Board of Directors Meeting
June 26, 2025
Item 5: CEO Report
2 CEA Staffing
3 New CEA Employees:
Ana Alarcon Clerk to the Board/Executive Assistant
Karen Villaseñor Programs Analyst
Tiffany Reynolds Key Accounts Analyst
Sofia Alcaraz Energy Contracts & Compliance Analyst
Wu Yakubu Energy Analytics & Risk Manager
Item 5
CEA Enrollment Stats
4 Member City Eligible
Accounts
Clean Impact –
50% Renewable
Clean Impact Plus
- 75% Carbon
Free
Green Impact –
100% Renewable
Participation
Rate
Carlsbad 54,624 173 49,295 229 91%
Del Mar 3,015 7 2,751 73 94%
Escondido 57,041 149 53,281 69 94%
Oceanside 74,038 200 68,773 96 93%
San Marcos 37,025 112 34,404 75 93%
Solana Beach 7,743 14 6,887 160 91%
Vista 39,424 83 36,927 323 95%
TOTAL 272,910 738 252,318 1,025 93%
Item 5
* On Juned 17, 2025, the Carlsbad City Council voted to opt up its Municipal Accounts to Green Impact
Completed Community Events
5 Upcoming Community Events
Item 5
Solar Plus & Battery Bonus Update
6 Member City Solar Plus Solar Plus Connect Battery Bonus Battery Bonus Connect Status Active Complete Active Complete Active Complete Active Complete Carlsbad 1 1 1 0 0 0 5 0
Del Mar 0 0 0 0 0 0 0 0
Escondido 7 0 8 0 0 0 5 0
Oceanside 1 1 3 0 0 0 4 0
San Marcos 0 1 1 0 0 0 5 0
Solana Beach 1 0 0 0 0 0 1 0
Vista 1 1 2 0 0 0 5 0
TOTAL 11 4 15 0 0 0 25 0
Data as of 6/18/25
Item 5
PeakSmart Savers Update
7 Member City PeakSmart Savers Signups
Carlsbad 0
Del Mar 1
Escondido 2
Oceanside 6
San Marcos 0
Solana Beach 0
Vista 5
TOTAL 14
Data as of 6/20/2025
Item 5
Questions/Discussion – Item 5
8 Item 6: AB 2561 - Status of
Vacancies, Recruitment and
Retention Efforts
9 AB 2561 Public Hearing
10 Item 6
• Assembly Bill (AB) 2561 (McKinnor) amended the Myers-Milias-Brown Act (MMBA) to add Government Code Section 3502.3, which created a new obligation for public agencies to present the status of vacancies and recruitment and retention efforts
• The public hearing must be held at least once per fiscal year prior to adopting an annual budget
• During the hearing, the public agency is required to identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
AB 2561 Public Hearing
11 Item 6
Position Department Posted Hired
Reason for
Vacancy
Programs Analyst Key Accounts & Programs 3/3/2025 Yes New Position Key Accounts Analyst Key Accounts & Programs 3/3/2025 Yes New Position Energy Contracts &
Compliance Analyst Power Supply 3/3/2025 Yes New Position Energy Analytics &
Risk Manager Power Supply 3/3/2025 Yes New Position
Clerk to the
Board/Executive Assistant Operations 3/5/2025 Yes Refill Position Status of Job Vacancies for FY 2024/2025:
AB 2561 Public Hearing
12 Item 6
Recruitment & Retention Efforts
• CEA’s recruitment process consisted of a comprehensive interview process with candidates shortlisted for interviews and final candidates then interviewed prior to selecting the preferred candidate
• There has been very little employee turnover at CEA this past fiscal year • CEA began the fiscal year with six (6) full-time employees and one employee chose to leave last month to pursue a different career path
• Four of the five vacancies for which recruitments were conducted were new positions • CEA’s retention efforts include offering competitive wages, generous retirement benefits, a technology allowance, flexible spending account, generous vacation and sick time, and 11 paid holidays including a winter break. • Because CEA has been successful in filling vacant positions this past fiscal year and retaining its employees, no changes are being recommended to its recruitment process and retention efforts
AB 2561 Public Hearing
13 Item 6
Recommendation:
That the Board:
1. Conduct the Public Hearing: Open the Public Hearing, Receive Public Testimony, and Close the Public
Hearing.
2. Accept report on the status of CEA employee vacancy
rates and recruitment and retention efforts.
Questions/Discussion – Item 6
14 Item 7: Regulatory & Legislative
Update
15 Clean Energy Alliance: Regulatory
Update
Tim Lindl – Keyes & Fox LLP
June 26, 2025
Item 7
17 Overview
● Rulemaking 25-05-005: Proposed Decision Changing the Power Charge Indifference Adjustment (PCIA) methodology adopted
● Application 23-06-001: Proposed Decision in the 2022 Energy Resource Recovery Account (ERRA) Compliance Proceeding adopted
● Rulemaking 23-10-011: Proposed Decision in the Resource Adequacy (RA) Rulemaking adopted
Item 7
Phase I Decision in R.25-02-005
The final decision (adopted today) approved modifications to the RA Market Price Benchmark (MPB) that:
● Expanded the transactional data used to calculate the MPB from 1-2 years (current approach for System RA and Flex RA) to 3-4 years (current approach only for Local RA).
● Applied those changes retroactively to the 2025 rates already in place.
PCIA rates will increase compared to the status quo on account of the decision.
18 Item 7
Final Decisions in 2022 ERRA
Compliance and RA Rulemaking
● ERRA Compliance (A.23-06-001): The final decision (adopted 6/12) could be read to suggest CCAs cannot review SDG&E’s efforts to sell its substantial amount of excess RA capacity.
● RA Rulemaking (R.23-10-011): The final decision (adopted today) officially denies CalCCA’s proposal for hourly “transactability,” i.e., the ability of CCAs to transact capacity on an hourly basis instead of a monthly basis, despite overwhelming support for it.
19 Item 7
QUESTIONS?
Tim Lindl
[email protected]
(510) 314-8385
20 Item 7
Budget Reconciliation Legislation
House of Representative’s H.R. 1
21 Clean Energy Incentive Impacts:
• Ends residential clean energy and EV tax credits by December 2025; disqualifies solar leasing from tax incentives.
• Phases out ITC/PTC for utility-scale projects by December 2028; construction start within 60 days of enactment or in service by end of 2028 • Restricts projects with materials from foreign entities of concern (FEOC) – notably Chinese components – starting December 31, 2025 • Tax credit transferability narrowed, limiting small developers' access to capital • Some tax incentives preserved (e.g., nuclear, clean fuels, geothermal) through 2031
• Fossil fuel permitting fast-tracked via payment of higher fees • Rescinds unspent federal energy funds from select
Item 7
Tax Credits: Senate Finance Committee
Proposal
22 Revised Clean Energy Tax Credit Phase-Out
• Ends major consumer tax credits within 180 days of enactment (EVs, residential solar/storage, energy efficiency)
• Phases down solar/wind tax credits to 60% in 2026, 20% in 2027 and zero beginning in 2028. Other technologies (e.g., geothermal, storage) retain credits through 2033 with phase out by 2036
• Imposes strict FEOC limits on all clean energy tech starting in 2026, with declining thresholds for component sourcing (e.g., solar parts from China capped at 50% in 2026 tapering to 15%)
• Preserves and modifies tax credits for nuclear, hydrogen, clean fuels, and carbon capture under new “America First Energy Policy”
• Senate and House aim to reconcile proposals by July 4; further changes expected Item 7
House Alternative Energy Tax Credit
Proposals
23 H.R. 3291 “Certainty for Our Energy Future Act”
• Phases out ITC/PTC for solar and wind by 2031, retains credits for other technologies (e.g., storage, geothermal) into 2030s
• Maintains start-of-construction standard and includes safe harbor protections for existing projects
• Proposes less restrictive foreign sourcing rules; referred to House Ways & Means Committee.
H.R. 2838 "Ending Intermittent Subsidies Act"
• Also targets wind/solar phase-out but uses placed-in-service eligibility standard.
Item 7
Item 8: Fiscal Year (FY) 2025/2026
Budget
24 FY2025-2026 Proposed Budget
And
5-Year Outlook through June 2030
May 29, 2024
Item 8
Financial Performance Projected June 30, 2025 (Updated) 26 YTD Actuals through Forecast through Budget Variance 3/31/2025 6/30/2025 FY2024-2025 Fav/(Unf)
Total Operating Revenues $273,668,520 $350,984,553 $360,839,549 ($9,854,996) Total Cost of Energy 232,762,908 308,736,305 317,090,165 8,353,860 Other Expenses (excluding Energy) 6,829,963 9,418,179 9,381,926 (36,253) Total Operating Expenses 239,592,871 318,154,485 326,472,091 8,317,607 Operating Income (Loss) 34,075,650 32,830,068 34,367,457 (1,537,389) Total Nonoperating Income/(Expense) (903,314) (1,077,968) (1,063,383) (14,585) CHANGE IN NET POSITION $33,172,335 $31,752,100 $33,304,074 ($1,551,974) Net Position at the end of period $16,207,501 $14,787,266 Current forecast for end of year results are slightly better than presented at the last Board meeting Item 8
Key Observations for Full Year (FY2025)
• Current forecast is to end the year with positive Change in Net Assets of $31.8 million
• $1.6 million below Budget
• Several likely positive upsides could improve the outcome to better than Budgeted level
• Current forecast is to end with positive $14.8 million of Net Position (after 3 successive negative years)
• Energy expenses
• $6.9 million below Budget
• Sum of all other expenses very close to Budget
• Total Administrative Expenses – close to budget; less than 3.0% of total expenses
27 Item 8
FY2025-2026 Budget Detail
Item 8
Key Assumptions
• Change in Net Position - $35.9 million
• $4.1 million more than FY2025 forecast
• Rates
• Assuming no change in rates from current levels through the 5-year projection • Note: CalCCA rate projections show potential for significant SDG&E generation rate decreases • No load growth
• Customers – number, mix and usage all flat
• Programs Budget
• FY2026 - $2.0 million
• FY2027 - $4.0 million
• FY2028 - $6.0 million
• FY2029 - $8.0 million
• FY2030 - $12.0 million
• Staffing and Administration
• Today – 10 positions
• At June 30, 2026 – 16 positions
29 Item 8
Key Assumptions – Energy Costs
• Energy and Energy Attribute Prices
• Forward energy price forecasts appear to be continuing recent declines • REC prices have declined from recent historical highs, but remain above historical norms
• Resource Adequacy prices expected to be lower than recent historical highs • Contingency
• Staff proposes a 10% contingency of Total Energy Costs for FY2025-2026 Budget and 5-year outlook
• Built into the Budget, but will revert to general funds if not needed • Concerns:
• Recent significant declines in forward price expectations leave significant room for upward surprises
• Recent tariff and supply chain issues have created potential volatility • Prior year’s budget included 5% contingency
30 Item 8
FY25-26 Budget and 5-Year Outlook
No change from prior Board meeting
31 Days Liquidity on Hand
Reserve Policy – annual target met every year, but don’t meet cumulative until end of FY2028 Investment Grade Credit Rating – Targeting mid-to-late 2027 based on expected DLOH levels Proposed Budget Outlook Outlook Outlook Outlook
FY2025-2026 FY2026-2027 FY2027-2028 FY2028-2029 FY2029-2030 Total Operating Revenues $383,146,909 $388,089,267 $383,501,212 $383,507,082 $383,513,055 Total Cost of Energy 333,540,321 334,844,585 312,629,543 298,903,726 297,664,935 Other Expenses (excluding Energy) 13,363,246 16,646,758 20,674,112 25,379,524 31,715,530 Total Operating Expenses 346,903,567 351,491,343 333,303,655 324,283,250 329,380,465 Operating Income (Loss) 36,243,342 36,597,923 50,197,557 59,223,832 54,132,590 Total Nonoperating Income/(Expense) (380,692) (3,635) 444,240 1,481,379 2,703,573 CHANGE IN NET POSITION $35,862,650 $36,594,289 $50,641,797 $60,705,211 $56,836,163 Net Position at the end of period $50,649,916 $87,244,205 $137,886,001 $198,591,212 $255,427,375 Days Liquidity on Hand 81 116 177 214 276
Item 8
Questions/Discussion – Item 8
32 Item 9: Fiscal Year (FY) 2025/26 – 2026/27 Work
Plan, and Amendments to the Clean Energy Alliance
Position Control Listing and Salary Schedule
33 Final FY 2026-27 Work Plan
34 • Final Work Plan for FY2026-27 includes:
• Goals and objectives of the Strategic Plan
• Includes implementation measures and key performance indicators to track progress for the goals and objectives
• Identifies funding sources
• Identifies Staff/Consultant responsibility
• Establishes Priorities for FY 2026-FY2027 Budget Years Item 9
Position Control Listing & Salary Schedule
Amendments
35 Item 9
• Two additional positions are recommended to be added to the CEA Position Control Listing and at the identified salary ranges:
• Executive Assistant/Office Manager position: $98,000 - $164,000 • Senior Power Procurement Manager: $145,000 - $280,000 • The Executive Assistant/Office Manager position will replace the Administrative Clerk position already authorized and contemplated in the FY 2025/26 Budget.
• The Senior Power Procurement Manager position will be filled by existing staff, which is also accounted for in the FY 2025/26 Budget.
FY 2025/2027 Work Plan, Position Control
Plan & Salary Schedule
Recommendation:
That the Board:
1. Adopt Resolution No. 2025-027 approving the FY 2025/26 – 2026/27 CEA Work Plan
2. Adopt Resolution No. 2025-028 amending the CEA Position Control Listing for FY 2025/26
3. Adopt Resolution No. 2025-029 amending the CEA Salary Schedule 36 Item 9
Questions/Discussion – Item 9
37 Appendix Slides
38 FY2025-2026 Proposed Budget
Appendices
Item 8
Energy Expense Detail
40 Forecast through Proposed Budget Outlook Outlook Outlook Outlook 6/30/2025 FY2025-2026 FY2026-2027 FY2027-2028 FY2028-2029 FY2029-2030 Resource Adequacy 49,509,059 69,054,700 76,753,866 65,956,090 60,814,582 61,775,114 Energy Purchases 160,845,050 157,078,636 152,957,019 141,133,811 131,086,965 127,389,984 Energy Carbon Free 6,203,429 7,860,061 7,555,535 3,568,117 - - Congestion Revenue Rights (2,350,356) - - - - -
RECS Purchases PCC1 71,549,627 65,056,940 62,654,062 68,217,676 73,859,392 74,551,557 RECS Purchases PCC2 4,000 - - - - -
CAISO 17,400,006 3,164,522 3,286,944 3,258,369 3,309,388 3,361,309 CAISO Chg/Credit Other 327,655 - - - - -
Broker Fees 419,197 - - - - -
VAMO Adjustment - - - - - -
Contingency 2,280,755 28,716,809 28,506,775 26,739,017 25,325,644 25,177,665 Total Cost of Energy 306,188,422 330,931,667 331,714,201 308,873,081 294,395,972 292,255,630 NEM Expense 2,547,883 2,608,654 3,130,385 3,756,462 4,507,754 5,409,305 Total Cost of Energy 308,736,305 333,540,321 334,844,585 312,629,543 298,903,726 297,664,935 Item 8
FY2024-2025 Other Expense Detail
41 Preliminary Budget – FY2025/2026
Biggest Increases over prior year Forecast:
• Consultants and Professional Services – increase of $0.8 million • Data Manager (Calpine) – increase of $0.4 million related to full year of expanded territory • Staffing – increase of $1.2 million
• Full year of increased staff
• Programs – increase of $2.0 million
Total Operational Expenses –3.9% of total expenses (3.3% excluding Programs) Forecast through Proposed Budget Outlook Outlook Outlook Outlook 6/30/2025 FY2025-2026 FY2026-2027 FY2027-2028 FY2028-2029 FY2029-2030 Communications and Outreach 361,518 409,791 450,770 495,847 545,432 599,975 General and Administrative 941,954 1,080,635 1,155,496 1,233,545 1,204,816 1,038,840 Consultants & Professional Services 6,423,201 7,142,001 7,536,285 8,270,113 9,077,324 9,767,257 Staff compensation 1,691,506 2,730,818 3,504,207 4,674,606 6,551,951 8,309,458 Programs - 2,000,000 4,000,000 6,000,000 8,000,000 12,000,000 Total Other Expenses (excluding Energy) 9,418,179 13,363,246 16,646,758 20,674,112 25,379,524 31,715,530 Item 8
Aging Summary Analysis and
Report
June 26, 2025
Item 8
As reported to Board on May 26, 2025
43 Days Past Due Active Accounts Closed Accounts Total
31-60 $1.7 million $0.1 million $1.8 million
61-90 1.5 million 0.1 million 1.6 million
Greater than 90 8.0 million 3.4 million 11.4 million
Total $11.2 million $3.6 million $14.8 million
The totals above represent residential customers only (as of April 7, 2025). The complete picture of CEA’s outstanding amounts (including commercial accounts) follows in this presentation
Item 8
Closed Accounts
• CEA does not close any customer accounts.
• SDG&E is responsible for closing accounts when customers voluntarily close their account or when the are disconnected for nonpayment
• However, that does not mean that closed customers do not have current active service with CEA as they may have closed one account and opened another.
44 Item 8
Total Amounts Outstanding
On average, we eventually collect 99% of all revenues
As of March 31, 2025
$36.9 million (less than 6%) remains outstanding of the $620 million revenues booked since inception
Of the $36.9 million that remains outstanding, we still expect to collect $30.4 million based on historical metrics
45 Days Past Due Amount Outstanding % Uncollected Expected to Still be Collected Current $20.0 million 43.1% $19.6 million
31-60 days $2.8 million 10.1% 2.5 million
61-90 days $1.5 million 6.4% 1.3 million
90 days to 1 year $9.3 million 3.8% 6.8 million
Greater than 1 year $3.3 million 1.1% 0.2 million
Total $36.9 million $30.4 million
Item 8
Amounts Not Collected –
Budget & Financials Already Reflects Estimates
• GAAP requires us to accrue for potential uncollectible amounts on an ongoing basis
• We accrue 1% of all revenues as uncollectible every month • Total accrual as of March 31, 2025, was $6.0 million (close to the estimated amount on April 7)
• Based on our estimated amounts of uncollectible accounts, our current accrual is sufficient to cover the estimated amounts of future uncollectible payments
• No additional budget impact
46 Item 8
CEA Programs to Assist Customers Energy
Costs
• CEA programs to assist customers with high bills
• Solar Plus, Solar Plus Connect, Solar Plus SGIP
• Optimized battery usage reduces bills
• Solar Plus rate (which includes Delivery & Generation) is lower than the otherwise applicable rate
• SGIP funds reduce monthly bills by estimated 70%
• This is in addition to CARE discount
• PeakSmart Savers Program
• 30% lower rates for all non-event periods
47 Item 8
Payment Assistance Programs – Available
through SDG&E
• CARE/FERA
• CARE – 30% Savings
• FERA – 18% Savings
• Neighbor-to-Neighbor Fund
• Up to $300 on past due balances
• LIHEAP Federal Utility Assistance
• Arrearage Management Plan (AMP)
• Debt Forgiveness
• Payment Arrangements
• Contact SDG&E about these programs – 800-411-7343
48 Item 8
Core
Guiding
Principles
and Goals
1. Promote Use & Development of Clean Energy
– reduce GHG emissions by providing 100% renewable energy as the default product for all CEA customers by 2035.
2. Build & Maintain Financial Sustainability
– achieve financial sustainability and build reserves.
3. Provide Beneficial Customer Programs
– offer a variety of programs that serve the needs of our customers, promote affordability, and further reduce GHG emissions.
4. Actively Engage in Customer Advocacy
– engage and advocate for CEA and its customers in regulatory and legislative matters.
5. Provide Exceptional Customer Service
& Community Engagement
– provide highly responsive and helpful customer service and opportunities for our staff to engage with our customers.
6. Promote Organizational Development
– create an organization that fosters employee creativity and engagement in meeting CEA’s goals, recognizes employee achievements and supports employee development and growth.
49 Core Guiding
Principles and Goals
Item 9