Desert Community Energy Board of Directors
December 9, 2024

DESERT COMMUNITY ENERGY

MEETING AGENDA
Monday, December 9, 2024
3:00 p.m.

Palm Springs City Hall
Large Conference Room
3200 E. Tahquitz Canyon Way
Palm Springs CA 92262
Members of the public may use the following link for listening access and ability to address the Desert Community Energy Board when called upon:
https://us02web.zoom.us/j/86083180164?pwd=nJIxTSOC9CXFUIkUBy1Wn0myUL5XvY.1 Dial In: +1 669 900 9128 US
Webinar ID: 860 8318 0164
Password: 225641

IF YOU ARE UNABLE TO CONNECT VIA DIAL IN OPTION,
PLEASE CALL 760-346-1127.

Members of the public are encouraged to submit comment in connection with the Desert Community Energy meeting by email to: [email protected] by 5:00 p.m. on the day prior to the Board meeting. Members of the public joining the meeting by Zoom can provide comment by using the “raise hand” feature or hitting *9 on the phone keypad.

As a convenience to the public, DCE provides a call-in and internet-based option for members of the public to virtually observe and provide public comments at its meetings. Please note that, in the event of a technical issue disrupting the call-in or internet-based options, the meeting will continue unless otherwise required by law.

THIS MEETING IS HANDICAPPED ACCESSIBLE.

ACTION MAY RESULT ON ANY ITEMS ON THIS AGENDA.

1. CALL TO ORDER – Chair Lisa Middleton, Councilmember, City of Palm Springs

2. ROLL CALL
A. Member Roster P4

3. AGENDA MODIFICATIONS (IF ANY)

4. PUBLIC COMMENTS ON AGENDA ITEMS
This is the first of two opportunities to address the Board. Any person wishing to address the Desert Community Energy Board on items appearing on this agenda may do so at this time. Please limit comments to 3 minutes. At the discretion of the chair, additional public comment time and/or opportunities during the meeting may be granted.

5. BOARD MEMBER / EXECUTIVE DIRECTOR COMMENTS

6. CONSENT CALENDAR
A. Approve the minutes of the October 21, 2024, Board meeting P5 B. Adopt DCE’s Legislative Platform for the next two-year cycle to allow for effective P8 and efficient engagement on key policies of importance to DCE and its customers C. Adopt Resolution 2024-03, approving the interim 2023 Power Source Disclosure P14 Annual Reports and associated 2023 Power Content Label and authorizing the Executive Director to complete all actions necessary for submittal to the California Energy Commission, including approving the final 2023 Power Source Disclosure Annual Reports and associated 2023 Power Content Label for Desert Saver and Carbon Free products, and attesting to their veracity
D. Appoint Bernard Rottner of Palm Springs and Donald Zeigler of Palm Desert to the P41 Community Advisory Committee through 2026

6.1 ITEMS HELD OVER FROM CONSENT CALENDAR

7. DISCUSSION / ACTION
A. DCE’s Audit for Fiscal Year 2023/24 and Related Reports – Claude Kilgore P42 Recommendation: Receive and file the Audited Financial Statements for the year ended June 30, 2024, Report on Internal Controls over Financial Reporting, and the Auditor’s Communication with Those Charged with Governance B. Update to DCE’s Amended Financial Reserve Policy 18-10 – Claude Kilgore P78 Recommendation: Approve additional updates to DCE Policy No. 18-10 Amended Financial Reserve Policy
C. DCE Mid-term Reliability Procurement: Terra-Gen Wind Energy Projects and P85 Other Long-Term Procurement Initiatives – David Freedman Recommendation: Adopt Resolution 2024-04, approving a long-term Power Purchase Agreement with San Gorgonio Westwind II, LLC for its north Palm Springs wind project, and conforming amendments to existing Power Purchase Agreements with San Gorgonio Westwind II, LLC, and Coachella Wind Holdings, LLC, and authorizing the Executive Director and/or Legal Counsel to make minor modifications before execution of the agreements
D. ACCESS Indian Canyon Renewable Energy Assessment – Emily Langenbahn P92 Recommendation: Authorize the Executive Director to execute a contract with muGrid Analytics LLC for an amount not to exceed $53,110 for Phase I of the Addressing Climate Change, Emergencies and Sand Storms (ACCESS) Indian Canyon Renewable Energy Assessment Services

8. INFORMATION
A) Attendance Record P114
B) Unaudited Year-to-Year Financial Report as of September 30, 2024 P115 C) DCE’s Quarterly Investment Report through September 30, 2024 P120 D) Palm Springs Home Energy Efficiency Reach Code P121

9. PUBLIC COMMENTS ON NON-AGENDA ITEMS
This is the second of two opportunities to address the Board. Any person wishing to address the Board on items not appearing on this agenda may do so at this time.

Please limit comments to 2 minutes. At the discretion of the chair, additional public comment time and/or opportunities during the meeting may be granted.

10. ANNOUNCEMENTS
The January meeting has been canceled. The next DCE Board meeting will be held February 10, 2025, at 3:00 p.m. at the Large Conference Room at Palm Springs City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs, 92262.

11. ADJOURNMENT

DESERT COMMUNITY ENERGY

BOARD MEMBER ROSTER
Voting Members Seat on Committee Representative
City of Palm Desert Vice Chair
Veronica Chavez
Finance Director
Alternate: Councilmember Kathleen Kelly
City of Palm Springs Chair
Lisa Middleton
Councilmember
Alternate: Mayor Jeffrey Bernstein
DCE Staff
Tom Kirk, Executive Director
Claude Kilgore, Director of Finance
David Freedman, Program Manager
Emily Langenbahn, Management Analyst
Savannah Gil, Program Specialist
Janice Reitman, Accounting Manager
ITEM 6A
Desert Community Energy Board
Meeting Minutes
October 21, 2024

1. CALL TO ORDER
The meeting of the DCE Board was called to order by Chair Lisa Middleton at 3:00 p.m. at Palm Springs City Hall, Large Conference Room, 300 E. Tahquitz Canyon Way, Palm Springs, CA 92262.

2. ROLL CALL

Roll call was taken, and it was determined that a quorum was present.

Members Present Member Jurisdiction
Councilmember Lisa Middleton, Chair City of Palm Springs Finance Director Veronica Chavez, Vice Chair City of Palm Desert

3. AGENDA MODIFICATIONS (IF ANY)
None

4. PUBLIC COMMENTS ON AGENDA ITEMS
None

5. BOARD MEMBER / DIRECTOR COMMENTS
Director of Finance Claude Kilgore highlighted the appointments to Community Advisory Committee that are part of the consent agenda. Mr. Kilgore also noted that the DCE annual audit is nearly concluded and staff anticipates bringing the financials to the next Board meeting.

He also updated the Board on the SCE billing issues and noted responses from SCE that are included in agenda item 8G.

6. CONSENT CALENDAR

IT WAS MOVED BY VICE CHAIR CHAVEZ AND SECONDED BY CHAIR MIDDLETON TO APPROVE CONSENT CALENDAR ITEMS:

A. Approve the minutes of the January 8, 2024, Board Meeting B. Approve the minutes of the June 17, 2024, Special Board Meeting The audio file for this meeting can be found at: http://www.desertcommunityenergy.org Desert Community Energy Board of Directors
Meeting Minutes – October 21, 2024
C. Approve continued participation as an operational member of the California Community Choice Association for an annual membership rate of $87,580 D. Authorize the Executive Director to execute a Professional Services Agreement with independent consultant Don Dame to provide programmatic and operations support for an additional, not-to-exceed amount of $45,000 annually through 2027 E. Re-appoint Community Advisory Committee members Donald Barrett, Berlinda Blackburn, Noel Loughrin, Paul Murphy, and Jeremey Roos for an additional two-year term and add Erin Boyd of Palm Springs to the Community Advisory Committee through 2026
THE MOTION CARRIED WITH 2 AYES.

Chair Lisa Middleton Aye
Vice Chair Veronica Chavez Aye

6.1 ITEMS HELD OVER FROM CONSENT CALENDAR

7. DISCUSSION / ACTION
A. Presentation: Recap of Summer 2024 Trends
Jaclyn Harr with The Energy Authority joined the Board via Zoom and presented an update with market trends for summer 2024.

No action was taken as this was an informational item.

B. DCE’s Attainment of an Investment Grade Credit Rating Mr. Kilgore presented the staff report.

Brief member discussion ensued with Chair Middleton requesting a report back next meeting regarding DCE’s goals in increasing the reserves.

No further action was taken as this was an information item.

C. Amendment to Contract with Cape Generating Station 1 LLC for Cape Station Geothermal
Program Manager David Freedman presented the staff report.

Member discussion ensued.

IT WAS MOVED BY VICE CHAIR CHAVEZ AND SECONDED BY CHAIR MIDDLETON

TO AUTHORIZE THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE AMENDMENT NO. 1 TO THE RENEWABLE POWER PURCHASE AGREEMENT WITH CAPEE GENERATING STATION 1 LLC, ALLOWING FOR UPDATED PRICING,

ADDITIONAL ENERGY AND A REVISED COMMERICAL OPERATION DATE OF JANUARY 1, 2031
Desert Community Energy Board of Directors
Meeting Minutes – October 21, 2024
Chair Lisa Middleton Aye
Vice Chair Veronica Chavez Aye

8. INFORMATION
The following items were included in the agenda packet for members’ information :

A) Attendance Record
B) Virtual participation in meetings
C) Unaudited Year-to-Year Financial Report as of June 30, 2024 D) DCE’s Quarterly Investment Report through June 30, 2024 E) Renewable and Mid-Term Reliability 2024 Request for Proposals and Other Long-Term Procurement Initiatives
F) Summary of October 2024 Rate Adjustment
G) Continued advocacy to address SCE’s delayed billing issues H) Delay of Power Source Disclosure and Power Content Label I) ACCESS Indian Canyon Renewable Energy Request for Proposals

9. PUBLIC COMMENT ON NON-AGENDA ITEMS

None

10. ANNOUNCEMENTS
The next DCE meeting is scheduled for Monday, December 9, 2024, at 3:00 p.m. at the Large Conference Room at Palm Springs City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs, 92262. Chair Middleton announced that next meeting will be her last meeting as Chair and she has enjoyed being part of DCE during her time in the Palm Springs City Council.

11. ADJOURNMENT
There being no further business, Chair Middleton adjourned the meeting at 3:23 p.m.

Respectfully submitted,
Elysia Regalado
Management Analyst- Administration
ITEM 6B

STAFF REPORT
Subject: DCE’s Legislative Platform
Contact: Emmanuel Martinez, External Affairs Program Manager ([email protected]) Recommendation: Adopt DCE’s Legislative Platform for the next two-year cycle to allow for effective and efficient engagement on key policies of importance to DCE and its customers
Background: Having an adopted legislative platform is a key tool that provides parameters for advocacy engagement by DCE staff on matters that may impact the operation of DCE’s programs.

Furthermore, it also allows for effective and immediate engagement on key issues, addressing the challenge associated with DCE’s meeting schedule. Prior to DCE’s approval of a legislative platform, DCE relied on the legislative guidance of the California Community Choice Association’s advocacy. Although DCE staff still engages with CalCCA on issues of common of interest, having a DCE legislative platform provides a more direct impact on DCE’s key issues, and a tailored and strategic advocacy approach.

DCE first adopted its legislative platform in 2023, to guide its advocacy engagement efforts in Sacramento and Washington, D.C. In 2024, the legislative platform came back to DCE with a minor update related to supporting energy affordability. DCE staff is bringing back the legislative platform for DCE’s approval consideration with a couple of minor updates. The first is related to making the legislative platform a two-year platform, to align with the State’s two-year or biennial legislative cycle. Although the platform is a fluid document and can be amended at any time, making this a two-year document will address the trend that the majority of issues remain the same within the two-cycle, carrying over from one year to the next. The second update recommendation to platform relates to resource adequacy. Staff is proposing specific language to monitor and engage legislative or regulatory proceedings related to resource adequacy and to advocate for requirements that do not unfairly impact CCA’s or their customers. The updates to the platform are highlighted in the attached draft for ease of reference.

The updated platform recognizes a set of guiding principles consistent with DCE’s mission, including its ambitious green and clean energy goals for combating climate change and its State-mandated Renewable Portfolio Standard (RPS) compliance requirements. The guiding principles also reflect a commitment to decarbonization, renewable energy generation and procurement, and equity in the distribution of energy efficient technology. If adopted, DCE staff would be able to take quick and efficient action on matters relevant to DCE’s interests, such as supporting legislation and signing onto support and regulatory comment letters.

Fiscal Analysis: The updates to DCE’s legislative platform are covered by DCE staff time.

Attachment: Draft DCE Legislative Platform
Desert Community Energy Board
December 9, 2024
0 Adopted: December 9, 2024
Federal and State
Legislative Platform
Desert
Community
Energy
1 Desert Community Energy
Desert Community Energy (DCE) is a not-for-profit,
publicly managed Community Choice Aggregator (CCA)
currently providing power to residential, commercial,
industrial and municipal customers in the City of Palm
Springs, with the City of Palm Desert also being a
member. DCE gives customers the option to buy cleaner,
greener electricity at competitive prices while improving air quality and helping cities achieve their climate goals.

DCE is governed by a Board of Directors from
participating cities who set rates and determine where
clean energy is sourced, allowing local elected officials to make decisions that affect ratepayers. DCE also has a
Community Advisory Committee, composed of
community members from participating cities, to advise
the Board on programs, policy, and outreach.

The purpose of this document is to identify principles
consistent with DCE’s mission to guide advocacy efforts relating to legislative and regulatory matters at the state and federal levels. These principles will empower DCE
staff to quickly and efficiently respond to opportunities for advocacy as they relate to CCAs, the development
and procurement of carbon-free energy, and the
expansion of clean energy technology. These actions may include, but are not limited to, signing on to letters and petitions, supporting legislation and ballot initiatives, taking positions on potential regulatory changes, and
pursuing grant opportunities. This document will assist in facilitating the development of a strategic plan of action that advances DCE’s objectives, addresses the needs of
its customers, and promotes the expansion of clean
energy production and procurement throughout DCE’s
territory and nearby areas.

DCE Members:

City of Palm Desert
City of Palm Springs
Desert Community Energy
74-199 El Paseo
Suite 100
Palm Desert, CA 92260
Tel: 855-357-9240
www.desertcommunityenergy.org
2 Guiding Principles
Grid Capacity & Resilience Support initiatives that increase grid capacity and strengthen its resilience during high demand.

Local Generation and
Procurement
Support initiatives that would enhance the ability of
DCE and other CCAs to invest in local and regional
renewable energy resources.

Access to Clean Energy Support initiatives that increase access to affordable and clean energy technology for all households.

Electric Vehicles & Charging Support initiatives that expand the adoption of electric vehicles and increase the deployment of
electric vehicle charging infrastructure.

Decarbonization
Support initiatives that provide funding and
incentives for clean energy, energy efficiency,
decarbonization and green building programs.

Education Support initiatives that develop workforce training programs and educate the public on energy efficiency
principles.

Community Choice
Support initiatives that maintain or improve the
stability of CCAs by implementing an equitable
regulatory structure.
3 Decarbonization
 Support legislation, policies, programs and initiatives that provide funding and incentives for clean energy, energy efficiency, decarbonization and green building programs.  Support legislation, policies, programs and initiatives that contribute to the State’s efforts to reduce the emission of greenhouse gases.
 Oppose legislation, policies, or regulatory efforts that would undermine the State’s ambitious climate goals.
 Oppose legislation, policies, or regulatory efforts that would detrimentally impact DCE’s ability to support or procure green energy for its customers.

Local Generation, Procurement, and Affordability
 Support legislation, policies, programs and initiatives that would enhance the ability of DCE and other CCAs to invest in local and regional renewable energy resources.  Support legislation, policies, programs and initiatives that encourage and/or incentivize the development of distributed energy resources in the region.  Support legislation, policies, programs and initiatives that encourage renewable energy generation, sustainably sourced battery storage, and/or a combination of generation plus storage.  Support legislation, policies, programs, and initiatives that encourage community renewable energy projects to increase access to renewable energy generation for all communities.  Oppose legislation, policies, or regulatory efforts that would discourage and/or disincentivize the development of distributed energy resources in the region.  Oppose legislation, policies, or regulatory efforts that would hinder DCE’s ability to procure locally sourced clean energy.
 Support policies and programs that increase access to energy affordability and decrease disconnections, especially for low- and middle-income customers.

Community Choice
 Support legislation, policies, and funding that would maintain or improve the stability of CCAs by implementing an equitable regulatory structure that preserves local decision-making authority, such as setting rates and energy procurement.
 Oppose legislation, policies, and regulatory efforts that would weaken the ability of CCAs to achieve their missions and serve the communities in which they operate.  Monitor legislation and regulatory promulgation of policies related to resource adequacy regulatory requirements and support efforts that create favorable regulatory operational conditions for CCA’s.

Increase Grid Capacity and Resilience
4  Support legislation, policies, and funding to expand the deployment of renewable energy storage to stabilize the grid during periods of excessive energy consumption.  Support necessary infrastructure upgrades to enhance grid capacity and resilience.  Support legislation, policies, funding and incentives to improve load management and load reduction as the preferred method of demand response to protect grid reliability and reduce the necessity and frequency of rolling outages.
 Support policies that contribute to long-term grid resiliency, rather than reliance upon short-term solutions, such as Public Safety Power Shutoff events.
 Promote efficient communication and dissemination of information to DCE customers as it relates to potential power shutoffs during periods of high grid-wide power consumption.  Support and incentivize legislation, policies, programs, and initiatives that encourage the development of microgrids for important and essential facilities that may remain operational in the event of a power outage.

Expand Access to Clean Energy Technology
• Support legislation, policies, funding and incentives to improve accessibility to clean building energy technology and appliances (e.g., heat pumps, induction cooktops, electric clothes dryers, etc.) for all households.
• Support policies, programs and funding that expand access for rooftop solar and battery storage for all households.
• Oppose legislation, policies, and regulatory efforts related to Net Energy Metering (NEM) that would disincentivize the adoption of rooftop solar and/or battery storage. • Oppose legislation, policies, and regulatory efforts that would make clean energy technology, including rooftop solar and/or battery storage, less affordable and accessible.

Electric Vehicles (EVs) and EV Charging Infrastructure
 Support policies, programs, and funding for EV charging infrastructure and increased use of EVs in the region.
 Support policies, programs, and funding that promotes the adoption of EVs and the deployment of EV charging infrastructure in underserved communities.
 Oppose legislation, policies, and initiatives that would negatively impact the affordability and accessibility of EVs.

Support Education Initiatives regarding Clean Energy and Energy Efficiency Measures:
 Support policies, programs, initiatives, and funding relating to workforce training in the energy efficiency and renewable energy space.
 Support policies, programs, initiatives, and funding relating to energy education centers in an effort to educate the community at large on energy efficiency measures.

ITEM 6C

STAFF REPORT
Subject: 2023 Annual Power Source Disclosure Reports and Power Content Label Contact: Savannah Gil, Program Specialist ([email protected]) Recommendation: Adopt Resolution 2024-03, approving the interim 2023 Power Source Disclosure Annual Reports and associated 2023 Power Content Label and authorizing the Executive Director to complete all actions necessary for submittal to the California Energy Commission, including approving the final 2023 Power Source Disclosure Annual Reports and associated 2023 Power Content Label for Desert Saver and Carbon Free products, and attesting to their veracity
Background: All retail sellers of electricity, including Community Choice Aggregators such as DCE, are required by Senate Bill 1305, codified in Section 398.1 of the California Public Utilities Code, to disclose “accurate, reliable, and simple-to-understand information on the sources of energy” that are delivered to their customers each year. As part of that process, the DCE Board adopts a resolution to approve the Power Source Disclosure (PSD) Annual Reports and Power Content Label (PCL), typically submitted to the California Energy Commission (CEC) by September 30.

This year’s timeline is different. Load-serving entities (LSEs) throughout California have been experiencing delays in receiving 2023 Renewable Energy Certificates (RECs). As a result, the CPUC and CEC postponed various filings and reports, including the PSD reports and PCL, due to issues beyond DCE's control.

The majority of the delays stem back to the Western Renewable Energy Generation Information System (WREGIS), which tracks and issues RECs used to verify compliance with regulatory and voluntary market programs. In 2022, WREGIS changed software vendors, which led to functionality issues impacting many LSEs, including DCE and Southern California Edison (SCE).

These WREGIS software issues have caused RECs to contain errors, rendering them unable to be transferred correctly. Because of this, SCE has been unable to transfer all 2023 RECs owed to DCE successfully. WREGIS is currently working on updating its software and has corrected some of the RECs impacted. To date, SCE has submitted RECs to DCE up until November 2023.

RECs from December 2023 are still outstanding.

CEC staff have granted all LSEs an extended deadline of January 31, 2025, to submit their 2023 PSD reports and PCL. DCE submitted the preliminary 2023 PSD reports for its Desert Saver and Carbon Free products to the CEC on August 30, 2024, and resubmitted them in response to CEC comments on September 6, 2024. The preliminary reports include specific power purchases, Desert Community Energy Board
December 9, 2024
resales, and self-consumption of energy by fuel type for each electricity product offered to DCE customers, but did not contain all 2023 REC data necessary to complete the reports.

Information from DCE’s interim 2023 PSD Annual Reports and interim PCL based on 2023 RECs received in DCE’s WREGIS account through November 15 is summarized below. Staff is recommending that the Board review the interim reports and then authorize the Executive Director to finalize the documents once DCE receives all remaining 2023 RECs from SCE, with the anticipation that it will be filed before the deadline of January 31, 2025. The PCL, once complete, will be posted on both the CEC website and the DCE website per CEC requirements, and DCE will send the PCL to all its customers at the time of the mailing.

Summary of interim 2023 PSD Annual Reports and PCL
DCE provided 100% carbon-free energy to Carbon Free customers, including 69.8% renewable energy eligible under the state’s Renewables Portfolio Standard (RPS) purchased from solar facilities (30.4%), wind facilities (38.6%), and small hydropower facilities (0.8%). The remaining carbon-free energy was purchased from large hydropower facilities (30.2%), which are not considered renewable under the RPS.

DCE is estimated to have provided Desert Saver customers with an energy supply consisting of

54.5% renewable energy eligible under the RPS purchased from geothermal facilities (4.2%), solar facilities (18.0%), wind facilities (31.9%), and small hydropower facilities (0.4%). The remaining energy was purchased from large hydropower facilities (22.6%), and 22.9% of unspecified power resources, meaning electricity that has been purchased through open market transactions and is not traceable to a specific generation source.

DCE staff also analyzed the Greenhouse Gas (GHG) emissions intensity of its Desert Saver and Carbon Free products as reported in its interim 2023 PCLs. Compared with the reported GHG emissions intensity of 491 lbs. CO2e/Megawatt hour in SCE’s 2023 PCL, DCE customers reduced 2023 GHG emissions in the City of Palm Springs by 70,105 metric tons, which is equivalent to removing 16,353 gasoline-powered vehicles from the City’s roads. Staff calculated GHG emissions savings by using the U.S. Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator.

The attached interim DCE 2023 PSD Annual Reports and PCL for Carbon Free and Desert Saver have been prepared with assistance from The Energy Authority (TEA). TEA performed a detailed review of all power purchases completed for the 2023 calendar year. This review included an inventory of all 2023 RECs within DCE’s WREGIS account through November 15 and pertinent transaction records. Based on staff and TEA’s review of such available data, the information presented in the interim PSD Annual Reports and PCL is determined to be accurate.

As the Board will not have a January meeting, staff recommends that the Board adopt Resolution 2024-03 approving the interim 2023 Power Source Disclosure Annual Reports and associated 2023 Power Content Label and authorizing DCE’s Executive Director to complete all actions necessary for submittal to the CEC, including approving and attesting to the veracity of the final 2023 PSD Annual Reports and associated Power Content Label for the Desert Saver and Carbon Free products. Adoption of the resolution enables DCE to comply with the CEC Power Source Disclosure Regulations implementing SB 1305 (California Code of Regulations, Title 20, Sections 1391 to 1394).

Fiscal Analysis: Adoption of Resolution 2024-03 does not result in any financial impact to DCE. 2023 POWER CONTENT LABEL
Desert Community Energy
https://desertcommunityenergy.org/about/key-documents/
Greenhouse Gas Emissions Intensity
(lbs CO2e/MWh) Energy Resources DCE Carbon
Free
DCE Desert
Saver
2023 CA
Power Mix
Eligible Renewable1 69.8% 54.5% 36.9%
Biomass & Biowaste 0.0% 0.0% 2.1%
0 226 373 Geothermal 0.0% 4.2% 4.8%
Eligible Hydroelectric 0.8% 0.4% 1.8%
Solar 30.4% 18.0% 17.0%
Wind 38.6% 31.9% 11.2%
Coal 0.0% 0.0% 1.8%
Large Hydroelectric 30.2% 22.6% 11.7%
Natural Gas 0.0% 0.0% 36.6%
Nuclear 0.0% 0.0% 9.3%
Other 0.0% 0.0% 0.1%
Unspecified Power2 0.0% 22.9% 3.7%
TOTAL 100.0% 100.0% 100.0%
Percentage of Retail Sales Covered by Retired Unbundled RECs3 : 0% 63%
1 The eligible renewable percentage above does not reflect RPS compliance, which is determined using a different methodology.
2 Unspecified power is electricity that has been purchased through open market transactions and is not traceable to a specific generation source.
3 Renewable energy credits (RECs) are tracking instruments issued for renewable generation. Unbundled renewable energy credits (RECs) represent renewable generation that was not delivered to serve retail sales. Unbundled RECs are not reflected in the power mix or GHG emissions intensities above.

For specific information about this electricity
portfolio, contact:

Desert Community Energy
(855) 357-9240
For general information about the Power Content
Label, visit:
https://www.energy.ca.gov/programs-and-topics/programs/power-source-disclosure-program DCE Carbon Free DCE Desert Saver 2023 CA Utility
Average
0 200
400
600
800
1000
DCE Carbon Free
DCE Desert Saver
2023 CA Utility
Average
Attachments:

1. Resolution 2024-03 approving 2023 Interim Power Source Disclosure Annual Reports and 2023 Power Content Label

2. Interim 2023 Power Content Label (required CEC format)

3. Interim 2023 Power Source Disclosure Annual Report for DCE’s Carbon Free product

4. Interim 2023 Power Source Disclosure Annual Report for DCE’s Desert Saver product RESOLUTION NO. 2024-03

A RESOLUTION OF THE BOARD OF DIRECTORS OF
DESERT COMMUNITY ENERGY APPROVING THE INTERIM 2023 POWER SOURCE DISCLOSURE ANNUAL REPORTS AND ASSOCIATED 2023 POWER CONTENT LABEL

AND AUTHORIZING THE EXECUTIVE DIRECTOR TO COMPLETE ALL ACTIONS NECESSARY TO APPROVE AND ATTEST TO THE VERACITY OF THE FINAL 2023

POWER SOURCE DISCLOSURE ANNUAL REPORTS

AND ASSOCIATED POWER CONTENT LABEL FOR THE

DESERT SAVER PRODUCT AND CARBON FREE PRODUCTS
A. Desert Community Energy (DCE) is a joint powers authority established on October 30, 2017, for the purpose of implementing community choice aggregation programs under Public Utilities Code Section 366.2.

B. Senate Bill 1305 was adopted in 1997, establishing an Electricity Generation Source Disclosure Program, (“Power Source Disclosure Program”), which requires retail suppliers of electricity to disclose to their customers each year the sources of electricity delivered to customers in the previous year, and to annually submit a Power Source Disclosure Report to the California Energy Commission (CEC).

C. Desert Community Energy is a retail supplier of electricity as defined by the Power Source Disclosure Program (California Code of Regulations, Title 20, Section 1391(r)).

D. The Power Source Disclosure Regulation was updated effective May 4, 2020, allowing the board of directors of a public agency providing electric services to approve, at a public meeting, the submission to the California Energy Commission of an attestation of the veracity of each product’s 2023 Power Source Disclosure Annual Report and 2023 Power Content Label.

E. DCE staff and consultants performed a detailed review of all power purchases completed for the 2023 calendar year, including an inventory of all received renewable energy certificates (RECs) through November 15, 2024, within DCE’s account at the Western Renewable Energy Generation Information System (WREGIS), and transaction records.

F. Pursuant to the current CEC regulations, California Code of Regulations Title 20, Section 1394.2(a)(2), the Board is required to attest to the veracity of the 2023 Power Content Labels.

G. The Board desires to attest to the veracity of the interim 2023 Power Source Disclosure Annual Reports for the Desert Saver product and the Carbon Free product and to the 2023 Power Content Label based on RECs received in DCE’s WREGIS account through November 15, 2024, so that all the required statements and attestations required by Section 1394.2(a)(2), are contained in one resolution.

H. The Board further desires to authorize the Executive Director to complete all actions necessary for submittal to the CEC, including attesting to the veracity of the final 2023 Power Source Disclosure Annual Reports for the Desert Saver product and the Carbon Free product and to the 2023 Power Content Label once all 2023 RECs have been received in DCE’s WREGIS account.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF DESERT COMMUNITY ENERGY, AS FOLLOWS:

Section 1. Approval of Interim 2023 Power Source Disclosure Annual Reports and 2023 Power Content Label. The Board approves and attests to the veracity of the interim attached 2023 Power Source Disclosure Annual Reports and 2023 Power Content Label for Desert Community Energy, based on 2023 renewable energy certificates received in DCE’s account at the Western Renewable Energy Generation Information System through November 15, 2024.

Section 2. Delegation to Executive Director. The Board hereby authorizes the DCE Executive Director to approve the submission and attest to the veracity of the final 2023 Power Source Disclosure Annual Reports and 2023 Power Content Label for Desert Community Energy by signing the attestation forms set out in the final 2023 Power Source Disclosure Annual Reports, once all 2023 renewable energy certificates have been received in DCE’s account at the Western Renewable Energy Generation Information System.

Section 3. Resolution Effective Date. This resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED at a meeting of the Board of Directors of Desert Community Energy held on December 9, 2024.

ATTEST:
________________________ ________________________
Lisa Middleton, Chair Tom Kirk, Secretary
Desert Community Energy Desert Community Energy
AYES: NAYS: ABSENT: ABSTAIN: _

2023 POWER CONTENT LABEL
Desert Community Energy
https://desertcommunityenergy.org/about/key-documents/
Greenhouse Gas Emissions Intensity
(lbs CO2e/MWh) Energy Resources DCE Carbon
Free
DCE Desert
Saver
2023 CA
Power Mix
Eligible Renewable1 69.8% 54.5% 36.9%
Biomass & Biowaste 0.0% 0.0% 2.1%
0 226 373 Geothermal 0.0% 4.2% 4.8%
Eligible Hydroelectric 0.8% 0.4% 1.8%
Solar 30.4% 18.0% 17.0%
Wind 38.6% 31.9% 11.2%
Coal 0.0% 0.0% 1.8%
Large Hydroelectric 30.2% 22.6% 11.7%
Natural Gas 0.0% 0.0% 36.6%
Nuclear 0.0% 0.0% 9.3%
Other 0.0% 0.0% 0.1%
Unspecified Power2 0.0% 22.9% 3.7%
TOTAL 100.0% 100.0% 100.0%
Percentage of Retail Sales Covered by Retired Unbundled RECs3: 0% 63% 1 The eligible renewable percentage above does not reflect RPS compliance, which is determined using a different methodology. 2 Unspecified power is electricity that has been purchased through open market transactions and is not traceable to a specific generation source. 3
Renewable energy credits (RECs) are tracking instruments issued for renewable generation. Unbundled renewable energy credits (RECs) represent renewable generation that was not delivered to serve retail sales. Unbundled RECs are not reflected in the power mix or GHG emissions intensities above.

For specific information about this electricity
portfolio, contact:

Desert Community Energy
(855) 357-9240
For general information about the Power Content
Label, visit:
https://www.energy.ca.gov/programs-and-topics/programs/power-source-disclosure-program DCE Carbon Free DCE Desert Saver 2023 CA Utility Average 0 200
400
600
800
1000
DCE Carbon Free
DCE Desert Saver
2023 CA Utility Average
Version: April 2024
If you have questions, contact Power Source Disclosure (PSD) staff at [email protected] or (916) 639-0573.

NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at https://www.energy.ca.gov/about/divisions-and-offices/chief-counsels-office.

WEBSITE URL FOR
PCL POSTING https://desertcommunityenergy.org/about/key-documents/ Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to [email protected]. Remember to complete the Retail Supplier Name, Electricity Portfolio Name, and contact information above, and submit separate reports and attestations for each additional portfolio if multiple were offered in the previous year.

CITY, STATE, ZIP Palm Desert, CA 92260
PHONE 760-346-1127
EMAIL [email protected]
NAME Savannah Gil
TITLE Program Specialist
MAILING ADDRESS 74199 El Paseo, Suite 100

CONTACT INFORMATION
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
For the Year Ending December 31, 2023

RETAIL SUPPLIER NAME
Desert Community Energy

ELECTRICITY PORTFOLIO NAME
Carbon Free
Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information.

GENERAL INSTRUCTIONS
Version: April 2024
Schedule 1: Procurements and Retail Sales
Schedule 2: Retired Unbundled RECs
Schedule 3: Annual Power Content Label Data
GHG Emissions Factors
Specified Purchases: A Specified Purchase refers to a transaction in which electricity is traceable to specific generating facilities by any auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the electricity claimed has been sold once and only once to retail consumers. Do not enter data in the grey fields. For specified purchases, include enter following information for each line item:

Facility Name - Provide the name used to identify the facility.

Fuel Type - Provide the resource type (solar, natural gas, etc.) that this facility uses to generate electricity.

Location - Provide the state or province in which the facility is located.

Identification Numbers - Provide all applicable identification numbers from the Western Renewable Energy Generation Information System (WREGIS), the Energy Information Agency (EIA), and the California Renewables Portfolio Standard (RPS).

Gross Megawatt Hours Procured - Provide the quantity of electricity procured in MWh from the generating facility.

Megawatt Hours Resold - Provide the quantity of electricity resold at wholesale.

Unspecified Power: Unspecified Power refers to electricity that is not traceable to specific generation sources by any auditable contract trail or equivalent, or to power purchases from a transaction that expressly transferred energy only and not the RECs associated from a facility. Do not enter procurements of unspecified power. The schedule will calculate unspecified power procurements automatically.

Complete this schedule by entering information about unbundled REC retirements in the previous calendar year.

Retail suppliers of electricity must complete this schedule by entering information about all power procurements and generation that served the identified electricity portfolio covered in this filing in the prior year. The schedule is divided into sections: directly delivered renewables, firmed-and-shaped imports, specified non-renewables, and procurements from ACSs. Insert additional rows as needed to report all procurements or generation serving the subject product. Provide the annual retail sales for the subject product in the appropriate space. At the bottom of Schedule 1, provide the retail suppliers’ other electricity end-uses that are not retail sales, such as transmission and distribution losses. Retail suppliers shall submit a purchase agreement or ownership arrangement documentation substantiating that any eligible firmed-and-shaped product for which it is claiming an exclusion was executed prior to January 1, 2019. Any retail supplier that offered multiple electricity portfolios in the prior year must submit separate Annual Reports for each portfolio offered.

Schedule 2 - Retired Unbundled Renewable Energy Credits (RECs) Schedule 3 - Annual Power Content Label Data
Asset-Controlling Supplier (ACS) Procurement Calculator PSD Attestation

INSTRUCTIONS
Schedule 1 - Procurements and Retail Sales

INTRODUCTION
Retail suppliers are required to submit separate Annual Reports for each electricity portfolio offered to California retail consumers in the previous calendar year. Enter the Retail Supplier Name and Electricity Portfolio Name at the top of Schedule 1, Schedule 2, Schedule 3, and the Attestation.

A complete Annual Report includes the following tabs:

PSD Intro
Instructions
Version: April 2024
ACS Resource Mix Calculator
GHG Emissions Factors
Attestation
Retail suppliers may report specified purchases from ACS system power if the ACS provided its fuel mix of its specified system mix to the Energy Commission. Use the calculator to determine the resource-specific procurement quantities, and transfer them to Schedule 1.

This template provides the attestation that must be submitted with the Annual Report to the Energy Commission, stating that the information contained in the applicable schedules is correct and that the power has been sold once and only once to retail consumers. This attestation must be included in the package that is transmitted to the Energy Commission. Please provide the complete Annual Report in Excel format and the complete Annual Report with signed attestation in PDF format as well.

This tab will be displayed for informational purposes only; it will not be used by reporting entities, since the emissions factors below auto-populate in the relevant fields on Schedules 1 & 3.

This schedule is provided as an automated worksheet that uses the information from Schedule 1 to calculate the power content and GHG emissions intensity for each electricity portfolio. The percentages calculated on this worksheet should be used for your Power Content Label.

Version: April 2024
271,682
271,682
0 -
-
-
271,682
0 0.0000

DIRECTLY DELIVERED RENEWABLES
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID N/A EIA ID
Gross MWh
Procured
MWh
Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions (in
MT CO2e) N/A
Coachella Hills Wind CA W11291 65072A 64323 18,483 3,601 14,882 14,882 - - San Gorgonio Altwind - San Gorgonio Altwind Wind CA W4960 60402A 50281 22,128 2,169 19,959 19,959 - - San Gorgonio East - San Gorgonio East Wind CA W4764 63228A 50281 24,047 2,955 21,092 21,092 - - Longboat Solar, LLC - Longboat Solar, LLC Solar CA W5306 62805A 60485 357 357 357 - - Vega Solar, LLC - Vega Solar, LLC Solar CA W4543 61942A 59555 300 300 300 - - Adelanto Solar II, LLC - Adelanto Solar II, LLC Solar CA W4683 62640A 59440 115 115 115 - - Lone Valley Solar Park I, LLC - Lone Valley Solar Park I, LLC Solar CA W4427 61458A 58417 149 149 149 - - Kennedy 3 - Kennedy 3 Solar CA W2768 61240A P399 11 11 11 - - Blythe Solar II, LLC - Blythe Solar II, LLC - Block 6 Solar CA W5222 63129A 60092 498 498 498 - - Sun Streams, LLC - Sun Streams, LLC Solar AZ W8859 62673A 60827 2,999 2,999 2,999 - - Sunray Energy 3, LLC - Sunray Energy 3, LLC – SEGS I Solar CA W465 63260A 10438 243 243 243 - - Broadview Energy KW, LLC - BEKW Wind NM W5278 62643A 60152 3,560 3,560 3,560 - - Catalina Solar 2, LLC - Catalina Solar 2, LLC Solar CA W4263 62428A 59334 333 333 333 - - North Rosamond Solar, LLC - North Rosamond Solar, LLC Solar CA W7426 62290A 59879 3,130 3,130 3,130 - - CED Ducor Solar 4, LLC - CED Ducor Solar 4, LLC Solar CA W5352 62883A 60081 307 307 307 - - Alta Wind IV - Alta Wind IV Wind CA W2013 61093A 57293 978 978 978 - - CED Ducor Solar 3, LLC - CED Ducor Solar 3, LLC Solar CA W5353 62884A 60080 233 233 233 - - Solar Star California XIII, LLC - Quinto Solar Project Solar CA W4825 61362A 59339 1,248 1,248 1,248 - - Garnet Solar Power Generation Station 1, LLC - Garnet Solar Power Solar CA W4506 61182A 58528 41 41 41 - - Alta Wind X, LLC - Alta Wind X, LLC Wind CA W3537 62244A 58394 1,991 1,991 1,991 - - Golden Springs Development Company, LLC - Building G Solar CA W5480 63033A 57796 10 10 10 - - Fontana - Fontana Eligible hydro CA W326 60451A 332 32 32 32 - - SunE Solar XVI Lessor, LLC - SunE - Rochester Solar CA W5219 62719A 60032 14 14 14 - - Horseshoe Bend Wind, LLC - Horseshoe Bend Wind, LLC Wind OR W2067 61669A 57550 3,487 3,487 3,487 - - Desert Stateline LLC - Stateline Solar, Block 6 Solar CA W4965 60936A 58646 492 492 492 - - Rising Tree Wind Farm LLC - Rising Tree Wind Farm LLC Wind CA W4444 62425A 57621 1,464 1,464 1,464 - - Lancaster Little Rock C LLC - Lancaster Little Rock C LLC Solar CA W4492 61311A 59262 82 82 82 - - Bishop Creek 4 - Bishop Creek 4 - Unit 5 Eligible hydro CA W551 60447A 325 54 54 54 - - Park Meridian 1 - Kona Solar, LLC - Park Meridian 1 Solar CA W4577 62502A 59539 14 14 14 - - CED Atwell Island West - CED Atwell Island West Solar CA W4691 62468A 59414 321 321 321 - - Mill Creek 3 - Mill Creek 3 - Unit 3 Eligible hydro CA W332 60459A 7147 17 17 17 - - South Hurlburt Wind, LLC - South Hurlburt Wind, LLC Wind OR W2066 61668A 57549 3,503 3,503 3,503 - - Lancaster Dry Farm Ranch B, LLC - Lancaster Dry Farm Ranch B, L Solar CA W4418 61315A 58750 56 56 56 - - Citizen Solar B, LLC - Citizen Solar B Solar CA W4840 61488A 59738 72 72 72 - - Desert Sunlight 250 - Desert Sunlight 250, Block 19 Solar CA W4453 60940A 58542 450 450 450 - - Windstar - Windstar1 Wind CA W2742 60810A 57774 793 793 793 - - Mustang Hills, LLC - Mustang Hills, LLC Wind CA W2482 61287A 57833 1,653 1,653 1,653 - - Desert Stateline LLC - Stateline Solar, Block 3 Solar CA W4882 60936A 58646 453 453 453 - - DG Solar Lessee II, LLC - E Philadelphia - DG Solar Lessee II, LLC Solar CA W4926 62721A 59916 12 12 12 - - Porterville - SPVP042 - Porterville - SPVP042 Solar CA W1977 61241A 58309 53 53 53 - - Desert Stateline LLC - Stateline Solar, Block 4 Solar CA W4914 60936A 58646 492 492 492 - - American Solar Greenworks, LLC - Summer Solar North Solar CA W4524 61506A 59431 63 63 63 - - RE Victor Phelan Solar One LLC - RE Victor Phelan Solar One LLC Solar CA W3897 60838A 58202 271 271 271 - - SEPV Mojave West, LLC - SEPV Mojave West, LLC Solar CA W5047 61156A 59740 355 355 355 - - Bishop Creek 4 - Bishop Creek 4 Eligible hydro CA W322 60447A 325 26 26 26 - - Desert Sunlight 250 - Desert Sunlight 250, Block 14 Solar CA W4097 60940A 58542 458 458 458 - - Voyager Wind I - Voyager Wind I Wind CA W8807 63262A 60594 2,193 2,193 2,193 - - Solar Star California XX, LLC - AVS 2 Solar Star 2 (Block 2A-3) Solar CA W4458 61364A 57933 822 822 822 - - Retail Sales (MWh)
Net Specified Procurement (MWh)
Unspecified Power (MWh)
Procurement to be adjusted
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 1: PROCUREMENTS AND RETAIL SALES
For the Year Ending December 31, 2023
Desert Community Energy
Carbon Free
GHG Emissions Intensity (in MT CO2e/MWh)
Net Specified Natural Gas
Net Specified Coal & Other Fossil Fuels
Net Specified Nuclear, Large Hydro, Renewables, and ACS Power GHG Emissions (excludes grandfathered emissions)
Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report.

Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "Unspecified Power", "BPA", or "Tacoma Power" as applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in cell N9. Unbundled RECs must not be entered on Schedule 1; these products must be entered on Schedule 2. At the bottom portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses or municipal street lighting. Amounts should be in megawatt-hours.

Version: April 2024
CED Ducor Solar 2, LLC - CED Ducor Solar 2, LLC Solar CA W5351 62881A 60079 310 310 310 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-4) Solar CA W4678 61363A 57933 485 485 485 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-3) Solar CA W4393 61363A 57933 964 964 964 - -
Bishop Creek 5 - Bishop Creek 5 Eligible hydro CA W323 60448A 326 30 30 30 - -
California PV Energy at Jurupa - California PV Energy at Jurupa Solar CA W3924 62287A 58582 20 20 20 - -
Bishop Creek 3 - Bishop Creek 3 Eligible hydro CA W321 60446A 324 144 144 144 - -
SEPV Palmdale East, LLC - SEPV Palmdale East Solar CA W4713 61154A 59273 170 170 170 - -
Borden Solar Farm - Borden Solar Farm Solar CA W10139 61829A 59531 718 718 718 - -
Copper Mountain Solar 4 - Copper Mountain Solar 4, LLC Solar NV W5023 62662A 59814 1,567 1,567 1,567 - -
Windstar - Windstar2 Wind CA W2743 60810A 57774 856 856 856 - -
RE Rosamond Two LLC - RE Rosamond Two LLC Solar CA W3899 60856A 58499 277 277 277 - -
Tule Wind, LLC - Tule Wind, LLC Wind CA W5902 63271A 57913 2,227 2,227 2,227 - -
American Kings Solar Project - American Kings Solar Project Solar CA W11005 61600A 60777 2,250 2,250 2,250 - -
Poole - Poole Eligible hydro CA W338 60462A 353 202 202 202 - -
Redlands Distribution Center #10 (RDC10) - Redlands Distribution C Solar CA W4513 62208A 50267 53 53 53 - -
Highlander Solar 1, LLC - Highlander Solar 1, LLC Solar CA W3663 61157A 58234 200 200 200 - -
Adobe Solar, LLC - Adobe Solar, LLC Solar CA W4119 61427A 57651 286 286 286 - -
CED Wistaria Solar, LLC - Wistaria Ranch Solar Solar CA W7130 62623A 61750 2,016 2,016 2,016 - -
Wildwood Solar - Wildwood Solar Solar CA W4414 61367A 59380 306 306 306 - -
Coronal Lost Hills, LLC - Coronal Lost Hills, LLC Solar CA W4631 62235A 59638 311 311 311 - -
Bishop Creek 2 - Bishop Creek - Unit 3 Eligible hydro CA W545 60444A 323 59 59 59 - -
Victor Dry Farm Ranch B LLC - Victor Dry Farm Ranch B LLC Solar CA W4574 61332A 58419 63 63 63 - -
67RK 8ME, LLC - Redcrest Solar Farm Solar CA W4780 62642A 58831 243 243 243 - -
Portal Ridge Solar B, LLC - Portal Ridge Solar B, LLC Solar CA W5546 62835A 60310 341 341 341 - -
RE Adams East, LLC - RE Adams East, LLC Solar CA W4344 61266A 58984 305 305 305 - -
CED Ducor Solar 1, LLC - CED Ducor Solar 1, LLC Solar CA W5350 62882A 60078 310 310 310 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 6 Solar CA W4827 62091A 58462 438 438 438 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 5 Solar CA W4826 62091A 58462 490 490 490 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-5A) Solar CA W4064 61363A 57933 671 671 671 - -
Orion Solar II, LLC - Orion Solar II, LLC Solar CA W4186 61571A 58721 112 112 112 - -
Great Valley Solar 3, LLC - RE Tranquillity 8 Azul Solar CA W5866 63281A 59940 325 325 325 - -
Pumpjack Solar - Pumpjack Solar Solar CA W4413 61368A 59322 312 312 312 - -
Kern River 1 - Kern River 1 Eligible hydro CA W330 60455A 340 897 897 897 - -
Desert Stateline LLC - Stateline Solar, Block 8 Solar CA W5068 60936A 58646 453 453 453 - -
Rio Bravo Solar II - Rio Bravo Solar II Solar CA W5371 62716A 59250 320 320 320 - -
Silver State Solar Power South, LLC - Silver State Solar Power Sout Solar NV W4966 61050A 58644 508 508 508 - - Alta Wind XI, LLC - Alta Wind XI, LLC Wind CA W3538 62245A 58395 1,615 1,615 1,615 - -
Wildwood Solar II - Wildwood Solar II Solar CA W5374 62418A 59253 255 255 255 - -
Blythe Solar II, LLC - Blythe Solar II, LLC - Block 4 Solar CA W5072 63129A 60092 512 512 512 - -
El Cabo Wind - El Cabo Wind Wind NM W5788 62786A 58098 6,935 6,935 6,935 - -
Rio Bravo Solar I - Rio Bravo Solar I Solar CA W5346 61369A 59249 319 319 319 - -
Algonquin SKIC 10 Solar, LLC - Algonquin SKIC 10 Solar, LLC Solar CA W5392 62879A 59412 131 131 131 - -
RE Columbia 3 LLC - RE Columbia 3 LLC Solar CA W3898 61162A 58502 145 145 145 - -
Lundy - Lundy - Unit 2 Eligible hydro CA W560 60456A 342 31 31 31 - -
Imperial Valley Solar 3, LLC - Mount Signal Solar Farm V Solar CA W7036 61649A 61202 4,214 4,214 4,214 - -
Rialto I-210 Distribution Center #2 (RI 210-2) - Rialto I-210 Distributio Solar CA W2765 61747A P402 64 64 64 - - CED Corcoran Solar 2, LLC - CED Corcoran Solar 2, LLC Solar CA W4681 61820A 59413 293 293 293 - -
Desert Stateline LLC - Stateline Solar, Block 5 Solar CA W4946 60936A 58646 492 492 492 - -
Alta Wind V - Alta Wind V Wind CA W2068 61094A 57294 1,571 1,571 1,571 - -
Golden Solar, LLC - Dulles - Golden Solar, LLC - Dulles Solar CA W5227 63030A 60182 20 20 20 - -
Adera Solar, LLC - Adera Solar, LLC Solar CA W4836 61388A 60027 265 265 265 - -
Rancho Cucamonga Distribution Center 1 - Kona Solar, LLC - Ranch Solar CA W4579 62498A 59540 17 17 17 - - FTS Master Tenant 1, LLC - A - FTS Master Tenant 1, LLC - A Solar CA W4180 61318A 58761 23 23 23 - -
Sierra Solar Greenworks - Sierra Solar Greenworks Solar CA W4811 61334A 59431 236 236 236 - -
Bishop Creek 5 - Bishop Creek 5 - Unit 2 Eligible hydro CA W552 60448A 326 37 37 37 - -
Rush Creek - Rush Creek - Unit 2 Eligible hydro CA W557 60464A 357 126 126 126 - -
Victor Dry Farm Ranch A LLC - Victor Dry Farm Ranch A LLC Solar CA W4573 61331A 58418 64 64 64 - -
Bishop Creek 4 - Bishop Creek 4 - Unit 2 Eligible hydro CA W548 60447A 325 26 26 26 - -
Freeway Springs, LLC - Freeway Springs, LLC Solar CA W5385 63031A 60183 20 20 20 - -
Bishop Creek 4 - Bishop Creek 4 - Unit 4 Eligible hydro CA W550 60447A 325 59 59 59 - -
FTS Master Tenant 1, LLC - B - FTS Master Tenant 1, LLC - B Solar CA W4181 61319A 58762 24 24 24 - -
Alta Wind I - Alta Wind I Wind CA W1727 60794A 57282 2,253 2,253 2,253 - -
Panoche Valley Solar - Panoche Valley Solar Solar CA W5851 60858A 57340 940 940 940 - -
Desert Stateline LLC - Stateline Solar, Block 7 Solar CA W5021 60936A 58646 356 356 356 - -
Silver State Solar Power South, LLC - Silver State Solar Power Sout Solar NV W5063 61050A 58644 906 906 906 - - Silver State Solar Power South, LLC - Silver State Solar Power Sout Solar NV W5064 61050A 58644 164 164 164 - - Golden Springs Development Company LLC - Building M - Santa Fe Solar CA W4610 62746A 57796 20 20 20 - - Version: April 2024
Mill Creek 3 - Mill Creek 3 - Unit 4 Eligible hydro CA W555 60459A 7147 17 17 17 - -
Regulus Solar, LLC - Regulus Solar, LLC Solar CA W4387 61428A 57650 929 929 929 - -
Maverick Solar, LLC - Maverick Solar, LLC Solar CA W10973 63321A 62178 2,598 2,598 2,598 - -
Jacumba Solar, LLC - Jacumba Solar Farm Solar CA W5601 63057A 60947 289 289 289 - -
Alta Wind VII - Alta 7 Wind CA W2905 61807A P345 1,347 1,347 1,347 - -
Sunshine Valley Solar - Sunshine Valley Solar Solar NV W8128 62772A 59826 1,938 1,938 1,938 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-5B) Solar CA W4392 61363A 57933 343 343 343 - -
Blythe Solar III, LLC - Blythe Solar III, LLC Solar CA W10157 63130A 60094 2,381 2,381 2,381 - -
Oltmans SCE at Champagne - California PV Energy at Champagne Solar CA W3923 62292A 58581 5 5 5 - -
Bishop Creek 4 - Bishop Creek 4 - Unit 3 Eligible hydro CA W549 60447A 325 54 54 54 - -
RE Rio Grande, LLC - RE Rio Grande, LLC Solar CA W3896 60823A 58500 65 65 65 - -
Desert Sunlight 250 - Desert Sunlight 250, Block 15 Solar CA W4098 60940A 58542 376 376 376 - -
Golden Springs Development Company LLC - Building H - Santa Fe Solar CA W4609 62745A 57796 17 17 17 - - North Lancaster Ranch, LLC - North Lancaster Ranch, LLC Solar CA W5386 61538A 59962 232 232 232 - -
Tropico, LLC - Tropico Solar PV Plant Solar CA W5132 61700A 59599 209 209 209 - -
RE Garland A - Garland A Solar CA W5005 62818A 60233 367 367 367 - -
Desert Stateline LLC - Stateline Solar, Block 1 Solar CA W4849 60936A 58646 492 492 492 - -
Lone Valley Solar Park II, LLC - Lone Valley Solar Park II, LLC Solar CA W4428 61452A 58417 301 301 301 - -
Silver State Solar Power South, LLC - Silver State Solar Power Sout Solar NV W4829 61050A 58644 488 488 488 - - Highlander Solar 2, LLC - Highlander Solar 2, LLC Solar CA W3664 61158A 58227 148 148 148 - -
RE Tranquillity - RE Tranquillity Solar CA W4898 61269A 59939 3,508 3,508 3,508 - -
Mount Signal Solar Farm II - Mount Signal Solar Farm II Solar CA W7762 61648A 61353 2,130 2,130 2,130 - -
Bishop Creek 2 - Bishop Creek 2 Eligible hydro CA W320 60444A 323 64 64 64 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 8 Solar CA W4630 62091A 58462 550 550 550 - -
Bishop Creek 6 - Bishop Creek 6 Eligible hydro CA W324 60449A 327 51 51 51 - -
Valentine Solar, LLC - Valentine Solar, LLC Solar CA W8806 63026A 62288 2,035 2,035 2,035 - -
Mesquite Solar 2, LLC - Mesquite Solar 2, LLC Solar AZ W5299 62664A 60307 1,727 1,727 1,727 - -
Solar Star California XX, LLC - AVS 2 Solar Star 2 (Block 2A-1) Solar CA W4243 61364A 57933 957 957 957 - -
Solar Star California XX, LLC - AVS 2 Solar Star 2 (Block 2A-2) Solar CA W4457 61364A 57933 906 906 906 - -
Adelanto Solar, LLC - Adelanto Solar, LLC Solar CA W4758 62639A 57305 361 361 361 - -
Nicolis, LLC - Nicolis Solar PV Plant Solar CA W5131 61667A 59600 250 250 250 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 4 Solar CA W4763 62091A 58462 490 490 490 - -
Desert Sunlight 250 - Desert Sunlight 250, Block 13 Solar CA W3966 60940A 58542 540 540 540 - -
Bishop Creek 2 - Bishop Creek 2 - Unit 2 Eligible hydro CA W544 60444A 323 64 64 64 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-6) Solar CA W4099 61363A 57933 1,064 1,064 1,064 - -
Silver State Solar Power South, LLC - Silver State Solar Power Sout Solar NV W4878 61050A 58644 607 607 607 - - Alta Wind II - Alta Wind II Wind CA W1841 60795A 57291 1,922 1,922 1,922 - -
NRG Solar Oasis LLC - Oasis Solar Solar CA W4700 62514A 59528 354 354 354 - -
Desert Stateline LLC - Stateline Solar, Block 2 Solar CA W4881 60936A 58646 492 492 492 - -
Golden Springs Building F, LLC - Golden Springs Building F, LLC Solar CA W5479 63032A 57796 13 13 13 - -
Panoche Valley Solar - Panoche Valley Solar Phase 3 Solar CA W7275 60858A 57340 721 721 721 - -
Rising Tree Wind Farm III LLC - Rising Tree Wind Farm III LLC Wind CA W4612 62469A 57621 1,598 1,598 1,598 - -
Rush Creek - Rush Creek Eligible hydro CA W340 60464A 357 103 103 103 - -
Blythe Solar II, LLC - Blythe Solar II, LLC - Block 7 Solar CA W5248 63129A 60092 418 418 418 - -
Silver State Solar Power South, LLC - Silver State Solar Power Sout Solar NV W4947 61050A 58644 599 599 599 - - Desert Sunlight 250 - Desert Sunlight 250, Block 18 Solar CA W4189 60940A 58542 475 475 475 - -
Desert Sunlight 250 - Desert Sunlight 250, Blocks 16, 17, 20 Solar CA W3884 60940A 58542 787 787 787 - -
Broadview Energy, JN LLC - BEJN Wind NM W5277 63162A 60145 4,488 4,488 4,488 - -
Central Antelope Dry Ranch C, LLC - Central Antelope Dry Ranch C Solar CA W5006 61324A 59963 230 230 230 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-2) Solar CA W4562 61363A 57933 899 899 899 - -
Willow Springs 2 - Willow Springs 2 Solar CA W7213 62286A P393 2,121 2,121 2,121 - -
Silver State Solar Power South, Block 2 and 3 - Silver State Solar Po Solar NV W4876 61050A 58644 984 984 984 - - SunE Solar XV Lessor, LLC - Hesperia Solar CA W4261 62236A P304 19 19 19 - -
Master Development - Corona, CA (1351 Railroad) - Master Develop Solar CA W3497 61735A P306 10 10 10 - - TA-High Desert - Antelope Power Plant Solar CA W3496 60937A 58149 316 316 316 - -
Alta Wind VIII - Alta Wind VIII Wind CA W2483 61288A 57835 1,455 1,455 1,455 - -
Desert Stateline LLC - Stateline Solar, Block 7 R Solar CA W5067 60936A 58646 229 229 229 - -
Mill Creek 3 - Mill Creek 3 - Unit 5 Eligible hydro CA W556 60459A 7147 17 17 17 - -
Solar Star California XX, LLC - AVS 2 Solar Star 2 (Block 2B-2) Solar CA W4065 61364A 57933 709 709 709 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 1 Solar CA W4935 62091A 59462 615 615 615 - -
Sierra - Sierra Eligible hydro CA W390 60467A 60467 14 14 14 - -
SunE Solar XVI Lessor, LLC - SunE - Pico Rivera Solar CA W4804 62725A P304 14 14 14 - -
Solar Star California XX, LLC - AVS 2 Solar Star 2 (Block 2A-4) Solar CA W4679 62425A 57933 736 736 736 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 7 Solar CA W4879 62091A 59462 615 615 615 - -
Lundy - Lundy Eligible hydro CA W331 60456A 342 31 31 31 - -
Alta Wind III - Alta Wind III Wind CA W1842 61092A 57292 1,992 1,992 1,992 - -
Mound Solar Partnership XI, LLC - Antelope Valley Solar AVS Lanca Solar CA W5744 63713A 60085 54 54 54 - - Version: April 2024
Kennedy 2 - Kennedy 2 Solar CA W2767 61239A P398 16 16 16 - - Alta Wind IX - Alta 9 Wind CA W2904 61808A P346 967 967 967 - - Solar Star California XX, LLC - AVS 2 Solar Star 2 (Block 2B-3) Solar CA W4100 61364A 57933 664 664 664 - - Solar Star California XIX, LLC - AVS1 Solar Star 1 (Block 1-1) Solar CA W4641 61363A 57933 899 899 899 - - Blythe Solar II, LLC - Blythe Solar II, LLC - Block 5 Solar CA W5073 63129A 60092 521 521 521 - - Terra Francesco 1 - Kona Solar, LLC - Terra Francesco 1 Solar CA W4578 62503A 59541 10 10 10 - - Ontario 1 - Ontario 1 Eligible hydro CA W393 60460A P350 15 15 15 - - McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 2 Solar CA W4936 62091A 59462 366 366 366 - - San Bernardino Distribution Center #1 (SBDC1) - San Bernardino Di Solar CA W2766 61748A P407 37 37 37 - - Panoche Valley Solar - Phase 2 Solar CA W7186 60858A 57340 614 614 614 - - Desert Sunlight 250 - Desert Sunlight 250, Block 12 Solar CA W3965 60940A 58542 540 540 540 - - Lytle Creek - Lytle Creek Eligible hydro CA W391 60457A P348 5 5 5 - - McCoy Solar, LLC - Genesis McCoy Solar Energy Center, Block 3 Solar CA W5016 62091A 59462 347 347 347 - - Portal - Portal Eligible hydro CA W339 60463A 354 125 125 125 - - Redlands Distribution Center #4 (RDC4) - Redlands Distribution Cen Solar CA W2758 61742A 50267 37 37 37 - - Redlands Distribution Center #1 (RDC1) SPVP #5 - Redlands Distrib Solar CA W1972 61235A 50267 27 27 27 - - Ontario 2 - Ontario 2 Eligible hydro CA W394 60461A P351 6 6 6 - - Golden Springs Development Company, LLC - Building L Solar CA W5481 63034A 57796 5 5 5 - - SPVP015 - Fontana / KDC7 Solar CA W836 61744A 332 37 37 37 - - SPVP002 - Chino / Chino Solar CA W1082 60757A 56996 11 11 11 - - SPVP003 - Rialto / Rialto Solar CA W1920 60879A 65253 11 11 11 - - SPVP006 - Ontario / PPOA 2 Solar CA W2043 61035A 61860 21 21 21 - - SPVP007 - Redlands / RDC 3 Solar CA W1973 61236A P401 27 27 27 - - SPVP008 - Ontario / PPOA 4 Solar CA W1974 61036A 61860 21 21 21 - - SPVP009 - Ontario / PPOA 3 Solar CA W2044 61037A 61860 11 11 11 - - SPVP010 - Fontana / KDC 2 Solar CA W2757 61741A 332 16 16 16 - - SPVP012 - Ontario / PPOA 5 Solar CA W1975 61038A 61860 5 5 5 - - SPVP013 - Redlands / RDC 5 Solar CA W2759 61743A P401 37 37 37 - - SPVP016 - Redlands / RDC 2 Solar CA W2761 61237A P401 16 16 16 - - SPVP017 - Fontana / KDC5 Solar CA W2762 61745A 332 37 37 37 - - SPVP018 - Fontana / KDC 6 Solar CA W2763 61746A 332 16 16 16 - - SPVP022 - Redlands / RDC 6 Solar CA W1976 61039A P401 21 21 21 - - SPVP023 - Fontana / TIE 1 Solar CA W2764 61238A 332 27 27 27 - - SPVP027 - Rialto / I 210#3 Solar CA W4511 62206A P402 21 21 21 - - Santa Ana 3 Solar CA W342 60466A 363 3 3 3 - -
Kaweah 2 Solar CA W341 60465A 361 2 2 2 - -
Imperial Valley Solar 2, LLC Solar CA W7762 61648A 61353 1,716 1,716 1,716 #N/A SunE W12DG-C, LLC Solar CA W3497 61735A 57656 11 11 11 #N/A DG Solar Lessee, LLC - Hesperia Solar CA W4261 62236A 59182 21 21 21 #N/A

FIRMED-AND-SHAPED IMPORTS
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID
EIA ID of
REC
Source
EIA ID of
Substitute
Power
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e)
Eligible for
Grandfathered
Emissions?
- - #N/A
- - #N/A
- - #N/A
- - #N/A
- - #N/A

SPECIFIED NON-RENEWABLE PROCUREMENTS
Facility Name Fuel Type
State or
Province N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
Colgate 1 Large Hydro CA 454 24,783 24,783 - - - -
Colgate 2 Large Hydro CA 454 24,580 24,580 - - - -
Narrows 2 Large Hydro CA 455 636 636 - - - -
Dion R Holm Large Hydro CA 380 40,978 - 40,978 40,978 - - Middle Fork Irrigation District Large Hydro CA 50917 40,978 - 40,978 40,978 - - - - #N/A
- - #N/A
- - #N/A
- - #N/A

PROCUREMENTS FROM ASSET-CONTROLLING SUPPLIERS
Facility Name Fuel Type N/A N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
- #N/A
- #N/A
- #N/A
Version: April 2024
- #N/A
END USES OTHER THAN RETAIL SALES MWh
Distribution Losses 18,766
Version: April 2024
-

RETIRED UNBUNDLED RECS
Facility Name Fuel Type
State or
Province RPS ID Total Retired (in MWh)
Total Retired Unbundled RECs
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 2: RETIRED UNBUNDLED RECS
For the Year Ending December 31, 2023
Desert Community Energy
Carbon Free
INSTRUCTIONS: Enter information about retired unbundled RECs associated with this electricity portfolio. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out.

Version: April 2024
Adjusted Net
Procured (MWh)
Percent of Total
Retail Sales
Renewable Procurements 189,726 69.8%
Biomass & Biowaste - 0.0%
Geothermal - 0.0%
Eligible Hydroelectric 2,304 0.8%
Solar 82,642 30.4%
Wind 104,780 38.6%
Coal - 0.0%
Large Hydroelectric 81,956 30.2%
Natural gas - 0.0%
Nuclear - 0.0%
Other - 0.0%
Unspecified Power 0 0.0%
Total 271,682 100.0%
271,682
0 0.0%
Total Retail Sales (MWh)
GHG Emissions Intensity (converted to lbs CO2e/MWh)
Percentage of Retail Sales Covered by Retired Unbundled RECs
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 3: POWER CONTENT LABEL DATA
For the Year Ending December 31, 2023
Desert Community Energy
Carbon Free
Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels.

Version: April 2024
If you have questions, contact Power Source Disclosure (PSD) staff at [email protected] or (916) 639-0573.

NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at https://www.energy.ca.gov/about/divisions-and-offices/chief-counsels-office.

WEBSITE URL FOR
PCL POSTING https://desertcommunityenergy.org/about/key-documents/ Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to [email protected]. Remember to complete the Retail Supplier Name, Electricity Portfolio Name, and contact information above, and submit separate reports and attestations for each additional portfolio if multiple were offered in the previous year.

CITY, STATE, ZIP Palm Desert, CA 92260
PHONE 760-346-1127
EMAIL [email protected]
NAME Savannah Gil
TITLE Program Specialist
MAILING ADDRESS 74199 El Paseo, Suite 100

CONTACT INFORMATION
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
For the Year Ending December 31, 2023

RETAIL SUPPLIER NAME
Desert Community Energy

ELECTRICITY PORTFOLIO NAME
Desert Saver
Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information.

GENERAL INSTRUCTIONS
Version: April 2024
Schedule 1: Procurements and Retail Sales
Schedule 2: Retired Unbundled RECs
Schedule 3: Annual Power Content Label Data
GHG Emissions Factors
Specified Purchases: A Specified Purchase refers to a transaction in which electricity is traceable to specific generating facilities by any auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the electricity claimed has been sold once and only once to retail consumers. Do not enter data in the grey fields. For specified purchases, include enter following information for each line item:

Facility Name - Provide the name used to identify the facility.

Fuel Type - Provide the resource type (solar, natural gas, etc.) that this facility uses to generate electricity.

Location - Provide the state or province in which the facility is located.

Identification Numbers - Provide all applicable identification numbers from the Western Renewable Energy Generation Information System (WREGIS), the Energy Information Agency (EIA), and the California Renewables Portfolio Standard (RPS).

Gross Megawatt Hours Procured - Provide the quantity of electricity procured in MWh from the generating facility.

Megawatt Hours Resold - Provide the quantity of electricity resold at wholesale.

Unspecified Power: Unspecified Power refers to electricity that is not traceable to specific generation sources by any auditable contract trail or equivalent, or to power purchases from a transaction that expressly transferred energy only and not the RECs associated from a facility. Do not enter procurements of unspecified power. The schedule will calculate unspecified power procurements automatically.

Complete this schedule by entering information about unbundled REC retirements in the previous calendar year.

Retail suppliers of electricity must complete this schedule by entering information about all power procurements and generation that served the identified electricity portfolio covered in this filing in the prior year. The schedule is divided into sections: directly delivered renewables, firmed-and-shaped imports, specified non-renewables, and procurements from ACSs. Insert additional rows as needed to report all procurements or generation serving the subject product. Provide the annual retail sales for the subject product in the appropriate space. At the bottom of Schedule 1, provide the retail suppliers’ other electricity end-uses that are not retail sales, such as transmission and distribution losses. Retail suppliers shall submit a purchase agreement or ownership arrangement documentation substantiating that any eligible firmed-and-shaped product for which it is claiming an exclusion was executed prior to January 1, 2019. Any retail supplier that offered multiple electricity portfolios in the prior year must submit separate Annual Reports for each portfolio offered.

Schedule 2 - Retired Unbundled Renewable Energy Credits (RECs) Schedule 3 - Annual Power Content Label Data
Asset-Controlling Supplier (ACS) Procurement Calculator PSD Attestation

INSTRUCTIONS
Schedule 1 - Procurements and Retail Sales

INTRODUCTION
Retail suppliers are required to submit separate Annual Reports for each electricity portfolio offered to California retail consumers in the previous calendar year. Enter the Retail Supplier Name and Electricity Portfolio Name at the top of Schedule 1, Schedule 2, Schedule 3, and the Attestation.

A complete Annual Report includes the following tabs:

PSD Intro
Instructions
Version: April 2024
ACS Resource Mix Calculator
GHG Emissions Factors
Attestation
Retail suppliers may report specified purchases from ACS system power if the ACS provided its fuel mix of its specified system mix to the Energy Commission. Use the calculator to determine the resource-specific procurement quantities, and transfer them to Schedule 1.

This template provides the attestation that must be submitted with the Annual Report to the Energy Commission, stating that the information contained in the applicable schedules is correct and that the power has been sold once and only once to retail consumers. This attestation must be included in the package that is transmitted to the Energy Commission. Please provide the complete Annual Report in Excel format and the complete Annual Report with signed attestation in PDF format as well.

This tab will be displayed for informational purposes only; it will not be used by reporting entities, since the emissions factors below auto-populate in the relevant fields on Schedules 1 & 3.

This schedule is provided as an automated worksheet that uses the information from Schedule 1 to calculate the power content and GHG emissions intensity for each electricity portfolio. The percentages calculated on this worksheet should be used for your Power Content Label.

Version: April 2024
79,847
61,528
18,318
-
-
-
61,528
8,170

0.1023

DIRECTLY DELIVERED RENEWABLES
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID N/A EIA ID
Gross MWh
Procured
MWh
Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions (in MT
CO2e) N/A
Coachella Hills Wind CA W11291 65072A 64323 6,828 526 6,302 6,302 - - San Gorgonio Altwind - San Gorgonio Altwind Wind CA W4960 60402A 50281 5,720 317 5,403 5,403 - - San Gorgonio East - San Gorgonio East Wind CA W4764 63228A 50281 6,901 432 6,469 6,469 - - Longboat Solar, LLC - Longboat Solar, LLC Solar CA W5306 62805A 60485 53 - 53 53 - - Vega Solar, LLC - Vega Solar, LLC Solar CA W4543 61942A 59555 45 - 45 45 - - Adelanto Solar II, LLC - Adelanto Solar II, LLC Solar CA W4683 62640A 59440 17 - 17 17 - - Lone Valley Solar Park I, LLC - Lone Valley Solar P Solar CA W4427 61458A 58417 22 - 22 22 - - Kennedy 3 - Kennedy 3 Solar CA W2768 61240A P399 1 - 1 1 - - Blythe Solar II, LLC - Blythe Solar II, LLC - Block 6 Solar CA W5222 63129A 60092 74 - 74 74 - - Sun Streams, LLC - Sun Streams, LLC Solar AZ W8859 62673A 60827 448 - 448 448 - - Sunray Energy 3, LLC - Sunray Energy 3, LLC – S Solar CA W465 63260A 10438 36 - 36 36 - - Broadview Energy KW, LLC - BEKW Wind NM W5278 62643A 60152 532 - 532 532 - - Catalina Solar 2, LLC - Catalina Solar 2, LLC Solar CA W4263 62428A 59334 50 - 50 50 - - North Rosamond Solar, LLC - North Rosamond Sol Solar CA W7426 62290A 59879 468 - 468 468 - - CED Ducor Solar 4, LLC - CED Ducor Solar 4, LLC Solar CA W5352 62883A 60081 46 - 46 46 - - Alta Wind IV - Alta Wind IV Wind CA W2013 61093A 57293 146 - 146 146 - - CED Ducor Solar 3, LLC - CED Ducor Solar 3, LLC Solar CA W5353 62884A 60080 35 - 35 35 - - Solar Star California XIII, LLC - Quinto Solar Projec Solar CA W4825 61362A 59339 186 - 186 186 - - Garnet Solar Power Generation Station 1, LLC - Ga Solar CA W4506 61182A 58528 6 - 6 6 - - Alta Wind X, LLC - Alta Wind X, LLC Wind CA W3537 62244A 58394 297 - 297 297 - - Golden Springs Development Company, LLC - Buil Solar CA W5480 63033A 57796 1 - 1 1 - - Fontana - Fontana Eligible hydro CA W326 60451A 332 5 - 5 5 - - SunE Solar XVI Lessor, LLC - SunE - Rochester Solar CA W5219 62719A 60032 2 - 2 2 - - Horseshoe Bend Wind, LLC - Horseshoe Bend Win Wind OR W2067 61669A 57550 521 - 521 521 - - Desert Stateline LLC - Stateline Solar, Block 6 Solar CA W4965 60936A 58646 73 - 73 73 - - Rising Tree Wind Farm LLC - Rising Tree Wind Far Wind CA W4444 62425A 57621 219 - 219 219 - - Lancaster Little Rock C LLC - Lancaster Little Rock Solar CA W4492 61311A 59262 12 - 12 12 - - Bishop Creek 4 - Bishop Creek 4 - Unit 5 Eligible hydro CA W551 60447A 325 8 - 8 8 - - Park Meridian 1 - Kona Solar, LLC - Park Meridian Solar CA W4577 62502A 59539 2 - 2 2 - - CED Atwell Island West - CED Atwell Island West Solar CA W4691 62468A 59414 48 - 48 48 - - Mill Creek 3 - Mill Creek 3 - Unit 3 Eligible hydro CA W332 60459A 7147 2 - 2 2 - - South Hurlburt Wind, LLC - South Hurlburt Wind, LLWind OR W2066 61668A 57549 523 - 523 523 - - Lancaster Dry Farm Ranch B, LLC - Lancaster Dry Solar CA W4418 61315A 58750 8 - 8 8 - - Citizen Solar B, LLC - Citizen Solar B Solar CA W4840 61488A 59738 11 - 11 11 - - Desert Sunlight 250 - Desert Sunlight 250, Block 19Solar CA W4453 60940A 58542 67 - 67 67 - - Windstar - Windstar1 Wind CA W2742 60810A 57774 118 - 118 118 - - Mustang Hills, LLC - Mustang Hills, LLC Wind CA W2482 61287A 57833 247 - 247 247 - - Desert Stateline LLC - Stateline Solar, Block 3 Solar CA W4882 60936A 58646 68 - 68 68 - - DG Solar Lessee II, LLC - E Philadelphia - DG Sola Solar CA W4926 62721A 59916 2 - 2 2 - - Porterville - SPVP042 - Porterville - SPVP042 Solar CA W1977 61241A 58309 8 - 8 8 - - Desert Stateline LLC - Stateline Solar, Block 4 Solar CA W4914 60936A 58646 73 - 73 73 - - American Solar Greenworks, LLC - Summer Solar Solar CA W4524 61506A 59431 9 - 9 9 - - RE Victor Phelan Solar One LLC - RE Victor Phelan Solar CA W3897 60838A 58202 40 - 40 40 - - SEPV Mojave West, LLC - SEPV Mojave West, LLCSolar CA W5047 61156A 59740 53 - 53 53 - - Bishop Creek 4 - Bishop Creek 4 Eligible hydro CA W322 60447A 325 4 - 4 4 - - Retail Sales (MWh)
Net Specified Procurement (MWh)
Unspecified Power (MWh)
Procurement to be adjusted
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 1: PROCUREMENTS AND RETAIL SALES
For the Year Ending December 31, 2023
Desert Community Energy
Desert Saver
GHG Emissions Intensity (in MT CO2e/MWh)
Net Specified Natural Gas
Net Specified Coal & Other Fossil Fuels
Net Specified Nuclear, Large Hydro, Renewables, and ACS Power GHG Emissions (excludes grandfathered emissions)
Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report.

Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "Unspecified Power", "BPA", or "Tacoma Power" as applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in cell N9. Unbundled RECs must not be entered on Schedule 1; these products must be entered on Schedule 2. At the bottom portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses or municipal street lighting. Amounts should be in megawatt-hours.

Version: April 2024
Desert Sunlight 250 - Desert Sunlight 250, Block 14Solar CA W4097 60940A 58542 68 - 68 68
-
-
Voyager Wind I - Voyager Wind I Wind CA W8807 63262A 60594 328 - 328 328 -
-
Solar Star California XX, LLC - AVS 2 Solar Star 2 ( Solar CA W4458 61364A 57933 123 - 123 123 - -
CED Ducor Solar 2, LLC - CED Ducor Solar 2, LLC Solar CA W5351 62881A 60079 46 - 46 46 - - Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4678 61363A 57933 72 - 72 72 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4393 61363A 57933 144 - 144 144 - -
Bishop Creek 5 - Bishop Creek 5 Eligible hydro CA W323 60448A 3264 - 4 4 - -
California PV Energy at Jurupa - California PV Ener Solar CA W3924 62287A 585823 - 3 3 -
-
Bishop Creek 3 - Bishop Creek 3 Eligible hydro CA W321 60446A 324 21 - 21 21 - - SEPV Palmdale East, LLC - SEPV Palmdale East Solar CA W4713 61154A 59273 25 - 25 25 - -
Borden Solar Farm - Borden Solar Farm Solar CA W10139 61829A 59531 107 - 107 107 - -
Copper Mountain Solar 4 - Copper Mountain Solar 4 Solar NV W5023 62662A 59814 234 - 234 234 - -
Windstar - Windstar2 Wind CA W2743 60810A 57774 128 - 128 128 - - RE Rosamond Two LLC - RE Rosamond Two LLC Solar CA W3899 60856A 58499 41 - 41 41 - - Tule Wind, LLC - Tule Wind, LLC Wind CA W5902 63271A 57913 333 - 333 333 - -
American Kings Solar Project - American Kings Sol Solar CA W11005 61600A 60777 336 - 336 336 - -
Poole - Poole Eligible hydro CA W338 60462A 353 30 - 30 30 - -
Redlands Distribution Center #10 (RDC10) - Redlan Solar CA W4513 62208A 502678 - 8 8 - - Highlander Solar 1, LLC - Highlander Solar 1, LLC Solar CA W3663 61157A 58234 30 - 30 30 - -
Adobe Solar, LLC - Adobe Solar, LLC Solar CA W4119 61427A 57651 43 - 43 43 -
-
CED Wistaria Solar, LLC - Wistaria Ranch Solar Solar CA W7130 62623A 61750 301 - 301 301 - -
Wildwood Solar - Wildwood Solar Solar CA W4414 61367A 59380 46 - 46 46 - - Coronal Lost Hills, LLC - Coronal Lost Hills, LLC Solar CA W4631 62235A 59638 46 - 46 46 - -
Bishop Creek 2 - Bishop Creek - Unit 3 Eligible hydro CA W545 60444A 3239 - 9 9 -
-
Victor Dry Farm Ranch B LLC - Victor Dry Farm Ra Solar CA W4574 61332A 584199 - 9 9 - -
67RK 8ME, LLC - Redcrest Solar Farm Solar CA W4780 62642A 58831 36 - 36 36 - - Portal Ridge Solar B, LLC - Portal Ridge Solar B, LLSolar CA W5546 62835A 60310 51 - 51 51 - -
RE Adams East, LLC - RE Adams East, LLC Solar CA W4344 61266A 58984 45 - 45 45 - -
CED Ducor Solar 1, LLC - CED Ducor Solar 1, LLC Solar CA W5350 62882A 60078 46 - 46 46 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4827 62091A 58462 65 - 65 65 - - McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4826 62091A 58462 73 - 73 73 - - Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4064 61363A 57933 100 - 100 100 - -
Orion Solar II, LLC - Orion Solar II, LLC Solar CA W4186 61571A 58721 17 - 17 17 - -
Great Valley Solar 3, LLC - RE Tranquillity 8 Azul Solar CA W5866 63281A 59940 49 - 49 49 - -
Pumpjack Solar - Pumpjack Solar Solar CA W4413 61368A 59322 47 - 47 47 - - Kern River 1 - Kern River 1 Eligible hydro CA W330 60455A 340 134 - 134 134 - -
Desert Stateline LLC - Stateline Solar, Block 8 Solar CA W5068 60936A 58646 68 - 68 68 -
-
Rio Bravo Solar II - Rio Bravo Solar II Solar CA W5371 62716A 59250 48 - 48 48 - -
Silver State Solar Power South, LLC - Silver State S Solar NV W4966 61050A 58644 76 - 76 76 - - Alta Wind XI, LLC - Alta Wind XI, LLC Wind CA W3538 62245A 58395 241 - 241 241 - - Wildwood Solar II - Wildwood Solar II Solar CA W5374 62418A 59253 38 - 38 38 - - Blythe Solar II, LLC - Blythe Solar II, LLC - Block 4 Solar CA W5072 63129A 60092 76 - 76 76 - -
El Cabo Wind - El Cabo Wind Wind NM W5788 62786A 58098 1,036 - 1,036 1,036 - - Rio Bravo Solar I - Rio Bravo Solar I Solar CA W5346 61369A 59249 48 - 48 48 - -
Algonquin SKIC 10 Solar, LLC - Algonquin SKIC 10 Solar CA W5392 62879A 59412 20 - 20 20 - - RE Columbia 3 LLC - RE Columbia 3 LLC Solar CA W3898 61162A 58502 22 - 22 22 - - Lundy - Lundy - Unit 2 Eligible hydro CA W560 60456A 3425 - 5 5 - - Imperial Valley Solar 3, LLC - Mount Signal Solar F Solar CA W7036 61649A 61202 630 - 630 630 - - Solar Partners I, LLC - Ivanpah 2 Solar CA W4025 62274A 57073 1,994 - 1,994 1,994 0.0596 119 Rialto I-210 Distribution Center #2 (RI 210-2) - Rialt Solar CA W2765 61747A P402 10 - 10 10 - - Ormat Dixie Valley, LLC - Ormat Dixie Valley, LLC Geothermal NV W334 60313A 52015 2,743 - 2,743 2,743 0.0635 174 CED Corcoran Solar 2, LLC - CED Corcoran Solar Solar CA W4681 61820A 59413 44 - 44 44 - - Desert Stateline LLC - Stateline Solar, Block 5 Solar CA W4946 60936A 58646 74 - 74 74 - - Alta Wind V - Alta Wind V Wind CA W2068 61094A 57294 235 - 235 235 - -
Golden Solar, LLC - Dulles - Golden Solar, LLC - D Solar CA W5227 63030A 601823 - 3 3 - - Adera Solar, LLC - Adera Solar, LLC Solar CA W4836 61388A 60027 40 - 40 40 - - Rancho Cucamonga Distribution Center 1 - Kona S Solar CA W4579 62498A 595402 - 2 2 - - FTS Master Tenant 1, LLC - A - FTS Master Tenant Solar CA W4180 61318A 587613 - 3 3 - - Sierra Solar Greenworks - Sierra Solar GreenworksSolar CA W4811 61334A 59431 35 - 35 35 - - Bishop Creek 5 - Bishop Creek 5 - Unit 2 Eligible hydro CA W552 60448A 3266 - 6 6 - - Rush Creek - Rush Creek - Unit 2 Eligible hydro CA W557 60464A 357 19 - 19 19 - - Victor Dry Farm Ranch A LLC - Victor Dry Farm Ra Solar CA W4573 61331A 584189 - 9 9 - - Bishop Creek 4 - Bishop Creek 4 - Unit 2 Eligible hydro CA W548 60447A 3254 - 4 4 - - Freeway Springs, LLC - Freeway Springs, LLC Solar CA W5385 63031A 601833 - 3 3 - -
Bishop Creek 4 - Bishop Creek 4 - Unit 4 Eligible hydro CA W550 60447A 3259 - 9 9 - - Version: April 2024
FTS Master Tenant 1, LLC - B - FTS Master Tenant Solar CA W4181 61319A 58762 4 -
4 4
-
-
Alta Wind I - Alta Wind I Wind CA W1727 60794A 57282 337 - 337 337 -
-
Panoche Valley Solar - Panoche Valley Solar Solar CA W5851 60858A 57340 140 - 140 140 - -
Desert Stateline LLC - Stateline Solar, Block 7 Solar CA W5021 60936A 58646 53 - 53 53 - - Silver State Solar Power South, LLC - Silver State S Solar NV W5063 61050A 58644 135 - 135 135 - -
Silver State Solar Power South, LLC - Silver State S Solar NV W5064 61050A 58644 24 - 24 24 - -
Golden Springs Development Company LLC - Build Solar CA W4610 62746A 577963 - 3 3 - -
Mill Creek 3 - Mill Creek 3 - Unit 4 Eligible hydro CA W555 60459A 71472 - 2 2 -
-
Regulus Solar, LLC - Regulus Solar, LLC Solar CA W4387 61428A 57650 139 - 139 139 - - Maverick Solar, LLC - Maverick Solar, LLC Solar CA W10973 63321A 62178 388 - 388 388 - -
Jacumba Solar, LLC - Jacumba Solar Farm Solar CA W5601 63057A 60947 43 - 43 43 - -
Alta Wind VII - Alta 7 Wind CA W2905 61807A P345 201 - 201 201 - -
Sunshine Valley Solar - Sunshine Valley Solar Solar NV W8128 62772A 59826 290 - 290 290 - - Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4392 61363A 57933 51 - 51 51 - - Blythe Solar III, LLC - Blythe Solar III, LLC Solar CA W10157 63130A 60094 356 - 356 356 - -
Oltmans SCE at Champagne - California PV Energ Solar CA W3923 62292A 585811 - 1 1 - -
Bishop Creek 4 - Bishop Creek 4 - Unit 3 Eligible hydro CA W549 60447A 3258 - 8 8 - -
RE Rio Grande, LLC - RE Rio Grande, LLC Solar CA W3896 60823A 58500 10 - 10 10 - - Desert Sunlight 250 - Desert Sunlight 250, Block 15Solar CA W4098 60940A 58542 56 - 56 56 - -
Golden Springs Development Company LLC - Build Solar CA W4609 62745A 577963 - 3 3 -
-
North Lancaster Ranch, LLC - North Lancaster Ran Solar CA W5386 61538A 59962 35 - 35 35 - -
Tropico, LLC - Tropico Solar PV Plant Solar CA W5132 61700A 59599 31 - 31 31 - - RE Garland A - Garland A Solar CA W5005 62818A 60233 55 - 55 55 - -
Desert Stateline LLC - Stateline Solar, Block 1 Solar CA W4849 60936A 58646 74 - 74 74 -
-
Lone Valley Solar Park II, LLC - Lone Valley Solar P Solar CA W4428 61452A 58417 45 - 45 45 - -
Silver State Solar Power South, LLC - Silver State S Solar NV W4829 61050A 58644 73 - 73 73 - - Highlander Solar 2, LLC - Highlander Solar 2, LLC Solar CA W3664 61158A 58227 22 - 22 22 - -
RE Tranquillity - RE Tranquillity Solar CA W4898 61269A 59939 524 - 524 524 - -
Mount Signal Solar Farm II - Mount Signal Solar Fa Solar CA W7762 61648A 61353 318 - 318 318 - -
Bishop Creek 2 - Bishop Creek 2 Eligible hydro CA W320 60444A 3239 - 9 9 - - McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4630 62091A 58462 82 - 82 82 - - Bishop Creek 6 - Bishop Creek 6 Eligible hydro CA W324 60449A 3278 - 8 8 - -
Valentine Solar, LLC - Valentine Solar, LLC Solar CA W8806 63026A 62288 304 - 304 304 - -
Mesquite Solar 2, LLC - Mesquite Solar 2, LLC Solar AZ W5299 62664A 60307 258 - 258 258 - -
Solar Star California XX, LLC - AVS 2 Solar Star 2 ( Solar CA W4243 61364A 57933 143 - 143 143 - - Solar Star California XX, LLC - AVS 2 Solar Star 2 ( Solar CA W4457 61364A 57933 135 - 135 135 - -
Adelanto Solar, LLC - Adelanto Solar, LLC Solar CA W4758 62639A 57305 54 - 54 54 -
-
Nicolis, LLC - Nicolis Solar PV Plant Solar CA W5131 61667A 59600 37 - 37 37 - -
McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4763 62091A 58462 73 - 73 73 - - Desert Sunlight 250 - Desert Sunlight 250, Block 13Solar CA W3966 60940A 58542 81 - 81 81 - - Bishop Creek 2 - Bishop Creek 2 - Unit 2 Eligible hydro CA W544 60444A 3239 - 9 9 - -
Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4099 61363A 57933 159 - 159 159 - -
Silver State Solar Power South, LLC - Silver State S Solar NV W4878 61050A 58644 91 - 91 91 - - Alta Wind II - Alta Wind II Wind CA W1841 60795A 57291 287 - 287 287 - -
NRG Solar Oasis LLC - Oasis Solar Solar CA W4700 62514A 59528 53 - 53 53 - - Desert Stateline LLC - Stateline Solar, Block 2 Solar CA W4881 60936A 58646 74 - 74 74 - - Golden Springs Building F, LLC - Golden Springs B Solar CA W5479 63032A 577962 - 2 2 - - Panoche Valley Solar - Panoche Valley Solar Phase Solar CA W7275 60858A 57340 108 - 108 108 - - Rising Tree Wind Farm III LLC - Rising Tree Wind F Wind CA W4612 62469A 57621 239 - 239 239 - - Rush Creek - Rush Creek Eligible hydro CA W340 60464A 357 15 - 15 15 - - Blythe Solar II, LLC - Blythe Solar II, LLC - Block 7 Solar CA W5248 63129A 60092 62 - 62 62 - - Silver State Solar Power South, LLC - Silver State S Solar NV W4947 61050A 58644 89 - 89 89 - - Desert Sunlight 250 - Desert Sunlight 250, Block 18Solar CA W4189 60940A 58542 71 - 71 71 - - Desert Sunlight 250 - Desert Sunlight 250, Blocks 1 Solar CA W3884 60940A 58542 118 - 118 118 - -
Broadview Energy, JN LLC - BEJN Wind NM W5277 63162A 60145 671 - 671 671 - - Central Antelope Dry Ranch C, LLC - Central Antelo Solar CA W5006 61324A 59963 34 - 34 34 - - Ormat Dixie Valley, LLC - Ormat Dixie Valley, LLC - Geothermal NV W7146 60313A 52015 584 - 584 584 0.0635 37 Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4562 61363A 57933 134 - 134 134 - - Willow Springs 2 - Willow Springs 2 Solar CA W7213 62286A P393 317 - 317 317 - - Silver State Solar Power South, Block 2 and 3 - Silv Solar NV W4876 61050A 58644 147 - 147 147 - - SunE Solar XV Lessor, LLC - Hesperia Solar CA W4261 62236A P3043 - 3 3 - - Master Development - Corona, CA (1351 Railroad) Solar CA W3497 61735A P3061 - 1 1 - - TA-High Desert - Antelope Power Plant Solar CA W3496 60937A 58149 47 - 47 47 - - Alta Wind VIII - Alta Wind VIII Wind CA W2483 61288A 57835 217 - 217 217 - - Desert Stateline LLC - Stateline Solar, Block 7 R Solar CA W5067 60936A 58646 34 - 34 34 - - Version: April 2024
Mill Creek 3 - Mill Creek 3 - Unit 5 Eligible hydro CA W556 60459A 7147 2 - 2 2 - - Solar Star California XX, LLC - AVS 2 Solar Star 2 ( Solar CA W4065 61364A 57933 106 - 106 106 - - McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4935 62091A 59462 92 - 92 92 - - Sierra - Sierra Eligible hydro CA W390 60467A 60467 2 - 2 2 - - SunE Solar XVI Lessor, LLC - SunE - Pico Rivera Solar CA W4804 62725A P304 2 - 2 2 - - Solar Star California XX, LLC - AVS 2 Solar Star 2 ( Solar CA W4679 62425A 57933 110 - 110 110 - - McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4879 62091A 59462 92 - 92 92 - - Lundy - Lundy Eligible hydro CA W331 60456A 342 5 - 5 5 - - Alta Wind III - Alta Wind III Wind CA W1842 61092A 57292 298 - 298 298 - - Mound Solar Partnership XI, LLC - Antelope Valley Solar CA W5744 63713A 60085 8 - 8 8 - - Kennedy 2 - Kennedy 2 Solar CA W2767 61239A P398 2 - 2 2 - - Alta Wind IX - Alta 9 Wind CA W2904 61808A P346 144 - 144 144 - - Solar Star California XX, LLC - AVS 2 Solar Star 2 ( Solar CA W4100 61364A 57933 99 - 99 99 - - Solar Star California XIX, LLC - AVS1 Solar Star 1 ( Solar CA W4641 61363A 57933 134 - 134 134 - - Blythe Solar II, LLC - Blythe Solar II, LLC - Block 5 Solar CA W5073 63129A 60092 78 - 78 78 - - Terra Francesco 1 - Kona Solar, LLC - Terra France Solar CA W4578 62503A 59541 2 - 2 2 - - Ontario 1 - Ontario 1 Eligible hydro CA W393 60460A P350 2 - 2 2 - - McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W4936 62091A 59462 55 - 55 55 - - San Bernardino Distribution Center #1 (SBDC1) - S Solar CA W2766 61748A P407 6 - 6 6 - - Panoche Valley Solar - Phase 2 Solar CA W7186 60858A 57340 92 - 92 92 - - Desert Sunlight 250 - Desert Sunlight 250, Block 12Solar CA W3965 60940A 58542 81 - 81 81 - - Lytle Creek - Lytle Creek Eligible hydro CA W391 60457A P348 1 - 1 1 - - McCoy Solar, LLC - Genesis McCoy Solar Energy C Solar CA W5016 62091A 59462 52 - 52 52 - - Portal - Portal Eligible hydro CA W339 60463A 354 19 - 19 19 - - Redlands Distribution Center #4 (RDC4) - Redlands Solar CA W2758 61742A 50267 6 - 6 6 - - Redlands Distribution Center #1 (RDC1) SPVP #5 - Solar CA W1972 61235A 50267 4 - 4 4 - - Ontario 2 - Ontario 2 Eligible hydro CA W394 60461A P351 1 - 1 1 - - Golden Springs Development Company, LLC - Buil Solar CA W5481 63034A 57796 1 - 1 1 - - SPVP015 - Fontana / KDC7 Solar CA W836 61744A 332 6 - 6 6 - - SPVP002 - Chino / Chino Solar CA W1082 60757A 56996 2 - 2 2 - - SPVP003 - Rialto / Rialto Solar CA W1920 60879A 65253 2 - 2 2 - - SPVP006 - Ontario / PPOA 2 Solar CA W2043 61035A 61860 3 - 3 3 - - SPVP007 - Redlands / RDC 3 Solar CA W1973 61236A P401 4 - 4 4 - - SPVP008 - Ontario / PPOA 4 Solar CA W1974 61036A 61860 3 - 3 3 - - SPVP009 - Ontario / PPOA 3 Solar CA W2044 61037A 61860 2 - 2 2 - - SPVP010 - Fontana / KDC 2 Solar CA W2757 61741A 332 2 - 2 2 - - SPVP012 - Ontario / PPOA 5 Solar CA W1975 61038A 61860 1 - 1 1 - - SPVP013 - Redlands / RDC 5 Solar CA W2759 61743A P401 6 - 6 6 - - SPVP016 - Redlands / RDC 2 Solar CA W2761 61237A P401 2 - 2 2 - - SPVP017 - Fontana / KDC5 Solar CA W2762 61745A 332 6 - 6 6 - - SPVP018 - Fontana / KDC 6 Solar CA W2763 61746A 332 2 - 2 2 - - SPVP022 - Redlands / RDC 6 Solar CA W1976 61039A P401 3 - 3 3 - - SPVP023 - Fontana / TIE 1 Solar CA W2764 61238A 332 4 - 4 4 - - SPVP027 - Rialto / I 210#3 Solar CA W4511 62206A P402 3 - 3 3 - - Santa Ana 3 Solar CA W342 60466A 363 0 - 0 0 - -
Kaweah 2 Solar CA W341 60465A 361 0 0 0 - -
Imperial Valley Solar 2, LLC Solar CA W7762 61648A 61353 256 256 256 #N/A SunE W12DG-C, LLC Solar CA W3497 61735A 57656 2 2 2 #N/A DG Solar Lessee, LLC - Hesperia Solar CA W4261 62236A 59182 3 3 3 #N/A

FIRMED-AND-SHAPED IMPORTS
Facility Name Fuel Type
State or
Province WREGIS ID RPS ID
EIA ID of
REC
Source
EIA ID of
Substitute
Power
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e)
Eligible for
Grandfathered
Emissions?
- - #N/A
- - #N/A
- - #N/A
- - #N/A
- - #N/A

SPECIFIED NON-RENEWABLE PROCUREMENTS
Facility Name Fuel Type
State or
Province N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
Dion R Holm Large Hydro CA 380 9,022 - 9,022 9,022 - -
Middle Fork Irrigation District Large Hydro CA 50917 9,022 - 9,022 9,022 - - - - - - #N/A
- - - - #N/A
Version: April 2024
- - - - #N/A
- - #N/A
- - #N/A
- - #N/A
- - #N/A

PROCUREMENTS FROM ASSET-CONTROLLING SUPPLIERS
Facility Name Fuel Type N/A N/A N/A N/A EIA ID
Gross MWh
Procured MWh Resold
Net MWh
Procured
Adjusted Net MWh
Procured
GHG Emissions
Factor (in MT
CO2e/MWh)
GHG Emissions
(in MT CO2e) N/A
- #N/A
- #N/A
- #N/A
- #N/A
END USES OTHER THAN RETAIL SALES MWh
Distribution Losses 5,515
Version: April 2024
50,000

RETIRED UNBUNDLED RECS
Facility Name Fuel Type
State or
Province RPS ID Total Retired (in MWh)
Spanish Fork Wind Park - Spanish Fork Wind Wind UT 63434A 3742 Camelot - Camelot Solar CA 60824A 21625
Sonic - Sonic Phase I Solar CA 64613A 148
100 PIoneer St. - 100 Pioneer St. Solar CA 64683A 31
Sanborn Solar 1B - Sub Project S4 - Edwards Sanborn S4 Solar CA 64912A 12332 Sonic - Sonic Phase II Solar CA 64613A 62
Escalante Solar II, LLC - Escalante Solar II, LLC Solar UT 63668A 7246 University Business Park - University Business Park Rooftop Solar CA 64682A 68 University Business Park - University Business Park Carport Solar CA 64682A 56 Pearblossom Solar - Solar Star California XLIV, LLC Solar CA 63128A 4690 Total Retired Unbundled RECs
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 2: RETIRED UNBUNDLED RECS
For the Year Ending December 31, 2023
Desert Community Energy
Desert Saver
INSTRUCTIONS: Enter information about retired unbundled RECs associated with this electricity portfolio. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out.

Version: April 2024
Adjusted Net
Procured (MWh)
Percent of Total
Retail Sales
Renewable Procurements 43,484 54.5%
Biomass & Biowaste - 0.0%
Geothermal 3,328 4.2%
Eligible Hydroelectric 344 0.4%
Solar 14,340 18.0%
Wind 25,473 31.9%
Coal - 0.0%
Large Hydroelectric 18,044 22.6%
Natural gas - 0.0%
Nuclear - 0.0%
Other - 0.0%
Unspecified Power 18,318 22.9%
Total 79,847 100.0%
79,847
226

62.6%
Total Retail Sales (MWh)
GHG Emissions Intensity (converted to lbs CO2e/MWh)
Percentage of Retail Sales Covered by Retired Unbundled RECs
2023 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 3: POWER CONTENT LABEL DATA
For the Year Ending December 31, 2023
Desert Community Energy
Desert Saver
Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels.

ITEM 6D
Desert Community Energy Board
December 9, 2024

STAFF REPORT
Subject: Community Advisory Committee Appointments
Contact: Savannah Gil, Program Specialist ([email protected]) Recommendation: Appoint Bernard Rottner of Palm Springs and Donald Zeigler of Palm Desert to the Community Advisory Committee through 2026 Background: The DCE Board established a Community Advisory Committee (CAC) in 2019 to provide a structured opportunity for community members to participate in DCE and help ensure that efforts to educate and inform member communities about DCE’s efforts and programs are broad and inclusive. The CAC also had a Palm Springs Working Group that is advisory in nature and helped promote DCE in the City.

Due to the inactivity of CAC activities in recent years, the DCE staff looked for ways to re-engage the membership and put together a slate of candidates. At the October 2024 meeting, the Board reappointed Donald Barrett and Noel Loughrin from Palm Springs, and Berlinda Blackburn, Jeremy Roos, and Paul Murphy from Palm Desert for additional two-year terms and appointed Erin Boyd of Palm Springs to the CAC through 2026.

Staff gained two additional Palm Springs and Palm Desert candidates to maintain a balance between the cities. Bernard Rottner is the current Vice Chair of the City of Palm Springs’ Sustainability Commission and has extensive experience in program management in various sectors. Donald Zeigler is a disaster emergency response coordinator with his homeowner association and is a current member of its board of directors. Both Mr. Rottner and Mr. Zeigler are longtime Coachella Valley residents with an interest in local clean energy.

Staff recommends the Board appoint Mr. Rottner and Mr. Zeigler to seventh and eighth positions on the CAC through 2026. DCE staff will continue recruiting additional volunteers and welcomes recommendations from the Board and City Council members. The DCE website also has an ongoing invitation to apply to the CAC.

The CAC is scheduled to have its next meeting at 5:30 p.m. on December 9 at the Demuth Community Center, 3601 Mesquite Ave. in Palm Springs. The meeting is open to the public.

Fiscal Analysis: There is no additional cost to DCE for the CAC. The CAC is a volunteer group, and staff support for the CAC is covered under existing resources.

ITEM 7A

STAFF REPORT
Subject: DCE’s Audit for Fiscal Year 2023/24 and Related Reports Contact: Claude T. Kilgore, Director of Finance/ Administration ([email protected]) Recommendation: Receive and file the Audited Financial Statements for the year ended June 30, 2024, Report on Internal Controls over Financial Reporting, and the Auditor’s Communication with Those Charged with Governance
Background: Since its inception, DCE has engaged the Coachella Valley Association of Governments (CVAG) to provide staffing and other administrative tasks including financial oversight and accounting. CVAG’s Financial Statements Audit Procurement Policy, adopted on June 3, 2002, requires CVAG to obtain proposals from qualified auditing firms to perform CVAG’s annual financial audit every five years. In June 2021, CVAG hired the audit firm of Davis Farr LLP – a firm with an impressive history of professional work in the Coachella Valley – for engagement as the independent auditor for CVAG, DCE and the Coachella Valley Conservation Commission (CVCC). The contract is for five fiscal years starting with Fiscal Year 2020/21. Presented with this staff report is the fourth year-end audit by Davis Farr.

Davis Farr LLP performed the annual audit over DCE’s Basic Financial Statements as of June 30, 2024, and for the fiscal year then ended which include the Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, Statement of Cash Flows, and Notes to the Basic Financial Statements. Davis Farr issued an Unmodified Opinion, which means that DCE’s Basic Financial Statements present fairly, in all material respects, the respective financial position of DCE as of June 30, 2024, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with US Generally Accepted Accounting Principles (GAAP).

In accordance with Government Auditing Standards, Davis Farr also issued a report on their consideration of DCE’s internal control over financial reporting and their tests of DCE’s compliance with certain provisions of laws, regulations, contracts, and grant agreements as well as other matters; Davis Farr was not engaged to provide an opinion on internal control over financial reporting or on compliance. During its testing, Davis Farr did not identify any material weaknesses or significant deficiencies in internal controls. Finally, Davis Farr has provided a letter to the DCE Board of Directors outlining Significant Audit Findings as promulgated by AU-C Section 260, “The Auditor’s Communication with Those Charged With Governance.” For Fiscal Year 2023/24, DCE’s net position increased by approximately $15.9 million, a 9.9% increase over the prior year. Total revenues were approximately $70.2 million, a 10.8% increase.

This growth was mainly due to increased charges for electricity which outpaced an 11.1% increase in total expenses, approximately $54.3 million for the current year. The increase in expenses was primarily due to higher costs of wholesale energy supply. DCE staff will present additional highlights at the meeting.

Desert Community Energy Board
December 9, 2024
DCE staff appreciated working with, and would like to thank, the Davis Farr team, which was again led by Partner Shannon Ayala, for their diligence and hard work in issuing the reports. A member of the Davis Farr team will present the reports and be available to address any Board questions or comments.

Fiscal Analysis: The professional fees associated with the audit were previously budgeted and there is no additional financial impact.

Attachments:

1. DCE’s Audited Financial Statements for the year ended June 30, 2024

2. Report on Internal Controls over Financial Reporting

3. Auditor’s Communication with Those Charged with Governance

DESERT COMMUNITY ENERGY

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024

DESERT COMMUNITY ENERGY
Financial Statements
Year ended June 30, 2024
(With Independent Auditor’s Report Thereon)

DESERT COMMUNITY ENERGY
Financial Statements
Year ended June 30, 2024

TABLE OF CONTENTS
Page
Independent Auditor’s Report 1
Management’s Discussion and Analysis 4
Financial Statements:

Statement of Net Position 11
Statement of Revenues, Expenses and Changes in Net Position 12 Statement of Cash Flows 13
Notes to the Basic Financial Statements 14
Independent Auditor’s Report
To the Board of Directors
Desert Community Energy
Palm Desert, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Desert Community Energy (“DCE”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise DCE’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of DCE as of June 30, 2024, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of DCE and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements DCE’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about DCE’s ability to continue as a going concern for one year after the date that the financial statements are issued.
1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of DCE’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about DCE’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2 Report on Summarized Comparative Information
We have previously audited DCE’s 2023 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated October 20, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2023 is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2024 on our consideration of DCE’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering DCE’s internal control over financial reporting and compliance.

Irvine, California
October 31, 2024
3 DESERT COMMUNITY ENERGY

MANAGEMENT DISCUSSION & ANALYSIS
YEAR ENDED JUNE 30, 2024
The following is a discussion and analysis of Desert Community Energy’s (DCE’s) financial performance and includes a summary of DCE’s financial statements coupled with a detailed analysis of DCE’s financial position and results of operations for the fiscal year ended June 30, 2024, with comparative information from the fiscal year ended June 30, 2023. The purpose of management’s discussion and analysis (MD&A) is to help DCE customers and other stakeholders understand what the financial statements and notes in this financial report say about DCE’s financial health and why it has changed since last year. It contains information drawn from those other parts of the report, accompanied by explanations informed by DCE staff’s knowledge of DCE’s finances. Please read this discussion and analysis in conjunction with the financial statements, including the notes to the financial statements identified in the accompanying tables.

If you have any questions about this report or require further information, contact DCE staff at 760.346.1127 and ask for the Finance Director.

OVERVIEW OF THE FINANCIAL STATEMENTS
Following Management’s discussion and analysis (this section), DCE’s financial report contains basic financial statements. Those financial statements represent DCE’ work procuring power resources on behalf of electricity customers in its jurisdiction to achieve its objective of offering cleaner, competitively priced electricity while retaining local control, reinvesting revenues, encouraging local job creation, offering more renewable energy options, and reducing greenhouse gas (GHG) emissions. The Statement of Net Position includes all of DCE’s assets, liabilities, and net position and provides information about the nature and amount of resources and obligations at a specific point in time, the fiscal year-end date. The Statement of Revenues, Expenses, and Changes in Net Position reports all of DCE’s revenue and expenses for the year shown. The Statement of Cash Flows reports the cash provided and used by operating activities, as well as other sources and uses, such as cash flow from financing activities.

The financial statements also include notes to the financial statements, which delve deeper into DCE’s finances as reported in the basic financial statements. The information in the notes is as important to understanding DCE’s finances as the information in the financial statements themselves. DCE uses notes to (1) present information in greater details than is possible within the financial statements, (2) explain the nature of amounts reported in the financial statements and how those amounts were determined, and (3) report certain information that does not meet the requirements for inclusion in the financial statements (such as certain commitments).

All of DCE’s financial activities are captured in an enterprise fund and use the economic resources measurement focus and accrual basis of accounting in accordance with Generally Accepted Accounting Principles (GAAP), as prescribed by the Governmental Accounting Standards Board (GASB). In other words, they comprehensively report all types of financial statement elements:
 Assets – resources that DCE controls, which are mostly in the form of short-term assets like cash and includes long-term assets like collateral deposits for power purchase agreements with counterparties.
 Liabilities - amounts DCE owes to others, from short-term liabilities such as Utility User Taxes collected from customers and owed to other governments to long-term liabilities like performance security from developers held by DCE until the commercial operation date for power purchase agreements.
4 DESERT COMMUNITY ENERGY

MANAGEMENT DISCUSSION & ANALYSIS
YEAR ENDED JUNE 30, 2024
 Revenues and Expenses – inflows and outflows of resources, respectively, related to the current year.

More detail about the measurement focus and basis of accounting can be found in Note 1 of the notes to the financial statements, the summary of significant accounting policies.

FINANCIAL SUMMARY AND ANALYSIS OF DCE’S FINANCES
The following tables provide condensed financial information (financial summary) derived from the basic financial statements, excluding the statement of cash flows, and compare current year balances to the prior year. Adding context to the financial summary information is a detailed analysis and discussion of DCE’s financial position and results of operations.

Statement of Net Position
(amounts expressed in thousands)
June 30, 2024 June 30, 2023 Dollar Change
Percentage
Change
Current and Other Assets 46,940$ 25,780$ 21,161$ 82.1%
Total Assets 46,940 25,780 21,161 82.1%
Current Liabilities 11,349 6,060 5,288 87.3%
Non-Current Liabilities 405 405 - 0.0%
Total Liabilities 11,754 6,465 5,288 81.8%
Net Position:

Restricted Net Position 147 147 - 0.0%
Unrestricted Net Position 35,040 19,167 15,872 82.8%
Total Net Position 35,187$ 19,314$ 15,872$ 82.2%
Note: Totals may not sum precisely due to rounding differences.

As of June 30, 2024, DCE’s net position (assets minus liabilities) was $35,186,779, an increase of $15.9 million compared with June 30, 2023. The increase is primarily due to the increase in unrestricted net position due to growth in cash on hand and accounts receivable. Most of this increase in the unrestricted net position was the result of revenue growth which was partially offset by an increase in the cost of energy. The major contributing revenues and expenses that affected the change in net position for DCE are summarized and analyzed next. 5 DESERT COMMUNITY ENERGY

MANAGEMENT DISCUSSION & ANALYSIS
YEAR ENDED JUNE 30, 2024
Revenues, Expenses and Changes in Net Position
Statement of Revenues, Expenses, and Changes in Net Position (amounts expressed in thousands)
June 30, 2024 June 30, 2023 Dollar Change
Percentage
Change
Operating Revenues:

Electricity Sales 69,669$ 59,095$ 10,574$ 17.9%
Miscellaneous 31 4,211 (4,179) (99.3%)
Non-Operating Revenues:

Interest Revenue 489 30 459 1,520.6%
Total Revenues 70,189 63,336 6,854 10.8%
Operating Expenses:

Electricity 51,451 45,963 5,488 11.9%
Other 2,865 2,883
Non-Operating Expenses:

Interest Expenses 1 47 (45) (97.4%)
Total Expenses 54,317 48,893 5,424 11.1%
Changes in Net Position 15,872 14,443 1,429 9.9%
Net Position - Beginning of Period 19,314 4,871 14,443 296.5% Net Position - End of Period 35,187$ 19,314$ 15,872$ 82.2% Note: Totals may not sum precisely due to rounding differences.

Growth in Revenues
Approximately 98% of DCE’s revenue is from electricity sales. In FY 2023-2024 total revenues amounted to approximately $70.2 million, representing an increase of $6.9 million or 10.8% from FY 2022-2023. Since DCE’s customer base remained stable at about 33,000 between the fiscal years, this growth was primarily driven by an increase in charges for electricity which represent electricity sales by DCE to its customers for cost recovery and financial reserve building in line with board approved financial reserve targets. During the fiscal year ended June 30, 2024, DCE implemented four rate adjustments in-line with the Rate Stabilization Schedule (RSS). The RSS authorizes DCE staff to adjust DCE retail rates in response to changes in Southern California Edison (SCE) rates and/or Power Charge Indifference Adjustment (PCIA) amount to maintain DCE Board-approved rate guidelines. Three of the four rate adjustments increased rates and contributed to DCE’s growth in revenue. The following rate increases were necessitated for stabilization to SCE rates: October 2023: 0.5%, Jan 2024: 2.3%, and March: 2024 1.2%. One rate adjustment resulted in a decrease in rates to DCE customers in June 2024 by approximately 1.6% on average.

Miscellaneous decreased by 93.2% due to receipt of 2022 California Arrearage Payment Program funds credited to customer accounts in FY 2022-2023 that were not available to DCE customers in FY 2023-2024.
6 DESERT COMMUNITY ENERGY

MANAGEMENT DISCUSSION & ANALYSIS
YEAR ENDED JUNE 30, 2024
Beyond these major sources of revenue, DCE’s investment earnings also saw a notable increase.

This was due to the higher interest rates prevailing during the fiscal year coupled with higher cash balances, which positively impacted DCE’s returns on investments.

Increase in Expenses
Approximately 94% of DCE’s expenses are the cost of wholesale energy. For FY 2023-2024, total expenses were approximately $54.3 million, representing an increase of $5.4 million or 11.1% from the previous fiscal year. This rise in expenses is primarily attributed to the increased cost of wholesale energy supply required to serve DCE customers, which accounted for about $4 million of the increase. Furthermore, power market price conditions for serving current load and for hedging for future out-year loads have also increased from the previous year as have renewable energy costs. In fact, Renewable Energy Credits (RECs) traded at historic highs during FY 2023-2024 and as discussed in the Currently Known Facts, Decisions, or Conditions of this MD&A, little relief is in sight.

In addition to the higher cost of wholesale energy supply, DCE has faced cost exposure related to Resource Adequacy (RA) regulatory actions which increased expenses by approximately $1.6 million in FY 2023-2024 as compared to the previous fiscal year. These regulatory requirements have necessitated additional expenditures to ensure compliance and maintain the reliability of DCE’s energy supply. Consequently, product costs have risen, reflecting the need for all load serving entities, including DCE, to secure adequate resources to meet future regulatory standards.

Other expenses during FY 2023-2024 remained stable from the prior year and included payments to consultants and various professional service vendors like or lease the Coachella Valley Association of Governments who provides administrative staffing for DCE.

Significant Capital Asset and Long-Term Financing Activity In FY 2023-2024, DCE had no significant capital asset or long-term financing activity. 7 DESERT COMMUNITY ENERGY

MANAGEMENT DISCUSSION & ANALYSIS
YEAR ENDED JUNE 30, 2024

CURRENTLY KNOWN FACTS, DECISIONS OR CONDITIONS
DCE is aware of three developments that will have a significant effect on its finances in the future and were either included into the FY 2024-2025 budget or will be incorporated through a future budget amendment at an upcoming DCE Board meeting:
(1) Increases in prices for Resource Adequacy (RA) and Renewable Portfolio Standard (RPS) products
(2) Uncertainty in Competitive Rate Setting
(3) Amended contract with Cape Generating Station 1
Trends in Energy Prices
Renewable energy and RA prices in California are under substantial upward pressure. The demand for RA in California exceeds the available supply. The increased demand for products meeting the California RPS requirements driven by renewable energy mandates under California law and procurement orders by the California Public Utilities Commission (CPUC) is leading to increased prices for renewable energy. The Market Price Benchmarks (MPB) released by the CPUC in October 2024 showed the 2025 Forecast Price for Resource Adequacy to be nearly three times higher than the 2023 Final MPB. The 2025 Forecast Price for RPS products is nearly 2.5 times higher than the 2023 Final MPB. Based on these currently known facts, DCE staff expects an amendment in budgetary net position for FY2024-25 that will be taken to an upcoming DCE Board meeting. The FY 2024-2025 budgeted net position is expected to decrease due to these increases in expenses by approximately $2.6 million.

Trends in Competitive Rate Setting
In October 2024, Southern California Edison (SCE) filed its 2025 ERRA Forecast October Update which supersedes its 2025 ERRA Forecast May Update. ERRA stands for Energy Resource Recovery Account (ERRA) Proceeding and is a mechanism for the CPUC to regulate Investor-Owned Utilities (such as SCE) to determine which purchased power costs can be recovered in customer rates. Given the timing of these filings and DCE’s current competitive rate setting model outlined in the board approved RSS, during FY2024-2025 budget preparation, DCE used the May Update to estimate the second half of fiscal year revenues. However, when the 2025 ERRA Forecast October Update was filed, SCE rates decreased from the May Update on which the budget was based. This indicates a likely decrease in DCE’s charges for electricity that will, in turn, decrease the 2024-2025 budgeted net position by at least $4.0 million. Based on these currently known facts, DCE staff expects an amendment in budgetary net position for FY2024-25 that will be taken to an upcoming DCE Board meeting.

Amended Contract
On October 21, 2024, the DCE Board approved Amendment No. 1 to the Renewable Power Purchase Agreement (PPA) with Cape Generating Station 1 LLC, a subsidiary of Fervo Energy, for the Cape Station geothermal project located in Beaver County, Utah. The amendment allows for updated pricing, additional energy and a revised commercial operation date (COD) of January 1, 2031, nearly five years after the COD of June 1, 2026, in the original PPA. The total additional cost to DCE, because of the additional energy and the higher price, is estimated to be approximately $12.3 million over the 15-year term of the project.
8 DESERT COMMUNITY ENERGY

MANAGEMENT DISCUSSION & ANALYSIS
YEAR ENDED JUNE 30, 2024
CONTACTING DCE’S FINANCIAL MANAGEMENT
This financial report is designed to provide customers, business counterparties, resource providers and other interested entities with a general overview of DCE’s business finances and accountability.

If you have questions about this report or need additional financial information, contact DCE’s office administered by the Coachella Valley Association of Governments (CVAG), attention Director of Finance located at 74-199 El Paseo Suite 100, Palm Desert, CA 92260 and open 8AM until 5PM Monday through Friday, excluding CVAG holidays.
9 BASIC FINANCIAL STATEMENTS
10 2024 2023
Assets:

Current Assets:

Cash and investments (note 2) $ 25,858,814 $ 8,805,855
Restricted cash (note 2) 147,000 147,000
Accounts receivable, net (note 3) 16,074,558 16,405,499 Interest receivable 2,410 -
Prepaids 4,146,988 110,592
Total Current Assets 46,229,770 25,468,946
Non-current Assets:

Deposits 710,584 310,584
Total Non-current Assets 710,584 310,584
Total Assets 46,940,354 25,779,530
Liabilities:

Current Liabilities:

Accounts payable (note 4) 10,379,697 5,446,730
Due to other governments (note 5) 968,878 613,426
Total Current Liabilities 11,348,575 6,060,156
Non-current Liabilities:

Deposits payable 405,000 405,000
Total Non-current Liabilities 405,000 405,000
Total Liabilities 11,753,575 6,465,156
Net Position:

Restricted 147,000 147,000
Unrestricted 35,039,779 19,167,374
Total Net Position $ 35,186,779 $ 19,314,374
(With prior year comparative totals)
Desert Community Energy
Statement of Net Position
June 30, 2024
See accompanying notes to financial statements.
11 2024 2023
Operating Revenues:

Electricity sales $ 69,668,924 $ 62,844,817
Miscellaneous 31,349 460,674
Total operating revenues 69,700,273 63,305,491
Operating Expenses:

Electricity cost 51,450,582 45,963,031
Consultants charges 2,266,240 2,443,873
Administration and general 243,013 162,500
Professional services 355,898 276,624
Total operating expenses 54,315,733 48,846,028
Operating income (loss) 15,384,540 14,459,463
Nonoperating Revenues (Expenses):

Interest revenue 489,079 30,179
Interest expense (1,214) (46,655)
Total nonoperating revenues (expenses) 487,865 (16,476) Change in net position 15,872,405 14,442,987
Net Position - beginning 19,314,374 4,871,387
Net Position - ending $ 35,186,779 $ 19,314,374
Desert Community Energy
Statement of Revenues, Expenses, and Changes in Net Position Year ended June 30, 2024
(With prior year comparative totals)
See accompanying notes to financial statements.
12 2024 2023
Cash Flows from Operating Activities:

Cash received from customers and users $ 70,031,214 $ 52,044,727 Cash received from others - 5,096,040
Cash paid to suppliers for goods and services (53,463,710) (49,769,371) Net cash provided by (used for) operating activities 16,567,504 7,371,396 Cash Flows from Noncapital Financing Activities:

Payments to line of credit - (2,200,000)
Interest paid (1,214) (46,655)
Net cash provided by (used for) noncapital financing activities (1,214) (2,246,655) Cash Flows from Investing Activities:

Investment income 486,669 30,179
Net cash provided by investing activities 486,669 30,179 Net increase in cash and cash equivalents 17,052,959 5,154,920 Cash and Cash Equivalents, beginning of year 8,952,855 3,797,935 Cash and Cash Equivalents, end of year $ 26,005,814 $ 8,952,855 Reconciliation of Operating Income to Net Cash
Provided by (Used for) Operating Activities:

Operating income (loss) $ 15,384,540 $ 9,363,423
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities
Other revenues - 5,096,040
Decrease (increase) in accounts receivable 330,941 (6,164,724) Decrease (increase) in deposits (400,000) (310,584)
Decrease (increase) in prepaids (4,036,396) 21,423
Increase (decrease) in accounts payable 4,932,967 784,464 Increase (decrease) in deposits payable - (1,275,000)
Increase (decrease) in due to other governments 355,452 (143,646) Total adjustments 1,182,964 (1,992,027)
Net cash provided by (used for) operating activities $ 16,567,504 $ 7,371,396 Desert Community Energy
Statement of Cash Flows
Year ended June 30, 2024
(With prior year comparative totals)
There were no significant noncash financing, capital, or investing activities for the years ended June 30, 2024 and 2023.

See accompanying notes to financial statements.
13 NOTES TO THE BASIC FINANCIAL STATEMENTS
14 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(1) Summary of Significant Accounting Policies
(a) Description of Reporting Entity
Desert Community Energy (DCE) is a public joint powers agency located within the geographic boundaries of Riverside County, California formed via a Joint Powers Agreement (JPA) in October 2017 for the purpose of implementing and administering a Community Choice Aggregation (CCA) program. DCE is comprised of the cities of Palm Springs and Palm Desert and is certified by the California Public Utilities Commission (CPUC). Community Choice Aggregation is a local energy program established by state law that allows cities and counties to pool (or aggregate) the electricity demand of participating communities. DCE buys and/or develops power resources on behalf of the electricity customers in its jurisdiction to offer cleaner, competitively priced electricity while retaining local control, reinvesting revenues, encouraging local job creation, offering more renewable energy options, and reducing greenhouse gas (GHG) emissions. DCE offers ratepayers a choice in electricity providers and in the type of electricity they use. DCE began serving customers in Palm Springs in April 2020 while Palm Desert plans to launch no sooner than 2027. DCE is governed by a Board of Directors composed of one locally elected representative from each of the participating city councils. The Board schedules regular meetings that are open to the public, ensuring transparency and encouraging community involvement.

Formation of a CCA through a JPA does not require contributions from participating member agencies. The assets and liabilities of the CCA program remain separate from those of the participating agencies’ general fund.
(b) Basic Financial Statements
The basic financial statements (i.e., Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, and Statement of Cash Flows) report information on all the enterprise activities of the entity. (c) Measurement Focus, Basis of Accounting and Financial Statement Presentation The financial statements are presented using the full accrual basis of accounting.

Revenues are recognized when earned and expenses are recorded when the liability is incurred.

Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services. The principal operating revenues of the entity are sales of electricity.

Operating expenses include the cost of electricity purchases, consultants’ costs and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
15 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(1) Summary of Significant Accounting Policies (Continued) (d) Assets, Liabilities and Net Position
Cash and Investments
For purposes of the statement of cash flows, all highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. The entity maintains a checking account and money market account which is considered a cash equivalent.

Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and fair value is determined through the use of models or other valuation methodologies including:
 Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive;
 Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect DCE’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include DCE’s own data.

Prepaid Expenses
Payments made for services that will benefit periods beyond June 30, 2024, are recorded as prepaid items in the financial statements. The cost of prepaid items is recorded as expenses when consumed rather than when purchased. 16 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(1) Summary of Significant Accounting Policies (Continued) Net Position
For the year ended June 30, 2024, DCE reported net position as classified in the following categories:
 Investment in capital assets – This component of net position consists of capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire, construct, or improve those assets.  Restricted – This component of net position consists of resources with external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.
 Unrestricted net position – This component of net position consists of net position that do not meet the definition of “restricted” or “investment in capital assets.” When both restricted and unrestricted resources are available for use, it is DCE’s policy to use restricted resources first. (e) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. (f) Revenue Recognition
DCE recognizes revenue on the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed. Management estimates that a portion of the billed amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded. (g) Income Taxes
DCE is a joint powers authority under the provision of the California Government Code and is not subject to federal or state income or franchise taxes. (h) Utility Users Taxes and Electric Energy Surcharges Due to Other Governments DCE is required by governmental authorities (state and local) to collect and remit user taxes on certain customer sales. These taxes do not represent revenues or expenses to DCE.
17 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(1) Summary of Significant Accounting Policies (Continued) (i) Prior Year Comparative Information
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with DCE’s prior year financial statements, from which this selected financial data was derived. In addition, certain minor reclassifications of prior year data have been made to enhance their comparability to the current year.
(2) Cash and Investments
Cash and investments of the entity consisted of demand deposits with financial institutions.

At June 30, 2024, the carrying amount of DCE’s cash accounts was $26,005,814 of which $147,000 was restricted.

Custodial credit risk – Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

The California Government Code does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

Cash and cash equivalents:

Deposits with financial institutions $ 2,678,566
California Asset Management Program 14,285,262
State of California Local Agency Investment Fund 6,444,172 Total cash and cash equivalents 23,408,000
Investments:

Investments held by custodian 2,597,814
Total cash and investments $ 26,005,814
18 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(2) Cash and Investments (Continued)
DCE maintains an investment policy that establishes thresholds for holdings of individual investments. DCE did not have any investments meeting or exceeding the allowable threshold levels as of June 30, 2024.

Authorized Investment
Type
% of Portfolio
Authorized Maximum Maturity
United States Treasury 0-100% Maximum maturity: 5 Years Federal Agency 0-100% Maximum maturity: 5 years
No more than 30% of the portfolio may be
invested in any single issuer.

Local Government
Investment Pools
0-75% N/A
State of California Local
Agency Investment Fund
Up to LAIF
Maximum
($75,000,000
per account)
N/A
California State and Local
Agency
0-25% Maximum maturity: 5 Years Rated "A" or higher
by S&P or by Moody's.

Commercial Paper 0-25% Maximum maturity: 270 days Rated "A-1" by S&P or"P-1" by Moody's. No more than 10% of the
portfolio may be invested in the CP and MTNs of
a single issuer. Asset-backed CP is ineligible for
purchase.

Negotiable/Time
Certificates of Deposit
0-25% Maximum maturity: 5 Years
Medium-Term Notes 0-25% Maximum maturity: 5 years Rated "A" or higher by S&P or by Moody's. No more than 10% of the
portfolio may be invested in the CP and MTNs of
any single issuer.

Money Market Mutual
Funds ("MMF")
0-20% Either rated "AAA" by S&P, "Aaa” by Moody's, or
"AAA-V-1+" by Fitch (2 of 3), or retains an
investment advisor registered or exempt from
registration with SEC, with at least 5 years of
experience managing a MMF with $500 million or
more in assets.

Repurchase Agreement 0-10% Maximum maturity: 30 Days Collateral must be United States Treasury, Federal, Agency, or GSE
obligations. Zero coupon and stripped coupon
instruments are not acceptable as collateral.

Collateral must be valued at 102% of cost and
adjusted weekly. DCE must have first lien and
security interest in all collateral. DCE's custodian
must hold collateral. An authorized broker must
file a Public Securities Association ("PSA") Master
Repurchase Agreement with DCE, and DCE’s
attorney must review the agreement, prior to the
transaction of RP business with that broker.

Reverse Repurchase Agreements are specifically
not authorized under this investment policy.

Structured Notes 0-20% Maximum maturity: 5 Years
19 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(2) Cash and Investments (Continued)
DCE is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of DCE’s investment in this pool is reported in the accompanying financial statements at amounts based on DCE’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on accounting records maintained by LAIF, which are recorded on an amortized cost basis. The entire balance of DCE’s share of the investment pool is available for withdrawal at any time. LAIF is not registered with the Securities and Exchange Commission and is not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, DCE’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.

DCE is a voluntary participant in the CAMP, which is an investment pool offered by the California Asset Management Trust. The trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500, et seq.) for the purpose of exercising the common power of its participants to invest certain proceeds of debt issues and surplus funds. In accordance with Section 53601(p) of the California Government Code, CAMP’s investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601. Deposits in the CAMP are presented as cash and cash equivalents as they are available for immediate withdrawal or deposit at any time without prior notice or penalty and there is no significant risk of principal loss. DCE reports its investments in CAMP at amortized cost provided by CAMP, which is the same as the value of the pool share. CAMP is rated AAA.
(3) Accounts Receivable, Net
At June 30, 2024, DCE reported $16,074,558 in accounts receivable, net of the allowance for uncollectible accounts. The details of this balance are as follows:
(4) Accounts Payable
At June 30, 2024, DCE reported $10,379,697 in accounts payable. The details of this balance are as follows:

Accounts receivable 17,263,238$
Less: allowance for uncollectable accounts (1,188,680)
Total Accounts Receivable, Net 16,074,558$
Accounts payable - electricity cost 10,163,951$
Accounts payable - other 215,746
Total Payables 10,379,697$
20 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(5) Due to Other Governments
At June 30, 2024, DCE reported $968,878 in Due to Other Governments. The details of this balance are as follows:
(6) Line of Credit
Revolving Line of Credit
On February 11, 2022, DCE entered into a revolving line of credit agreement for the amount of $8,000,000 with River City Bank. The revolving line of credit was amended in July 2022 to increase the amount to $13,000,000. The line of credit accrues interest at a rate of three-month treasury constant maturity rate plus 1.75 percent and terminates February 1, 2025.

Subject to satisfaction of the terms, DCE may exercise a one-time option to convert all outstanding Working Capital Advances to a Term Loan. If the Term Loan Conditions are satisfied, the Term Loan will be payable over a term of thirty-six (36) months, with equal fully amortizing monthly payments of principal and interest at the Applicable Rate as determined by Lender as of the date of conversion and will be governed by the terms and conditions of this Agreement and evidenced by a separate promissory note.

Additionally, as security for the prompt payment and performance of all obligations, DCE has granted River City Bank a continuing security interest as collateral per the terms on the agreement. On June 30, 2024, there was no outstanding balance. (7) Related Party Transactions
DCE entered into a contract with Coachella Valley Association of Governments (CVAG), whereby CVAG, under the direction of the DCE, will coordinate and implement the DCE activities. The contract calls for DCE to pay CVAG based upon actual staff time spent at rates not to exceed the rates paid by CVAG. During the period from July 1, 2023 through June 30, 2024, CVAG incurred on behalf of DCE $664,401 of staff time and allocated administrative expenses which was billed. As DCE recognizes expenses on the accrual basis, an adjustment of $598 has been recorded as an estimated credit, reducing the total expenditure. As of June 30, 2024, $154,357 of the total amount billed was payable to CVAG. (8) Risk Management
On June 17, 2024, DCE's Board adopted the Wholesale Energy Procurement Risk Management Policy (WEPRMP), updating and replacing the Energy Risk Management Policy adopted on May 21, 2018. The WEPRMP applies to all power procurement and related business activities that may impact the risk profile of DCE.

Utility Users Taxes & Electric Energy Surcharges $ 539,063 Related party payables (note 7) 154,357
Other 275,458
Total Due to Other Governments $ 968,878
21 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(8) Risk Management (Continued)
The WEPRMP provides a structured, disciplined, and consistent approach to wholesale energy procurement risk management that facilitates risk-informed decision making in wholesale energy activities, which makes up 96% of DCE’s annual budget. The WEPRMP supports DCE in aligning its strategy, processes, people, and technology for the purpose of evaluating and managing energy procurement uncertainties inherent to the energy industry and power procurement. By strategically managing risk associated with power procurement activities, DCE can proactively reduce the chance of loss, identify and take advantage of procurement opportunities, create greater financial stability, and protect its resources to support its mission and create value for its members.

The ultimate purpose of the WEPRMP is to support DCE’s achievement of its goals by specifying management responsibilities, organizational structures, risk management standards, and the operating controls and limits necessary to appropriately identify, evaluate, and manage DCE’s exposure to wholesale energy procurement risk. DCE’s WEPRMP can be found on its website.

To ensure successful operation of the CCA program, DCE has partnered with experienced consultants to provide energy-related services. Specific to power procurement, DCE has partnered with The Energy Authority (TEA) which executes the preponderance of front (transacting), middle-(monitoring) and back-office (settlement) related activities on DCE’s behalf. In providing these services for DCE, TEA adheres to and is governed by the WEPRMP.

In addition, TEA maintains its own risk management policies and procedures, following industry best practices of segregation of duties, which also govern activities executed on DCE’s behalf. Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties' financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, DCE enters into netting arrangements whenever possible and where appropriate obtains collateral and other performance assurances from counterparties.
(9) Long-Term Energy Agreements
During the normal course of business, DCE enters into various agreements, including renewable energy agreements, energy storage agreements (ESAs), and other power purchase agreements (PPAs) to purchase power and electric capacity. DCE’s long-term energy agreements are described below.

Terra-Gen, LLC
On December 21, 2020, the DCE Board approved three, 15-year (PPAs) with Terra-Gen, LLC.

Terra-Gen, LLC is a leading developer, owner, and operator of renewable energy projects that has been operating since 2008. Terra-Gen specializes in development, construction and operation of utility-scale wind, solar, energy storage as well as geothermal generation facilities.
22 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(9) Long-Term Energy Agreements (Continued)
Under the pricing terms in the agreement, DCE pays for the electricity generated by the projects at a fixed-price rate per MWh (megawatt hour), with no escalation for the full 15- year term of the contract. All attributes from the facility, including energy, Renewable Energy Credits (RECs) and Resource Adequacy (RA) will be available to DCE. The contracts reflect pricing that is typical in the current market for new and existing wind resources. The completion of long-term contracts for DCE’s renewable portfolio represents an expected reduction in overall program costs. This cost reduction is over both the short-term and long-term due to the relatively low cost of the expected PPAs for the projects compared to purchasing the same energy, capacity, and RECs on the open market. The 10.8-megawatt (MW) Coachella Hills II project achieved its Commercial Operation Date (COD) and entered DCE’s portfolio on May 4, 2021. The existing 9.8 MW Altwind and 12.6 MW East Wind projects entered DCE’s portfolio on January 1, 2023.

OhmConnect
On June 29, 2022, the DCE Board approved a Western Systems Power Pool Resource Adequacy Confirmation with Resi Station LLC (Resi Station), a subsidiary of OhmConnect, for system RA benefits from an aggregated demand response project. DCE’s pro rata share of the project is 4.5 MW of the 15 MW peak volume over a 10-year period that began January 1, 2023.

Southern California Edison (SCE) – Voluntary Allocation Agreement In accordance with California Public Utilities Commission (CPUC) Decision 21-05-030, on June 29, 2022, the DCE Board approved staff’s recommendation to request from SCE a 100 percent allocation of SCE’s long-term renewable load share resources - 10 years or longer remaining on the contracts with allocations for the remainder of the term of the contract. DCE entered into a Voluntary Allocation Agreement with SCE as of July 26, 2022. Deliveries of this allocation began in January 2023 and will run through May 2040. DCE pays the annual Market Price Benchmark (MPB) for resources allocated through this process. The CPUC resets the MPB by October 1 each year.

SCE – RA Confirmation
On September 29, 2022, DCE executed a Master Agreement and RA Confirmation with SCE in in accordance with CPUC Decision 22-05-015. This Decision allows DCE to purchase from SCE a share of the system or flexible RA capacity for loads that have migrated from SCE at the annual MPB. The RA delivery period began on January 1, 2023, and continues until September 30, 2041.

Fervo Energy
On September 28, 2022, DCE executed a contract with Cape Generating Station 1 LLC, a subsidiary of Fervo Energy (Fervo), for a geothermal project located in Beaver County, Utah.

DCE’s pro rata share of the project is MW of the 20 MW average net capacity over a 15-year period, with an expected COD of June 1, 2026.
23 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(9) Long-Term Energy Agreements (Continued)
Fervo’s geothermal systems make use of horizontal drilling techniques coupled with Organic Rankine Cycle (ORC) generator systems to deliver zero-carbon, zero-emission electricity. ORC power plants are zero-carbon, zero-emission generators. Thermal energy is supplied at high temperature to the ORC by a heat transfer fluid consisting of geothermal brine. The ORC turbo generator then converts thermal energy from geothermal fluid into electric energy using a turbine coupled with an electric generator. ORC plants are fully dispatchable and flexible, with extremely fast ramping rates of up to 30 percent of nominal capacity per minute. The project will be eligible for certification under the California Renewables Portfolio Standard and inclusion in DCE’s Carbon Free product generation portfolio.

Under the pricing terms in the PPA, DCE will pay for the energy generated by the project at a fixed-price rate per MWh (megawatt hour), with a 2 percent annual escalator after the first contract year. All attributes from the project, including energy, RECs, and RA, will be available to DCE.

NextEra Energy Resources Power Purchase Agreement
On September 27, 2023, DCE executed an ESA with Desert Sands Energy Storage II, LLC, a subsidiary of NextEra Energy Resources. The project is a 25 MW/ 200 MWh lithium ion battery storage facility that is part of a larger 700 MW energy complex located largely within the Palm Springs City limits.

The project is located on a parcel zoned for energy-industrial uses with existing wind turbines and related energy infrastructure on it. The project is being developed in two phases: Desert Peak (Phase 1) and Desert Sands (Phase 2), which includes DCE's facility. The expected COD for DCE's portion of the project is April 1, 2027.

Under the pricing terms in the ESA, DCE will pay for the use of its portion of the Desert Sands project at a fixed-price rate per kW-month, with no escalation, for the full 15- year term of the ESA. DCE is entitled to all product attributes from the facility, including energy, ancillary services, and RA.
(10) Contract Commitments
At June 30, 2024, DCE had potential undiscounted, contractual commitments for energy storage and power purchases through 2041 totaling approximately $100,061,059. In addition, DCE had expected contractual commitments to contract and professional service providers for services yet to be performed in the amount of $2,399,431 through June 30, 2024. Many of the fees associated with these contracts are based on volumetric or other variable activity and actual results may differ.
(11) Subsequent Events
On October 21, 2024, the DCE Board approved Amendment No. 1 to the Renewable Power Purchase Agreement (PPA) with Cape Generating Station 1 LLC, a subsidiary of Fervo Energy, for the Cape Station geothermal project located in Beaver County, Utah. The amendment allows for updated pricing, additional energy and a revised commercial operation date (COD) of January 1, 2031, nearly five years after the COD of June 1, 2026, in the original PPA. 24 Desert Community Energy
Notes to the Basic Financial Statements
Year ended June 30, 2024
(11) Subsequent Events (Continued)
In August 2024, S&P Global Ratings (S&P) assigned a BBB issuer credit rating to DCE with a stable outlook. A BBB rating from S&P indicates that DCE has an adequate capacity to meet its financial commitments, but it is more susceptible to adverse economic conditions compared to higher-rated entities. This rating reflects DCE's improved financial metrics, enhanced liquidity, and stable customer base.
25 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Board of Directors
Desert Community Energy
Palm Desert, California
Independent Auditor’s Report
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Desert Community Energy (DCE), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise DCE’s basic financial statements, and have issued our report thereon dated October 31, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered DCE’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of DCE’s internal control. Accordingly, we do not express an opinion on the effectiveness of DCE’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether DCE’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
October 31, 2024
Board of Directors
Desert Community Energy
Palm Desert, California
We have audited the financial statements of Desert Community Energy (DCE) as of and for the year ended June 30, 2024, and have issued our report thereon dated October 31, 2024.

Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 8, 2024, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.

Accordingly, as part of our audit, we considered the internal control of Desert Community Energy solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate and our firm, have complied with all relevant ethical requirements regarding independence under the American Institute of Certified Public Accountants (“AICPA”) independence standards, contained in the Code of Professional Conduct.

We identified self-review threats to independence as a result of non-attest services provided. Those non-attest services included the preparation of the financial statements and adjusting journal entries. To mitigate the risk, management has compared the draft financial statements and footnotes to the underlying accounting records to verify accuracy and has reviewed a disclosure checklist to ensure footnotes are complete and accurate.

Significant Risks Identified
During the planning phase of the audit, we identified revenues and receivables as a significant risk, as a result of the materiality of the account balances. As a result, we documented the internal controls over revenue and receivables. In addition, we reviewed the System of Controls (SOC) Type 1 audit report for Calpine Energy Solutions, LLC and noted there were no modifications to the opinion for the described assertions. Additionally, we recalculated the amount of revenues received during the year using the underlying system reports.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by DCE is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements is:

Management’s estimate of the allowance for doubtful accounts is based on management’s knowledge of the likelihood of revenue collection from customers. We evaluated the key factors and assumptions used to develop the allowance for uncollectable accounts and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting DCE’s financial statements relate to:
 The disclosure of allowance for uncollectable accounts in note 3 of the financial statements.

Significant Unusual Transactions
For the purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. There were no significant unusual transactions identified as a result of our audit procedures.

Identified or Suspected Fraud
We have not identified or have obtained information that indicates fraud may have occurred.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We did not identify any uncorrected financial statement misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. We did not identify any material misstatements as a result of our audit procedures.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to DCE’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report For the purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. There were none.

Representations Requested from Management
We have requested certain written representations from management, which are included in the letter dated October 31, 2024.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with DCE, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as DCE’s auditors.

This report is intended solely for the information and use of the Board of Directors and management of DCE and is not intended to be and should not be used by anyone other than these specified parties.

Irvine, California
October 31, 2024
ITEM 7B

STAFF REPORT
Subject: Update to DCE’s Amended Financial Reserve Policy 18-10 Contact: Claude T. Kilgore, Director of Finance/ Administration ([email protected]) Recommendation: Approve additional updates to DCE Policy No. 18-10 Amended Financial Reserve Policy
Background: S&P Global Ratings (S&P) has assigned a “BBB” issuer credit rating (ICR) to Desert Community Energy (DCE), with a stable outlook. This achievement was announced at the October 2024 Board meeting and reflects positively on DCE’s financial health and operational stability. The Board asked that staff follow up with a report on DCE’s goals to continue building its financial reserves. Staff is recommending another update to DCE’s Amended Financial Reserve Policy to help achieve the goals set by the Board as well as help maintain and improve the credit rating.

In issuing the credit report, S&P noted several challenges, including how to build a more robust portfolio of renewable and long-term power procurement deals in a financially burdensome regulatory and bi-lateral market while also attempting to meet projected fixed charge coverage (FCC) levels each fiscal year and continuing to build liquidity. S&P calculates FCC as the sum of revenues minus expenses minus total net transfers out plus capacity payments (or their proxy), divided by the sum of debt service plus capacity payments (or their proxy). Since DCE does not have any debt, S&P Global Ratings calculates FCC to reflect its view of DCE's ability to meet fixed obligations on an ongoing basis. S&P treats 50% of DCE's purchased power expenses as debt-like and impute them as fixed charges. This resulted in a Fiscal Year 2022-23 FCC of 6.4x.

S&P has indicated it expects to see DCE maintain a FCC above 2.0x in the coming years.

One of the key recommendations from S&P is the enhancement of DCE’s reserve policy to allow for certain special reserves in addition to DCE’s basic reserve. In response, DCE staff is recommending a second amendment to the financial reserves policy. Policy 18-10 was last updated in June 2023. This recommended update would allow the creation of additional Special Reserves on top of the basic operating reserve. Small clarifying changes are also recommended and are presented in the redlined version of the updated policy.

The Special Reserves created in the update policy include a 1) Fixed Charge Coverage Reserve to ensure that DCE can meet its fixed financial obligations even in times of financial stress; 2) Stabilization Reserve to mitigate unexpected financial risks that may arise due to macro or micro market fluctuations, unforeseen geopolitical events, catastrophes, rate shocks, and other types of adverse and unplanned events; 3) Procurement Reserve Use to meet mandated regulatory and/or operating requirements for the procurement of energy products such as resource adequacy, carbon free products, and renewables in line with DCE’s objectives and California’s strict Renewable Portfolio Standards; and 4) Programmatic Reserve to establish and maintain a contingency reserve for customer programs and other community projects.

Desert Community Energy Board
December 09, 2024
S&P's assessment emphasized the need for improved liquidity and a stronger reserve policy to mitigate financial risks. As of June 30, 2024, DCE’s unrestricted reserves were approximately $25.5 million or 177 days operating capital, nearly meeting the minimum target basic reserve threshold much earlier than staff originally anticipated. While this represents two strong fiscal years of reserve growth, basic reserves as of September 30, 2024 increased only by approximately $100,000 from June 30 due to a quarter of heavy procurement for Resource Adequacy and Renewable products driving power costs up coupled with the use of cash to procure this energy. This resulted in a drop in DCE’s days operating capital on hand to 150 days for the 12 months ended September 30, 2024. Temporary drops in days cash on hand, especially in the first quarter of DCE’s fiscal year, is not unusual. It is also staff’s assessment that while DCE is meeting its basic financial reserves, it will take additional time and effort to sustain such minimum target levels.

Staff continues to closely monitor the market and rate-setting filings in order to remain competitive with Southern California Edison (SCE) rates. DCE staff does this in partnership with support with California Community Choice Association (CalCCA) and other community choice programs in SCE territory. This is described in further detail in Management’s Discussion and Analysis (MD&A) to DCE’s Basic Financial Statements, which is included as part of the audit and discussed under a separate agenda item. It should be noted that the current outlook may place some constraint on DCE’s ability to meet budgeted reserve targets for this fiscal year. Original budgeted projections using SCE’s May Energy Resource Recovery Amount (ERRA) forecast had reserve targets rising steadily and reaching around $50 million by June 30, 2025. Recently filed SCE ERRA forecast updates may have a significant negative impact on this originally budgeted amount. DCE staff expect to have a clearer picture of these potential impacts in the coming weeks and will return to the Board in early 2025 with an update and any recommendations to mitigate these rate-setting challenges and maintain a stable financial outlook.

Staff is recommending an amendment to Policy 18-10 to address the Board’s goals and align with S&P's recommendations by providing a more structured approach to reserve management. The creation of specific reserves for fixed charge coverage, stabilization, procurement, and programmatic needs will help ensure that DCE has dedicated funds to address various financial contingencies and strategic initiatives.

Fiscal Analysis: There is no cost to updating the policy. Future revenue or expense analysis will be provided at the time of the creation of a Special Reserve.

Attachments:

1. DCE’s Amended Financial Reserve Policy 18-10

2. DCE’s Amended Financial Reserve Policy 18-10 – redlined version 1 Subject: Guidelines for DCE reserve fund accumulation and utilization with respect to actual and projected operating surpluses subject to annual review and adjustment by the Board of Directors.

Reserve Policy:

Establishing operating reserves that build over time is a critical component of enterprise risk management, prudent fiscal management, contingency planning and implementation and funding of long-term program goals.

This reserve policy is intended to align with requirements set forth by DCE’s procurement agent, The Energy Authority, and is subject to annual review and adjustment coincident with DCE’s fiscal year budget approval process. Such reserve balances are established as an unrestricted fund sourced generally from excess revenues over expenditures, unrestricted one-time revenue occurrences, and other available funds as may be deemed appropriate and proper by the DCE Board to augment DCE reserve accumulation. This policy may be reviewed and modified at the Board’s discretion from time to time in consultation, as applicable, with DCE’s Executive Director (or designee), service providers, procurement agents, credit rating agencies, and banking/financial advisors.

Basic Reserve Target Levels:

This policy establishes an operating reserve accumulation minimum target equal to 50% (180 days operating capital)1 of the most current Board approved DCE total power and operating costs budget by the end of DCE’s 6th year of operation. Contributions to achieve these targets are subject to actual revenue and cash flow streams, prevailing conditions of business necessity, existing financial obligations, and other relevant factors as may be determined by the Board. The targeted maximum reserve balance is 75% (270 days operating capital) of the most current Board approved DCE operating budget.

Temporary reductions in reserves for cash flow management, aimed at balancing expected fluctuations in revenues and expenses, are normal cyclical occurrences within the fiscal year and do not constitute a use of reserves.

Use of Basic Reserves:

If Basic Reserves exceed and sustain above the minimum target level, use of those reserves may be made subject to approval by the Board of Directors. Use shall encompass strategic 1 Days operating capital calculated as (Unrestricted cash and cash equivalents x 365) / budgeted fiscal year operating expenses. Use of last twelve months for operating expenses in lieu of budgeted is also allowable.

POLICY No. 18-10 - Amended
Financial Reserve Policy
2 purposes such as funding capital projects or improvements, financing programs, paying down existing debt, rate setting enhancements, and/or other strategic uses as deemed necessary and prudent by the DCE Board. Use of Basic Reserves not subject to the minimum target level may encompass transfer to or creation of a separate Special Reserve designated for specific purposes. Any recommendation for use of Basic Reserves outside the creation of a Special Reserve shall include a cost-benefit analysis or a proposal for the replenishment of such funds within a time period as approved by the Board.

Special Reserves:

Creation of a Special Reserve may be necessary to meet operational requirements or strategic objectives with specific purposes. The target reserve amounts for a Special Reserve shall be identified at its creation and this policy then updated, as applicable. Special Reserves are treated independently from the Basic Reserve and are not aggregated. The use of Special Reserves shall be approved by the Board of Directors in line with its intended purpose.

Fixed Charge Coverage (FCC)2 Reserve Establish a FCC Reserve to ensure that rate-setting allows for flexibility in cost recovery. The major rating agencies place significant weight on DCE’s ability to meet fixed obligations on an ongoing basis and look extremely favorably at an annual FCC above 1.6x. If DCE’s FCC were to drop below certain levels, this may result in a less favorable credit rating which could then impact DCE’s operations. Upon Board approval, these funds may be transferred to other Special Reserves or to the Basic Reserve.

Stabilization Reserve Establish a Stabilization Reserve to mitigate unexpected financial risks which may arise due to market volatility, regulatory changes, unforeseen geopolitical events, catastrophe, power price or rate shocks, and other types of adverse and unplannable events such as economic downturn to meet financial obligations during periods of business necessity.

Procurement Reserve Establish a Procurement Reserve to meet mandated regulatory and/or operating requirements for the procurement of energy products such as resource adequacy, carbon free products, and renewables as well as for meeting mandated regulatory and/or operating depository requirements when other sources of funds are not available; Credit support for power purchase arrangements and other such type uses supportive of long-term energy procurement in line with DCE’s objectives and California’s strict Renewable Portfolio Standards.

Customer and Programmatic Reserve Establish a contingency reserve for customer programs and incentives as well as for other community projects such as local power programs/projects requiring credit backing or short-term infusion of capital.

Reporting
Reserve levels will be monitored during each fiscal year and included as part of the annual budget process and reported no less frequently than quarterly in financial reports provided to the Board.

Amended June 2023, December 2024
2 FCC is calculated as Sum of revenues minus expenses minus total net transfers out plus capacity payments (or their proxy), divided by the sum of debt service plus capacity payments (or their proxy). 1 Subject: Guidelines for DCE reserve fund accumulation and utilization with respect to actual and projected operating surpluses subject to annual review and adjustment by the Board of Directors.

Reserve Policy:

Establishing operating reserves that build over time is a critical component of enterprise risk management, prudent fiscal management, contingency planning and implementation and funding of long-term program goals.

This reserve policy is intended to align with requirements set forth by DCE’s procurement agent, The Energy Authority, and is subject to annual review and adjustment coincident with DCE’s fiscal year budget approval process. Such reserve balances are established as an unrestricted fund sourced generally from excess revenues over expenditures, unrestricted one-time revenue occurrences, and other available funds as may be deemed appropriate and proper by the DCE Board to augment DCE reserve accumulation. This policy may be reviewed and modified at the Board’s discretion from time to time in consultation, as applicable, with DCE’s Executive Director (or designee), service providers, procurement agents, credit rating agencies, and banking/financial advisors.

Basic Reserve Target Levels:

This policy establishes an initial operating reserve accumulation minimum target equal to 30% (120 days operating capital) to 40% (150 days operating capital) of the most current Board approved DCE operating budget, including power supply. The target reserve accumulation will increase to 50% (180 days operating capital)1 of the most current Board approved DCE total power and operating costs budget by the end of DCE’s 6th year of operation. Contributions to achieve these targets are subject to actual revenue and cash flow streams, prevailing conditions of business necessityy, then existing financial obligations, and other relevant factors as may be determined by the Board. The targeted maximum reserve balance is 75% (270 days operating capital) of the most current Board approved DCE operating budget.

Temporary reductions in reserves for cash flow management, aimed at balancing expected fluctuations in revenues and expenses, are normal cyclical occurrences within the fiscal year and do not constitute a use of reserves.
1 Days operating capital calculated as (Unrestricted cash and cash equivalents x 365) / budgeted fiscal year operating expenses. Use of last twelve months for operating expenses in lieu of budgeted is also allowable.

POLICY No. 18-10 - Amended
Financial Reserve Policy
2 Use of Basic Reserves:

If Basic Reserves exceed and sustain above the minimum target level,U use of those reserves shall be recommended by DCE’s Executive Director and is may be made subject to approval by the Board of Directors. Use shall encompass strategic purposes such as funding capital projects or improvements, financing programs, paying down existing debt, rate setting enhancements, and/or other strategic uses as deemed necessary and prudent by the DCE Board. Use of Basic Reserves not subject to the minimum target level may encompass transfer to or creation of a separate Special Reserve designated for specific purposes. Any recommendation for use of Basic Rreserves outside the creation of a Special Reserve shall include a cost-benefit analysis or a proposal for the replenishment of such fundreserves within a two fiscal years, or other time period as approved by the Board. Primary reserve fund uses include but are not limited to:

Special Reserves:

Creation of a Special Reserve may be necessary to meet operational requirements or strategic objectives with specific purposes. The target reserve amounts for a Special Reserve shall be identified at its creation and this policy then updated, as applicable. Special Reserves are treated independently from the Basic Reserve and are not aggregated. The use of Special Reserves shall be approved by the Board of Directors in line with its intended purpose.

Fixed Charge Coverage (FCC)2 Reserve Establish a FCC Reserve to ensure that rate-setting allows for flexibility in cost recovery. The major rating agencies place significant weight on DCE’s ability to meet fixed obligations on an ongoing basis and look extremely favorably at an annual FCC above 1.6x. If DCE’s FCC were to drop below certain levels, this may result in a less favorable credit rating which could then impact DCE’s operations. Upon Board approval, these funds may be transferred to other Special Reserves or to the Basic Reserve.

Stabilization Reserve Establish a Stabilization Reserve to mitigate unexpected financial risks which may arise due to market volatility, regulatory changes, unforeseen geopolitical events, catastrophe, power price or rate shocks, and other types of adverse and unplannable events such as economic downturn to meet financial obligations during periods of business necessity.

Procurement Reserve Use excess funds to establish a Procurement Reserve to meet mandated regulatory and/or operating requirements for the procurement of energy products such as resource adequacy, carbon free products, and renewables as well as for meeting mandated regulatory and/or operating depository requirements when other sources of funds are not available; Credit support for power purchase arrangements and other such type uses supportive of long-term energy procurement in line with DCE’s objectives and California’s strict Renewable Portfolio Standards.

Customer and Programmatic Reserve Use excess funds to establish and maintain a contingency reserve for customer programs and incentives as well as for other community 2 FCC is calculated as Sum of revenues minus expenses minus total net transfers out plus capacity payments (or their proxy), divided by the sum of debt service plus capacity payments (or their proxy). 3 projects such as local power programs/projects requiring credit backing or short-term infusion of capital.Meeting mandated regulatory and or operating depository requirements when other sources of funds are not available;
Credit support for power purchase arrangements;
Meeting financial obligations during periods of business necessity; Rate stabilization to mitigate power price shocks, market volatility or regulatory changes; Temporary operating financial resources in the event of an economic downturn or other emergency situations preceding expense reductions, rate adjustments, and/or other corrective actions;
Covering temporary operating shortfalls instead of incurring new debt; Local power programs/projects requiring credit backing or short-term infusion of capital; Other uses as deemed necessary and prudent by the DCE Board.

If reserve funds exceed target levels, the Board of Directors may use excess funds for capital improvements, financing programs, paying down existing debt, rate reductions and/or other strategic purposes.

Reporting
Reserve levels will be monitored during each fiscal year and included as part of the annual budget process and reported no less frequently than quarterly in financial reports provided to the Board.

ITEM 7C
Desert Community Energy Board
December 9, 2024

STAFF REPORT
Subject: DCE Mid-term Reliability Procurement: Terra-Gen Wind Energy Projects and Other Long-Term Procurement Initiatives
Contact: David Freedman, Program Manager ([email protected]) Recommendation: Adopt Resolution 2024-04, approving a long-term Power Purchase Agreement with San Gorgonio Westwind II, LLC for its north Palm Springs wind project, and conforming amendments to existing Power Purchase Agreements with San Gorgonio Westwind II, LLC, and Coachella Wind Holdings, LLC, and authorizing the Executive Director and/or Legal Counsel to make minor modifications before execution of the agreements
Background: DCE’s consultant The Energy Authority (TEA) launched a Request for Proposals (RFP) in July 2024 to satisfy DCE’s additional Mid-Term Reliability (MTR) procurement orders as required by the California Public Utilities Commission (CPUC). Responses to the RFP were due September 6. DCE received 47 proposals from 15 bidders, including solar, wind and battery storage projects in and near the Palm Springs City limits as well as elsewhere in the Coachella Valley.

An evaluation committee made up of TEA’s long-term procurement expert, DCE staff and a member of DCE’s Community Advisory Committee have reviewed responses to the RFP. Each proposal was screened for completeness and scored on a weighted criteria basis. The evaluation committee identified a short list of 17 proposals from five bidders upon which to conduct a more detailed review. The evaluation committee carried out interviews with the short-listed bidders during the week of October 7, and an update was provided to the Board at its October meeting.

The first contract under this RFP is now ready for Board approval. With this item, staff is recommending a Renewable Power Purchase Agreement (PPA) with San Gorgonio Westwind II, LLC (San Gorgonio Westwind) for its 11.2-megawatt (MW) Phoenix wind project. The project is currently operating for another offtaker and will be available to deliver renewable energy to DCE on February 1, 2025. San Gorgonio Westwind is 100% wholly owned by Terra-Gen, LLC (Terra-Gen), with no existing project-level debt or tax equity financing. Terra-Gen is a leading developer, owner, and operator of utility-scale renewable energy projects with a long-term focus on the California energy market among other key markets. Terra-Gen has financed over $8 billion in new assets and has developed more than 3,000 MW of new renewable energy and storage projects that are now in operation or under construction across California.

DCE already purchases 22.4 MW from San Gorgonio Westwind’s Altwind and East Wind circuits, as well as 10.6 MW from Terra-Gen’s adjacent Coachella Hills Wind II project (Coachella Hills).

The Board approved these first three projects at its December 2020 meeting. The following table shows the four Terra-Gen projects and provides summary information about each project. The projects are all located within the city limits of Palm Springs, in the Whitewater River floodplain west of Indian Canyon Avenue (see attached map).

Project Technology Size Contract
Start Date
Contract
End Date
Annual Energy
Delivery
Altwind Existing Wind 9.8 MW 01/01/23 12/31/37 28 GWh
Coachella
Hills Wind II New Wind 10.6 MW 05/04/21 05/03/26 36 GWh East Wind Existing Wind 12.6 MW 01/01/23 12/31/37 34 GWh Phoenix Existing Wind 11.2 MW 02/01/25 12/31/38 33 GWh
The San Gorgonio Westwind projects began operating in June 1999. The turbines have a hub height of 50 meters and use tubular steel towers with a three-bladed rotor. Day-to-day operations and maintenance of all four projects are performed by Terra-Gen Operating Company, LLC, which is located in Desert Hot Springs.

Because Phoenix is an existing project, it does not qualify under the CPUC’s MTR procurement orders, which focus on newly built generation facilities. However, the renewable procurement that the Phoenix PPA represents will meet the requirements for load-serving entities – such as DCE, other community choice programs and Investor-Owned Utilities – to procure at least 65% of their required Renewables Portfolio Standard (RPS) energy under long-term contracts. This procurement is required by SB 350 and started with California’s fourth RPS compliance period (2021-2024). The Phoenix project will help DCE satisfy its obligations under California’s fifth RPS compliance period (2025-2027).

The recommended Phoenix PPA was negotiated by DCE staff and Legal Counsel, with input from TEA’s long-term procurement expert on technical matters. It is largely based on the AltWind PPA that was previously approved by the Board, with four major changes:
• As the San Gorgonio Westwind projects are now 25 years old, if any of the wind turbine generators fail and Terra-Gen determines it is not commercially reasonable to repair or replace them, Terra-Gen can reduce the project’s guaranteed capacity. • DCE has a first right of negotiation should San Gorgonio Westwind decide to repower the Phoenix project at the end of the PPA term. Repowered wind projects such as Coachella Hills, which convert existing older turbines to new turbines that have a much greater generation capacity, count as newly built generation projects under the CPUC’s MTR procurement orders.
• The assignment clause has been updated to reflect language in the Energy Storage Agreement with Desert Sands Energy Storage II, LLC (Desert Sands), for its battery storage project in North Palm Springs approved by the Board at its September 2023 meeting. This language allows DCE to assign the project to the City of Palm Springs or the City of Palm Desert if either has established and is operating a CCA program. • Terra-Gen agrees to cooperate with DCE if DCE wishes to assign its rights and obligations under the project to a municipal bond issuer who issues tax-exempt bonds to fund a prepayment of energy that will be delivered to DCE over the term of the PPA. Energy prepayment bonds are long-term financial transactions available to public agencies like DCE to provide power procurement cost savings. While DCE staff is not currently recommending any such transaction, which would need Board approval, this provides flexibility should DCE want to consider different financing structures in the future.

With this item, DCE staff is seeking approval of Resolution 2024-04, approving a long-term PPA with San Gorgonio Westwind for its Phoenix project and conforming amendments to the existing PPAs with San Gorgonio Westwind and Coachella Wind Holdings, LLC, and authorizing the Executive Director and/or legal counsel to make minor modifications before execution of the agreements. The redacted Phoenix PPA is available for Board review and approval at the link found at the end of this staff report, and the amendments to the existing PPAs are attached. The recommended action would also allow the Executive Director to negotiate and execute conforming amendments to the AltWind, East Wind and Coachella Hills PPAs. Terra-Gen has agreed to amending these agreements.

The Phoenix PPA will help DCE meet its long-term RPS contracting compliance requirements, its broader procurement requirements, as well as its program goals of building a carbon free and significantly renewable energy resource mix. The procurement will also give DCE customers a more cost-effective source of renewable power than buying on the short-term market, with energy supplied from a local project.

Other Long-Term Procurement Initiatives
DCE staff continues to work with TEA and Legal Counsel on other agreements for projects submitted in the RFP. Potential contracts will be brought back for Board approval once the negotiation process is complete.

In addition to the RFP process, 12 developers responded to DCE’s Request for Information (RFI) as part of the California Independent System Operator (CAISO)’s interconnection queue reform efforts to improve the availability of carbon-free generation and storage projects to load serving entities within California. For CAISO Queue Cluster 15 (QC15) projects, DCE has been allocated 33 MW for projects seeking Transmission Plan Deliverability (TPD) and 11 MW for Energy Only (EO) projects to award at its discretion, for a maximum of 50 TPD points and 17 EO points if DCE elects to award all of its points to single projects in these categories. TPD projects include RA and qualify under the CPUC’s MTR procurement orders, whereas EO projects only satisfy the RPS requirements.

Following a review of the RFI submissions by DCE staff and TEA’s long-term procurement expert, DCE staff intends to award its full allocation of TPD points to Terra-Gen for its J90 battery storage project in Lancaster in northern Los Angeles County, with an estimated Commercial Operation Date (COD) of June 30, 2030. DCE intends to award all its EO points to NextEra Energy Resources (developer of the Desert Sands project) for its Rock Valley II solar plus battery storage project located in Nye County, Nevada, with an estimated COD of December 2032. Although the Rock Valley project is EO, its location in a merchant zone may provide a path to Full Capacity Deliverability Status that will also include RA. Both projects would offer benefits to DCE’s long-term energy portfolio.

The DCE Executive Director will execute right of first offer letter agreements with Terra-Gen and NextEra for their QC15 projects that have been awarded DCE’s TPD and EO points. However, as the CODs for these QC15 projects are in the 2030s, it could be several years before any agreements would be ready to present to the Board for consideration.

Fiscal Analysis: Under the pricing terms in the Phoenix PPA, DCE will pay for the electricity generated by the Phoenix project at a fixed-price rate per megawatt hour, with no escalation, for the full term of the PPA. DCE is entitled to all product attributes from the facility, including energy, Renewable Energy Certificates (RECs) and RA. The PPA reflects pricing that is typical in the current market for existing wind energy projects and is expected to reduce the overall costs for compliance with the CPUC RPS requirements referred to above. The costs through the end of Fiscal Year 2024-25 are already included in DCE’s current budget as they replace short-term resources and will be included in future DCE budgets.

Attachments:

1. Resolution No. 2024-04

2. Vicinity map showing Terra-Gen wind project locations

3. Link to Phoenix PPA: https://desertcommunityenergy.org/wp-content/uploads/2024/12/DCE_TG_PPA.pdf RESOLUTION NO. 2024-04

A RESOLUTION OF THE BOARD OF DIRECTORS OF DESERT COMMUNITY ENERGY

APPROVING A LONG-TERM POWER PURCHASE AGREEMENT WITH SAN GORGONIO

WESTWIND II, LLC, AND CONFORMING AMENDMENTS TO EXISTING POWER

PURCHASE AGREEMENTS WITH SAN GORGONIO WESTWIND II, LLC, AND COACHELLA

WIND HOLDINGS, LLC, AND AUTHORIZING THE EXECUTIVE DIRECTOR AND/OR LEGAL

COUNSEL TO MAKE MINOR MODIFICATIONS BEFORE EXECUTION OF THE

AGREEMENTS
A. Desert Community Energy (DCE) is a joint powers authority established on October 30, 2017, for the purpose of implementing community choice aggregation (“CCA”) programs under Public Utilities Code Section 366.2.

B. DCE is required under California law and California Public Utilities Commission (CPUC) regulations to satisfy the Renewables Portfolio Standard (RPS) in its procurement of energy, and this includes a mandate to meet 65% of its RPS-eligible energy under long-term contracts.

C. DCE issued a Request for Proposals in July 2024 for projects satisfying the RPS and other CPUC requirements.

D. DCE staff, with the assistance of legal counsel and The Energy Authority (TEA), has negotiated a power purchase agreement (PPA) with San Gorgonio Westwind II, LLC (San Gorgonio Westwind), a subsidiary of Terra-Gen, LLC (Terra-Gen), to purchase power for a term of 13 years, 11 months from the Phoenix wind energy project located within the Palm Springs City limits.

E. DCE’s Board approved in December 2020 PPAs with San Gorgonio Westwind for the Altwind and East Wind wind energy projects and with Terra-Gen subsidiary Coachella Wind Holdings, LLC (Coachella Wind) for the Coachella Hills Wind II (Coachella Hills) wind energy project, all located near the Phoenix project and within the Palm Springs City limits.

F. DCE staff, with the assistance of legal counsel and TEA, has also negotiated amendments to the PPAs with San Gorgonio Westwind and Coachella Wind to conform them to the new PPA with San Gorgonio Westwind.

G. Under Section 2.5.1 of the DCE Joint Powers Agreement, the DCE Board of Directors has the power to make and enter into all contracts, including, but not limited to, service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program and other energy programs including the acquisition of electric power supply and the provision of retail and regulatory support services.

H. DCE staff recommends the approval of the long-term PPA with San Gorgonio Westwind for the Phoenix project and that the Executive Director be authorized to enter into conforming amendments to the existing PPAs with San Gorgonio Westwind and Coachella Wind for the Altwind, East Wind, and Coachella Hills projects, and the Board has received information and had discussion regarding the terms of these agreements.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF DESERT COMMUNITY ENERGY, AS FOLLOWS:

Section 1. Approval of Power Purchase Agreement. The Board of Directors hereby approves the Power Purchase Agreement with San Gorgonio Westwind II, LLC, for the Phoenix wind energy project.

Section 2. Authority to Execute Amendments to Existing Power Purchase Agreements. The Board of Directors hereby authorizes the DCE Executive Director, with the approval of legal counsel, to enter into an Amendment No. 1 to each of the existing Power Purchase Agreements with San Gorgonio Westwind II, LLC, for the Altwind and East Wind projects, and with Coachella Wind Holdings, LLC, for the Coachella Hills Wind II project, in order to conform such agreements with the terms of the Power Purchase Agreement.

Section 3. Delegation to Executive Director. The Board of Directors hereby authorizes the DCE Executive Director to negotiate, finalize and execute the Power Purchase Agreement with San Gorgonio Westwind II, LLC, and Amendment No. 1 to each of the existing Power Purchase Agreements with San Gorgonio Westwind II, LLC, and Coachella Wind Holdings, LLC, in substantially similar form as approved by legal counsel.

Section 4. Resolution Effective Date. This resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED at a meeting of the Board of Directors of Desert Community Energy held on December 9, 2024.

ATTEST:
________________________ ________________________
Lisa Middleton, Chair Tom Kirk, Secretary
Desert Community Energy Desert Community Energy
AYES: NAYS: ABSENT: ABSTAIN: _

ITEM 7D
a

STAFF REPORT
Subject: ACCESS Indian Canyon Renewable Energy Assessment Services RFP Contact: Emily Langenbahn, Management Analyst ([email protected]) Recommendation: Authorize the Executive Director to execute a contract with muGrid Analytics LLC for an amount not to exceed $53,110 for Phase I of the Addressing Climate Change, Emergencies and Sand Storms (ACCESS) Indian Canyon Renewable Energy Assessment Services
Background: The Addressing Climate Change, Emergencies and Sand Storms (ACCESS) project along Indian Canyon Drive in the City of Palm Springs aims to enhance the resilience of at-risk transportation infrastructure, improving mobility, protecting the environment, and bolstering public health and safety for both residents and visitors of the Coachella Valley. On December 7, 2023, the California Transportation Commission (CTC) awarded the Coachella Valley Association of Governments (CVAG) $50 million to support the project. The funding is part of a broader effort to safeguard transportation infrastructure from climate impacts, such as extreme weather and natural disasters, with a focus on resilience improvements that can withstand these challenges. CVAG was awarded another $7.5 million in June 2024 from the Southern California Association of Governments (SCAG) Congestion Mitigation Air Quality (CMAQ) Improvement Program, Surface Transportation Block Grant (STBG) Program, and Carbon Reduction Program (CRP), further supporting the ACCESS Indian Canyon project’s goals. CVAG is also anticipating another $5 million for the project as part of the congressional earmark process.

As part of the project, CVAG and Desert Community Energy (DCE) are exploring the inclusion of a renewable energy component to further enhance the project’s sustainability. Initial concepts under consideration include a solar shade structure along Indian Canyon Drive or a solar-shaded carport at the nearby Amtrak station. In order to begin evaluating the opportunities, DCE issued a Request for Proposals (RFP) on August 12, 2024, seeking a qualified consultant to conduct a Renewable Energy Assessment to evaluate the feasibility and benefits of incorporating renewable energy solutions into the project.

DCE received three proposals: One from muGrid Analytics LLC, one from OurEnergy LLC, and a joint submission from Ciero and Hot Purple Energy. The responses initially had wide-ranging differences in both project scope and cost, as the original RFP was not specific on how to approach the analysis. The RFP submissions were reviewed by a panel composed of representatives from both DCE and the City of Palm Springs. The review panel identified muGrid Analytics and the joint submission by Ciero and Hot Purple Energy as the top two proposers for the project and held an initial round of interviews. In order to better understand the approaches, DCE staff then reached out to both proposers and asked for a refined and narrowed scope that only focused on Phase I of the Desert Community Energy Board
December 9, 2024
analysis. The primary objectives of Phase I are to conduct a high-level feasibility study to determine transmission availability with Southern California Edison (SCE); consider the available interconnection availability for solar, solar plus storage, standalone storage, wind, as well as wind plus storage. The analysis will also determine which renewable energy technology would be most cost effective for DCE at the proposed project sites. Deliverables for Phase I will include a report to determine whether Phase II of the project is economically feasible for DCE and the City of Palm Springs. Both firms submitted a second proposal that was reviewed by the evaluation panel.

After a competitive selection process, staff recommends that the ACCESS Indian Canyon Renewable Energy Assessment – Phase I of the project is awarded to muGrid Analytics LLC, a national firm with expertise in renewable energy systems and infrastructure resilience. Under this first phase, muGrid Analytics will provide expertise in evaluating various renewable energy options, including the possibility of solar, wind, and energy storage technologies, to determine the best solution for the ACCESS Indian Canyon project’s needs.

Staff is now recommending a contract with muGrid Analytics. Through this analysis by muGrid Analytics, CVAG and DCE staff aim to incorporate forward-thinking renewable energy solutions into the ACCESS Indian Canyon project, making the infrastructure more resilient and sustainable for the long term.

Fiscal Analysis: The proposed Phase I contract with muGrid Analytics LLC is for an amount not to exceed $53,110. The contract would be funded by DCE, as CVAG’s grant applications were for construction and identified the renewable energy component as being funded with regional funding.

Attachments: ACCESS Indian Canyon Renewable Energy Assessment – Phase I Agreement 1 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study This Professional Services Agreement (“Agreement”) is made and entered into on December 9, 2024, by and between DESERT COMMUNITY ENERGY, a California joint powers authority (“DCE”) and muGRID ANALYTICS LLC, a Limited Liability Corporation (“Consultant”). DCE and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

RECITALS
A. Consultant desires to perform and assume responsibility for the provision of certain professional services required by DCE on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing technical services for DCE’s community choice energy program, is licensed in the State of California, and is familiar with the plans of DCE.

B. DCE desires to engage Consultant to render such professional services for the implementation of DCE’s community choice energy program (“Project”) as set forth in this Agreement.

AGREEMENT

1. Scope of Services and Term.

1.1 General Scope of Services. Consultant promises and agrees to furnish to DCE all labor and services and incidental and customary work necessary to fully and adequately supply DCE the implementation services necessary for the Project (“Services”). The Services are more particularly described in Exhibit A attached hereto, and which are stated in the proposal to DCE.

All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto, and all applicable local, state and federal laws, rules and regulations.

1.2 Term. The term of this Agreement shall be from December 9, 2024 to March 31, 2025, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.

2. Responsibilities of Consultant.

2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision. DCE retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of DCE and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.
2 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services, which is stated in the proposal to DCE and set forth in Exhibit B attached hereto. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, DCE shall respond to Consultant’s submittals in a timely manner. Upon request of DCE, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of DCE.

2.4 Substitution of Key Personnel. Consultant has represented to DCE that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of DCE. In the event that DCE and Consultant cannot agree as to the substitution of key personnel, DCE shall be entitled to terminate this Agreement for cause.

As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to DCE, or who are determined by DCE to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of DCE. The key personnel for performance of this Agreement are as follows:

Name Title Role
Amy Simpkins Chief Executive Officer muGrid Project Manager Dr. Travis Simpkins Chief Technology Officer Technical Lead Dr. Kasra Mohammadi Senior Engineer Lead Engineer
Michael Wood Senior Engineer Supporting Engineer
Jared Craft Fractional Executive Administrative Lead
Deborah Galimba Chief Executive Officer
X Utility subconsultant
Supporting Engineer

2.5 DCE’s Representative. DCE hereby designates the Executive Officer, or designee, to act as its representative for the performance of this Agreement (“DCE’s Representative”).

DCE’s Representative shall have the w to act on behalf of DCE for all purposes under this Agreement. Consultant shall not accept direction or orders from any person other than DCE’s Representative, or designee.

2.6 Consultant’s Representative. Consultant hereby designates Amy Simpkins, Chief Executive Officer, or her designee, to act as its Representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement.

The Consultant’s Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and 3 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

2.7 Coordination of Services. Consultant agrees to work closely with DCE staff in the performance of Services and shall be available to DCE’s staff, consultants and other staff at all reasonable times.

2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from DCE, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subcontractors who is determined by DCE to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to DCE, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to DCE, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold DCE, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

2.10 Insurance.

2.10.1 Time for Compliance. Consultant shall not commence the Services under this Agreement until it has provided evidence satisfactory to DCE that it has secured all insurance required under this section, in a form and with insurance companies acceptable to DCE. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to DCE that the subcontractor has secured all insurance required under this section.
4 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

2.10.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001 or exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence, $2,000,000 for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability Coverage of at least $1,000,000 per accident for bodily injury or disease.

2.10.3 Professional Liability. Consultant shall procure and maintain, and require its subcontractors to procure and maintain, for a period of five (5) years following completion of the Services, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than $1,000,000 per claim and in the aggregate. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend.

2.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by DCE to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must include coverage for (1) Bodily Injury and Property Damage; (2) Personal Injury/Advertising Injury; (3) Premises/Operations Liability; (4) Products/Completed Operations Liability; (5) Aggregate Limits that Apply per Project; (6) Explosion, Collapse and Underground (UCX) exclusion deleted; (7) 5 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study Contractual Liability with respect to this Agreement; (8) Broad Form Property Damage; and (9) Independent Consultants Coverage.
(ii) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. (iii) The policy shall give DCE, its directors, officials, officers, employees, and agents insured status using ISO endorsement forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the policy shall be “primary and non-contributory” and will not seek contribution from DCE’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) DCE, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects DCE, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by DCE, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way.
(C) Workers’ Compensation and Employers Liability Coverage. (i) Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and Consultant will comply with such provisions before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of subrogation against DCE, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Consultant. (D) All Coverages. Defense costs shall be payable in addition to the limits set forth hereunder. Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth herein shall be available to DCE, its directors, officials, officers, employees and agents as additional insureds under said policies. Furthermore, 6 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named insured; whichever is greater. (i) The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of DCE (if agreed to in a written contract or agreement) before DCE’s own insurance or self-insurance shall be called upon to protect it as a named insured. The umbrella/excess policy shall be provided on a “following form” basis with coverage at least as broad as provided on the underlying policy(ies). (ii) Consultant shall provide DCE at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to DCE at least ten (10) days prior to the effective date of cancellation or expiration.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement.

Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by DCE, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(v) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, DCE has the right but not the duty to obtain the insurance it deems necessary and any premium paid by DCE will be promptly reimbursed by Consultant or DCE will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, DCE may cancel this Agreement. DCE may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project.
(vi) Neither DCE nor any of its directors, officials, officers, employees or agents shall be personally responsible for any liability arising under or by virtue of this Agreement.
7 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

2.10.5 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to DCE, its directors, officials, officers, employees, agents and volunteers.

2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by DCE. Consultant shall guarantee that, at the option of DCE, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects DCE, its directors, officials, officers, employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

2.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, licensed to do business in California, and satisfactory to DCE.

2.10.8 Verification of Coverage. Consultant shall furnish DCE with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to DCE. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms provided by DCE if requested. All certificates and endorsements must be received and approved by DCE before work commences. DCE reserves the right to require complete, certified copies of all required insurance policies, at any time.

2.10.9 Subcontractor Insurance Requirements. Consultant shall not allow any subcontractors to commence work on any subcontract until they have provided evidence satisfactory to DCE that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors shall be endorsed to name DCE as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, DCE may approve different scopes or minimum limits of insurance for particular subcontractors.

2.10.10 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life-saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 8 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

3. Fees and Payments.

3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit C, attached hereto. The total compensation shall not exceed $53,110 without written approval of DCE’s Board of Directors. Extra Work may be authorized, as described below, and, if authorized, said Extra Work will be compensated at the rates and manner set forth in this Agreement.

3.2 Payment of Compensation. Consultant shall submit to DCE a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. DCE shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by DCE.

3.4 Extra Work. At any time during the term of this Agreement, DCE may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by DCE to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from DCE’s Representative.

4. Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of DCE during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

5. General Provisions.

5.1 Termination of Agreement.

5.1.1 Grounds for Termination. DCE may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to DCE, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
9 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, DCE may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such documents and other information within fifteen (15) days of the request.

5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, DCE may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Amy Simpkins, Chief Executive Officer
muGrid Analytics LLC
8989 South Murphy Gulch Road
Littleton, Colorado 80127
DCE: Desert Community Energy
74-199 El Paseo Drive, Suite 100
Palm Desert, CA 92260
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

5.3 Ownership of Materials and Confidentiality.

5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for DCE to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subcontractors to agree in writing that DCE is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by DCE. DCE shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at DCE’s sole risk. 10 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

5.3.2 Intellectual Property. In addition, DCE shall have and retain all right, title and interest (including copyright, patent, trade secret and other proprietary rights) in all plans, specifications, studies, drawings, estimates, materials, data, computer programs or software and source code, enhancements, documents, and any and all works of authorship fixed in any tangible medium or expression, including but not limited to, physical drawings or other data magnetically or otherwise recorded on computer media (“Intellectual Property”) prepared or developed by or on behalf of Consultant under this Agreement as well as any other such Intellectual Property prepared or developed by or on behalf of Consultant under this Agreement.

DCE shall have and retain all right, title and interest in Intellectual Property developed or modified under this Agreement whether or not paid for wholly or in part by DCE, whether or not developed in conjunction with Consultant, and whether or not developed by Consultant. Consultant will execute separate written assignments of any and all rights to the above referenced Intellectual Property upon request of DCE.

Consultant shall also be responsible to obtain in writing separate written assignments from any subcontractors or agents of Consultant of any and all right to the above referenced Intellectual Property. Should Consultant, either during or following termination of this Agreement, desire to use any of the above-referenced Intellectual Property, it shall first obtain the written approval of DCE.

All materials and documents which were developed or prepared by the Consultant for general use prior to the execution of this Agreement and which are not the copyright of any other party or publicly available and any other computer applications, shall continue to be the property of the Consultant. However, unless otherwise identified and stated prior to execution of this Agreement, Consultant represents and warrants that it has the right to grant the exclusive and perpetual license for all such Intellectual Property as provided herein.

DCE further is granted by Consultant a non-exclusive and perpetual license to copy, use, modify or sub-license any and all Intellectual Property otherwise owned by Consultant which is the basis or foundation for any derivative, collective, insurrectional, or supplemental work created under this Agreement.

5.3.3 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of DCE, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use DCE’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of DCE.
11 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

5.3.4 Infringement Indemnification. Consultant shall defend, indemnify and hold DCE, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by DCE of the Documents & Data, including any method, process, product, or concept specified or depicted.

5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

5.5 Attorney’s Fees. If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

5.6 Indemnification. To the fullest extent permitted by law, Consultant shall defend (with counsel of DCE’s choosing), indemnify and hold DCE, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against DCE, its directors, officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against DCE or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant shall reimburse DCE and its directors, officials, officers, consultants, employees, agents and/or volunteers, for any and all legal expenses and costs, including reasonable attorneys’ fees, incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, DCE, its officials, officers, employees, agents, or volunteers. This section shall survive any expiration or termination of this Agreement.

5.7 Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both Parties.

5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County, California.

5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
12 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

5.10 DCE’s Right to Employ Other Consultants. DCE reserves right to employ other consultants in connection with this Project.

5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties.

5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of DCE. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days.

All references to Consultant include all personnel, employees, agents, and subcontractors of Consultant, except as otherwise specified in this Agreement. All references to DCE include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, DCE shall have the right to rescind this Agreement without liability. For the term 13 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study of this Agreement, no member, officer or employee of DCE, during the term of his or her service with DCE, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

5.19 Equal Opportunity Employment and Subcontracting. Consultant represents that it is an equal opportunity employer and it shall not discriminate on the basis of race, gender, gender expression, gender identity, religion, national origin, ethnicity, sexual orientation, age, or disability in the solicitation, selection, hiring, or treatment of applicants, employees, subcontractors, vendors, or suppliers. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Further, Consultant shall provide equal opportunity for subcontractors to participate in subcontracting opportunities.

5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Workers’ Compensation, or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

5.23 Subcontracting. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of DCE.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
14 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study IN WITNESS WHEREOF, the Parties have made and executed this Agreement as of the date first written above.

DESERT COMMUNITY ENERGY
By : _________________________________
Tom Kirk, Executive Director
muGRID ANALYTICS LLC
By : _________________________________
Amy Simpkins, Chief Executive Officer
APPROVED AS TO FORM:
_________________________________
General Counsel
Exhibit A
15 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

EXHIBIT A

SCOPE OF SERVICES

PHASE I HIGH-LEVEL FEASIBILITY STUDY
The following WorkPlan and Tasks for Phase I are from the muGrid Analytics Revised Technical Proposal dated October 20, 2024.

4. Work Plan
muGrid first step will be sending its team to perform a detailed site survey and assessment and to meet with the DCE team. They will take detailed shots, measurements, and photos of the facilities and existing electrical infrastructure to get a more complete understanding of the project sites. This process will include evaluating transmission availability, solar/wind/storage potential, and electrical and structural feasibility, in line with the outlined key tasks. While there, our team will work directly with the DCE team to better understand the goals and needs.

Using the information obtained from the site survey, muGrid will perform a detailed renewable energy assessment to identify and propose the most appropriate solution from technical and financial points of view. This assessment will ensure alignment with the project’s goals and requirements, including compliance with relevant CPUC decisions and evaluation of economic feasibility.

4.1. Analysis and evaluation of key tasks
In addressing the key tasks outlined, we will conduct a thorough analysis and evaluation to ensure the successful execution of ARP. Our work plan for the key tasks in Phase I of the study is presented below.

Phase I of the study:

Below is our plan for Phase I of the project.

4.1.A. Transmission Availability

1. Confirming available firm transmission capability
X UTILITY plans to utilize CAISO Cluster knowledge to research and develop a 1-3 page CAISO pre-Cluster review. The Cluster review will uncover in flight or pending SCE area transmission congestion that may enable or curtail transmission capacity. The review can also include planned and prospected queued generator quantities, fuel type, and proposed in service dates.

The CAISO Cluster availability review is expected to be performed by Deb Galimba and a 1 hour follow up meeting will be initiated to review the results.

Exhibit A
16 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

4.1.D. Economic Feasibility and Financial Analysis

1. Estimated Installed Costs per MW for Each Renewable Energy Option To assess the estimated installed costs per MW for each renewable energy option, muGrid will assess the total costs associated with installing and operating each renewable energy option. muGrid will conduct a detailed market analysis, examining current trends in solar PV systems, wind energy systems, and BESS. Our approach will involve getting quotes and pricing structures from equipment suppliers and vendors. Having done many similar projects in the past, muGrid is adept at ensuring all associated costs including but not limited to hardware, equipment, direct labor, and indirect labor costs, permitting, inspection, interconnection, and other overhead will be considered for each site and system design.

4. Economic Feasibility Evaluation
To evaluate the economic feasibility of solar, wind and battery storage projects, muGrid will perform a comprehensive analysis that considers various financial aspects. muGrid has developed a detailed cost and economic model based on real world experience that has been gained over the years. Our model consists of detailed system construction costs and operating and maintenance (O&M) costs which include the cost of bi-annual service and maintenance schedules and cleaning/washing of the solar panels, as well as potential revenue streams from energy generation. We will study the impact of incentives and tax credits such as carbon tax credit, investment tax credit and production tax credit on improving the economic attractiveness of the proposed project, performing a detailed sensitivity analysis for this purpose.

To evaluate the financial attractiveness of each renewable option, muGrid will calculate several important economic measures including levelized cost of electricity production (LCOE), payback period (PBP), return on investment (ROI) and benefit cost ratio (BCR). • LCOE is the ratio of the total cost of the project during its lifetime including both capital cost and O&M cost to the electricity generated over the lifetime of the project. It is a robust measure to compare the cost of electricity generation of solar systems for each facility against other electricity generation sources and cost the city is paying to purchase electricity from the utility company.
• ROI is calculated to measure the profitability of the investment made by DCE in renewable energy systems installation and PBP is calculated to determine the period of time required to recover this investment.
• BCR is calculated to determine the relative profitability of the project defined as the ratio of the benefits of a project relative to its costs. The higher BCR shows a more profitable investment.

Exhibit A
17 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study We will analyze various scenarios to understand how factors such as energy pricing and production variability may impact overall project viability. This assessment will also include sensitivity analyses to evaluate the impact of different assumptions on financial outcomes.

Exhibit B
18 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

EXHIBIT B

SCHEDULE OF SERVICES
The following Phase I Schedule is from the muGrid Analytics Revised Technical Proposal dated October 20, 2024.
muGrids’s anticipated schedule for Phase I of this project is shown in the following GANTT Chart.

The dates from December 2024 through February 2025 are intended to be tentative and are subject to change upon contract award.

Exhibit C
19 Desert Community Energy
Contract No. DCE-24-006
Project: ACCESS Indian Canyon – Phase I High-Level Feasibility Study

EXHIBIT C

COMPENSATION BILLING RATES
See following page from muGrid Analytics Revised Fee Proposal for Phase I dated October 22, 2024.

Task Name Personnel Hours Hourly Rate Subtotal
Task 1: Transmission Availability (X UTILITY
Subcontractor) $10,000
Task 4: Economic Feasibility and Financial Analysis
(64 hours)
Lead Engineer (40 hours) 60 $150 $9,000
Supporting Engineer (11 hours) 20 $100 $2,000
Technical lead (5 hours) 10 $225 $2,250
Energy Analyst (40 hours) 40 $100 $4,000
Subtotal for Task 4 $17,250
Other Tasks
Site Survey
Surveyors (2 surveyour * 16 hours) 32 $120 $3,840
Study Planning (16 hours)
Lead Engineer (12 hours) 12 $150 $1,800
Supporting Engineer (4 hours) 4 $100 $400
Identify Potential Obstacles/Limitations (16 hours)
Lead Engineer (12 hours) 12 $150 $1,800
Supporting Engineer (4 hours) 4 $100 $400
Reporting (40 hours)
Project writer (28 hours) 28 $65 $1,820
Lead Engineer (12 hours) 12 $150 $1,800
Project Management and Administration (25 Hours)
Project Manager (15 hours) 15 $250 $3,750
Administrative Lead (10 hours) 10 $225 $2,250
Subtotal for Other Tasks $17,860
ODC (e.g., travel, materials) $8,000
Grand Total Proposed Fee $53,110
ITEM 8A DESERT COMMUNITY ENERGY BOARD
FY2024-2025 ATTENDANCE RECORD

FEB MAR APR MAY JUNE
City of Palm Desert * * *  *
City of Palm Springs * * *  *
Absent
No Meeting *
Voting Members JUL AUG SEP OCT NOV DEC JAN
Desert Community Energy
Unaudited Statement of Net Position Prev Year Comparison As of September 30, 2024
Sep 30, 24 Sep 30, 23 $ Change % Change
ASSETS
Current Assets
Checking/Savings
1100 · Unrestricted Funds
1103 · CAMP Account 13,986,610 1 - 13,986,610 100.0%
1104 · LAIF Account 6,307,410 1 - 6,307,410 100.0%
1105 · Operating Account -8099 199,293 199,749 (456) (0.23%) 1109 · DDM Marketplace Sweep - 0991 2,106,054 8,418,769 (6,312,714) (74.98%) 1115 · Lockbox -4446 3,030,038 7,649,027 (4,618,989) (60.39%) Total 1100 · Unrestricted Funds 25,629,406 16,267,545 9,361,861 57.55% 1145 · Fair Value Adjustment 13,000 - 13,000 100.0%
1199 · Restricted Funds
1110 · Money Market -5470 405,748 405,695 53 0.01%
1120 · FSR Letter of Credit Collateral 147,000 147,000 - 0.0% Total 1199 · Restricted Funds 552,748 552,695 53 0.01%
Total Checking/Savings 26,195,153 16,820,239 9,374,914 55.74% Accounts Receivable
1221 · Accounts Receivable 16,539,288 16,638,245 (98,957) (0.6%) 1223 · Accrued Accounts Receivable 4,583,719 3,807,141 776,578 20.4% 1250 · Interest Receivable 70,352 - 70,352 100.0%
Total Accounts Receivable 21,193,358 20,445,386 747,972 3.66% Other Current Assets
1225 · Allowance for Doubtful Accounts (1,866,979) 2 (3,991,126) 2,124,147 53.22% 1240 · Prepaid Expenses 6,033 6,442 (409) (6.35%)
Total Other Current Assets (1,860,946) (3,984,684) 2,123,738 53.3% Total Current Assets 45,527,566 33,280,941 12,246,625 36.8% Other Assets
1170 · Deposits/Bonds 710,584 310,584 400,000 128.79%
Total Other Assets 710,584 310,584 400,000 128.79%
TOTAL ASSETS 46,238,150 33,591,525 12,646,625 37.65%
LIABILITIES & Net Position
Liabilities
Current Liabilities
Accounts Payable
2110 · Accounts Payable 7,364,027 7,982,426 (618,399) (7.75%) 2112 · Accrued Accounts Payable 4,093,372 3 810,343 3,283,029 405.14% 2120 · Due to Other Governments 655,430 1,223,200 (567,770) (46.42%) Total Accounts Payable 12,112,829 10,015,969 2,096,860 20.94% Other Current Liabilities
2115 · NEM Escrow Account 69,371 - 69,371 100.0%
2230 · Taxes payable
2231 · Utility Users Tax (UUT) 212,875 175,975 36,901 20.97% 2232 · Electric Energy Surcharge 6,329 4,905 1,424 29.04% Total 2230 · Taxes payable 219,205 180,879 38,325 21.19% Total Other Current Liabilities 288,575 180,879 107,696 59.54% Total Current Liabilities 12,401,405 10,196,849 2,204,556 21.62% Long Term Liabilities
2260 · Vendor Security Deposits
2262 · PPA Development Security 225,000 225,000 - 0.0%
2263 · Contract Development Deposit 180,000 180,000 - 0.0% Total 2260 · Vendor Security Deposits 405,000 405,000 - 0.0% Total Long Term Liabilities 405,000 405,000 - 0.0%
Total Liabilities 12,806,405 10,601,849 2,204,556 20.79% Net Position
31000 · Restricted Net Position 147,000 147,000 - 0.0%
32000 · Unrestricted Net Position 35,039,779 19,167,378 15,872,401 82.81% Net Revenue (1,755,034) 4 3,675,299 (5,430,333) (147.75%) Total Net Position 33,431,745 22,989,677 10,442,069 45.42% TOTAL LIABILITIES & NET POSITION 46,238,150 33,591,525 12,646,625 37.65% Desert Community Energy
Unaudited Statement of Net Position Prev Year Comparison As of September 30, 2024
1 2
3 Investment accounts with the California Asset Management Program (CAMP) and Local Agency Investment Fund (LAIF) were opened in line with DCE Policy 23-03 Investment Policy.

Closed accounts were written off at the end of fiscal year 2024 and an updated methodology was implemented inline with DCE Policy 23-02 Delinquent Account, Collections and Bad Debt.

Vendor has not been able to invoice for or deliver Renewable Energy Certificates (RECs) due to WREGIS system outage.

The net loss demonstrated in the first quarter is partly due to the timing of energy purchases compared to when the costs were budgeted and will offset in a future quarter. Additionally, some costs actualized higher than budgeted. Another contributing factor is that DCE had less usage than budgeted in the first quarter as well its implementation of a rate decrease.
4 Desert Community Energy
Unaudited Changes to Net Position Prev Year Comparison
July through September 2024
Jul - Sep 24 Jul - Sep 23 $ Change % Change
Ordinary Revenue/Expense
Revenue
5010 · Electricity Sales 29,631,335.40 29,144,524.42 486,810.98 1.67% 5100 · Other Revenue 238,574 375,610 (137,036) (36.48%) Total Revenue 29,869,910 29,520,135 349,775 1.19%
Expense
4100 · Cost of Electricity
4105 · Electricity Purchase 17,275,370 18,699,780 (1,424,410) (7.62%) 4110 · Resource Adequacy Settlement 5,229,399 1 3,790,295 1,439,105 37.97% 4115 · Low Carbon Settlement 2,721,870 2 (6,267) 2,728,137 43,530.95% 4120 - Renewable Energy Cr. Settlement 1,913,549 - 1,913,549 100.0% 4125 · Market Charges 1,709,478 1,122,401 587,077 52.31% 4175 · CPUC YARA Penalty 1,750,159 650,105 1,100,054 169.21% Total 4100 · Cost of Electricity 30,599,825 24,256,313 6,343,511 26.15% 4200 · Accounting / Bank Services 526 35 491 1,410.03%
4353 · Insurance 2,011 2,147 (136) (6.34%)
4425 · Legal Services 11,816 45,450 (33,635) (74.0%)
4431 · Professional Services 129,490 28,522 100,968 354.0% 4432 · Consultants 586,875 654,583 (67,708) (10.34%)
4433 · Outreach Services 2,514 7,709 (5,195) (67.39%)
4435 · Technology Costs (IT) 1,564 1,312 252 19.22%
4440 · Postage 4,247 4,669 (422) (9.04%)
4441 · Printing 2,864 4,467 (1,603) (35.89%)
4452 · Marketing 3,503 743 2,761 371.8%
4455 · Customer Programs 1,628 - 1,628 100.0%
4500 · Registrations/Memberships 21,895 23,861 (1,966) (8.24%) 4750 · Bad Debt Expense 568,229 874,338 (306,109) (35.01%) Total Expense 31,936,986 25,904,149 6,032,837 23.29%
Net Ordinary Revenue (2,067,076) 3,615,986 (5,683,062) (157.17%) Other Revenue/Expense
Other Revenue
5900 · Investment Revenue 275,214 59,313 215,902 364.01% 5925 · Gain/(Loss) in Investments 36,828 - 36,828 100.0% Total Other Revenue 312,042 59,313 252,730 426.1%
Net Other Revenue 312,042 59,313 252,730 426.1%
Net Revenue (1,755,034) 3 3,675,299 (5,430,333) (147.75%) 1 The net loss demonstrated in the first quarter can be partially attributed to the timing of DCE's first quarter coinciding with when energy procurement is most voluminous and costly. These costs are expected to lessen in future quarters. It can also be attributed to the increased cost and amount of resource adequacy and renewable products needed for DCE to operate and maintain complainant in a stringent regulatory environment. DCE staff are monitoring this closely and will present any suggested budget amendments at a future meeting once the second quarter of fiscal year 2024-2025 is closed. 3 Costs for resource adequacy products have increased in fiscal year 2024-2025 in addition to DCE procuring more products in an effort to achieve compliance with CPUC regulations.

Costs for renewable products have increased in fiscal year 2024-2025 in addition to DCE procuring more products to be compliant with California renewable portfolio standards. 2 Desert Community Energy
Unaudited Changes to Net Position Budget vs. Actual
July through September 2024
Jul - Sep 24 Budget $ Over Budget % of Budget
Ordinary Revenue/Expense
Revenue
5010 · Electricity Sales 29,631,335 1 34,113,339 (4,482,004) 86.86% 5100 · Other Revenue 238,574 - 238,574 100.0%
Total Revenue 29,869,910 34,113,339 (4,243,429) 87.56%
Expense
4100 · Cost of Electricity
4105 · Electricity Purchase 17,275,370 15,477,481 1,797,889 111.62% 4110 · Resource Adequacy Settlement 5,229,399 2 3,440,592 1,788,807 151.99% 4115 · Low Carbon Settlement 2,721,870 3 - 2,721,870 100.0% 4120 - Renewable Energy Cr. Settlement 1,913,549 4 - 1,913,549 100.0% 4125 · Market Charges 1,709,478 304,572 1,404,906 561.27% 4175 · CPUC YARA Penalty 1,750,159 - 1,750,159 100.0%
Total 4100 · Cost of Electricity 30,599,825 19,222,645 11,377,180 159.19% 4200 · Accounting / Bank Services 526 - 526 100.0%
4353 · Insurance 2,011 2,220 (209) 90.59%
4425 · Legal Services 11,816 30,000 (18,185) 39.39%
4431 · Professional Services 129,490 45,209 84,281 286.43% 4432 · Consultants 586,875 606,974 (20,099) 96.69%
4433 · Outreach Services 2,514 11,430 (8,916) 21.99%
4435 · Technology Costs (IT) 1,564 1,575 (11) 99.33%
4440 · Postage 4,247 3,750 497 113.26%
4441 · Printing 2,864 3,063 (199) 93.49%
4452 · Marketing 3,503 1,000 2,503 350.31%
4455 · Customer Programs 1,628 37,500 (35,872) 4.34%
4500 · Registrations/Memberships 21,895 70,125 (48,230) 31.22% 4750 · Bad Debt Expense 568,229 5 1,023,399 (455,170) 55.52% Total Expense 31,936,986 21,058,890 10,878,096 151.66%
Net Ordinary Revenue (2,067,076) 13,054,449 (15,121,525) (15.83%) Other Revenue/Expense
Other Revenue
5900 · Investment Revenue 275,214 232,023 43,191 118.62% 5925 · Gain/(Loss) in Investments 36,828 - 36,828 100.0% Net Other Revenue 312,042 232,023 80,019 134.49%
Net Revenue (1,755,034) 6 13,286,472 (15,041,506) (13.21%) Desert Community Energy
Unaudited Changes to Net Position Budget vs. Actual
July through September 2024
1 2
3 4
5 $2.6 million of carbon free energy costs budgeted in the second quarter of fiscal year 2024-2025 were actually expended in the first quarter.

The net loss demonstrated in the first quarter is partly due to the timing of energy purchases compared to when the costs were budgeted and will offset in a future quarter. Additionally, some costs actualized higher than budgeted. Another contributing factor is that DCE had less usage than budgeted in the first quarter as well its implementation of a rate decrease. DCE staff are monitoring this closely and will present any suggested budget amendments once the second quarter of fiscal year 2024-2025 is closed. 6 Variance primarily driven by usage being less than budgeted as well as a rate decrease for customers which not originally budgeted.

Calendar year 2024 Market Price Benchmarks increased for certain resource adequacy products from $15.23 budgeted to $26.26; final figures available in late December 2024 and will also affect calendar year 2025 amounts. Additionally, certain resource adequacy costs budgeted in the second quarter of fiscal year 2024-2025 were actually expended in the first quarter.

Accrued costs increased based on calendar year 2024 Market Price Benchmarks increasing for certain renewable products from $30.30 at budget to $54.56; final figures available in late December 2024 and will also affect calendar year 2025 amounts. In addition, a contractual sale of renewable energy from DCE's portfolio was inadvertently budgeted as a negative expense of about $3.8 million which will be realized as revenue to DCE expected in the third quarter of fiscal year 2024-2025.

Reduction in bad debt expense partially due to resumption of pre-Covid dunning processes by SCE as DCE's billing agent as well as to closed accounts being written off at the end of fiscal year 2023-2024 and updated methodology inline with DCE Policy 23-02 Delinquent Account, Collections and Bad Debt.

Carrying % of Fair Market % of Annual
Description Amount Total Value Total %age Yield

CASH AND INVESTMENTS UNDER THE DIRECTION OF DCE
River City Bank - Operating 199,293 $ 0.76% 199,293 $ 0.76% N/A River City Bank - DDM Marketplace Sweep 2,106,054 $ 8.04% 2,106,054 $ 8.04% 4.65% River City Bank - Lockbox 3,030,038 $ 11.57% 3,030,038 $ 11.57% N/A River City Bank - Money Market 405,748 $ 1.55% 405,748 $ 1.55% 2.28% River City Bank - Stand-by FSR Letter of Credit 147,000 $ 0.56% 147,000 $ 0.56% N/A Local Agency Investment Fund (LAIF) 6,307,410 $ 24.09% 6,320,410 $ [a] 24.13% 4.58%

CASH AND INVESTMENTS HELD IN TRUST BY DCE
CAMP 13,986,610 $ 53.43% 13,986,610 $ 53.39% 5.08%
Overall Total $ 100.00% 26,195,153 26,182,153 $ 100.00% Note:

DCE's investment portfolio indicates its ability to meet its foreseeable liquidity requirements.

Duly submitted by:

Claude T. Kilgore, CPA
Director of Finance

DESERT COMMUNITY ENERGY

INVESTMENT REPORT
FOR SEPTEMBER 30, 2024
[a] Source of Market Values - LAIF, State of California Pooled Money Investment Account Market Valuation - September 2024. Paper Gain/(Loss) was 0.206%. Fair market value includes accrued interest.

ITEM 8D
Desert Community Energy Board
December 9, 2024

STAFF REPORT
Subject: Palm Springs Home Energy Efficiency Reach Code Contact: David Freedman, Program Manager ([email protected]) Recommendation: Information
Background: DCE is staffed through the Coachella Valley Association of Governments (CVAG), which is separately a partner in a two-county program called the Inland Regional Energy Network (I-REN). Through IREN’s Codes & Standards Program, staff has been providing technical assistance to the City of Palm Springs Office of Sustainability on a draft ordinance that would require older single-family homes that are undergoing additions, alterations, or remodels to make certain targeted upgrades, where applicable and feasible, to bring them closer to the provisions of the 2022 California Energy Code. The ordinance is also tailored to the requirements of the 2025 California Energy Code. This ordinance, which is still under consideration by the City of Palm Springs, could ultimately serve as a model for the entire region.

The Warren-Alquist Act authorizes the California Energy Commission (CEC) to adopt rules and regulations, as necessary, to reduce the inefficient consumption of energy and water in newly constructed buildings and certain additions and alterations to existing buildings. One of the ways the CEC satisfies this requirement is through the California Building Energy Efficiency Standards, also known as the California Energy Code. The Energy Code includes all the energy efficiency requirements applicable to newly constructed buildings and additions and alterations to existing buildings.

As a portion of the California Building Code (Title 24), the Energy Code (Title 24, Part 6) is maintained and updated every three years by the CEC and the Building Standards Commission (BSC). The CEC is required to adopt or revise standards that shall be cost-effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. The 2022 California Energy Code went into effect on January 1, 2023. The CEC adopted the 2025 California Energy Code on September 11, 2024, and the BSC is expected to formally approve it in December 2024 or January 2025, to be effective on January 1, 2026.

Homes in CVAG’s region have been built over the years to meet the applicable Energy Codes, which were first put in place in 1978. Since then, new homes have gotten healthier and more efficient while some existing homes, particularly those built before 2011, have been left behind.

The work underway by CVAG staff and the City of Palm Springs aims to address this dichotomy.

The Palm Springs City Council and Sustainability Commission directed City staff to investigate such an ordinance as part of the City’s 2021 Climate Action Roadmap. This ordinance would be a “reach code” for the City, essentially a local building energy code that “reaches” beyond the state minimum requirements for energy use in building design and construction. In addition to the triennial Energy Code updates, the CEC encourages local governments to adopt energy efficiency standards exceeding the Energy Code. The CEC considers that these jurisdictions are living laboratories for a clean energy future, reduce state greenhouse gas (GHG) emissions and lead from the grassroots.

Local governments are required to apply to the CEC for approval of a reach code. Under Section 10-106 of the Energy Code, local governments adopting reach codes must demonstrate that the requirements of the proposed ordinance are cost-effective, and the application must include the basis of the local government’s determination that its standards are cost-effective. The CEC must find that the local standards will require buildings to be designed to consume no more energy than permitted by the Energy Code. CEC staff reviews the application to confirm these criteria are met and makes a recommendation for CEC approval based on the findings. The CEC has recently approved existing home energy efficiency reach codes for Marin County, the City of San Luis Obispo and the Town of Corte Madera. Following approval from the CEC, the ordinance must be filed with the BSC to be legally enforceable.

In addition to state legal requirements, in line with a 2023 decision from the Ninth Circuit Court of Appeals in the California Restaurant Association v. Berkeley case, a reach code must not be preempted under the federal Energy Policy and Conservation Act. Under this Act, a reach code may not require the use of appliances that exceed federal standards.

Enacting a reach code that requires upgrades at the point of renovation or alteration is one of the few ways to improve energy efficiency and reduce carbon output of existing buildings. As a result of the upgrades, these homes can expect lower energy bills, a more comfortable house that is better adapted to extreme heat, and a lower carbon footprint. Community-wide GHG emissions and energy consumption would also be reduced.

Palm Springs’ Proposed Ordinance Requirements
Because newer homes have already been built to meet more recent Energy Codes, the proposed Palm Springs ordinance covers single-family homes and duplexes built in Palm Springs before 2011 that are doing additions, alterations or remodels that trigger the need for a building permit.

Potential examples of what projects would need to comply are:
• Adding square footage;
• Adding windows and doors;
• Moving interior walls;
• Reroofing;
• Electric panel upgrades;
• Kitchen, bath or laundry room remodels;
• Modification or replacement of heating, ventilation and air conditioning; and • Solar PV (photovoltaics) or thermal installation
Other projects, including repairs to existing equipment, accessory dwelling units and projects in mobile or manufactured homes, would not trigger this requirement. Residents who receive income-based discounted rates for electricity would be exempt from the ordinance’s requirements.

Based on the type and value of the building permit and year in which the home was built, different energy saving measures would be required. LED lighting and photosensors would be required (if not already installed) regardless of permit value. Qualifying projects having a permit value of at least $10,000 would also be required to install the water heating package, consisting of hot water pipe insulation and shower and sink fitting upgrades. In addition to those required measures, residents will have flexibility of which additional measures they want to combine.

Measures fall roughly into two categories: energy efficiency and reduction in fossil fuel use.

Efficiency and fossil fuel reduction measures will improve thermal comfort in the buildings, improve indoor air quality, and save money over time. Cost-effectiveness is based on the 2022 Cost-effectiveness Study: Existing Single Family Building Upgrades prepared for the California Codes and Standards Reach Codes program of the State’s three investor-owned utilities. Data specific for Climate Zone 15, which covers all of CVAG’s region, are derived from the program’s online Cost-Effectiveness Explorer and are attached to this staff report.

The Cost-Effectiveness Explorer produces a target metric that represents a user-defined fraction of the total site energy savings for all cost-effective retrofit measures – the Target Score. The Explorer also produces a table of all available measures, including those that are not cost-effective, that are weighted using the same site energy metric. Using these values, specific to each home vintage, an applicant may install any combination of efficiency, solar and electrification measures that meet or exceed the target value. The study supports separate Target Scores for three different vintages, all of which are pre-2011.

Next Steps
The Palm Springs Sustainability Commission unanimously approved the proposed ordinance at its Nov. 19 meeting. It is now under review and consideration by the Agua Caliente Band of Cahuilla Indians (ACBCI) Indian Planning Commission and Tribal Council pursuant to the ACBCI’s land use agreement with the City of Palm Springs. Following that, the proposed ordinance is expected to go to City Council in early 2025. Following that adoption, Palm Springs will begin the steps necessary for CEC approval.

The CEC generally approves reach code ordinances within 60 days of receiving a complete filing package from the adopting jurisdiction. Staff is working closely with the Office of Sustainability to consider how DCE can support this important initiative for the City of Palm Springs to reduce its GHG emissions, such as incentives for homeowners who carry out qualifying energy efficiency upgrades. Once the CEC has approved the Palm Springs ordinance, CVAG staff will return to the CVAG Energy & Sustainability Committee with an update and consideration of a model ordinance for CVAG’s region. Separately, any opportunities for DCE’s financial support of the reach code, such as incentives, would come back to the DCE Board for approval.

Fiscal Analysis: There is no cost to DCE for this informational update. Staff time dedicated to I-REN is covered through the I-REN budget.

Attachments:

1. Palm Springs Ordinance Framework Summary

2. Cost-Effectiveness Results Summary – Palm Springs / Climate Zone 15