Board of Directors Meeting
October 30, 2025
Item 3: CEO Operational and
Administrative Report
2 CEA Enrollment Stats
3 Member City Eligible
Accounts
Clean Impact –
50% Renewable
Clean Impact Plus
- 75% Carbon
Free
Green Impact –
100% Renewable
Participation
Rate
Carlsbad 55,165 159 49,341 660 91%
Del Mar 3,021 6 2,762 71 94%
Escondido 57,247 162 53,363 73 94%
Oceanside 74,347 207 68,921 103 93%
San Marcos 37,827 119 34,758 77 93%
Solana Beach 7,792 14 6,929 158 91%
Vista 39,554 81 37,007 327 95%
TOTAL 274,953 748 253,081 1,469 93%
Item 3
CEA serves a total of 255,298 customer accounts across its seven member agencies Completed Community Events
4 Item 3
Upcoming Community Events
5 Item 3
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 4 1 3 0 0 0 10 0
Del Mar 0 0 1 0 0 0 1 0
Escondido 7 3 13 0 0 0 13 0
Oceanside 4 1 6 0 0 0 16 0
San Marcos 5 1 3 0 0 0 8 0
Solana Beach 2 0 1 0 0 0 1 0
Vista 3 1 7 0 0 0 12 0
TOTAL 25 7 34 0 0 0 61 0
Data as of 10/15/25
Item 3
Connect Programs SGIP Funding
7 Member City Solar Plus Connect Battery Bonus Connect
Carlsbad $91,080 $178,200
Del Mar $30,360 $19,800
Escondido $408,480 $237,600
Oceanside $188,520 $328,267
San Marcos $90,685 $158,400
Solana Beach $29,485 $19,800
Vista $214,848 $274,854
TOTAL $1,053,458 $1,216,921
Data as of 10/17/25
Item 3
Peak Smart Savers Update
8 Member City Participants
Carlsbad 6
Del Mar 1
Escondido 5
Oceanside 3
San Marcos 0
Solana Beach 1
Vista 7
TOTAL 23
Item 3
Data as of 10/20/25
Green Impact Champion Updates
• Carlsbad Unified School District
• The District covers 42 square miles and serves a
Carlsbad population of over 110,000, as well as
portions of the communities of Oceanside and
San Marcos.
• Sentynl Therapeutics Inc.
• Located in Solana Beach, Sentynl is a U.S.-based
biopharmaceutical company focused on bringing
innovative therapies to patients living with rare
diseases.
9 Item 3
CAC Application Timeline
10 Item 3
Task Date
Application Period October 27 - December 22
Review by Board Members January 2 - January 16
Nominations Due to Clerk January 19
Appointments Made January 29 Board Meeting
• CAC committee members serve staggered two-year terms
• Seven members (one from each City) have terms that are expiring December 2025 • CAC Members may reapply at the end of each term for consideration of reappointment by the Board
CAC Member Terms
11 Item 3
Member Term Expiration City
Lynda Daniels 2025 Carlsbad
Paige DeCino 2026 Carlsbad
Dolores Davies Jamison 2025 Del Mar
Jas Grewal 2026 Del Mar
Tracy Reed 2025 Escondido
Tracie Barham 2026 Escondido
Roger Davenport 2025 Oceanside
Daniel Dominguez 2026 Oceanside
John Mosher 2025 San Marcos
Kevin Norris 2026 San Marcos
Debra Schade 2025 Solana Beach
Mika Nagamine 2026 Solana Beach
Nanci Oechsle 2025 Vista
Joe Houde 2026 Vista
Administrative Sponsorship Policy
• Administrative Sponsorship Policy CEA-025 Purpose:
• To strengthen strategic partnerships within our community, support local organizations and businesses, to streamline sponsorship requests and to guide objective evaluation of these requests from the community. • Administrative Sponsorship Policy CEA-025:
• Ensures that CEA funds are appropriately used to provide customer and/or community benefit and are fairly distributed across member agencies
• Outlines the administrative requirements for staff to review incoming sponsorship requests
12 Item 3
Administrative Sponsorship Policy
• Under Policy CEA-025, staff will evaluate sponsorship requests based on:
• The extent to which the sponsorship will provide community benefit and/or provide a community need
• Aligns with CEA’s core guiding principles
• Relevancy to renewable energy and sustainability
• Potential impact on CEA customers and the community
• Contribution to CEA brand awareness
• Support for hard-to-reach communities
• Whether there are any perceived conflicts of interest, and financial considerations. • Sponsorship requests must be within Budget and will be approved by the following staff member depending on the requested amount:
• $2,000 or less – Sponsorship requires approval by an authorized manager • Over $2,000 – Sponsorship requires approval by Chief Executive Officer 13 Item 3
Questions/Discussion – Item 3
14 Item 4: Regulatory Update
15 Clean Energy Alliance: Regulatory Update
Tim Lindl – Keyes & Fox LLP
October 30, 2025
Item 4
Overview
Only one case this time: SDG&E 2026 Energy Resource Recovery Account (ERRA) Forecast Case (A.25-05-012)
17 Item 4
18 Setting PCIA Rates
YEAR-END
PABA BALANCE
FORECASTED
INDIFFERENCE
AMOUNT
PCIA REVENUE
REQUIREMENT
Item 4
19 Setting PCIA Rates
TOTAL COST
OF UTILITY
PORTFOLIO
MARKET
VALUE OF
UTILIY
PORTFOLIO
INDIFFERENCE
AMOUNT
(PCIA)
RPS ADDER
($/GWH) *
GWh
MARKET
VALUE OF
UTILITY
PORTFOLIO
ENERGY
INDEX
($/GWH) *
GWh
RA ADDER
($/MW) *
MW
Item 4
An Historic
Increase in
PCIA Rates
20 Item 4
2025 Rates in the October Update *
21 Vintage Current
(2025)
October Update
(2025) Increase
Bundled Customer
(Generation + PCIA) $0.15515/kWh $0.18453/kWh $0.02938/kWh Solana Beach PCIA
(Vintage 2017) $0.00004/kWh $0.03154/kWh $0.03150/kWh
Carlsbad & Del Mar PCIA
(Vintage 2020) ($0.01109)/kWh $0.02934/kWh $0.04043/kWh Escondido & San Marcos
(Vintage 2022) ($0.01910)/kWh $0.02559/kWh $0.04469/kWh Oceanside & Vista PCIA
(Vintage 2023) ($0.03216)/kWh $0.01915/kWh $0.05130/kWh * These rates will change twice more between now and January 1.
Item 4
Large
Increases
Across the
Board
22 Item 4
Next Steps
One Outstanding Issue in the Case
● Whether “banked” renewable energy credits that were generated in 2018 and earlier should be credited at the RPS MPB
● SDG&E’s bait-and-switch advocacy
● Comments filed today; Proposed Decision around Thanksgiving 23 Item 4
QUESTIONS?
Tim Lindl
[email protected]
(510) 314-8385
24 Item 4
Questions/Discussion – Item 4
25 Item 5: Receive Annual Audited
Financial Report for the Fiscal Year
Ended June 30, 2025
26 FY2024/2025 Audited
Financials
October 30, 2025
Item 5
Item 5: Audited Financials Summary
RECOMMENDATION:
That the Board receive and file Clean Energy Alliance (CEA) Annual Audited Financial Report for the Fiscal Year Ended June 30, 2025.
28 Item 5
Item 5: Audited Financials Summary
• Sorren, CPAs
• Kellin Gilbert, partner (replaced Brett Bradford)
• 3
rd year as independent auditors
• Audit completed as of October 15, 2025
• Audit Results
• Clean opinion
• No Material Weaknesses
29 Item 5
30 • Revenue was lower
than expected –
mild weather in
CY2025 and high
NEM adoption
• Cost of Energy was
lower than Budget
• Positive Net
Position will start to
enable building of
reserves
Audited Financials Compared to Budget
Full Year Results
FY2024-2025
Full Year Budget
FY2024-2025
Variance: Favorable /
(Unfavorable)
OPERATING REVENUES
Total Operating Revenues $352,477,963 $360,839,549 ($8,361,586)
OPERATING EXPENSES
Total Cost of Goods Sold (Energy Expense) 303,710,341 317,090,165 13,379,824 Other Operating Expenses (excluding COGS) 9,418,182 9,378,650 (39,532) Total Operating Expenses $313,128,523 $326,468,815 $13,340,292 OPERATING INCOME/(LOSS) $39,349,440 $34,370,733 $4,978,707 NON-OPERATING REVENUES (EXP.) -
Total Nonoperating Income/(Expense) (1,005,495) (1,063,383) 57,888 -
CHANGE IN NET POSITION $38,343,945 $33,307,350 $5,036,595 Ending Net Position 21,379,111
Full Year FY2024-2025
Item 5
31 • Positive Financial Performance last year and for the next few years • Improved Net Position and Improved Balance Sheet
• Growing Reserves (DLOH) will enable Investment Grade Credit Rating in ~2 years Financial Projection – FY2025-2028
Item 5
Actual Forecast Forecast Forecast
Total Year FY25 Total Year FY26 Total Year FY27 Total Year FY28 Total Operating Revenues 352,477,963 375,916,514 396,583,201 398,576,670
OPERATING EXPENSES
Total Cost of Energy 303,710,341 332,475,066 346,010,829 307,548,546 Other Operating Expenses (excluding COGS) 9,418,182 12,747,578 16,850,210 20,903,768 Total Operating Expenses 313,128,524 345,222,644 362,861,039 328,452,313 Total Nonoperating Income/(Expense) (1,005,494) (288,841) 569,914 1,106,861 CHANGE IN NET POSITION 38,343,945 30,405,028 34,292,076 71,231,217 Net Position at the beginning of period (16,964,834) 21,379,111 51,784,139 86,076,215 Net Position at the end of period 21,379,111 51,784,139 86,076,215 157,307,432 Days Liquidity on Hand 35 58 86 170
sorren.com
Clean Energy Alliance
Board of Directors Meeting
October 30, 2025
Item 5
Introduction
Kellin Gilbert, CPA
Audit Partner
17 years in public accounting and performing audits of government entities Currently working with several CCA’s throughout California Alauna Rico
Audit Senior Associate
4 years in public accounting and performing audits of governments (CCA’s) Item 5
Transition to Sorren CPAs P.C.
As of May 2025, legacy Pisenti & Brinker combined practices with several other like-sized firms and rebranded as one unified firm “Sorren.” By combining resources with the strategic merger, we can make even greater investments in technology as well as our greatest assets, our people and clients.
Sorren is a new national top 50 firm and currently has over twenty office locations and almost a thousand employees.
The Santa Rosa office will continue to be the lead office for Clean Energy Alliance.
No changes to the current engagement team, costs or timing of the services we provide to CEA.
Item 5
Results of Current Year Audit
The audit is complete. We reported the following:
• Unmodified opinion – Based on our audit, the financial statements are materially accurate.
• No significant deficiencies or material weakness in internal control noted.
Item 5
Audit of the year ended June 30, 2025
Financial Statements
Relative Roles & Responsibilities
• Management is responsible for preparing the Financial Statements and establishing a system of internal control.
• Auditor is responsible for auditing the Financial Statements • Considering risks of material misstatement in the Financial Statements • Considering internal controls relevant to the Financial Statements • Performing tests of year-end balances based on risk assessment • Evaluating adequacy of disclosures
Item 5
Risk Assessment for the year ended June
30, 2025
Our audit is a risk-based audit. Risk assessment procedures include:
• Gain an understanding of the entity’s operating characteristics, practices, and procedures.
• Compare to our knowledge of similar entities, industry, and professional guidance.
• Review procedures and controls surrounding significant transaction cycles and business processes.
Item 5
Risk Assessment for the year ended June
30, 2025
Significant areas of focus for the audit:
• Revenue recognition
• Accounts receivable and accrued revenue
• Test a sample of customer billings
• Relate total cash received during the year to revenue • Review revenue recognition through year-end and method for determining (accrued revenue)
• Cash
• Confirmations sent to financial institutions
• Accrued Cost of Electricity
• Review subsequent bills from electricity providers and cash payments • Financial Statement Note Disclosures – Complete and without bias Item 5
Required Board Communications
• As discussed in Note 8, CEA adopted GASB 101 through 104 which did not have a material effect on the financial statements.
• No alternative treatments of accounting principles for material items in the financial statements have been discussed with management.
• We did not propose any adjustments to the financial statements. • We did not identify any significant or unusual transactions or applications of accounting principles where a lack of authoritative guidance exists.
• There have been no disagreements with management concerning the scope of our audit and we have not encountered any difficulties in dealing with management during the performance of our audit.
• We issued a letter to the board dated October 15th detailing these required communications.
Item 5
Kellin Gilbert
Partner
[email protected]
(707) 577-1511
sorren.com
Item 5
Questions/Discussion – Item 5
41 Item 6: SDG&E’s 2026 Energy
Resource Recovery Account (ERRA)
Forecast October Revisions
42 Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
RECOMMENDATION:
That the Board receive an update regarding SDG&E’s
October Revisions to their 2026 ERRA Forecast and provide direction to staff.
43 Item 6
Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
• CPUC’s June 26, 2025 Decision on the methodology for calculating PCIA (Decision 25- 06-049)
• Revised how the Resource Adequacy (RA) Market Price Benchmark (MPB) is calculated, specifically, the CPUC directed its Energy Division to use:
• A single, combined RA MPB instead of a separate RA MPB for System RA, Flex RA and Local RA • Three years of transaction data for the annual forecasted RA MPB instead of one year • Four years of transaction data for the annual final RA MPB instead of two years • As a result of these market forces and regulatory changes, PCIA rates for all of CEA’s vintages are increasing dramatically, particularly as 2025’s PCIA rates were negative for all CEA customers
• These PCIA increases are as follows by Vintage Year (VY):
44 Item 6
Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
45 Item 6
VY 2017
Solana Beach
VY 2020
Carlsbad & Del
Mar
VY 2022
Escondido & San
Marcos
VY 2023
Oceanside &
Vista
Current PCIA Rate $(0.00017) $(0.01107) $(0.01778) $(0.03161) May Initial Filing
PCIA Rate $0.02449 $0.02054 $(0.01744) $(0.02971)
October Revisions
PCIA Rate $0.03516 $0.03280 $0.02870 $0.02215
Change in PCIA
May to October $0.01067 $0.01226 $0.04614 $0.05186
Change in PCIA
Current to October $0.03533 $0.04387 $0.04648 $0.05376
Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
• If the October 2026 ERRA Forecast remains as-is, average CEA Residential customers will see an increase in the premium currently paid for CEA’s higher 50% renewable/75% carbon-free energy product (SDG&E is 41.4% renewable per the most recent Power Content Label)
• Rate premium paid varies by vintage year (VY)
• Current rate premiums have not resulted in opt outs
46 Item 6
Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
47 Item 6
Average Monthly Residential Bill Comparison to SDG&E
VY 2017
Solana Beach
VY 2020
Carlsbad &
Del Mar
VY 2022
Escondido &
San Marcos
VY 2023
Oceanside &
Vista
Current (Savings)/Premium $8.98 $5.04 $2.63 $(2.37)
2026 ERRA October Update
Impact $9.96 $9.11 $7.63 $5.27
Average Monthly Comparison of CEA's Clean Impact Plus vs SDG&E for Residential rate TOUDR-1
Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
48 Item 6
• Board Considerations:
• Maintain CEA’s current rates;
Based on October 2026 ERRA Forecasted PCIA Rates, PCIA rates paid by CEA customers will increase
Maintains CEA Strategic Plan/Work Plan’s Financial Sustainability goals by continuing to build reserves and obtaining an investment grade credit rating in or around FY2027/2028
• Balance rate competitiveness with renewable portfolio content, financial, and environmental sustainability/climate action plan goals and objectives
Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
49 Item 6
• Board Considerations:
• Consider CEA rate decrease when SDG&E’s 2026 ERRA Forecast has been finalized to improve rate competitiveness
• Any rate decrease would also decrease CEA’s Forecasted Annual Net Position and would delay ability to obtain credit rating
• Delays CEA Strategic Plan/Work Plan’s Financial Sustainability goals of continuing to build reserves and obtaining an investment grade credit rating in or around FY2027/2028
50 • Positive Financial Performance last year and for the next few years • Improved Net Position and Improved Balance Sheet
• Growing Reserves (DLOH) will enable Investment Grade Credit Rating in ~2 years Financial Projection – FY2025-2028
Item 6
Actual Forecast Forecast Forecast
Total Year FY25 Total Year FY26 Total Year FY27 Total Year FY28 Total Operating Revenues 352,477,963 375,916,514 396,583,201 398,576,670
OPERATING EXPENSES
Total Cost of Energy 303,710,341 332,475,066 346,010,829 307,548,546 Other Operating Expenses (excluding COGS) 9,418,182 12,747,578 16,850,210 20,903,768 Total Operating Expenses 313,128,524 345,222,644 362,861,039 328,452,313 Total Nonoperating Income/(Expense) (1,005,494) (288,841) 569,914 1,106,861 CHANGE IN NET POSITION 38,343,945 30,405,028 34,292,076 71,231,217 Net Position at the beginning of period (16,964,834) 21,379,111 51,784,139 86,076,215 Net Position at the end of period 21,379,111 51,784,139 86,076,215 157,307,432 Days Liquidity on Hand 35 58 86 170
51 Item 6
Vintage Year (VY) Total Accounts Total Accounts Per VY % of Total 2017
Solana Beach 7,101 7,101 2.8%
2020
Carlsbad
Del Mar
50,159
2,839 52,998 20.7%
2022
Escondido
San Marcos
53,598
34,954 88,552 34.7%
2023
Oceanside
Vista
69,231
37,416 106,647 41.8%
TOTAL CEA 255,298 255,298 100%
Item 6: Customer Accounts by Member
Agency
Questions/Discussion – Item 6
52 Questions/Discussion – Item 6
53 Item 6: SDG&E’s October Revisions to
2026 ERRA Forecast
54 Item 6
Rate Decrease Scenarios:
Average Monthly Residential Bill Premiums - TOUDR-1
VY 2017 VY 2020 VY 2022 VY 2023
Current (Savings)/Premium $8.98 $5.04 $2.63 $(2.37)
No Rate Change $9.96 $9.11 $7.63 $5.27
3% Rate Decrease $8.03 $7.18 $5.70 $3.34
5% Rate Decrease $6.74 $5.89 $4.41 $2.05
7.5% Rate Decrease $5.12 $4.27 $2.79 $0.43
55