shall maintain a contemporaneous backup of 3CE Data that can be recovered within eight (8) hours at any point in time. Additionally, Service Provider shall store a backup of 3CE Data in an off-site (but within the continental United States) “hardened” facility no less than daily, maintaining the security of 3CE Data, the security requirements of which are further described herein.

14. Non-Disclosure of Confidential Information. The Parties acknowledge that each Party may be exposed to or acquire communication or data of the other Party that is confidential, privileged communication not intended to be disclosed to third parties.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 18 Contract Number: EP-2026-02

14.1 Meaning of Confidential Information. For the purposes of this Agreement, the term “Confidential Information” shall mean all information, documents, and materials owned by such Party, including technical, financial, business, or customer information, which is not available to the general public, as well as information derived from such information. Confidential Information specifically includes Covered Information (as defined in Exhibit C), including PPI (as defined in Exhibit C). Except for 3CE Data, the term “Confidential Information” does not include any information or documentation that was: (A) already in the possession of the receiving Party without an obligation of confidentiality; (B) developed independently by the receiving Party, as demonstrated by the receiving Party, without violating the disclosing Party’s proprietary rights; (C) obtained from a source other than the disclosing Party without an obligation of confidentiality; (D) publicly available when received, or thereafter became publicly available (other than through any unauthorized disclosure by, through, or on behalf of, the receiving Party); (E) disclosed or requires disclosure pursuant to a requirement of law, including, but not limited to, the California Public Records Act (Cal. Gov’t Code Section 7920, et seq.); or (F) disclosed to or by a duly empowered government agency, or a court of competent jurisdiction after due notice and an adequate opportunity to intervene is given to 3CE, unless such notice is prohibited.

14.2 Obligation of Confidentiality. Each Party and its officers, employees, agents, and subcontractors shall comply with any and all federal, state, and local laws, which provide for the confidentiality of records and other information. Neither Party shall disclose any confidential records or other Confidential Information received or prepared in connection with the performance of this Agreement to third parties (other than employees, agents, lenders or investors, counsel, advisors, affiliates or subcontractors of a Party who have agreed to be bound by the confidentiality terms of this Agreement and have a need to know in connection with this Agreement), unless the other Party specifically permits such disclosure. Each Party shall promptly transmit to the other Party any and all requests for disclosure of any such confidential records or Confidential Information. Neither Party shall use any Confidential Information gained in the performance of this Agreement except for the sole purpose of carrying out its obligations under this Agreement or as otherwise permitted by this Agreement.

14.3 Cooperation to Prevent Disclosure of Confidential Information. Each Party shall use its commercially reasonable efforts to assist the other Party in identifying and preventing any unauthorized use or disclosure of any Confidential Information.

Without limiting the foregoing, (i) promptly upon 3CE’s request, Service Provider shall execute, and cause its respective employees, agents, and subcontractors, as applicable, to execute, any third-party non-disclosure or confidentiality agreement that 3CE determines is applicable to the provision of the Services, and (ii) each Party shall advise the other Party immediately in the event either Party learns or has reason to believe that any person who has had access to Confidential Information Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 19 Contract Number: EP-2026-02
has violated or intends to violate the terms of this Agreement and each Party will cooperate with the other Party in seeking injunctive or other equitable relief against any such person. Nothing in this Agreement shall obligate 3CE to monitor or enforce the Service Provider’s compliance with the terms of this Agreement. It is understood that 3CE is subject to the California Public Records Act. If a request under the California Public Records Act is made to view Service Provider’s Confidential Information, 3CE shall notify Service Provider of the request and the date that such records will be released to the requester unless Service Provider obtains a court order enjoining that disclosure. If Service Provider fails to obtain a court order enjoining that disclosure, 3CE will release the requested information on the date specified. Service Provider shall promptly notify 3CE should Service Provider, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any Party regarding this Agreement and the work performed hereunder or with respect to any project or property located within 3CE’s jurisdiction. 3CE may, but has no obligation to, represent Service Provider or be present at any deposition, hearing or similar proceeding. Service Provider agrees to cooperate fully with 3CE and to provide 3CE with the opportunity to review any response to discovery requests provided by Service Provider. However, 3CE’s right to review any such response does not imply or mean the right by 3CE to control, direct or rewrite the response.

14.4 Remedies for Breach of Obligation of Confidentiality. Each Party acknowledges that breach of its obligation of confidentiality as set forth in Section 14.2 may give rise to irreparable injury to the other Party, which damage may be inadequately compensable in the form of monetary damages. Accordingly, a Party may seek and obtain injunctive relief against the breach or threatened breach of the foregoing undertakings (without posting bond), in addition to any other legal or equitable remedies which may be available, to include, in the case of 3CE, at the sole election of 3CE, the immediate termination, without liability to 3CE, of this Agreement (and all Scopes).

14.5 Surrender of Confidential Information upon Termination. Upon termination or expiration of this Agreement, each Party shall, at the other Party’s direction, either return or destroy all such Confidential Information and shall so certify in writing (which writing shall itemize all materials destroyed), provided, however, any Confidential Information (i) found in drafts, notes, studies, and other documents prepared by or for 3CE or its representatives, or (ii) found in electronic format as part of either Party’s off-site or on-site data storage/archival process system, will be held by such Party and kept subject to the terms of this Section 14 or destroyed at such Party’s option.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 20 Contract Number: EP-2026-02

15. Data Privacy and Information Security.

15.1 Undertaking by Service Provider. Without limiting Service Provider’s obligation of confidentiality as further described herein, Service Provider shall be responsible for establishing, maintaining, and providing a written description to 3CE of, a data privacy and information security program, including physical, technical, administrative, and organizational safeguards, that comply with or are substantially similar to the security controls identified in the current version of NIST SP800-53, and that is designed to, consistent with prudent industry standards: (a) ensure the security and confidentiality of the 3CE Data; (b) protect against any anticipated threats or hazards to the security or integrity of the 3CE Data; (c) protect against unauthorized disclosure, access to, or use of the 3CE Data; (d) ensure the proper disposal of 3CE Data; and, (e) ensure that all employees, agents, and subcontractors of Service Provider, if any, comply with all of the foregoing. In no case shall the safeguards of Service Provider’s data privacy and information security program used to protect 3CE Data be less stringent than the safeguards used by Service Provider for its own data.

If the Services include handling credit card information, then the Service Provider shall comply at all times with all applicable Payment Card Industry Data Security Standards (PCI-DSS). Service Provider agrees and warrants that it is responsible for the security of “cardholder data” that Service Provider possesses, stores, processes or transmits on behalf of 3CE, and for any impact on the security of 3CE’s cardholder data environment adversely affected by any failure of Service Provider to maintain compliance with provisions of the PCI-DSS applicable to the Services.

15.2 SOC 2 Report. Annually, Service Provider shall provide 3CE with its SOC 2 Type 2 report (for at least three (3) SOC 2 Trust Services Criteria), or successor form of SOC reports, when available, to demonstrate Services Provider’s ongoing SOC 2 compliance, where relevant to the Services. 3CE reserves the right to ask for additional information as needed.

15.3 Right of Audit by 3CE. Without limiting any other audit rights of 3CE, on an annual basis, 3CE may require that Service Provider and 3CE meet to review Service Provider’s data security processes and policies to ensure their adequacy in protecting 3CE Data and Covered Information.

15.4 Audit Findings. Service Provider shall use commercially reasonable efforts, consistent with prudent industry standards, to implement any required safeguards as identified by 3CE or by any audit of Service Provider’s data privacy and information security program as applicable to the Services.

15.5 Pattern of Violations. It shall be considered a material breach of this Agreement if Service Provider engages in a pattern or practice of accessing, storing, using, or Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 21 Contract Number: EP-2026-02
disclosing the Confidential Information in violation of the contractual obligations described herein. Service Provider understands that if 3CE finds that Service Provider is engaged in a pattern or practice of accessing, storing, using, or disclosing Confidential Information in violation of this Agreement 3CE may promptly cease all disclosures of Confidential Information to Service Provider.

Service Provider further understands that if 3CE receives a customer complaint about Service Provider’s misuse of data or other violation of the Disclosure Provisions, 3CE may promptly cease disclosing that customer’s information to Service Provider and may notify the California Public Utilities Commission (“CPUC”) of the complaint.

15.6 CPUC Compliance. Both Parties must protect all Covered Information and PPI from disclosure as set forth in California Public Utility Commission Decision D.12- 08-045. In the event of an unauthorized release of Covered Information and PPI, Service Provider shall comply with the terms of Exhibit C.

15.7 3CE’s Right to Termination for Deficiencies. 3CE reserves the right, at its sole election, to immediately terminate this Agreement (with respect to some or all of the Scopes) without limitation and without liability if 3CE reasonably determines that Service Provider fails or has failed materially to meet its obligations under this Section 15 and such breach is not cured, or the Service Provider is not diligently pursuing a cure to 3CE’s sole satisfaction, within thirty (30) days after receiving written notice of such failure.

16. Proprietary Rights.

16.1 Pre-existing Materials. 3CE acknowledges that, in the course of performing the Services, Service Provider may use software and related processes, instructions, methods, and techniques that have been previously developed by Service Provider (collectively, the “Pre-existing Materials,” which shall include the Services) and that the same shall remain the sole and exclusive property of Service Provider.

16.2 No License. Except as expressly set forth herein, including in Section 4, no license is granted by either Party to the other with respect to the Confidential Information or Pre-existing Materials. Nothing in this Agreement (or any Scope) shall be construed to grant to either Party any ownership or other interest, in the Confidential Information or Pre-existing Materials, except as may be provided under a license specifically applicable to such Confidential Information or Pre-existing Materials.

16.3 Reports.

16.3.1 Each and every report, draft, work product, map, record and other document, hereinafter collectively referred to as “Report”, reproduced, Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 22 Contract Number: EP-2026-02
prepared or caused to be prepared by Service Provider pursuant to or in connection with this Agreement, shall be the exclusive property of 3CE. Any Report, information and data (other than Resulting Data or Pre-Existing Materials) acquired or required by this Agreement shall become the property of 3CE, and all publication rights are reserved to 3CE. Service Provider may retain a copy of any Report furnished to the 3CE pursuant to this Agreement.

16.3.2 All Reports prepared by Service Provider may be used by 3CE in execution or implementation of: (1) the original project for which Service Provider was hired; (2) completion of the original project by a Successor Service Provider; (3) subsequent additions to the original project; and/or (4) other 3CE projects as 3CE deems appropriate in its sole discretion.

16.3.3 No Report, information or other data given to or prepared or assembled by Service Provider pursuant to this Agreement that has not been publicly released shall be made available to any individual or organization by Service Provider without prior approval by 3CE.

16.3.4 3CE shall be the owner of and shall be entitled upon request to immediate possession of accurate reproducible copies of Reports or other pertinent data and information gathered or computed by Service Provider prior to termination of this Agreement or upon completion of the work pursuant to this Agreement.

17. Indemnification; Limitation of Liability; Insurance.

17.1 General Indemnification. Service Provider agrees to indemnify, defend, and hold harmless 3CE and its board members, elected officials, officers, directors, agents, attorneys and employees (each, an “Indemnitee”) from and against any and all liabilities, injuries, damages, losses, expenses, claims, demands, suits, fines, or judgments (each, a “Claim,” and collectively, the “Claims”), including reasonable attorneys’ fees, costs, and expenses incidental thereto, which may be suffered by, incurred by, accrued against, charged to, or recoverable from any Indemnitee, by reason of any third-party Claim arising out of or relating to: (x) Service Provider’s breach of its obligations or representations, warranties, and covenants under this Agreement; (y) the negligence or willful misconduct of Service Provider and/or its agents, employees or subcontractors in connection with the performance of this Agreement, or (z) any data loss or breaches, or other cyber security incidents, arising out of or relating to Service Provider’s breach of its obligations or representations, warranties, and covenants under this Agreement (“Cyber Security Incidents”); in each case, excepting only loss, injury or damage to the extent arising from: (a) the negligence or willful misconduct of 3CE or any Indemnitee; (b) 3CE’s Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 23 Contract Number: EP-2026-02
use of the Services in a manner not authorized by or in compliance with this Agreement or the Documentation; or (c) 3CE’s breach of its obligations under this Agreement. Service Provider’s obligations under this Section 17.1 are conditioned upon 3CE complying with the procedures set forth in Section 17.3.

17.2 Proprietary Rights Indemnification. Service Provider agrees to indemnify, defend, settle, and hold harmless Indemnitees from and against any and all Claims or potential Claims, including reasonable attorneys’ fees, costs, and expenses incidental thereto, which may be suffered by, incurred by, accrued against, charged to, or recoverable from any Indemnitee, by reason of any Claim arising out of or relating to the Services provided hereunder allegedly or actually infringing or misappropriating any United States or foreign patent, copyright, trade secret, trademark, or other proprietary right. In the event that Service Provider is enjoined from providing the Services and such injunction is not dissolved within thirty (30) calendar days, or in the event that 3CE is adjudged, in any final order of a court of competent jurisdiction from which no appeal is taken, to have infringed upon or misappropriated any patent, copyright, trade secret, trademark, or other proprietary right in the access or use of the Services, then Service Provider shall, at its expense:
(a) obtain for 3CE the right to continue using such Services; (b) replace or modify such Services so that they do not infringe upon or misappropriate such proprietary right and is free to be used by 3CE; or, (c) in the event that Service Provider is unable or determines, in its reasonable judgment, that it is commercially unreasonable to do either of the aforementioned, Service Provider shall reimburse to 3CE any prepaid Services Fees and the full cost associated with any Transition Services.

17.3 Indemnification Procedures. Promptly after receipt by 3CE of a threat, notice, or filing of any Claim against an Indemnitee, 3CE shall give notice thereof to Service Provider, provided that failure to give or delay in giving such notice shall not relieve Service Provider of any liability it may have to the Indemnitee except to the extent that Service Provider demonstrates that the defense of the Claim is prejudiced thereby. Service Provider’s selection of counsel to satisfy its obligations set forth in this Section 17 shall be subject to 3CE’s review and written approval.

Notwithstanding any other provision in this Agreement, 3CE shall be entitled to fully participate in the defense of any claim or action described in this Section 17.

At Service Provider’s request, 3CE shall reasonably cooperate with Service Provider in defending against or settling a Claim. Service Provider shall reimburse 3CE for all liabilities, costs, expenses, and reasonable attorneys’ incurred with respect to any litigation in which Service Provider is obligated to indemnify, defend and hold harmless 3CE under this Agreement.

17.4 Third-Party Beneficiaries. Nothing, express or implied, in this Agreement (or any Scope, unless expressly provided therein) is intended to benefit, or to create or be construed to create any rights of enforcement in any persons or entities who are Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 24 Contract Number: EP-2026-02
neither signatories to this Agreement nor Indemnitees (nor, in relation to a specific Scope, such Scope).

17.5 LIMITATION OF LIABILITY.

17.5.1 EXCLUSION OF CONSEQUENTIAL DAMAGES. NEITHER

PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY

INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES

ARISING OUT OF OR IN CONNECTION WITH THIS

AGREEMENT (OR ANY SCOPE), REGARDLESS OF THE FORM
OF ACTION, WHETHER IN CONTRACT, TORT, OR OTHERWISE.

THE FOREGOING EXCLUSION SHALL NOT APPLY TO
DAMAGES ARISING FROM: (I) THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF A PARTY; (II) A PARTY’S BREACH

OF ITS OBLIGATIONS OF CONFIDENTIALITY UNDER THIS
AGREEMENT (EXCLUDING CYBER SECURITY INCIDENTS);
(III) CYBER SECURITY INCIDENTS; OR (IV) SERVICE
PROVIDER’S INDEMNIFICATION OBLIGATIONS HEREUNDER.

17.5.2 GENERAL LIABILITY CAP. SUBJECT TO SECTION 17.5.4, THE

AGGREGATE LIABILITY OF EACH PARTY FOR ALL CLAIMS

ARISING OUT OF OR IN CONNECTION WITH THIS

AGREEMENT (OR ANY SCOPE), WHETHER IN CONTRACT,

EQUITY, NEGLIGENCE, TORT, OR OTHERWISE, SHALL NOT
EXCEED AN AMOUNT EQUAL TO TWO (2) TIMES THE

SERVICES FEES PAID OR PAYABLE UNDER THE AFFECTED
SCOPES FOR THE TWELVE (12) MONTHS IMMEDIATELY
PRECEDING THE DATE ON WHICH THE CLAIM AROSE.

17.5.3 CYBER SECURITY INCIDENTS LIABILITY CAP.

NOTWITHSTANDING SECTION 17.5.2, THE AGGREGATE

LIABILITY OF EACH PARTY FOR ALL CLAIMS ARISING FROM

CYBER SECURITY INCIDENTS SHALL NOT EXCEED FIVE
MILLION DOLLARS ($5,000,000).

17.5.4 EXCLUSIONS FROM GENERAL LIABILITY CAP. THE
LIMITATION SET FORTH IN SECTION 17.5.2 SHALL NOT
APPLY TO: (I) DAMAGES ARISING FROM THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF A PARTY; (II)
DAMAGES ARISING FROM A PARTY’S BREACH OF ITS

OBLIGATIONS OF CONFIDENTIALITY UNDER THIS

AGREEMENT (EXCLUDING CYBER SECURITY INCIDENTS,

WHICH SHALL BE SUBJECT TO THE LIMITATION SET FORTH
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 25 Contract Number: EP-2026-02
IN SECTION 17.5.3); OR (III) A PARTY’S INDEMNIFICATION
OBLIGATIONS UNDER SECTION 17.2.

17.6 Insurance. Prior to commencement of this Agreement, Service Provider shall provide a “Certificate of Insurance” certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, Service Provider upon request shall provide a certified copy of the policy or policies. This verification of coverage shall be sent to 3CE. Without limiting Service Provider’s duty to defend and indemnify as set forth in this Agreement, Service Provider shall maintain in effect throughout the term of this Agreement, a policy or policies of insurance with the following minimum limits of liability:

17.6.1 Commercial General Liability Insurance, including but not limited to premises and operations, including coverage for Bodily Injury and Property Damage, Personal Injury, Contractual Liability, Broad form Property Damage, Independent Contractors, Products and Completed Operations, and with a separation of insureds condition, with a combined single limit for Bodily Injury and Property Damage of not less than $1,000,000 per occurrence, and $2,000,000 in the aggregate.

17.6.2 Business Automobile Liability Insurance, covering all motor vehicles, including owned (only if applicable), leased, non-owned, and hired vehicles, used in providing services under this Agreement, with a combined single limit for Bodily Injury and Property Damage of not less than $500,000 per occurrence.

17.6.3 Workers’ Compensation Insurance, if Service Provider employs others in the performance of this Agreement, in accordance with statutory requirements.

17.6.4 Professional Liability Insurance, if required for the professional services being provided, (e.g., those persons authorized by a license to engage in a business or profession regulated by the California Business and Professions Code), in the amount of not less than $1,000,000 per claim and $2,000,000 in the aggregate, to cover liability for malpractice or errors or omissions made in the course of rendering professional services. If professional liability insurance is written on a “claims-made” basis rather than an occurrence basis, Service Provider shall, upon the expiration or earlier termination of this Agreement, obtain extended reporting coverage (“tail coverage”) with the same liability limits. Any such tail coverage shall continue for at least three years following the expiration or earlier termination of this Agreement.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 26 Contract Number: EP-2026-02

17.6.5 Cyber Liability Insurance, covering information security and privacy liability, including privacy notification costs, in the amount of no less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

Unless otherwise specified by this Agreement, all such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of three years following the date Service Provider completes its performance of services under this Agreement. Commercial general liability and automobile liability policies shall provide an endorsement naming 3CE, its Directors, Board members, officers, agents, and employees as Additional Insureds with respect to liability arising out of Service Provider’s work, including ongoing and completed operations, and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by 3CE and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by Service Provider’s insurance.

18. General.

18.1 Relationship between 3CE and Service Provider. In the performance of work, duties, and obligations under this Agreement, Service Provider is at all times acting and performing as an independent contractor and not as an employee of 3CE.

Service Provider shall not become entitled by virtue of this Agreement to receive from 3CE any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. Service Provider shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of Service Provider’s performance of this Agreement. In connection therewith, Service Provider shall defend, indemnify, and hold 3CE harmless from any and all liability which 3CE may incur because of Service Provider’s failure to pay such taxes.

18.2 Governing Law. This Agreement and each Scope shall be governed by and construed in accordance with the laws of the State of California and the federal laws of the United States of America. Service Provider hereby consents and submits to the jurisdiction and forum of the Monterey County Superior Court or the United States District Court for the Northern District of California, in all questions and controversies arising out of this Agreement or any Scope.

18.3 Disputes; Attorneys’ Fees and Costs. In the event of any dispute arising under this Agreement or a Scope (other than invoice disputes under Section 11.3), within ten (10) days following receipt of notice from either Party identifying such dispute, the Parties shall first meet, negotiate and attempt, in good faith, to resolve the dispute quickly and informally. Each Party shall bear its own costs and expenses, including Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 27 Contract Number: EP-2026-02
attorneys’ fees, incurred in connection with such informal dispute resolution. If the Parties are unable to resolve the dispute within two (2) months after receipt of notice of the dispute (the “Resolution Period”), then either Party may seek any and all remedies available to them at law or in equity. In any arbitration, litigation, or other formal proceeding by which one Party either seeks to enforce this Agreement or a Scope or seeks a declaration of any rights or obligations under this Agreement or Scope, the non-prevailing Party shall pay the prevailing Party’s costs and expenses, including but not limited to, reasonable attorneys’ fees. Service Provider shall not suspend any part of the Services during (i) any invoice dispute under Section 11.3, or (ii) any Resolution Period under this Section 18.3.

18.4 Compliance with Laws; 3CE Policies and Procedures. Service Provider agrees to comply with all applicable federal, state, and local laws, executive orders and regulations issued, where applicable.

18.5 Cooperation. Where agreement, approval, acceptance, consent or similar action by either Party hereto is required by any provision of this Agreement or Scope, such action shall not be unreasonably delayed or withheld. Each Party will cooperate with the other by, among other things, making available, as reasonably requested by the other, management decisions, information, approvals, and acceptances in order that each Party may properly accomplish its obligations and responsibilities hereunder, subject to such Party’s need to comply with confidentiality provisions as set forth in Section 14. Without limiting the foregoing, Service Provider shall execute and deliver any instruments and documents and take such other actions as may be necessary or reasonably requested in order for 3CE to comply with CPUC, California Energy Resources Conservation and Development Commission (“CEC”), and/or California Independent System Operator (“CAISO”) requirements applicable to 3CE’s intended use of the Services. Service Provider will cooperate with any 3CE supplier performing services, and all parties supplying hardware, software, communication services, and other services and products to 3CE, including, without limitation, the Successor Service Provider. Service Provider agrees to use commercially reasonable efforts to cooperate with such suppliers, and shall not commit or permit any act which may interfere with the performance of services by any such supplier.

18.6 Force Majeure; Excused Performance. Neither Party shall be liable for delays or any failure to perform the Services or this Agreement due to Force Majeure. As used herein, “Force Majeure” means any act or event that delays or prevents a Party from timely performing all or a portion of its obligations under this Agreement or from complying with all or a portion of the conditions under this Agreement if such act or event, despite the exercise of commercially reasonable efforts, cannot be avoided by and is beyond the reasonable control (whether direct or indirect) of and without the fault or negligence of the Party relying thereon as justification for such delay, nonperformance, or noncompliance Such Force Majeure events may include Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 28 Contract Number: EP-2026-02
fire, explosion, flood or other natural catastrophe, pandemic, governmental legislation, acts, orders, or regulation, strikes or labor difficulties, and failures in communication lines and routes not under a Party’s control. Any such excuse for delay shall last only as long as the event remains beyond the reasonable control of the delayed Party. However, the delayed Party shall use commercially reasonable efforts to minimize the delays caused by any Force Majeure event. Where Service Provider fails to use commercially reasonable efforts to minimize such delays, the delays shall be included in the determination of Service Level Standard achievement for the applicable Scope. The delayed Party must notify the other Party promptly upon the occurrence of any such event, or performance by the delayed Party will not be considered excused pursuant to this Section, and inform the other Party of its plans to resume performance. A Force Majeure event does not excuse Service Provider from providing Services and fulfilling its responsibilities relating to the requirements of backup and recovery of 3CE Data.

In no event shall any of the following constitute a Force Majeure event: (a) failure, inadequate performance, or unavailability of Service Provider’s subcontractors, unless their failure, inadequate performance or unavailability is itself due to a Force Majeure event; (b) configuration changes, other changes, Viruses, or other errors or omissions introduced, or permitted to be introduced, by Service Provider that result in an outage or inability for 3CE to access or use the Services unless such event is caused as a result of the gross negligence or willful misconduct of 3CE; or (c) economic conditions that render a Party’s performance of this Agreement unprofitable or otherwise uneconomic. Within thirty (30) calendar days following the Effective Date and on an annual basis thereafter until the termination of this Agreement, Service Provider shall provide its then-current business continuity plan (“Business Continuity Plan”) to 3CE upon 3CE’s request. The Business Continuity Plan shall include: (a) Services and 3CE Data backup and recovery procedures, including procedures and resources for disaster recovery; (b) fail-over procedures; and, (c) how Service Provider will interact with its business continuity suppliers, if any. Service Provider shall test its Business Continuity Plan on an annual basis in line with the renewal of ISO 27001 certification, until the termination of this Agreement and shall provide the test results to 3CE upon 3CE’s request.

18.7 Advertising and Publicity. Service Provider shall not refer to 3CE directly or indirectly in any advertisement, news release, or publication, or use any 3CE logo, seal or mark, without prior written approval from 3CE.

18.8 No Waiver. The failure of either Party at any time to require performance by the other Party of any provision of this Agreement (or Scope) shall in no way affect that Party’s right to enforce such provisions, nor shall the waiver by either Party of any breach of any provision of this Agreement (or Scope) be taken or held to be a waiver of any further breach of the same provision. Any waiver of any terms and conditions of this Agreement must be in writing and signed by 3CE and Service Provider.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 29 Contract Number: EP-2026-02

18.9 Notices. Any notice given pursuant to this Agreement (or any Scope) shall be in writing and shall be given by personal service or by United States first-class, postage pre-paid mail, or by email to the addresses listed below, or as changed through written notice to the other Party; provided, if notice is given by email, then notice shall also be sent contemporaneously by personal service or United States first-class postage pre-paid mail. Notice given by personal service shall be deemed effective on the date it is delivered to the addressee, notice mailed shall be deemed effective on the third day following its placement in the mail addressed to the addressee. Notice given by email shall be deemed effective on the next Business Day following transmission.

Central Coast Community Energy Lunar Energy, Inc.

Chief Financial Officer
70 Garden Court, Suite 300 755 Ravendale Drive
Monterey, CA 93940 Mountain View, CA 94043
[email protected]
cc: [email protected]
[email protected]
cc: [email protected]

18.10 Assignment of Agreement (and Scope). This Agreement (and any applicable Scope) and the obligations of Service Provider hereunder are personal to Service Provider. Neither Service Provider nor any successor, receiver, or assignee of Service Provider shall directly or indirectly assign this Agreement (or applicable Scope) or the rights or duties created by this Agreement (or such Scope), without the prior written consent of 3CE, which consent shall not be unreasonably conditioned, delayed, or withheld, whether such assignment is to an affiliate or effected in connection with a sale of Service Provider’s assets or stock or through merger, an insolvency proceeding or otherwise. In the case of an assignment by Service Provider, Service Provider represents and warrants that it has all requisite rights and power to transfer any agreements or other rights with third-parties whose software is incorporated into the Services or who are necessary for the performance and use of the Services. 3CE, at 3CE’s sole election, may assign any and all of its rights and obligations under this Agreement to any company that succeeds to substantially all of 3CE’s business.

18.11 Counterparts; Facsimile/PDF/Electronic Signature. This Agreement (and each Scope) may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 30 Contract Number: EP-2026-02
(or Scope, as applicable). The Parties agree that a facsimile, PDF or electronic signature may substitute for and have the same legal effect as the original signature.

18.12 Entire Agreement. This Agreement, together with each Scope, and any and all attached addenda, schedules and exhibits, each of which is incorporated by reference herein, constitute the entire agreement between the Parties and supersede any and all previous representations, understandings, or agreements between 3CE and Service Provider as to the subject matter hereof. No representation or promise not expressly set forth herein shall be binding. This Agreement and each Scope may only be amended by an instrument in writing signed by the Parties. This Agreement and each Scope shall be construed without regard to the Party that drafted it. Any ambiguity shall not be interpreted against either Party and shall, instead, be resolved in accordance with other applicable rules concerning the interpretation of contracts.

18.13 Cumulative Remedies. All rights and remedies of each Party herein (and each Scope) shall be in addition to all other rights and remedies available at law or in equity, including, without limitation, specific performance against the other Party for the enforcement of this Agreement (and each Scope), and temporary and permanent injunctive relief.

18.14 No Recourse against Constituent Members of Authority. 3CE is organized as a joint powers authority in accordance with the Joint Powers Act of the State of California (Government Code Section 6500 et seq.) pursuant to a Joint Powers Agreement dated February 29, 2016, and is a public entity separate from its constituent members. 3CE shall solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Service Provider shall have no rights and shall not make any claims, take any actions or assert any remedies against any of 3CE’s constituent members in connection with this Agreement.

18.15 Non-Discrimination. During the performance of this Agreement, Service Provider, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in Service Provider’s employment practices or in the furnishing of services to recipients. Service Provider shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. Service Provider and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 31 Contract Number: EP-2026-02

18.16 Conflict of Interest. Service Provider represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement, which would directly, or indirectly conflict in any manner or to any degree with the full and complete performance of the services required to be rendered under this Agreement. Service Provider and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Service Provider’s services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090. This Agreement is non-exclusive and both 3CE and Service Provider expressly reserve the right to contract with other entities for the same or similar services; provided, Service Provider and its officers, employees, associates and subcontractors shall not, without 3CE’s prior written approval, perform work for another person or entity for whom Service Provider is not currently performing work that would require Service Provider or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Service Provider shall incorporate a clause substantially similar to this Section into any subcontract that Service Provider executes in connection with the performance of this Agreement.

18.17 Severability. If any provision in this Agreement (or any Scope) is held by a court of competent jurisdiction to be illegal, invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

18.18 Service Provider. The term “Service Provider” as used in this Agreement includes Service Provider’s officers, agents, and employees acting on Service Provider’s behalf in the performance of this agreement.

18.19 Captions and Terms. The captions in this Agreement (and any Scope) are for convenience only, are not a part of the Agreement (or Scope) and in no way affect, limit or amplify the terms or provisions of this Agreement (or Scope).

18.20 Successors and Assigns. The terms and conditions of this Agreement shall be binding on the successors and assigns of the Parties to this Agreement.

18.21 Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement.

18.22 Survival. The following sections shall survive the termination or expiration of this Agreement or any Scope: Section 5.2, Section 5.3, Section 5.5, Section 9.4, Section 10, Section 11.3, Section 11.4, Section 11.5, Section 13.1, Section 13.2, Section

13.4, Section 14, Section 15.6, Section 16, Section 17, and Section 18.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 32 Contract Number: EP-2026-02
Executed on the dates set forth below by the undersigned authorized representative of 3CE and Service Provider to be effective as of the Effective Date.

CENTRAL COAST COMMUNITY ENERGY (3CE)
BY:______________________________________
Robert M. Shaw, Chief Executive Officer
Date: ____________________________
Approved as to Form
BY:______________________________________
Charles McKee, General Counsel
Date: ____________________________
Approved as to Financial Terms
BY:______________________________________
Dewayne Woods, Chief Financial Officer
Date: ____________________________
LUNAR ENERGY, INC.

BY: ______________________________________
Kunal Girotra, Founder and CEO
Date: ____________________________
BY: ______________________________________
Rishi Simha, VP of Finance and Accounting
Date: ____________________________
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D 5/19/2026
5/19/2026

5/19/2026 1 Contract Number: EP-2026-02
Exhibit A: Scope of Services

SCOPE OVERVIEW
3CE’s Distributed Energy Resource Management System (DERMS) will provide the platform and tools to integrate, monitor, and manage distributed energy resources (DERs) across the service area. The system will support demand flexibility, customer enrollment and participation, grid services, and Load Modifying Capacity (LMC) contributions to Resource Adequacy (RA).

Service Provider shall:
• Support phased integration with 3CE systems and approved third-party technologies using standardized protocols.
• Enable customer enrollment and participation through secure workflows, transparent program management, and clear reporting.
• Provide operational capabilities including forecasting, analytics, performance reporting, and DER dispatch in response to grid needs and market signals, with verified LMC measurement.
● Deliver measurable value for customers, 3CE, the grid, and solution providers through a pay-for-performance model that ensures reliability and cost-effectiveness.

1.0 Scope 1 – DERMS Platform Development
Service Provider Tasks
● Design, deploy, and maintain the DERMS platform.
● Provide foundational customer enrollment functionality to support initial program participation.
● Implement industry-standard protocols (IEEE 2030.5, etc.). ● Integrate with existing 3CE systems, including customer portals and administrative tools. ● Meet RA Load modification requirements.
● Ensure cybersecurity, data privacy, and compliance with applicable grid codes.

2.0 Scope 2 – Integration of Existing Programs (Phased) Service Provider Tasks
● Phase I – BTM Batteries
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 2 Contract Number: EP-2026-02
o Enroll and integrate behind-the-meter batteries.
o Provide monitoring, dispatch, and reporting functions. o Enable upfront incentive payments with integrated pay-for-performance capability, supporting up to 75% controllability of enrolled resources. ● Phase II – EV Charging o Integrate and manage EV charging infrastructure. o Expand customer-facing enrollment portals specific to EV programs. o Enhance analytics, reporting, and M&V for EV charging performance. ● Phase III – Heat Pump Water Heater and Smart Thermostat o Integrate smart thermostats and heat pump water heaters as controllable demand-side resources. o Expand customer enrollment and engagement tools tailored to these devices. o Enhance analytics, reporting, and M&V for device-level performance. ● Phase IV – Additional Technologies
o Incorporate new DERs such as microgrids or commercial load curtailment. o Extend forecasting, reporting, and enrollment tools to new resources. o Ensure RA-eligible LMC reporting (Supply side market integration) Key Deliverables
● Phase I: Enrollment tools and reporting dashboards for BTM batteries. ● Phase II: Expanded DERMS platform supporting EV chargers and flexible loads. ● Phase III: Integration of additional DERs with full M&V functionality. ● Verified performance reports for each phase.
● Configurable analytics dashboards for 3CE staff and customers.

3.0 Scope 3 – Service Provider Capacity Contribution
Service Provider Tasks
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 3 Contract Number: EP-2026-02
● Provide Service Provider-owned or contracted DER capacity within 3CE’s service area. ● Enroll Service Provider resources into the DERMS.
● Contribute to 5 MW baseline by 2026 and 25 MW by 2030. ● Demonstrate dispatchable performance and provide verified LMC contributions.

Key Deliverables
● Verified contribution of Service Provider DER resources toward capacity milestones. ● Performance validation reports for Service Provider-supplied resources. ● Pay-for-performance settlement documentation.

4.0 Scope 4 – Third-Party Administered Programs
Service Provider Tasks
● Enable integration of third-party aggregators, original equipment manufacturers (OEMs), and Third-Party Operators (TPOs).
● Support secure onboarding of customers through third-party administered programs. ● Provide open, vendor-neutral platform access.
● Deliver tools for reporting, settlement, and oversight of third-party program performance.

Key Deliverables
● Documented integration of third-party aggregators into the DERMS. ● Reporting and settlement tools are accessible to 3CE. ● Secure customer enrollment pathways for third-party programs. ● Compliance validation demonstrating vendor-neutral platform design.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 1 Contract Number: EP-2026-02
Exhibit B: Payment Terms
3CE shall pay an amount not to exceed $3,862,057 over the three-year term, limited to $212,000 in the first year and thereafter annually as described below, for the performance of all things necessary for or incidental to the performance of work as set forth in the Scope of Services. Service Provider's compensation for services rendered on an hourly basis shall be based on the following rates or in accordance with the following terms, throughout the term of the Agreement:

POSITION/TITLE HOURLY RATE
Engineer 147
Senior/Lead Engineer 247
Principal Engineer 429
Product Management 214
Delivery Management 228
Legal 295
Hourly rates shall increase annually on each anniversary of the Effective Date by three percent (3%). Service Provider will provide the deliverables outlined in Exhibit A and any Scope. Except for the pass through fees set forth below, which shall be passed through directly to 3CE without any markup, all tasks and associated work will be invoiced on an hourly basis, utilizing the billing rates provided above. All Service Provider tasks, along with their respective deliverables, will be considered fully compensated once the not-to-exceed (NTE) amounts for each fiscal year (FY) are reached. Fiscal Year is defined as annually starting October 1st and ending September 30th. NTE amounts by FY are $212,000 for FY 25/26, $551,171 for FY 26/27, $799,914 for FY 27/28, $1,015,086 for FY 28/29, and $1,283,886 for FY 29/30. If so determined, 3CE can authorize in written approval a change in a specific fiscal year NTE amount.

Fees
a) Setup Fee
1) One-time setup fee for the implementation and configuration of the Gridshare software.
2) Pricing: $60,000 (one time)
3) Invoicing: upon the Effective Date.
b) Fixed Yearly Platform Fee
1) Fixed fee for the software license and ongoing tasks, charged independently of the utilization of, or the capacity connected to, the DERMS platform.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 2 Contract Number: EP-2026-02
2) Pricing: $132,000 (per year)
3) Invoicing: Quarterly in advance beginning on the Effective Date, in four equal installments invoiced on the first day of each quarter for the upcoming quarter’s services.
c) Connected Capacity Fee
1) Variable, tiered fee for utilization of the DERMS platform and ongoing tasks, charged per kW per year of total capacity connected to the platform across all DER Programs (“Connected Capacity”).
2) Connected capacity is defined as the sum of the Connected Capacity across all Devices. The monthly Connected Capacity for a Device is the product of the number of Devices in the month multiplied by the “Reference Capacity” of the Device (as defined below). For Connected Capacity pertaining to DER Programs that do not run year-round, the monthly Connected Capacity Fee is calculated by dividing the annual fee of the applicable Capacity tier by the DER Program season duration expressed in months.
3) Pricing: The Connected Capacity Fee decreases as the Connected Capacity under management grows:
i. Up to 2 MW: $20/kW-year
ii. 2 MW up to 5 MW: $18/kW-year
iii. 5 MW up to 15 MW: $14/kW-year
iv. Over 15 MW: $8/kW-year
Beginning on January 1, 2027, 3CE shall maintain a minimum Connected Capacity of no less than 5 MW of Devices. If actual Connected Capacity in any month falls below 5 MW, the Connected Capacity Fee for such month shall nonetheless be calculated as if 5 MW of Connected Capacity were under management. 4) Invoicing: monthly, at the end of each month, or as further defined in the Program SoWs.

Pass Through Fees
As further described and below, Service Provider shall pass through to 3CE, without markup, the following fees:
a) Device Partner Integration Fees
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 3 Contract Number: EP-2026-02
1) Service Provider continuously updates and expands its base of Device Partner integrations. As a principle, Service Provider does not charge for integration with new Device Partners, subject to satisfactory assessment of expected Device volume and compliance with the requirements set out in the Program SoW. b) Device Partner Setup Fees
1) Certain Device Partners may charge a one-time setup fee to incorporate their Devices under the DERMS platform. These potential Device and Aggregator set-up fees will be billed as pass-through to 3CE. 2) Estimated Pricing of up to $50,000 per Device Partner or Aggregator per DER Program (one time).
3) Invoicing: when expenses occur, payable net-15 days from the date of invoice. c) Device API Fees
1) Device Partners may charge an ongoing API fee to allow integration of the Device under the DERMS platform. Potential Device ongoing API fees will be billed as pass-through.
2) API fees for non-residential Devices are defined on a case-by-case basis. Specific API fees for a DER Program will be determined in the Program SoW. 3) Invoicing: monthly, payable net-15 days from the date of invoice.

The following table summarizes several of the fees described above:

Fiscal
Year
Estimated
Capacity
(MW)
Initial
Setup Fee
Estimated
Device Partner
Setup & API
Fees
Fixed
Platform
Fee
Connected
Capacity Fee
CRM &
ETRM
Integration
Fee
TPO
Aggregator
Onboarding
& Integration
Fee
2025/2026 $ 60,000 $ 132,000 $ 20,000
2026/2027 10 $ 215,171 $ 132,000 $ 164,000 $ 25,000 $ 15,000 2027/2028 22 $ 362,914 $ 132,000 $ 290,000 $ 15,000
2028/2029 32 $ 513,086 $ 132,000 $ 370,000
2029/2030 44 $ 685,886 $ 132,000 $ 466,000
Total $ 60,000 $ 1,777,057 $ 660,000 $ 1,290,000 $ 45,000 $ 30,000 Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 1 Contract Number: EP-2026-02
Exhibit C: Procedures for Unauthorized Release of Covered Information Service Provider hereby agrees to adhere to these procedures (“Procedures”) for detecting and reporting the unauthorized release of Covered Information, including Protected Personal Information (“PPI”).

These Procedures apply to the following unauthorized release activities:

1. Unauthorized access

2. Unauthorized destruction

3. Unauthorized use

4. Unauthorized modification

5. Disclosure to third parties for Secondary Purposes (see below)

DEFINITIONS
Covered Entity – (1) any Community Choice Aggregator or Service Provider (when providing service to residential or small commercial customers), or any third party that provides services to a Community Choice Aggregator or Service Provider (when providing service to residential or small commercial customers) under contract, (2) any third party who accesses, collects, stores, uses or discloses covered information pursuant to an order of the California Public Utilities Commission (the “Commission”), unless specifically exempted, who obtains this information from an electrical corporation, a Community Choice Aggregator or a Service Provider (when providing service to residential or small commercial customers), or (3) any third party, when authorized by the customer, that accesses, collects, stores, uses, or discloses covered information relating to eleven (11) or more customers who obtains this information from an electrical corporation, a Community Choice Aggregator or Service Provider (when providing service to residential or small commercial customers).

Covered Information – any usage information obtained through the use of the capabilities of advanced metering infrastructure when associated with any information that can reasonably be used to identify an individual, family, household, residence, or non-residential customer, except that Covered Information does not include usage information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified or re-identified. Covered Information, however, does not include information provided to the Commission pursuant to its oversight responsibilities. For the avoidance of doubt, Covered Information includes PPI.

PPI – protected personal information that identifies, relates to, describes, or is capable of being associated with, or could reasonably be linked, directly or indirectly, with a consumer, household, or customer account. PPI includes, without limitation, “personal information” as defined in Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 2 Contract Number: EP-2026-02
California Civil Code Section 1798.81.5(d), any information that identifies an individual, such as an individual’s social security number or other government-issued identification number, date of birth, address, telephone number, biometric data, mother’s maiden name, email address, credit card information, or an individual’s name in combination with any other of the elements listed herein.

Primary Purposes – The “primary purposes” for the collection, storage, use, or disclosure of Covered Information, as outlined in Rule 1(c) of Attachment B to Commission D.12-08-045, are to:

1. Provide or bill for electrical power or gas,

2. Provide for system, grid, or operational needs,

3. Provide services as required by state or federal law or as specifically authorized by an order of the Commission, or

4. Plan, implement, or evaluate demand response, energy management, or energy efficiency programs under contract with a Community Choice Aggregator or and Service Provider (when providing service to residential or small commercial customers), under contract with the Commission, or as part of a Commission authorized program conducted by a governmental entity under the supervision of the Commission.

Secondary Purposes – “Secondary purpose” means any purpose that is not a Primary Purpose.

Non-Covered Entity – “Non-Covered Entity” means any entity not defined as a Covered Entity.

Responsible Parties -- 3CE, Service Provider, and any staff, employees, or sub consultants contracted by 3CE or Service Provider.

PROCEDURE
Detecting and Reporting of Unauthorized Releases

1. All Responsible Parties are required to protect Covered Information from unauthorized release activities as set forth above.

2. Any request by any non-Covered Entities, for access to Covered Information must be reviewed and approved by an 3CE manager level employee to ensure no unauthorized or inadvertent release of Covered Information.

3. All authorized releases of Covered Information to Non-Covered Entities shall be logged and reported to 3CE on a quarterly basis.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/19/2026 3 Contract Number: EP-2026-02

4. Any discovery of any unauthorized release of Covered Information must be reported to 3CE within one week of detection.

Unauthorized Release Handling Procedure

1. The discovering party after detecting, or discovery of, the unauthorized release of Covered Information must contact 3CE’s Dir. of Finance and Administration (or another executive manager) immediately.

2. Service Provider will quantify and validate the type and extent of unauthorized release and report that information to 3CE’s Dir. of Finance and Administration in writing with sufficient detail for 3CE to determine the extent and impact of the unauthorized release.

3. Service Provider shall prepare a written annual report of all discoveries of unauthorized releases of Covered Information.

Review and Training

1. At least annually, Service Provider will review these Procedures with its staff, employees, or sub consultants.

2. Any proposed changes to these Procedures shall be provided in writing to 3CE’s Dir. of Finance and Administration for their consideration.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

SCOPE 1: DISTRIBUTED ENERGY RESOURCE

MANAGEMENT SYSTEM
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

Table of Contents
SCOPE 1 – DESCRIPTION OF SERVICES AND TERM 1
SCOPE 1 – TASKS AND DELIVERABLES 1
TASK 1: GRIDSHARE PLATFORM DELIVERY 1
Subtask 1.1: Gridshare Base Software Service 1
Subtask 1.2: Gridshare Partner 3
Subtask 1.3: Gridshare Flex 3
Subtask 1.4: Gridshare data provision to 3CE 3
Subtask 1.5: Gridshare implementation and testing 4
Subtask 1.6: Training 4
Task 1 Deliverables 4
TASK 2: DERMS OPERATION SERVICES 5
Subtask 2.1: Configuration, implementation, and testing of Gridshare Flex 5 Subtask 2.2: Deployment of Gridshare Flex for DERMS operation 6 Subtask 2.3: Gridshare Flex ongoing operation 6
Task 2 Deliverables 7
TASK 3: DER PROGRAM ADMINISTRATION SERVICES 8
Subtask 3.1: Project management and advisory 8
Subtask 3.2: Program contracting and design documents 8 Subtask 3.3: Customer management 9
Subtask 3.4: Reporting 10
Subtask 3.5: Program Implementer and Aggregator management 10 Task 3 Deliverables 11
SCOPE 1 – SOFTWARE SERVICE LEVEL STANDARDS 11
APPENDIX A – DEFINITIONS 17
APPENDIX B – DER PROGRAM ONBOARDING TEMPLATE 20
APPENDIX C – SERVICE PROVIDER STAFFING 21
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 1 Contract Number: EP-2026-02
This Scope 1: Distributed Energy Resource Management System (“Scope 1”) shall be incorporated into and governed by the terms of that certain Main Services Agreement (“MSA”) by and between CENTRAL COAST COMMUNITY ENERGY (3CE), a joint powers authority formed under the laws of the State of California (“3CE”) with a registered address at 70 Garden Court, Suite 300, Monterey, CA 93940, USA and LUNAR ENERGY, INC., a Delaware corporation with a registered address at 755 Ravendale Drive, Mountain View, California 94043 (“Service Provider”) dated May 18, 2026, as may be amended, modified, and supplemented from time to time. In the event of a conflict between the provisions contained in the MSA and those contained in this Scope 1, the provisions contained in the MSA shall prevail. Capitalized terms used but not defined here in this Scope shall have the meaning given to them in the MSA.

This Scope 1, together with the MSA, constitutes the sole and entire agreement of the Parties with respect to the Software Services provided under Scope 1 and supersedes all prior and contemporaneous understandings, agreements, and warranties, both written and oral, with respect to such subject matter.

SCOPE 1 – DESCRIPTION OF SERVICES AND TERM
This Scope 1 focuses on the technical details, as well as the roles, responsibilities, and compensation structure relating to the implementation of the Distributed Energy Resources Management System (DERMS) that the Service Provider will provide for 3CE.

This Scope 1 is effective on the date of last signature below, with 3CE’s signature occurring last, will remain in effect September 30, 2029, unless earlier terminated by either of the Parties per the terms defined in the MSA or upon the termination of the MSA, whichever occurs first. Unless otherwise terminated as provided herein, this Scope 1 may be renewed for one (1) one (1) year term upon mutual written agreement of the Parties, provided the MSA has been concurrently renewed in accordance with Section 1 of the MSA.

All tasks and subtasks set forth in this Scope 1 are considered Software Services (as specified in the MSA) and are subject to the Service Level Standards section in this Scope 1.

SCOPE 1 – TASKS AND DELIVERABLES
TASK 1: GRIDSHARE PLATFORM DELIVERY
Service Provider shall provide to 3CE the Gridshare Platform in accordance with Subtasks 1.1 through 1.6, as set forth below.

Subtask 1.1: Gridshare Base Software Service
Service Provider shall provide to 3CE Gridshare Base Software Service:

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 2 Contract Number: EP-2026-02
1) Connecting the Gridshare Platform to Devices and collecting, normalizing, and storing data. Provide access to that data through User Interfaces (“UI”s) and Application Programming Interfaces (“API”s), collectively, the “Gridshare Interface”. a) Manage the timely integration of new Device Partners as agreed upon in Program Statement of Works (“Program SoWs”), which Program SoWs shall be incorporated into this Scope 1. Service Provider may refuse to enter into a specific Program SoW, integrating specified new Device Partners (or specific models of Devices), at its sole discretion, if it considers that such new Device Partners will not be capable of (i) providing expected Device volume or (ii) complying with the requirements set out in Subtask 1.1(1)(b) below.
b) Ensure that new Device Partners meet the following high-level requirements:
i) Suitable communication protocol available, e.g. OpenADR 3.0, REST API; ii) Sufficient control points available to enable smart management of Devices and a clear roadmap to deploying them;
iii) Telemetry available to the granularity and accuracy required for the targeted services;
iv) Secure authorization methodology for assigning account access; v) Best practice cyber security in place, ideally certified to a recognized standard, and satisfaction of the same cyber liability insurance requirements applicable to Service Provider under the MSA;
vi) Willingness to sign an integration agreement with Service Provider in a form reasonably acceptable to Service Provider and 3CE; vii) Clear documentation and a responsive support team; and viii) Server site locations meet expectations around safe management of 3CE Data.
2) Providing a 3CE company account with Authorized User access. There is no limit on the number of Authorized Users that can access the Gridshare Platform from 3CE. 3) Managing Authorized User functionality: account creation, deletion and access level setting.
4) Managing 3CE Data in accordance with the MSA using a cloud-based service, currently Amazon Web Services. There shall be no cap on the amount of data storage associated with all Scopes entered under the MSA.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 3 Contract Number: EP-2026-02
Subtask 1.2: Gridshare Partner
Service Provider shall provide to 3CE “Gridshare Partner”, a platform for 3CE to visualize Device-level and fleet-level data on the Gridshare Platform. Gridshare Partner will give 3CE access to:
a) Gridshare Partner UI and API;
b) Program-level aggregate metrics Dashboard and maps, to track key performance indicators as per the Program SoW and/or Program Design Document; c) Visualization of individual Participant sites and Devices.

Subtask 1.3: Gridshare Flex
Service Provider shall provide to 3CE forecasting, monitoring, measurement, and verification of Device load shift performance to optimize the Devices through automated dispatch of fleets, including:
a) Device Health reporting via UI to help 3CE understand long-term performance trends across Device types, DER Programs, Aggregator partners or within preset groups as defined in the Program SoW or PDD;
b) Detailed reports for each dispatch event via UI, including performance data with fleet and Device-level granularity through the Gridshare Flex UI and/or API; c) Visualization and management of Participants in DER Programs via Gridshare Flex UI and/or API. Providing an integration pathway for Program Implementers and Aggregators into the Gridshare Platform using OpenADR or similar communication protocols or standards.

Subtask 1.4: Gridshare data provision to 3CE
Service Provider shall facilitate access to an API for data downloads and set up a regular data sync (at least daily) with a nominated storage platform. Data made available will comprise:
a) Device and Customer identifiers;
b) Program enrollment characteristics;
c) Device characteristics;
d) Device telemetry;
e) Load/energy consumption data; and
f) Device or load shift performance data.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 4 Contract Number: EP-2026-02
Subtask 1.5: Gridshare implementation and testing
Service Provider shall configure and deploy Gridshare to meet 3CE’s needs, including:
a) Incorporate 3CE’s requests regarding Dashboard setup and structure, as well as enrollment and performance visualization;
b) Provide functional testing of all Dashboards, UIs, and reporting functions; c) Provide user acceptance testing with 3CE;
d) Implement and test bilateral data flow of enrollment data to and from the 3CE CRM; Subtask 1.6: Training
Service Provider shall provide training sessions to relevant 3CE staff to ensure staff are equipped to operate and navigate Gridshare Partner and Gridshare Flex interfaces. Service Provider shall provide:
a) A detailed user guide covering all system functionality. The user guide will be maintained and updated periodically in line with continued product development; b) Product demonstrations with either in-person or online live sessions, including interactive walkthrough of the Gridshare Platform and live question and answer (“Q&A”) sessions; c) Training sessions to ensure that a minimum of two (2) 3CE staff have been through the training at any time. Scenario-based training of operations relevant to 3CE’s use of Gridshare Partner. Using real sites where possible. Includes Q&A. Refresher training sessions held upon request.

Task 1 Deliverables
Task 1 deliverables to be provided by Service Provider are:
a) Initiate outreach to Device Partners within five (5) days after signing a Program SoW.

Integration timelines will be defined in each Program SoW; b) Create Gridshare accounts for 3CE staff within five (5) business days of request; c) Provide standard metrics Dashboard and maps in Gridshare Partner, as well as visualization of Participants via Gridshare Flex UI and/or API, within five (5) days of first Device dispatch. Program specific dashboard configuration based on available components to be completed within 30 days from first Device dispatch;
d) Provide Device Health reporting and detailed reports for each event dispatch under a DER Program at least on a monthly basis or as otherwise specified in the Program SoW; Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 5 Contract Number: EP-2026-02
e) Finalize end-to-end testing within four (4) weeks of first Devices onboarded to Gridshare for a particular DER Program or as otherwise specified in the Program SoW; f) Provide a detailed user guide for the Gridshare Platform to 3CE within thirty (30) days of signing this Scope 1;
g) Provide a minimum of one (1) product demonstration within ninety (90) days of signing this Scope 1;
h) Provide training sessions to 3CE staff within fifteen (15) days of request. A maximum of four (4) training sessions per year will be provided.

TASK 2: DERMS OPERATION SERVICES
Service Provider shall operate and manage fleets of Devices to provide daily load shift, emergency or event-based load shift, and any other load management activities as specified by 3CE (“DERMS Operation Services”). The DERMS Operation Services listed below aim to optimize the performance of Devices.

Service Provider shall provide to 3CE the DERMS Operation Services in accordance with Subtasks 2.1 through 2.3, as set forth below. The details of the implementation of the DERMS Operation Services for a specific DER Program will be set forth in the Program SoWs that will be entered in accordance with Task 3: DER Program Administration Services, and upon execution shall be deemed to be incorporated into this Scope 1.

Subtask 2.1: Configuration, implementation, and testing of Gridshare Flex Service Provider shall configure and implement the Gridshare Platform to meet 3CE’s needs for the DER Programs:
a) Collect inputs from 3CE for the initial configuration of Gridshare Flex. The inputs required are key DER Program Design Parameters as outlined in Appendix B; b) Optimize the dispatch configuration and work with 3CE to define the required outcomes and determine the optimal dispatch operation that considers impacts on Participants and 3CE;
c) Grouping configuration for 3CE and, where applicable, child accounts such as those required for participating 3CE member agencies.
d) Manage program testing schedule:
1) Conduct simulated dispatch testing within Gridshare, if required, depending on program type;
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 6 Contract Number: EP-2026-02
2) Conduct live dispatch proving tests to ensure test results conform to mutually agreed upon outcomes. Provide a report outlining the results of the proving tests and discuss with 3CE. Implement retesting as required.

Subtask 2.2: Deployment of Gridshare Flex for DERMS operation Service Provider shall deploy and maintain a Gridshare Flex instance with the following functionality:
a) Automatic monitoring and alerting systems, both for Event triggers as well as for backup alerts and weather events as specified in the Program SoW and/or PDD; b) Aggregate load modeling of Participants and the predicted response of Devices to dispatch instructions or rate plan, at site- or Device-level;
c) Baseline and/or performance calculations based on the parameters agreed upon in the Program SoWs and or PDD;
d) Availability forecast for the dispatch Event at either site- or Device-level, delivered via UI or API;
e) Generation of optimized dispatch plans per DER Program and sending commands to execute such plans, accounting for Device-specific operational limitations. Ability to schedule multiple shaped dispatches via UI or API;
f) Measurement and Verification: establish methodologies to measure fleet- and Device-level performance against mutually agreed upon DER Program baseline, as established in the Program SoW or PDD, to calculate load shifting impact.

Subtask 2.3: Gridshare Flex ongoing operation
Service Provider shall provide the following ongoing DERMS Operation Services:
a) Assign sites/Devices/aggregated fleets to DER Programs or preset groups based on polygon-defined zones, Participant attributes, or other parameters defined in the Program SoW or PDD;
b) Schedule and perform Device dispatching set via UI, API, or automated dispatch via trigger signal (e.g. LMP pricing or a system alert);
1) Service Provider operates the DERMS according to the needs and instructions of 3CE and based on the agreed DER Program Design Parameters. 3CE will give at least three (3) business days notice to the Service Provider of any changes to DER Program Design Parameters;
2) Service Provider will dispatch fleets of Devices directly or via Aggregators as specified by 3CE in the Program SoW or PDD;
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 7 Contract Number: EP-2026-02
c) 3CE can access performance data at the Device-, fleet-, program-, or any other level of granularity as defined in the Program SoWs or PDD through the UI; d) Perform ongoing Device and fleet connectivity and health monitoring. Use reports and data to identify, assess, and diagnose performance issues, such as Devices being offline/not reporting data, data integrity issues, API down, commands not being followed, etc. Provide alerts if issues occur and develop a plan for rectifying these issues in accordance with the Request Response Times and Resolution Response Times set forth in this Scope 1; e) Monitor and report on performance trends, capabilities, and limitations across different Device categories, Device manufacturers, Program Implementers’ and Aggregators’ fleets or within preset groups established for performance tracking purposes by either the Service Provider or 3CE;
f) Develop recommendations for improving performance. Once an improvement has been identified and approved by 3CE, implement the recommendations and engage in testing.

Task 2 Deliverables
Task 2 deliverables to be provided by Service Provider are:
a) Implement initial Device and fleet connectivity testing within two (2) weeks of first Devices onboarded to Gridshare for a particular DER Program; b) Configure Gridshare Flex to operate 3CE’s DER Programs according to the DER Program Design Parameters specified in the Program SoW within four (4) weeks of finalizing the initial draft of the PDD;
c) Set up monitoring and alerting systems within four (4) weeks of finalizing the initial draft of the PDD;
d) Provide operational support system (escalation paths, setup of notification, recurring review meetings and responsible staff for monitoring) at first non-test Device dispatch; e) Completed testing and systems are confirmed to be ready to deliver 3CE’s DER Programs within four (4) weeks of first Devices onboarded to the Gridshare platform; f) At a minimum monthly, provide Device Health and event reporting of fully integrated Devices and Aggregators, including Device and Aggregator performance against baseline, device alerts (misbehavior, telemetry, opt outs) (if data available), and Customer cost impacts (if data available). The exact reporting cadence for each DER Program will be established in the Program SoWs and/or PDD.

These delivery dates may be adjusted in the Program SoWs as mutually agreed upon by the Service Provider and 3CE.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 8 Contract Number: EP-2026-02
TASK 3: DER PROGRAM ADMINISTRATION SERVICES
Service Provider shall provide to 3CE administrative support to ensure successful DER Program delivery (“DER Program Administration Services”). Service Provider shall provide to 3CE the DER Program Administration Services in accordance with Subtasks 3.1 through 3.5, as set forth below. Additional details of the implementation of the DER Program Administration Services for a specific DER Program will be set forth in the Program SoWs.

Subtask 3.1: Project management and advisory
Service Provider shall provide the following ongoing project management services:
a) Run at least monthly operational check-in meetings with 3CE staff to align and coordinate all DER Program activity. The frequency of meetings may be increased during the initial launch phase of the services;
b) Document and provide information management services via shared repositories and communication channels;
c) Assess the capacity value and load management value across all existing and potential Device categories in 3CE’s service area for informal reporting purposes (e.g. to inform the 3CE load management standards plan).

Subtask 3.2: Program contracting and design documents
Service Provider shall develop, in collaboration with 3CE, the following contracting and design documents for each DER Program:
a) DER Program Onboarding Template: a template attached to this Scope 1 as Appendix B that allows 3CE to provide basic information about the DER Program to the Service Provider for drafting of the Program SoW;
b) Program SoW: Enter into separate Program SoWs agreed upon by both Parties in writing, using the DER Program Onboarding Template in Appendix B. The Program SoWs establish the key DER Program Design Parameters and specify how the Service Provider will provide the Services for each DER Program to 3CE (including potential additional obligations on Service Provider, third parties such as Program Implementers, and/or 3CE); c) Program Design Document (PDD): Outlines the implementation details of each DER Program. This is a working document that will be maintained by both Parties throughout the duration of the DER Program.

A non-exhaustive list of the roles and responsibilities of the Service Provider and 3CE in developing and maintaining the program contracting and design documents is provided in the following table:

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 9 Contract Number: EP-2026-02
Tasks: DERMS Operation
Services
Responsibility
Service Provider 3CE
Define program objectives Responsible
Define customer and Device
eligibility criteria
Responsible
Define customer enrollment
processes
Supporting Responsible
Define dispatch parameters
(windows, duration, etc.)
Supporting Responsible
Define program incentive
structure
Responsible
Define enrollment and
performance metrics for
reporting purposes
Supporting Responsible
Determines Measurement and
Verification (M&V) of
participating Devices
(including baseline and
performance calculations,
settlement point, etc.)
Jointly Responsible Jointly Responsible
Define program-specific
service level agreements
Jointly Responsible Jointly Responsible
Define Connected Capacity
Reference value (if not
covered in Scope 1)
Jointly Responsible Jointly Responsible
Establish program-specific
budget
Supporting Responsible
Subtask 3.3: Customer management
If applicable, and as defined in the Program SoW, Service Provider shall provide the following ongoing Participant enrollment and eligibility verification processes:
a) Manage Participant enrollment and unenrollment under a specific DER Program; Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 10 Contract Number: EP-2026-02 b) Perform Participant eligibility checks as defined in the Program SoW and/or PDD; c) Provide second line support to 3CE, Respond to Customer inquiries or issues escalated to Lunar Energy by 3CE or Program Implementers
Subtask 3.4: Reporting
Service Provider shall report on Device and Participant enrollment metrics, as well as load shift performance, via the following methods:
a) Provide a UI that visualizes Device management and load shift performance and allows for download of data;
b) Provide an API for 3CE to integrate with their systems for automatic data downloads and reporting;
c) Provide monthly reporting on metrics established in the Program SoWs or PDDs via email or shared depository.

Subtask 3.5: Program Implementer and Aggregator management Service Provider shall provide the following services to manage DER Program Implementers and Aggregators:
a) Manage the timely onboarding and integration of new Program Implementers / Aggregators;
b) Ensure that new Program Implementers and Aggregators shall meet the following high-level requirements:
1) Suitable communication protocol available, e.g. OpenADR 3.0, REST API; 2) Sufficient control points available to enable a smart management of Devices and a clear roadmap to deploying them;
3) Telemetry available to the granularity and accuracy required for the targeted services;
4) Secure authorization methodology for assigning account access; 5) Best practice cyber security in place, ideally certified to a recognized standard, and satisfaction of the same cyber liability insurance requirements applicable to Service Provider under the MSA;
6) Willingness to sign an integration agreement with Service Provider in a form reasonably acceptable to Service Provider and 3CE;
7) Clear documentation and a responsive support team; and Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 11 Contract Number: EP-2026-02 8) Server site locations meeting expectations around safe management of 3CE Data.

Task 3 Deliverables
Task 3 deliverables to be provided by Service Provider are:
a) Run at least monthly operational check-in meetings with 3CE staff; b) Draft initial Program SoW within fifteen (15) business days of receiving the DER Program Onboarding Template from 3CE;
c) Initial response to Participant enrollment and un-enrollment requests to and from the Gridshare platform within three (3) business days. For the avoidance of doubt, if the Participant enrollment or un-enrollment is initiated by the Participant via a Device Partner, Aggregator or other entity other than Service Provider directly, reference is made only to the required time for Service Provider to respond to the instruction it received from 3CE or the applicable partner;
d) If applicable, and as defined in the Program SoW, perform initial Participant eligibility check within ten (10) business days of receiving enrollment request; e) Provide an initial response to Customer inquiries or issues (received via partners or 3CE) within three (3) business days;
f) Provide reports on Devices under management, Participant enrollment, Participant unenrollment, and Participant eligibility issues under each DER Program at a reporting cadence to be specified in the Program SoW.

SCOPE 1 – SOFTWARE SERVICE LEVEL STANDARDS

SERVICE LEVEL AGREEMENT AND SUPPORT FOR SOFTWARE SERVICES Support Software Service Standards. Service Provider shall correct Service Errors and respond to all requests for support in accordance with the required times and other terms and conditions set out below.

Requests for Software Service Support. Service Provider will classify 3CE’s requests for Service Error corrections in accordance with the descriptions set forth below. Service Provider will provide 3CE with a support channel for reporting Critical, High and Medium Service Errors.

Low Service Errors may be reported via email, slack, Teams or telephone at the support email Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 12 Contract Number: EP-2026-02 address, support slack/Teams channel and/or support phone number provided by Service Provider from time to time.
1) Support request classifications:
a) Critical Service Error: Significant and core functionality of the Software Service is unavailable, either with respect to the Software Service as a whole (e.g. users are unable to see any data on the Gridshare user interfaces) or with respect to performance of Gridshare Flex (e.g. Device plans are not being sent). b) High Service Error: Operational issues that materially impact delivery of the Gridshare Interfaces or Gridshare Flex with no work around available (e.g. data upload or download issues with Gridshare Partner user interface or Gridshare Flex user interface).
c) Medium Service Error: A bug, or issue with an available work around or unexpected behavior that does not materially impact the functionality of the Gridshare Interfaces or Gridshare Flex.
d) Low Service Error: Request for assistance, information, or services that are routine in nature.
2) Software Service Levels. Software Service Levels are structured around criticality:
a) For Critical and High Service Errors, Service Provider will use commercially reasonable efforts to resolve the issue as soon as possible, subject to the Request Resolution Time set forth below. 3CE will raise a support ticket to Service Provider via the support channel.
i) Request Response Time: Service Provider will respond within two (2) hours.
ii) Request Resolution Time: Service Provider will assign appropriate staff to work on the issue raised in the support ticket and will provide 24/7 support to resolve the support ticket. Service Provider shall resolve Critical Service Errors within thirty-six (36) hours and High Service Errors within seventy-two (72) hours
b) For Medium Service Errors, Service Provider will use commercially reasonable efforts to resolve the issue as soon as possible, subject to the Request Resolution Time set forth below. 3CE will raise a support ticket to Service Provider via the support channel.
i) Request Response Time: Service Provider will respond within twenty-four (24) hours. ii) Request Resolution Time: Service Provider will assign appropriate staff to work on the issue raised in the support ticket, who will work during Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 13 Contract Number: EP-2026-02 standard UK business hours. Service Provider shall resolve the Service Error within one work week.
c) For Low Service Errors, Service Provider will provide email and phone support during business hours and in accordance with Service Provider’s standard support policies.
i) Request Response Time: Three (3) business days
ii) Request Resolution Time: Three (3) business days
3) Uptime Software Service Levels. Service Provider will use commercially reasonable efforts to ensure that the Software Services are available for at least 99% of the time on a 24 hours a day, 7 days a week basis each calendar month as calculated below. The Software Services will be considered “Available” for the purposes of the Service Levels at any time Gridshare is not exhibiting a Critical Service Error or there is an Excused Event.
a) Availability percentage for a given calendar month will be calculated as follows:
x = ((n-y)*100) / n.
b) Where:
i) x = availability percentage;
ii) n = the number of hours in a given calendar month; and iii) y = the number of hours that the Software Services are not available to 3CE in such calendar month.
c) Example: For a month with 720 hours, where a Critical Service Error of 14.4 hours was present the uptime would be equal to ((720-14.4)*100/720 = 98.0%

SERVICE LEVEL STANDARD PERFORMANCE CREDITS
The following Service Level Standards (SLSs) and associated Performance Credits shall apply to the Software Services provided by Service Provider under the MSA and all associated Scopes.

Additional SLS for Program specific operations and performance may be defined for each program in the Program SoWs.
a) Request Response Time Service Level Standard.
i) Definition. “Total Problems” shall mean the total of Service Errors occurring in the reporting month, for each Service Error classification, provided that any Service Errors caused by an Excused Event shall not be included in Total Problems.
ii) Service Level Standard. Service Errors shall be confirmed as received by Service Provider 100% of the time each reporting month, in accordance Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 14 Contract Number: EP-2026-02 with the Request Response Time associated with the Service Error classification.
iii) Performance Credit.
(1) Critical and High Service Errors. 3CE shall be due a Performance Credit in the amount of 0.5% of the Services Fees (defined for purposes of this subsection as the Fixed Yearly Platform Fee and the Connected Capacity Fee, calculated on a monthly basis for the reporting month) for each Service Error with respect to which Service Provider fails to meet the applicable Request Response Time.
(2) Medium and Low Service Errors. 3CE shall be due a Performance Credit in the amount of 0.2% of the Services Fees (defined for purposes of this subsection as the Fixed Yearly Platform Fee and the Connected Capacity Fee, calculated on a monthly basis for the reporting month) for each Service Error with respect to which Service Provider fails to meet the applicable Request Response Time.
iv) Example Calculation (Using Critical Service Error). (1) Total Problems with respect to which Service Provider fails to meet the applicable Request Response Time equals two (2). (2) Therefore, 3CE is due (2 x 0.5%), or 1% of the Services Fees (defined for purposes of this subsection as the Fixed Yearly Platform Fee and the Connected Capacity Fee, calculated on a monthly basis for the reporting month) as a Performance Credit. b) Request Resolution Time Service Level Standard.
i) Definition. “Total Problems” shall mean the total number of Service Errors occurring in the reporting month, for each Service Error classification, provided that any problems caused by an Excused Event shall not be included in Total Problems.
ii) Service Level Standard. Service Errors shall be resolved by Service Provider 100% of the time each reporting month, in accordance with the Request Resolution Time associated with the Service Error classification. iii) Performance Credit.
(1) Critical and High Service Errors. 3CE shall be due a Performance Credit in the amount of 2% of the Services Fees (defined for purposes of this subsection as the Fixed Yearly Platform Fee and the Connected Capacity Fee, calculated on a monthly basis for the reporting month) for each Service Error with respect to which Service Provider fails to meet the applicable Request Resolution Time.
(2) Medium and Low Service Errors. 3CE shall be due a Performance Credit in the amount of 0.5% of the Services Fees (defined for purposes of this subsection as the Fixed Yearly Platform Fee and the Connected Capacity Fee, calculated on a monthly basis for the reporting month) for each Service Error with respect to which Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 15 Contract Number: EP-2026-02 Service Provider fails to meet the applicable Request Resolution Time.
c) Example Calculation (Using Low Service Error).
i) Total Problems failing the Request Resolution Time Standard equals three (3).
ii) Therefore, 3CE is due (3 x 0.5%), or 1.5% of the Services Fees as a Performance Credit.

LOAD SHIFT PERFORMANCE GUARANTEES
Service Provider will manage and control Devices under the Gridshare platform as described in Subtask 2.3 above. Service Provider commits to the following performance guarantees in the provision of load shifting services. Additional load shift performance guarantees may be established in the Program SoWs.
a) For battery energy storage systems, the commands will achieve the minimum of either >95% the Maximum Available Energy or the Target Delivered Energy at the aggregated level, excluding any Excused Events.
a. “Maximum Available Energy” is energy available in Plannable Devices not reserved for hardware requirements or customer resiliency, calculated at the time of dispatch start .
b. “Target Delivered Energy” is the contract delivery obligation in MW as defined in the Program SoW.
c. “Plannable Devices” are those Devices which are: (1) enrolled in the program evaluated, (2) part of the preset group whose response is requested, and (3) online at the time of planning.
b) For all other technologies, after six (6) weeks of DER Program operation, Service Provider's average monthly load shift delivery shall be within a maximum +/- 25% of the forecast excluding any circumstances outside of Subcontractor’s control (i.e. Excused Events, Force Majure events, global OEM outages, Global Cloud Service Provider Outages). The specific performance band will be defined in the Program SoW but must be smaller than +/-25%.
a. Service Provider will forecast the load shift performance of managed Devices under a DER Program or a preset group on at least a monthly basis. The forecasting details will be defined between both Parties in each Program SoW or PDD.
b. Service Provider will report on the actual load shift performance achieved within one month of the closing of the reporting month (or on a frequency as specified in the Program SoWs).

LOAD SHIFT PERFORMANCE CREDITS
If load shift delivery falls outside of the load shift performance guarantees set forth above (other than due to Excused Events) consistently over a 2-month period, Service Provider shall pay 3CE a Performance Credit of 1% of the Connected Capacity Fee of the affected DER Program or preset group for each percentage of excess deviation outside the +/- 25% tolerance band for each applicable month.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 16 Contract Number: EP-2026-02 Agreed and accepted as of the latest date on which this Scope 1 is executed by either Party:

LUNAR ENERGY, INC. CENTRAL COAST COMMUNITY
ENERGY
By: __________________________
Kunal Girotra, Founder and CEO
Date: _____________________
By: ______________________________
Robert M. Shaw, Chief Executive Officer
Date: _____________________
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D 5/19/2026

5/18/2026 Scope 1 – page 17 Contract Number: EP-2026-02 APPENDIX A – DEFINITIONS
“Aggregator” means an entity controlling fleets of Devices that can be contracted with as a strategy to add volumes of Devices on the DERMS Platform. “API” means the application programming interface used by Gridshare to interface with 3CE or OEM software.
“Authorized User” has the meaning given in the MSA.
“3CE Data”, per the MSA, shall include any and all data, including Covered Information, originating from 3CE and/or from any Authorized User, that is collected, accessed, transmitted, used, processed, stored, or generated by Service Provider, or that is otherwise made accessible to Service Provider, as the result of or in connection with 3CE’s use, or Service Provider’s provision of the Services, and any data sets generated therefrom. “Customer” means the end-user or account holder of record associated with a site where one or more Devices are located, who is eligible for or enrolled in a DER Program. “Dashboard” means a web-hosted User Interface for the Gridshare software service. “DERMS” means distributed energy resource management system. “DER Program” means a Customer program implemented by 3CE and/or their partners, as set forth in a Program SoW agreed upon in writing by the Parties. “DER Program Design Parameters” means key inputs into the Program SoWs such as Device type, dispatch window, dispatch parameters, baseline and performance calculation, settlement point, performance metrics, and any other requirements of a particular DER Program. “DER Program Onboarding Template” means the template used between the Parties for 3CE to provide basis DER Program information to the Service Provider for drafting of the Program SoW.
“Device” means a Customer-sited load flexibility resource. “Device Health” means a measurement of the ability to utilize a Device in the program. “Device-level Data” means data which is broken down to the Device level, as opposed to Fleet-level, or aggregated, data. “Device Partner” means an original equipment manufacturer or API provider that integrates with Gridshare to enable DER data exchange and control.
“Event” means Lunar Energy taking control of the Devices enrolled in a program for the purposes of fulfilling the program operational requirements.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 18 Contract Number: EP-2026-02 “Excused Event” means an event caused by (a) 3CE’s acts or omissions; (b) factors outside of Service Provider’s reasonable control related to lack of internet access or similar problems beyond the demarcation point of the Services; (c) any actions or inactions of an Authorized User, 3CE, Participant, Customer, OEM, Program Implementer, Aggregator or any third party, including without limitation the disabling of the applicable Device by an end user; (d) any failure or unavailability of Authorized User’s, OEM’s, Program Implementer’s, Aggregator’s, 3CE’s or any third party’s equipment, networks, products, services, software or other technology; and/or (e) any issues with internet connectivity with a Device.
“Fleet-level Data” means data which is aggregated for a group (or fleet) of Devices. “Gridshare” or “Gridshare Platform” means the software developed by Service Provider, including Gridshare Base, Gridshare Partner, and Gridshare Flex. “Gridshare Base” means the base module of Gridshare which enables connection to devices, data ingestion/control, user accounts and user management.
“Gridshare Flex” means the energy flexibility product module of Gridshare which enables group management, dispatching, and health and performance reporting. “OEM” means original equipment manufacturer of a particular Device. “Participants” means Devices, sites or aggregates enrolled in a DER Program and operated for the purposes of that Program. If there are several Devices on one site (i.e. behind one Customer’s meter), they are all being covered under the “Participants” definition. “Program Design Document” or “PDD” means the informational document to be developed by both Parties for each DER Program specifying all the design and operational elements of the DER Program. This is a working document, not a contractual agreement. “Program Implementer” means an entity that provides implementation services for a particular DER Program (including, but not limited to, Customer enrollment and management, program management services, Customer payments etc.). Program Implementers can be “Aggregators” but don’t have to be.
“Program Statements of Work (SoWs)” are contractual agreements that are developed for each DER Program by both Parties in writing, using the DER Program Onboarding Template attached to this Scope 1 as Appendix B. They establish the DER Program Design Parameters and specify how the Service Provider will provide the Services for each DER Program to 3CE (including potential additional obligations on Service Provider and/or 3CE). “Service Error” means all errors or interruptions in the Software Services. “Software Services” is as defined in the MSA. Software Services include all the tasks and subtasks in Scope 1.
“Software Service Levels” means the performance standards set out in Section 2 of “SERVICE LEVEL AGREEMENT AND SUPPORT FOR SOFTWARE SERVICES” above.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 19 Contract Number: EP-2026-02 “Subcontractor” means an entity supporting the Service Provider in the provision of the services under this MSA.
“User Interface” or “UI” means the user interface, providing visualization of the Software Services provided to 3CE.

Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D

5/18/2026 Scope 1 – page 20 Contract Number: EP-2026-02 APPENDIX B – DER PROGRAM ONBOARDING TEMPLATE
An authorized representative of 3CE may agree with Service Provider to amend this Program Onboarding Template during the term of Scope 1 to meet the needs of specific DER Programs.

DER Program Design Parameters

1. Program name

2. Program objective(s)

3. External funding

4. Program term

5. Geographic location

6. Eligible Customers and Participants

7. Preset groups

8. Device type

9. Device Partner(s)

10. Aggregator(s)

11. Program Implementer(s)

12. Subcontractor(s)

13. Additional Authorized User(s)
Additional obligations

1. Timeline for Device and Device Partner integration

2. Event Dispatch and Additional Grid Services

3. Participant Enrollment, Management and Eligibility

4. Measurement & verification (M&V)

5. Reporting
Services fees and budget

1. Service Fees

2. Budget

3. Customer Incentives and Payments

4. Aggregator Payments
Service Level Standards
Docusign Envelope ID: 7E36D0EE-D06C-8B00-8311-24234159125D