CEO Report, Oct. 6 2025
Solar and wind PPA prices continue to rise, and full impacts of Federal policies are not even reflected in the market yet… Wind PPAs in Q2 2025:
+ 9.7% from Q2 2024
+ 160% from Q2 2020
Solar PPAs in Q2 2025:
+ 9.6% from Q2 2024
+ 109% from Q2 2020
2 2025 Wind and Solar PPAs are more than double 2020 prices…without tariffs and tax credit phaseouts.
Source: LevelTen North American Continental PPA Price Index, Q2 2025. 3 0.11%
-4.19% -3.61%
-0.71%
0.53%
-3.31%
6.45% 5.51%
12.88%
-14.20%
11.58%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
$0
$100
$200
$300
$400
$500
$600
$700
$800
2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Millions
Cost of Energy: Budget vs Actuals
Budgeted Cost of Energy Actual Cost of Energy % Variance Reminder: Cost of Energy Budget Vs Actuals
Looking Back: Slide from Nov. 2024 Pro Forma Update
Renewable Energy Pricing Trends
• Renewable energy pricing has
significantly increased in past two years
with prices up 20% since time of budget
• Forward contracts dampen budgetary
impact, but experiencing higher prices
for recent/new contracts
• Price increases impact PG&E VAMO
contract with variable pricing terms
4 $19.00
$38.00
$75.00
$90.00
$0
$20
$40
$60
$80
$100
Jan 2023 May 2023 May 2024 September 2024
PCC1 Renewable Energy Prices ($/MWh)
PG&E VAMO Contract
• Voluntary Allocation and Market Offer (VAMO) contract provides MCE with approximately 850,000 MWh of PCC1 renewable energy in 2024 • Price is set at the market price benchmark (MPB) published by the CPUC • Forecast MPB published in October 2023 was used for initial 2024 invoices • Final MPB published in October 2024 will be used for remaining 2024 invoices and to true-up initial invoices
• Final price is $54.56 per MWh vs. initial price of $31.74 • Will result in $12 to $15 million fiscal impact in FY 24/25 5 Looking Back: Slide from Nov. 2024 Pro Forma Update
Planned Cost of Energy Increase: $100M
• Cost of Energy represents 94% of MCE’s operating budget • Increase in budgeted cost of energy by $100M due to:
$77M: Increased cost of PCC1 renewable energy
$13M: Regulatory change to account for line losses
$10M: Addition of Hercules
• Board requested more optimistic planning for cost of energy given 14% more positive results in prior fiscal year
6 Looking Back: March 2025 Budget Approval
Unplanned Cost of Energy Variance: $76M
$191.0
VAMO Price Adjustments
Early Deliveries
Long Positions
$0
$50
$100
$150
$200
$250
$300
FY 2024/25 Actual FY 2024/25 Budget
Millions
$266.7
{
$75.7
$24.4
$36.4
$15.0
7 Looking Back: August 2025 Budget Results
Are MCE’s Results an Outlier?
• All market participants face volatility
• MCE’s Finance Department performs an annual internal
assessment of CCA financials
• CCAs have fiscal years that begin and end on different months • There is a 3-5 month lag in receiving audited statements after fiscal year close
• So far in 2025, MCE is the only CCA with audited results • Unaudited statements are unreliable due to data lags and reliance on estimates and projections from the past trends Total Net Position FY 2023/24
9 $535
$485
$404
$375
$349
$328
$230 $218
$178
$136
$63
$45 $35
$(17) -$20
$180
$380
$580
AVA Silicon Valley
Clean Energy
MCE San Diego
Community
Power
Peninsula
Clean Energy
Clean Power
Alliance
Sonoma Clean
Power
3CE Clean Power
SF
Pioneer
Community
Energy
Valley Clean
Energy
Orange
County Power
Authority
Desert
Community
Energy
Clean Energy
Alliance
Millions
Total Net Position
FY 2023/24
PG&E SDG&E SCE
CCA 2 CCA 3 MCE CCA 1 CCA 7 CCA 4 CCA 8 CCA 13 CCA 6 CCA 5 CCA 9 CCA 11 CCA 10 CCA 12 Days Cash on Hand
FY 2023/24
10 517
446
421
321 307 300
277
236
209
137 134 127
99 (30)
250
-40
100
240
380
520
Sonoma
Clean Power
Silicon Valley
Clean Energy
Peninsula
Clean Energy
Valley Clean
Energy
Pioneer
Community
Energy
AVA MCE Desert
Community
Energy
Clean Power
SF
3CE Clean Power
Alliance
San Diego
Community
Power
Orange
County Power
Authority
Clean Energy
Alliance
Number of Days
Days Cash on Hand
FY 2023/24
Days Cash on Hand Average
Average
CCA 8 CCA 3 CCA 7 CCA 9 CCA 5 CCA 2 MCE CCA 10 CCA 6 CCA 13 CCA 4 CCA 1 CCA 11 CCA 12 11 Probability of Default by S&P Metrics
0.110%
CCA 12, 4.72%
LAWP, 1.86%
CCA 5, 0.34%
CCA 13, 0.16% CCA 6, 0.15%
SDGE&E, 0.12%
CCA 11, 0.10%
PG&E, 0.09%
SMUD, 0.08%
CCA 4, 0.03%
CCA 1, 0.02%
CCA 2, 0.02%
CCA 7, 0.01%
CCA 8, 0.0092%
MCE, 0.0092%
CCA 3, 0.0055%
CCA 9, 0.0030%
SCE, 0.00%
CCA 10, 0.0011%
0.001%
0.010%
0.100%
1.000%
10.000%
100.000%
Clean
Energy
Alliance
LAWP Pioneer
CE
3CE Clean
Power SF
SDGE&E OCPA PG&E SMUD CPA SDCP AVA PCE SCP MCE SVCE VCE SCE Desert CE U.S. Electric
Utilities Median
https://mcecleanenergy.org/
MCE Financial Documents
12 Cost of Energy, Electricity Sales,
and Net Energy Revenue
13 FY 2023/24 Electricity Sales, net Cost of Energy Net Energy Revenue CCA 1 1,252,788,000 1,047,553,000 205,235,000
CCA 2 892,320,000 707,476,000 184,844,000
CCA 3 530,672,000 361,542,000 169,130,000
MCE 730,345,000 571,405,000 158,940,000
CCA 4 1,354,775,000 1,219,547,000 135,228,000
CCA 6 366,594,000 284,631,000 81,963,000
CCA 5 221,505,000 150,016,000 71,489,000
CCA 7 374,203,000 325,171,000 49,032,000
CCA 8 216,890,000 176,729,000 40,161,000
CCA 9 97,906,000 64,723,000 33,183,000
CCA 10 69,700,000 51,451,000 18,249,000
CCA 11 337,084,000 321,916,000 15,168,000
CCA 12 198,067,000 197,130,000 937,000
CCA 13 544,358,000 547,248,000 (2,890,000)
CCA Renewable Energy Offers
FY 2024/25
14 CCA Default service Opt - up offer 100% Renewable
CCA B 62% 100%
MCE 60% 100%
CCA 6 60% 100%
CCA 8 51% 100%
CCA 10 51% 100%
CCA 7 50% 100%
CCA 12 50% 100%
CCA 3 50% 100%
CCA 11 47% 55% 100%
CCA 1 45% 50% 100%
CCA 9 42% 100%
CCA 4 40% 50% 100%
CCA 5 39% 100%
CCA 13 30% 100%
Net Gain Margin %
FY 2023/24
15 30.1%
28.5%
27.5%
22.8%
19.7%
18.4%
16.5%
15.0%
10.3%
9.1%
7.1%
1.7%
-3.2% -4.4%
14.2%
-5%
5%
15%
25%
35%
Silicon Valley
Clean Energy
Pioneer
Community
Energy
Valley Clean
Energy
Desert
Community
Energy
MCE AVA Clean Power
SF
San Diego
Community
Power
Sonoma
Clean Power
Peninsula
Clean Energy
Clean Power
Alliance
Orange
County
Power
Authority
Clean Energy
Alliance
3CE
Percentage
Net Gain Margin %
FY 2023/24
Average
*Percent shows how effective a CCA is at turning a
dollar in sales revenue into net gain.
CCA 3 CCA 5 CCA 9 CCA 10 MCE CCA 2 CCA 6 CCA 1 CCA 8 CCA 7 CCA 4 CCA 11 CCA 12 CCA 13 Change in Net Position
FY 2023/24
16 $189
$173
$161 $160
$106
$63 $60
$42
$29 $27
$16
$6
$(6)
-$30 $(24)
$26
$82
$138
$194
San Diego
Community
Power
AVA Silicon
Valley Clean
Energy
MCE Clean
Power
Alliance
Pioneer
Community
Energy
Clean
Power SF
Peninsula
Clean
Energy
Sonoma
Clean
Power
Valley Clean
Energy
Desert
Community
Energy
Orange
County
Power
Authority
Clean
Energy
Alliance
3CE
Millions
Change in Net Position
FY 2023/24
CCA 1 CCA 2 CCA 3 MCE CCA 4 CCA 5 CCA 6 CCA 7 CCA 8 CCA 9 CCA 10 CCA 11 CCA 12 CCA 13 CCAs Sorted by Change in Net Position
FY 2023/24
17 CCA Change in Net Position Customer Accounts Load (GWh) CCA 1 $ 189,371,000 954,000 7,961
CCA 2 $ 172,677,000 644,000 6,681
CCA 3 $ 160,661,000 281,000 3,965
MCE $ 159,513,000 587,000 5,644
CCA 4 $ 106,107,000 1,044,000 10,719
CCA 5 $ 63,383,000 171,000 1,841
CCA 6 $ 60,489,000 384,000 2,872
CCA 7 $ 41,575,000 314,000 3,429
CCA 8 $ 28,659,000 231,000 2,185
CCA 9 $ 26,981,000 62,000 673
CCA 10 $ 15,872,000 33,000 403
CCA 11 $ 6,328,000 205,000 2,388
CCA 12 $ (6,428,000) 247,000 1,868
CCA 13 $ (23,705,000) 447,000 4,817
Total Deferred Revenue
FY 2023/24
18 $135
$80
$70 $68
$56
$45
$0
$25
$50
$75
$100
$125
$150
Clean Power Alliance AVA MCE Peninsula Clean Energy Sonoma Clean Power Orange County Power Authority Millions
Total Deferred Revenue
FY 2023/24
11%
11%
11% 19%
28%
22%
% = percentage of COGS + OPEX
CCA 4 CCA 2 MCE CCA 7 CCA 8 CCA 11
CCA Average KPIs
FY 2023/24
19 CCA
Average MWh
Revenue
Average MWh
Cost
Average MWh
Gross Gain
Average MWh
Operating Gain
Average MWh
Net Gain
CCA 10 $ 172.95 $ 127.67 $ 45.28 $ 38.17 $ 39.38
CCA 1 $ 158.82 $ 131.59 $ 27.23 $ 22.82 $ 23.79
CCA 9 $ 145.59 $ 96.17 $ 49.41 $ 38.68 $ 40.09
CCA 11 $ 141.16 $ 134.81 $ 6.35 $ 1.81 $ 2.65
CCA B $ 136.14 $ 105.89 $ 30.24 $ 24.00 $ 25.85
MCE $ 136.03 $ 101.24 $ 34.79 $ 25.57 $ 28.26
CCA 3 $ 134.80 $ 91.18 $ 43.62 $ 34.63 $ 40.52
CCA 6 $ 127.64 $ 99.11 $ 28.54 $ 19.18 $ 21.06
CCA 4 $ 126.56 $ 113.77 $ 12.78 $ 8.94 $ 9.90
CCA 5 $ 120.64 $ 81.49 $ 39.15 $ 32.90 $ 34.43
CCA 7 $ 113.33 $ 94.83 $ 18.50 $ 7.81 $ 12.12
CCA 13 $ 113.03 $ 113.61 $ (0.58) $ (7.59) $ (4.92)
CCA 12 $ 106.03 $ 105.53 $ 0.50 $ (2.77) $ (3.44)
CCA 8 $ 101.11 $ 80.88 $ 20.22 $ 8.88 $ 13.12
Net Energy Revenue
Three-year YoY Progression
20 $64 $59
$26
$7
$19
$152
$125
$60
$159
$84
$185
$169
$159
$49
$40
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
AVA SVCE MCE PCE SCP
Millions
FY 2021/22 FY 2022/23 FY 2023/24
CCA 3 MCE CCA 7 CCA 8
+$99
Net Energy Revenue = Electricity Sales – Cost of Energy CCA 2
MCE +99
CCA 3 +44
CCA 2 +33
CCA 8 -44
CCA 7 -110
-$150
-$100
-$50
$0
$50
$100
$150
Millions
Net Energy Revenue Change
FY 2022/23 – FY 2023/24, One-year YoY change
21 • MCE’s net energy revenue rose by $99 Million from FY 2022/23 to FY 2023/24. The largest increase among Bay Area CCAs.
mceCleanEnergy.org
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Service Area Expansion since 2020
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