MCE Finance Committee Meeting
Monday, February 9, 2026
12:00 p.m.
Belvedere City Hall, 450 San Rafael Ave, Small Conference Room, Belvedere, CA 94920 (Belvedere) Lafayette Park Hotel, 3287 Mount Diablo Blvd, Lafayette, CA 94549 (Lafayette) Larkspur City Hall, 400 Magnolia Ave, Larkspur, CA 94939 (Larkspur) Napa County Administration Building, 1195 Third Street, Ste. 310, Napa, CA 94558 (Napa County) Public comments may be made in person or remotely via the details below.
Remote Public Meeting Participation
Video Conference: https://t.ly/tKNon
Phone: Dial (669) 900-9128, Meeting ID: 839 1108 1030, Passcode: 167504 Materials related to this agenda are available for physical inspection at MCE’s offices in San Rafael at 1125 Tamalpais Avenue, San Rafael, CA 94901 and in Concord at 2300 Clayton Road Suite 1500, Concord, CA 94520.
DISABLED ACCOMMODATION: If you are a person with a disability who requires an accommodation or an alternative format, please contact MCE at (888) 632-3672 or [email protected] at least 72 hours before the meeting start time to ensure arrangements are made.
Agenda Page 1 of 2
1. Roll Call/Quorum
2. Selection of Committee Chair (Discussion/Action)
3. Board Announcements (Discussion)
4. Public Open Time (Discussion)
5. Report from Chief Operating Officer (Discussion)
6. Select Standing Meeting Date, Time, Location, and Cadence (Discussion/Action) Agenda Page 2 of 2
7. Proposed Fiscal Year 2026/27 Budget Elements (Discussion)
8. MCE Quarterly Treasurer’s Report and Monthly Investment Report for December 2025 (Discussion)
9. Discuss Committee Expectations (Discussion)
10. Committee & Staff Matters (Discussion)
11. Adjourn
The Finance Committee may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the items are described.
2026 MCE Board Offices and Committee Rosters
BOARD OFFICES
Chair: Shanelle Scales-Preston, County of Contra Costa
Vice Chair: Cindy Darling, Walnut Creek
Treasurer: Maira Strauss, MCE Chief Financial Officer
Secretary: Dawn Weisz, MCE Chief Executive Officer
BOARD OFFICES SELECTION PROCESS
The Chair and Vice Chair offices are held for 1 year and there are no limits on the number of terms held by either Chair or Vice Chair.1 The selection of these offices shall take place in or near December of each year.2 The office of Treasurer is appointed by the Board via an approved resolution and may be a non-board member. The Treasurer appointment, along with the delegated authority, is held for 1 year and there are no limits on the number of terms held.3 Deputy Treasurers are appointed directly by the Treasurer each year. Once appointed by the Board, the Secretary shall continue to hold the office each year until the Secretary chooses to resign from the role or the Board decides to remove the individual from the Secretary position.4 The Secretary does not need to be a member of the Board. All officer appointments/selections by the Board require a majority vote of the full membership of the Board.5
EXECUTIVE COMMITTEE (Updated 2.2.26)
1. Barbara Coler, Chair
2. Stephanie Andre
3. Kari Birdseye
4. Cindy Darling
5. Maika Llorens Gulati
6. Devin Murphy
7. Laura Nakamura
8. Beth Painter
9. Max Perrey
10.Shanelle Scales-Preston
11.Sally Wilkinson
Town of Fairfax
City of Larkspur
City of Benicia
City of Walnut Creek
City of San Rafael
City of Pinole
City of Concord
City of Napa
City of Mill Valley
County of Contra Costa
City of Belvedere
1 Section 4.13.1 of MCE Joint Powers Agreement.
2 Article V, Section 1 of MCE’s Operating Rules and Regulations. 3 Article V, Section 1 of MCE’s Operating Rules and Regulations; California Government Code § 53607. 4 Article IV, Section 1(c) of MCE’s Operating Rules and Regulations. 5 Article VI, Section 2 of MCE’s Operating Rules and Regulations. At MCE’s current membership of 38 communities with appointed Directors, the vote needed is 20.
FINANCE COMMITTEE (Updated 1.15.26)
1. Liz Alessio, interested in Chair
2. Stephanie Andre
3. John McCormick
4. Charles Palmares
5. Sally Wilkinson
Napa County6
City of Larkspur
City of Lafayette
City of Vallejo
City of Belvedere
TECHNICAL COMMITTEE (Updated 1.15.26)
1. Devin Murphy, Chair
2. Stephanie Andre, Vice Chair
3. Dion Bailey
4. John McCormick
5. Charles Palmares
6. Amanda Szakats
7. Cesar Zepeda
City of Pinole
City of Larkspur
City of Hercules
City of Lafayette
City of Vallejo
City of Pleasant Hill
City of Richmond
2026 AD HOC CONTRACTS COMMITTEE (Updated 1.15.26)
1. Barbara Coler
2. Devin Murphy
Town of Fairfax
City of Pinole
2026 AD HOC GOVERNANCE COMMITTEE (Updated 1.15.26)
1. Liz Alessio
2. Kari Birdseye
3. Mary Sackett
4. Shanelle Scales-Preston
Napa County and Four Napa Cities
City of Benicia
County of Marin
Contra Costa County
6 The Board approved a Finance Committee consisting of 5 to 7 Board representatives. If Director Alessio were to participate in her capacity as the delegate for four Napa Cities, the Finance Committee would effectively have 9 Board representatives, more than the 7 approved by the Board, and Director Alessio would constitute a quorum by herself, raising Brown Act compliance challenges. Given the current size of the Finance Committee, we construe the Board to have appointed Director Alessio to the Committee solely in her capacity as the MCE Board representative for Napa County.
February 9, 2026
TO: MCE Finance Committee
FROM: Maira Strauss, Chief Financial Officer and Treasurer Efren Oxlaj, Manager of Finance
RE: Proposed Fiscal Year 2026/27 Budget Elements (Agenda Item #07) ATTACHMENT: Presentation Proposed FY 2026/27 Budget Elements Dear Finance Committee Members:
Summary:
This report provides a preliminary overview of the Proposed Budget elements of MCE’s Operating Fund, Program Development, Resiliency Virtual Power Plant, and Energy Efficiency Fund for Fiscal Year (FY) 2026/27. The figures provided include initial estimates for energy revenue, cost of energy, operating expenses, and non-operating revenues and expenses. Projected program expenses are also shown. These figures are intended to support early Board discussion. They will be refined and presented in greater detail in the upcoming Budget Workshop on February 11, 2026. Projections shown should be viewed as high-level directional estimates only. Refinement is expected as updated procurement forecasts, rate modeling, and departmental budgets are finalized.
Background:
MCE’s fiscal year runs from April 1st through March 31st. Before the beginning of every fiscal year, staff present budgets to the Executive Committee and Board of Directors for consideration. MCE currently has four funds. The Operating Fund Budget captures activities related to MCE's core functions including sales of electricity, cost of energy, operating expenses, non-operating revenues and expenses, and capital outlay. Staff work with internal subject matter experts and external technical consultants to prepare forecasts for energy revenue and cost of energy. Staff also work with department heads to forecast operating expenses. The Program Development Fund is funded by 50% of the Deep Green premium, grants, and additional transfers from the Operating Fund, subject to your Board’s approval. This fund allows MCE to run several transportation electrification programs that help customers adopt electric vehicles (EVs) and install charging stations at workplaces and multifamily residences. Other electrification programs are also supported by this fund. The Resiliency Virtual Power Plant Fund focuses on scaling MCE’s virtual power plant efforts and customer energy storage. This fund may also include grants and Board approved transfers from the Operating Fund. Lastly, the Energy Efficiency Budget is entirely funded by the California Public Utilities Commission for energy efficiency programs.
A key decision for FY 2026/27 will involve selecting among five rate options, each with implications for energy revenue, cost of energy, and withdrawals from MCE’s Operating Reserve Fund (ORF) which currently holds $70 million in deferred income. Under the options being presented, the projected budget for operating, non-operating revenues, and program expenses remains the same.
However, the change in net position for the fiscal year will depend on which scenario your Board selects, as each reflects different revenue assumptions and energy cost projections. For further analysis and impact on customer bills for the options being presented, please see the Rate Reduction Proposals staff report in the February 2, 2026, Executive Committee packet.
Energy Revenue, Net
Energy revenue captures income generated from sales of electricity to customers. Electricity consumption is forecasted based on MCE’s customer accounts, incorporating historical usage, weather patterns and applicable rates. Actual revenue may vary depending on future weather conditions, customer behavior, and broader economic trends. For FY 2026/27, load forecasts have been adjusted downward to align with the mild summer weather observed during the last two summers in MCE’s service area.
For FY 2026/27, energy revenue will vary based on the rate scenario selected by your Board. All figures presented are net of uncollectible amounts, which are forecasted at 1.2% of sales based on customer payment data, and assume stable customer participation.
Status Quo: $772,440,000 (5.1% decrease from FY 2025/26 Approved Budget1 )
Under the status quo, MCE would maintain its current rate structure for the coming fiscal year.
Energy revenue would decline by $41.2 million year over year compared with the current Approved Budget. The decline reflects the downward adjustment to load forecasts mentioned above. This would generate sufficient energy revenue to pay for the cost of energy and other expenses. No withdrawals from the Operating Reserve Fund (ORF) would be required to generate a positive change in net position.
Rate Option 1: $683,373,000 (16.0% decrease from FY 2025/26 Approved Budget) Under Option 1, MCE would reduce its generation rate by 1.73¢/kWh or 12%. Energy revenue would decline by $130.3 million year over year compared with the current Approved Budget. Revenue would be set equal to MCE’s projected total expenses to achieve a break-even change in net position. No withdrawal from the ORF would be needed. 1 The FY 2025/26 Approved Budget includes a $13 million ORF withdrawal. The year over year percent change is calculated on the amount before the ORF withdrawal to highlight the revenue shortfalls tied to the rate options.
Rate Option 2: $668,919,000 (17.8% decrease from FY 2025/26 Approved Budget) Under Option 2, MCE would reduce its generation rate by 2¢/kWh or 14%. Energy revenue would decline by $144.8 million year over year compared with the current Approved Budget.
A withdrawal of $14.5 million from the ORF would be required to generate a break-even change in net position. Absent the ORF withdrawal, MCE’s net position would show a loss of $14.5 million.
Rate Option 3: $616,464,000 (24.2% decrease from FY 2025/26 Approved Budget) Under Option 3, MCE would reduce its generation rate by 3¢/kWh or 21%. Energy revenue would decline by $197.2 million year over year compared with the current Approved Budget.
A withdrawal of $66.9 million from the ORF would be required to generate a break-even change in net position. Absent the ORF withdrawal, MCE’s net position would show a loss of $66.9 million.
Rate Option 4: $588,957,000 (27.6% decrease from FY 2025/26 Approved Budget) Under Option 4, MCE would reduce its generation rate by 3.51¢/kWh or 24%. Energy revenue would decline by $224.7 million year over year compared with the current Approved Budget. A withdrawal of $70 million from the ORF would be required. Despite the withdrawal, the change in net position would show a loss of $24.4 million as the transfer would be insufficient to cover all the costs.
Rate Option 5: $564,009,000 (30.7% decrease from FY 2025/26 Approved Budget) Under option 5, MCE would reduce its generation rate by 4¢/kWh or 27%. Energy revenue would decline by $249.7 million year over year compared with the current Approved Budget.
A withdrawal of $70 million from the ORF would be required. Despite the withdrawal, the change in net position would show a loss of $32.4 million as the transfer would be insufficient to cover all the costs.
Table 1: Summary of Proposed Energy Revenue and year over year change.
Operating Reserve Fund
Options 2 through 5 would require withdrawals from the ORF, also known as the Rate Stabilization Fund. Your Board approved contributions of deferred revenue into the fund in previous years in accordance with Policy 16. The ORF currently holds $70 million of deferred FY 2025/26
Approved
FY 2026/27
Proposed Variance $ Variance %
Status Quo $ 813,689,500 $ 772,440,000 $ (41,249,500) (5.1%) Option 1 813,689,500 683,373,000 (130,316,500) (16.0%)
Option 2 813,689,500 668,919,000 (144,770,500) (17.8%)
Option 3 813,689,500 616,464,000 (197,225,500) (24.2%)
Option 4 813,689,500 588,957,000 (224,732,500) (27.6%)
Option 5 813,689,500 564,009,000 (249,680,500) (30.7%)
income2
. This is income that MCE did not recognize in previous fiscal years and can recognize in future fiscal years where net revenues are projected to be negative. By drawing on deferred revenue in years with lower energy margins, such as the upcoming fiscal year, MCE can maintain rate stability and mitigate abrupt changes in relative cost competitiveness resulting from PG&E rate changes.
Table 2: Summary of Proposed Energy Revenue with ORF withdrawals.
Cost of Energy
The cost of energy represents the largest expense for MCE. This category includes costs for portfolio content category 1 (PCC1) renewable energy, market hedges, and carbon-free energy from large hydroelectric or asset-controlling suppliers. Resource adequacy and net CAISO costs are also included. Energy costs fluctuate based on market conditions, including CAISO electricity prices, hydro availability, renewable generation output, and congestion in CAISO markets. These factors can materially increase or decrease MCE’s procurement costs from year to year.
The cost of energy will vary depending on whether your Board selects Rate Option 5. As shown on the Rate Reduction Proposals staff report in the February 2, 2026, Executive Committee packet, your Board has options that could be utilized to reduce the cost of energy by up to $17 million.
Status Quo: $631,944,000 (17.5% decrease from FY 2025/26 Approved Budget) Under the status quo, the cost of energy is projected to decline year over year. This decrease is driven primarily by lower forward prices for renewable energy, resource adequacy, and hedge contracts. MCE procures a decreasing share of its energy needs through forward contracts over time, which means that as older, higher-priced contracts expire, new procurement is occurring at more favorable market prices. As a result, the average cost of energy is trending downward. This reflects a reversal of the conditions experienced in the current fiscal year when rising market prices contributed to increase in MCE’s cost of energy. 2 Although the ORF balance is recorded as deferred income on MCE’s financial statements, this is strictly an accounting treatment. The underlying $70 million is actual cash that MCE already collected in prior years.
These funds remain available for liquidity needs and can be invested in accordance with MCE’s investment policy.
Energy Revenue ORF
Withdrawal Total
FY 2025/26 $ 813,689,500 $ 13,000,000 $ 826,689,500
Status Quo - 772,440,000 772,440,000
Option 1 - 683,373,000 683,373,000
Option 2 668,919,000 14,454,000 683,373,000
Option 3 616,464,000 66,909,000 683,373,000
Option 4 588,957,000 70,000,000 658,957,000
Option 5 564,009,000 70,000,000 634,009,000
Table 3: Cost of energy breakdown.
A breakdown of the energy contracts category will be provided at the upcoming Budget Workshop on February 11, 2026.
Options 1 through 4 assume the same cost of energy under the status quo.
Rate Option 5: $614,000,000 (19.7% decrease from FY 2025/26 Approved Budget) Under Option 5, MCE would need to reduce the cost of energy by $17 million to mitigate the impact of the revenue drop caused by the 4¢/kWh generation rate reduction. However, even after cost reductions and withdrawal from the ORF, MCE’s change in net position would show a loss of $32.4 million.
Operating Expenses: $55,586,000 (10.6% increase from FY 2025/26 Approved Budget) Operating expenses encompass a broad set of activities that support MCE’s core operations. This includes:
• Data manager costs for billing and customer data management. • Technical and Scheduling consultants for CAISO market participation and load forecasting. • PG&E service fees for customer data processing and billing coordination. • Legal and policy services from external providers.
• Communication services, including marketing and community engagement. • Other professional services ranging from accounting to consultants developing MCE’s CRM and data analytics infrastructure.
• General and Administrative including software costs, recruitment, and industry memberships. • Occupancy costs for MCE’s offices.
• Personnel costs such as wages, taxes, and benefits.
• A contingency allocation to address unforeseen expenses across these categories.
The proposed budget for operating expenses is rising in several key areas. • Data management costs for billing are increasing due to higher than anticipated accounts served following the enrollment of the City of Hercules and high general customer retention rates.
Cost of Energy
FY 2025/26
Approved Budget
FY 2026/27
Proposed Budget Variance $ Variance %
Energy Contracts $ 534,745,000 $ 438,275,000 (96,470,000)$ (18.0%) Resource Adequacy 145,713,000 105,565,000 (40,148,000) (27.6%) Net CAISO Costs 85,084,000 88,104,000 3,020,000 3.5%
Total 765,542,000 631,944,000 (133,598,000) (17.5%)
• Technical and scheduling consultant costs are growing because MCE is potentially transitioning to a new scheduling services provider, resulting in temporary vendor overlap and one-time transition expenses.
• PG&E service fees are increasing as the per-account charge has risen from 35 to 42 cents, and FY 2026/27 will reflect the first full year of this higher rate. • General and administrative expenses are also increasing, driven by higher software and data platform costs. The proposed increase also brings the budget for recruitment-related expenses in line with actual costs being incurred.
• Personnel costs are increasing due to the full year impact of vacant positions that were filled late in the current fiscal year amidst increasing workload in many staff departments. Similarly, the coming fiscal year will see the full year impact of the cost of living and health benefit adjustments made in this fiscal year. Four new positions are also needed to balance the increased workload being experienced by staff.
Non-Operating Revenues Net: $13,457,000 (8.9% decrease from FY 20225/26 Approved Budget) Non-operating revenues, net is the difference between non-operating revenues and non-operating expenses. Nonoperating revenues include interest and investment income from MCE’s cash and fixed income portfolio. Staff is conservatively assuming an average annual yield of 2.5% on the beginning balance of MCE’s holdings. Nonoperating expenses include bank fees associated with MCE’s credit facility.
Program Development Fund: $6,926,000 (10.8% increase from FY 2025/26 Approved Budget) The Program Development Fund Budget focuses on transportation electrification programs and other electrification efforts. It is financed by a transfer from the Operating Budget equal to 50% of the 1.25¢/kWh Deep Green premium plus additional amounts approved by your Board. In addition to the transfer, the fund may contain grant funding from external grantors.
The proposed spend for FY 2026/27 is $6.9 million, of which $5.9 million would be allocated to EV-related programs. This allocation would allow MCE to increase the rebate amount for Level 1 charging outlets and increase implementer budgets to provide greater customer project support.
The proposed budget would also allow MCE to provide over 870 rebates for purchasing an EV to income qualified customers.
Resiliency Virtual Power Plant (VPP) Fund: $2,374,000 (18.9% decrease from FY 2025/26 Approved Budget)
Your Board approved the creation of the Resiliency VPP Fund in 2019 in response to power outages which significantly impact the safety, health, and welfare of MCE’s customers, especially our vulnerable populations. Since then, the fund has expanded its scope to help scale MCE’s virtual power plants efforts. Like the Program Development Fund, this fund is financed by a transfer from the Operating Fund. Your Board has approved and transferred $9 million from the Operating Fund since its inception. In addition to the transfer, the fund may contain grant funding from external grantors.
The budget would also support incentives for installing heat pump water heaters and other electrification efforts.
The proposed budget would allow MCE to meet the $1 million match requirement under the VPP Flex grant from the California Energy Commission (CEC). It would also allow MCE to allocate $927 thousand to the MCE Sync program which helps customers shift their EV charging from peak hours and encourages charging during solar daytime hours through MCE’s proprietary app. The budget would also support MCE’s energy storage program, VPP pilot, and other grant match requirements.
Change in Net Position
The change in net position is the bottom line and reflects all revenues minus all expenses. The change in net position will vary subject to the rate option your Board selects.
Under the status quo MCE’s change in net position would show a gain of $89 million.
Status Quo
Energy Revenue, Net 772,440,000$
ORF Withdrawal 0
Cost of Energy (631,944,000)
Operating Expenses (55,586,000)
Non-Operating Revenues, Net 13,457,000
Program Expenses (9,300,000)
Consolidated Change in Net Position 89,067,000
Assumptions:
ORF Withdrawals 0
Cost of Energy Reduction 0
Under Option 1, MCE’s change in net position would be $0 (breakeven). Revenues would be set equal to costs.
Under Option 2, MCE’s change in net position would be $0 (breakeven) by withdrawing $14.5 million from the ORF.
Option 1
Energy Revenue, Net $ 683,373,000
ORF Withdrawal 0
Cost of Energy (631,944,000)
Operating Expenses (55,586,000)
Non-Operating Revenues, Net 13,457,000
Program Expenses (9,300,000)
Consolidated Change in Net Position 0
Assumptions:
ORF Withdrawals 0
Cost of Energy Reduction 0
Option 2
Energy Revenue, Net 668,919,000$
ORF Withdrawal 14,454,000
Cost of Energy (631,944,000)
Operating Expenses (55,586,000)
Non-Operating Revenues, Net 13,457,000
Program Expenses (9,300,000)
Consolidated Change in Net Position 0
Assumptions:
ORF Withdrawals 14,454,000
Cost of Energy Reduction 0
Under Option 3, MCE’s change in net position would be $0 (breakeven) by withdrawing $66.9 million from the ORF.
Under Option 4, MCE’s change in net position would show a loss of $24.4 million even after withdrawing $70 million from the ORF.
Option 3
Energy Revenue, Net $ 616,464,000
ORF Withdrawal 66,909,000
Cost of Energy (631,944,000)
Operating Expenses (55,586,000)
Non-Operating Revenues, Net 13,457,000
Program Expenses (9,300,000)
Consolidated Change in Net Position 0
Assumptions:
ORF Withdrawals 66,909,000
Cost of Energy Reduction 0
Option 4
Energy Revenue, Net $ 588,957,000
ORF Withdrawal 70,000,000
Cost of Energy (631,944,000)
Operating Expenses (55,586,000)
Non-Operating Revenues, Net 13,457,000
Program Expenses (9,300,000)
Consolidated Change in Net Position (24,416,000)
Assumptions:
ORF Withdrawals 70,000,000
Cost of Energy Reduction 0
Under Option 5, MCE’s change in net position would show a loss of $32.4 million even after withdrawing $70 million from the ORF and reducing cost of energy by $17 million.
Although MCE would experience a negative change in net position in Option 4 and 5, the agency would still meet its reserve and liquidity targets as shown below.
Reserves and Liquidity
MCE’s reserve target is to have 60% of expected cost of energy and operating expenses. Reserves are accounted for as the Net Position in MCE’s financial statements. The reserve goals are satisfied under each of the proposed options outlined above.
Option 5
Energy Revenue, Net $ 564,009,000
ORF Withdrawal 70,000,000
Cost of Energy (614,944,000)
Operating Expenses (55,586,000)
Non-Operating Revenues, Net 13,457,000
Program Expenses (9,300,000)
Consolidated Change in Net Position (32,364,000)
Assumptions:
ORF Withdrawals 70,000,000
Cost of Energy Reduction 17,000,000
84%
109%
137%
116% 116% 116% 110% 110%
0%
20%
40%
60%
80%
100%
120%
140%
$0
$150
$300
$450
$600
FY 2024/25
Audited
Results
FY
2025/2026
Projection
FY
2026/2027
Proposed -
Status Quo
FY
2026/2027
Proposed -
Option 1
FY
2026/2027
Proposed -
Option 2
FY
2026/2027
Proposed -
Option 3
FY
2026/2027
Proposed -
Option 4
FY
2026/2027
Proposed -
Option 5
Millions $
Target vs Projected
Reserves Goal
Reserve Target $ Actual Reserves $ Reserves Actual (% of Target) From a liquidity3 perspective, MCE would have sufficient cash to run the operations and no external funding sources would be required even under Options 4 and 5, which would generate a negative change in net position. Reserves were intentionally built to provide financial stability during periods of volatility and timing related impacts.
Like reserve goals, MCE would meet its liquidity target of 240 days on hand under each of the proposed options outlined above.
Fiscal Impacts:
None at this time.
Recommendation:
Discussion only.
3 Days cash on hand is based on unrestricted cash and investments x 365/ (operating expenses + cost of energy, each for the current fiscal year). Projections are based on the forecasted net position. 218
274
337
290 282 255 240 242
0 75
150
225
300
$0
$150
$300
$450
$600
FY 2024/25
Audited
Results
FY
2025/2026
Projection
FY
2026/2027
Proposed -
Status Quo
FY
2026/2027
Proposed -
Option 1
FY
2026/2027
Proposed -
Option 2
FY
2026/2027
Proposed -
Option 3
FY
2026/2027
Proposed -
Option 4
FY
2026/2027
Proposed -
Option 5
Days
Millions $
Target vs Projected
Liquidity Goal
Liquidity Target $ Total Projected Liquidity $ Projected Days Liquidity on Hand Proposed Fiscal
Year 2026/27
Budget Elements
MCE Finance Committee
February 9, 2026
Meet the Presenter
2 Maíra Strauss
Chief Financial Officer and Treasurer
Maíra leads all of MCE’s financial operations and strategies, which include FP&A, Strategic Finance, Accounting and Risk Management.
Maíra brings over 15 years of experience in financial
management and strategic planning to her role. Prior to joining MCE, she consulted on strategic business practices for various international foundations and startups and
worked in the energy industry in Brazil. Maíra holds a
bachelor’s degree in business administration from SFSU and a post-baccalaureate certificate in business strategies from ESPM- RJ in Rio de Janeiro, Brazil.
Meet the Presenter
3 Efren Oxlaj
Manager of Finance
Efren has been with MCE since 2019. He is responsible for financial planning, modeling, reporting and general
financial operations. He played a key role in the issuance of more than $2.5 billion in prepay bonds and currently
represents MCE on the California Community Choice
Financing Authority Working Group.
Efren holds a BS in Economics from Santa Clara University and is currently enrolled in its MS in Finance & Analytics program.
Context for FY 2026/27 Budget Setting
Current Situation (2026)
Bundled Gen + PCIA temporarily < MCE Gen
Rate + PCIA
• Increase driven by PCIA reforms and
improper retroactive ratemaking; CalCCA has
filed an appeal
• This is an anomaly, not a true cost trend
MCE Position
• Lower current power costs rate-reduction
headroom
• Staff has developed rate-reduction options
4 Looking Ahead (2027+)
• PCIA values expected to converge, eliminating
the temporary distortion
• MCE’s cost-of-service-based rates are
projected to be below PG&E’s
13.92 13.56 13.62
13.80 14.37 14.32
10 15
20 2027 2028 2029
¢/kWh
(Generation + PCIA) Rate Comparison
MCE Cost-based PG&E Projected
• Based on Residential E-TOU-C and MCE’s 2017 PCIA vintage • Future PG&E generation rates are assumed to remain at 2026 levels, while PCIA values for 2027 and beyond rely on California electricity market projections Context for FY 2026/27 Budget Setting
• The budget for FY 2026/27 will be shaped by the rate reduction option your Board selects • Option 1 - reduce rates by 1.73¢/kWh or 12%
• Option 2 – reduce rates by 2¢/kWh or 14%
• Option 3 – reduce rates by 3¢/kWh or 21%
• Option 4 – reduce rates by 3.51¢/kWh or 24%
• Option 5 – reduce rates by 4¢/kWh or 27%
• Options 2 and 3 would create a deficit, which could be covered by withdrawing from the Operating Reserve Fund (ORF)
• Options 4 and 5 would create a deficit despite ORF withdrawals and reductions in the cost of energy
• The ORF has $70 million in deferred income
• Reserve and Liquidity goals are met across all options • Numbers presented are preliminary estimates and subject to change 5 Endurable (cost-based)
Rate increase likely for FY 2027/28
$827
$772
$683 $683 $683 $659 $634
(5.1%)
(16.0%)
(17.8%)
(24.2%) (27.6%)
(30.7%)
(35.0%)
(30.0%)
(25.0%)
(20.0%)
(15.0%)
(10.0%)
(5.0%)
0.0%
$500
$600
$700
$800
FY 2025/26 Status Quo Option 1 Option 2 Option 3 Option 4 Option 5 Millions
FY 2026/27 Proposed Energy Revenue
Energy Revenue, net ORF Withdrawal
% shows YoY decrease for Energy Revenue, net
Energy Revenue
6 • Load forecasts have been
adjusted downward to align with
the mild summer weather
observed over the last two years
• Figures are shown net of
uncollectibles
• Option 2 would require a $14 ORF
million withdrawal
• Option 3 would require a $67 ORF
million withdrawal
• Option 4 and 5 would require a
$70 million ORF withdrawal
• This would bring the ORF
balance to $0
Energy Revenue, net ORF Withdrawal Total
FY 2025/26 $ 813,689,500 $ 13,000,000 $ 826,689,500
Status Quo 772,440,000 - 772,440,000
Option 1 683,373,000 - 683,373,000
Option 2 668,919,000 14,454,000 683,373,000
Option 3 616,464,000 66,909,000 683,373,000
Option 4 588,957,000 70,000,000 658,957,000
Option 5 564,009,000 70,000,000 634,009,000
Cost of Energy
7 $766
$632 $632 $632 $632 $632 $615
500
550
600
650
700
750
FY 2025/26 Status Quo Option 1 Option 2 Option 3 Option 4 Option 5 Millions
FY 2026/27 Proposed Cost of Energy
Cost of Energy Cost Reduction
• Options 1 through 4 would preserve the
status quo
• Option 5 would require a reduction of $17
million
• YoY decrease driven by lower forward prices
for renewable energy, resource adequacy,
and hedge contracts
Cost of Energy
FY 2025/26
Approved
FY 2026/27
Proposed Variance $ Variance %
Status Quo $ 765,542,000 $ 631,944,000 $ (133,598,000) (17.5%) Option 1 765,542,000 631,944,000 (133,598,000) (17.5%)
Option 2 765,542,000 631,944,000 (133,598,000) (17.5%)
Option 3 765,542,000 631,944,000 (133,598,000) (17.5%)
Option 4 765,542,000 631,944,000 (133,598,000) (17.5%)
Option 5 765,542,000 614,944,000 (150,598,000) (19.7%)
Operating Expenses
8 FY 2025/26
Approved
FY 2026/27
Proposed Variance $ Variance %
$ 50,249,000 $ 55,586,000 $ 5,337,000 10.6%
Data Management:
• Increased billing activity after City of Hercules enrollment Technical & Scheduling Consultants:
• Transition to new scheduling services provider
• Temporary vendor overlap + one-time transition costs
PG&E Service Fees:
• Per-account charge rising from $0.35 → $0.42
• FY 2026/27 reflects first full year at new rate
General & Administrative:
• Higher software and data platform costs
• Recruitment budget aligned with actual spending
Personnel:
• Full year impact of vacant positions that were filled late in the current fiscal
• Full year impact of the cost of living and health benefit adjustments made in this fiscal year
• New positions are also needed to balance the increased workload being experienced by staff
Non-operating Revenue, Net
9 FY 2025/26
Approved
FY 2026/27
Proposed Variance $ Variance %
$ 14,775,000 $ 13,457,000 $ (1,318,000) (8.9%)
• Non-operating revenues, net = non-operating
revenues minus non-operating expenses
• Non-operating revenues come from interest and
investment earnings on MCE’s cash and fixed-income
portfolio
• Budget assumes a conservative 2.5% annual yield on
MCE’s holdings
• Non-operating expenses consist primarily of bank fees tied to MCE’s credit facility
Program Expenses
10 Program Development Fund
Proposed budget: $6.9 million
• Most of the budget would be allocated towards EV
related programs (incentives for charging stations and
purchases for income qualified customers)
Resiliency Virtual Power Plant (VPP) Fund
Proposed budget: $2.4 million
• Would support MCE’s energy storage program, VPP,
and additional grant match commitments
FY 2025/26
Approved
FY 2026/27
Proposed Variance $ Variance %
$ 9,181,000 $ 9,300,000 $ 119,000 1.3%
Change in Net Position
11 The agency has sufficient cash to run the operations and no external funding sources would be required, even under options 4 and 5.
Status Quo Option 1 Option 2 Option 3 Option 4 Option 5 Energy Revenue, Net $ 772,440,000 $ 683,373,000 $ 668,919,000 $616,464,000 $588,957,000 $564,009,000 ORF Withdrawal 0 0 14,454,000 66,909,000 70,000,000 70,000,000 Cost of Energy (631,944,000) (631,944,000) (631,944,000) (631,944,000) (631,944,000) (614,944,000) Operating Expenses (55,586,000) (55,586,000) (55,586,000) (55,586,000) (55,586,000) (55,586,000) Non-Operating Revenues, Net 13,457,000 13,457,000 13,457,000 13,457,000 13,457,000 13,457,000 Program Expenses (9,300,000) (9,300,000) (9,300,000) (9,300,000) (9,300,000) (9,300,000) Consolidated Change in Net Position 89,067,000 0 0 0 (24,416,000) (32,364,000) Assumptions:
ORF Withdrawals 0 0 14,454,000 66,909,000 70,000,000 70,000,000 Cost of Energy Reduction 0 0 0 0 0 17,000,000
Progress towards
Reserves and
Liquidity Goals
Reserves
13 84%
109%
137%
116% 116% 116% 110% 110%
0%
20%
40%
60%
80%
100%
120%
140%
$0
$150
$300
$450
$600
FY 2024/25
Audited Results
FY 2025/2026
Projection
FY 2026/2027
Proposed -
Status Quo
FY 2026/2027
Proposed -
Option 1
FY 2026/2027
Proposed -
Option 2
FY 2026/2027
Proposed -
Option 3
FY 2026/2027
Proposed -
Option 4
FY 2026/2027
Proposed -
Option 5
Millions $
Target vs Projected
Reserves Goal
Reserve Target $ Actual Reserves $ Reserves Actual (% of Target) • Reserves target is met across all options.
• Numbers are inclusive of cost of energy reductions and withdrawals from the ORF Liquidity
14 218
274
337
290 282
255 240 242
0 75
150
225
300
$0
$150
$300
$450
$600
FY 2024/25
Audited Results
FY 2025/2026
Projection
FY 2026/2027
Proposed -
Status Quo
FY 2026/2027
Proposed -
Option 1
FY 2026/2027
Proposed -
Option 2
FY 2026/2027
Proposed -
Option 3
FY 2026/2027
Proposed -
Option 4
FY 2026/2027
Proposed -
Option 5
Millions $
Days
Target vs Projected
Liquidity Goal
Liquidity Target $ Total Projected Liquidity $ Projected Days Liquidity on Hand • Liquidity target is met across all options.
• Numbers are inclusive of cost of energy reductions and withdrawals from the ORF Thank you!
mceCleanEnergy.org
[email protected]
MCE Q2 FY 2025/26 Treasurer's Report and
Treasurer’s Monthly Investment Report for December 2025 Table of Contents
Staff Report 1
Attachment A: Q2 FY 2025/26 Financial Statements 3
Attachment B: Financial Results Highlights and Customer Statistics 8 Attachment C: Budgetary Comparison Schedules 12
Attachment D: Statement of Investments held at USBank 16 Attachment E: Statement of Transactions at USBank 18
Attachment F: Fixed Income Portfolio at USBank Summary 19 Attachment G: Statement of Investments held at River City Bank 20 Attachment H: Statement of Transactions at River City Bank 21 January 14th
, 2025
TO: MCE Board of Directors
FROM: Maira Strauss, Chief Financial Officer & Treasurer Vicken Kasarjian, Chief Operating Officer & Deputy Treasurer RE: MCE Q2 FY 2025/26 Treasurer's Report and
Treasurer’s Monthly Investment Report for December 2025 Attachments: Attachment A: Q2 FY 2025/26 Financial Statements Attachment B: Financial Results Highlights and Customer Statistics Attachment C: Budgetary Comparison Schedules
Attachment D: Statement of Investments held at USBank
Attachment E: Statement of Transactions at USBank
Attachment F: Fixed Income Portfolio at USBank Summary
Attachment G: Statement of Investments held at River City Bank Attachment H: Statement of Transactions at River City Bank _____________________________________________________________________________________ Dear Board Members:
This memorandum is to verify and report in writing to the Board the responsibilities designated to the MCE Treasurer pursuant to Government Code Section 6505.5. The Treasurer of MCE is required to report to the Board the interim financials on a quarterly basis in January, April, July and October of each fiscal year. MCE’s Fiscal Year ends March 31.
Attachment A shows financial statements including a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows. Results for April 2025 through September 2025 (Q1-Q2) are shown. Attachment B provides a series of charts and tables on MCE’s financial results and customer statistics. Attachment C shows budgetary comparison schedules for the Operating Fund, Energy Efficiency Fund, Program Development Fund and the Resiliency Virtual Power Plant Fund. In addition to the quarterly results shown, there is a monthly Treasurer’s Report that shows investing activity in the previous month. Purchases, sales, maturities and yields are shown for all of MCE’s securities.
Monthly obligation to report new investment transactions:
Government Code Section 53607 and MCE’s Investment Policy require MCE to report in writing to the Board any investment transactions (defined as purchases, sales or exchanges of securities) made 1 during the prior month. MCE currently maintains bank accounts and investments at River City Bank, USBank, and JP Morgan Chase.
USBank: In October of 2022 your Board approved amendments to MCE Policy 014: Investment Policy, as recommended by MCE’s investment advisor, Chandler Asset Management (CAM).
Currently, CAM manages over $202 million of MCE’s reserves. All investments directed by CAM are held at MCE’s custodian, USBank. Attachment D shows a Statement of Investments held at USBank that reports on holdings as of December 31st, 2025. Attachment E shows a Statement of Transactions at USBank and shows that two securities were sold (totaling $2.1 million) and three were bought (totaling 5.8 million) in December. Attachment F shows a summary of the Fixed Income Portfolio at USBank.
River City Bank: Attachment G shows a Statement of Investments held at River City Bank for the month ending December 31st
, 2025. Attachment H shows a Statement of Transactions at River City Bank for September. No new CDARs were purchased but two reached maturity, totaling $11 million.
A summary of MCE’s holdings and cash balances and their associated average yield is shown in the table below. Overall, MCE’s holdings, cash balances, and collateral at the CAISO had an average yield of 4.28% at the end of December 2025.
MCE Holdings 12/31/2025 Allocation Average Yield
Fixed Income Portfolio Market Value $ 202,346,000 43% 4.45% CDARs 66,500,000 14% 4.47%
Cash Balances 183,826,000 39% 4.09%
Collateral at CAISO 22,372,000 5% 3.66%
Total 475,044,000 100% 4.28%
*Cash balances are held at JP Morgan Chase and River City Bank.
Staff will provide Statements of Investments as required throughout the year.
No Action Needed
This memorandum and associated attachments are to inform the Board pursuant to the requirements of MCE’s Investment Policy 014 and Government Code Section 53607. There is no action requested of the Board at this time.
2 ACCOUNTANTS’ COMPILATION REPORT
Management
Marin Clean Energy
Management is responsible for the accompanying financial statements of Marin Clean Energy (a California Joint Powers Authority), which comprise the statement of net position as of September 30, 2025, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the three months and six months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Marin Clean Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
November 7, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 3 Current assets
Cash and cash equivalents - unrestricted 131,499,039$
Cash equivalents - restricted for grant purposes 18,742,449 Cash equivalents - restricted for security reserve 2,578,111 Accounts receivable, net of allowance 88,464,885
Accrued revenue 43,342,525
Other receivables 4,035,096
Prepaid expenses 1,345,729
Investments 104,555,264
Deposits 27,251,473
Total current assets 421,814,571
Noncurrent assets
Cash and cash equivalents - restricted 15,000,000
Investments 179,223,553
Capital assets, net of depreciation and amortization 5,990,961 Deposits 144,675
Total noncurrent assets 200,359,189
Total assets 622,173,760
Current liabilities
Accrued cost of electricity 99,880,792
Accounts payable 4,025,048
Other accrued liabilities 8,329,672
User taxes and energy surcharges due to other governments 1,573,390 Security deposits - energy suppliers 1,236,570
Advances from grantors 18,742,449
Total current liabilities 133,787,921
Operating Reserve Fund 70,000,000
Net position
Net investment in capital assets 5,990,961
Restricted 17,578,111
Unrestricted 394,816,767
Total net position 418,385,839$
NET POSITION
MARIN CLEAN ENERGY
STATEMENT OF NET POSITION
As of September 30, 2025
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 4
Three Months Year-to-Date
OPERATING REVENUES
Electricity sales, net 233,413,844$ 403,571,006$
Grant revenue 4,778,039 8,711,634
Other revenue 119,376 651,890
Total operating revenues 238,311,259 412,934,530
OPERATING EXPENSES
Cost of electricity 206,023,333 392,110,104
Contract services 6,068,002 11,245,622
Staff compensation 6,639,870 13,048,216
Other operating expenses 3,384,627 7,144,907
Depreciation and amortization 49,169 95,141
Total operating expenses 222,165,001 423,643,990
Operating income (loss) 16,146,258 (10,709,460)
NONOPERATING REVENUES (EXPENSES)
Investment income 5,554,180 12,232,247
Nonoperating revenues (expenses), net 5,554,180 12,232,247 CHANGE IN NET POSITION 21,700,438 1,522,787
Net position at beginning of period 396,685,401 416,863,052 Net position at end of period 418,385,839$ 418,385,839$ Three Months and Year-To-Date Ended September 30, 2025
AND CHANGES IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
MARIN CLEAN ENERGY
See accountants' compilation report. 5
Three Months Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 209,709,575$ 374,305,207$
Receipts from grantors 2,764,005 5,331,335
Receipts of security deposits 932,758 932,758
Other operating receipts 314,575 880,753
Payments to suppliers for electricity and collateral (225,907,890) (429,544,275) Payments for other goods and services (9,795,492) (18,456,163) Payments for deposits and collateral (1,510,996) (1,510,996) Payments for staff compensation (6,970,797) (13,162,128) Payments of taxes and surcharges to other governments (3,398,810) (6,287,238) Net cash provided (used) by operating activities (33,863,072) (87,510,747)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments to acquire capital assets (5,226,814) (5,280,286) Net cash provided (used) by capital and related
financing activities (5,226,814) (5,280,286)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 8,986,872 13,139,068
Proceeds from sales and maturities of investments 39,490,552 50,618,329 Purchase of investments (15,022,691) (29,772,754)
Net cash provided (used) by investing activities 33,454,733 33,984,643 Net change in cash and cash equivalents (5,635,153) (58,806,390) Cash and cash equivalents at beginning of period 173,454,752 226,625,989 Cash and cash equivalents at end of period 167,819,599 167,819,599$ Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted 131,499,039$ 131,499,039$ Cash equivalents - restricted for grant purposes 18,742,449 18,742,449 Cash equivalents - restricted for security reserve 17,578,111 17,578,111 Cash and cash equivalents 167,819,599$ 167,819,599$
NONCASH INVESTING ACTIVITIES:
Change in fair value of investments (1,360,802) 625,996$ Change in interest receivable (2,071,890) (1,532,817)
STATEMENT OF CASH FLOWS
MARIN CLEAN ENERGY
Three Months and Year-To-Date Ended September 30, 2025
See accountants' compilation report. 6
Three Months Year-to-Date
Operating income $ 16,146,258 $ (10,709,460)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 49,169 95,141
(Increase) decrease in:
Accounts receivable, net (23,395,758) (24,748,466)
Energy market settlements receivable 345,517 -
Accrued revenue (4,012,891) (11,095,583)
Other receivables 11,707,277 17,281,182
Prepaid expenses 2,014,016 1,026,855
Deposits (962,646) (958,008)
Increase (decrease) in:
Accrued cost of electricity (36,790,730) (58,542,009)
Accounts payable (187,162) 44,883
Other accrued liabilities 2,716,789 2,975,913
User taxes and energy surcharges due to other governments 305,570 291,012 Security deposits - energy suppliers 379,770 379,770
Advances from grantors (2,178,251) (3,551,977)
Net cash provided (used) by operating activities (33,863,072)$ (87,510,747)$ Three Months and Year-To-Date Ended September 30, 2025
STATEMENT OF CASH FLOWS (CONTINUED)
MARIN CLEAN ENERGY
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accountants' compilation report. 7
Change in Net Position, Cumulative Net Position, Holdings, and Progress to Days Cash on Hand MCE
Financial Results Highlights and Customer Statistics
Q1 through Q2 and December 2025
MCE's Operating Fund posted an $8.4 million change in net position for September, bringing the fiscal year to date cumulative change in net position to $5.3 million. *The Operating Fund Budget captures activities related to MCE's core functions including sales of electricity, cost of energy, operating expenses, non-operating revenues and expenses.
MCE's cumulative net position was $418 million at the end of September and is forecasted to reach approximately $439 million by March 2026. Actuals are based on the Statement of Net Position. Forecasted period uses Change in Net Position as projected in the Operating Fund Budget.
Days cash on hand is a moving goal and varies with changes to cost of energy and total operating expenses. MCE's goal is to have 240 days of cash on hand. As of September 30th, MCE had 219 days cash on hand. The days cash on hand goal is based on 60% of annual cost of energy and operating expenses. Results shown are based on the ending cumulative net position plus defered revenue minus transfers earmarked for program expenses.
Interest earned on the deposits at River City Bank is pegged to the California Local Agency Investment Fund (LAIF) rate. MCE also holds a high yield checkings account at JP Morgan Chase. MCE's holdings totaled $475 million. This number exceeds the net position reporting on the financial statements as it includes deferred revenue which is invested but not recognized as revenue per GASB 31. -$25
-$20
-$15
-$10
-$5
$0
$5
$10
$15
$20
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Millions
Change in Net Position*
Operating Budget vs Actuals
Actual Cumulative Actual Budget
$399 $392 $397 $404 $410 $418 $413 $417 $420 $420 $421 $439 $0
$100
$200
$300
$400
$500
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Millions
Cumulative Net Position
Cumulative Net Position Forecasted
Fixed Income Portfolio
Market Value
$202,346,000
42%
CDARs
66,500,000
14%
Cash Balances
183,826,000
39%
Collateral at CAISO
22,372,000
5%
Holdings Allocation as of 12/31/2025
210 207 209 212 215 219 216 218 219 219 220 228
0 50
100
150
200
250
300
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Progress to Days Cash on Hand
Actual Days Cash on Hand Forecasted Days Cash on Hand Goal Days Cash on Hand 8 Operating Fund Budget Results and Variance
Actual Budget Variance $ Variance %
Revenue, Net $ 403,571,000 $ 440,262,000 $ (36,691,000) -8% Cost of Energy (392,110,000) (417,733,000) 25,623,000 -6% Operating Expenses (21,805,000) (24,922,000) 3,117,000 -13% Non-operating Revenues 16,014,000 9,139,000 6,875,000 75% Non-operating Expenses (410,000) (1,752,000) 1,342,000 -77% Change in Net Position 5,260,000 4,994,000 266,000 5.3% Actual Budget Variance $ Variance %
Revenue, Net $ 73,894,000 $ 82,327,000 $ (8,433,000) -10% Cost of Energy (65,011,000) (74,875,000) 9,864,000 -13% Operating Expenses (3,700,000) (4,054,000) 354,000 -9%
Non-operating Revenue 3,289,000 1,523,000 1,766,000 116% Non-operating Expenses (81,000) (292,000) 211,000 -72%
Change in Net Position 8,391,000 4,629,000 3,762,000 81.3% MCE
Financial Results Highlights and Customer Statistics
Q1 through Q2 and December 2025
Marin Clean Energy
Operating Fund Budgetary Comparison Schedule
6 Months Ended September 30th, 2025
The cost of energy represents 95% of MCE's total expenditures. Operating expenses make up the remaining 5%. Non-operating expenses are excluded in the total.
Marin Clean Energy
Operating Fund Budgetary Comparison Schedule
1 Month Ended September 30th, 2025
As previously noted, MCE received renewable energy deliveries ahead of schedule. The final early quantities under this contract were delivered in April 2025, contributing to results that exceeded budget projections by $8.9 million for that month. Note that a significant portion of the accelerated quantites were recorded in the prior fiscal year ($36 million). These accelerated deliveries shifted costs into earlier periods, resulting in lower than anticipated energy costs in the months following April. In addition, unusually mild summer weather in MCE’s service area, combined with lower market energy prices, has contributed to results trending below budget.
Revenue, Net Energy - $403.5 million
Net energy revenue through Q2 was $36.7 million (8%) under budget, due to lower than anticipated sales volume largely caused by unusually mild summer weather. Forecasted sales volume tied to air conditioning usage did not materialize due to the cool summer temperatures observed in MCE's service area.
Cost of Energy - $392.1 million
Cost of energy was $25.6 million (6%) under budget. This is due to a combination of lower sales volume and decreases in market energy prices. Additionally, a significant portion of the accelerated renewable energy deliveries recorded in the prior fiscal year reduced the costs originally budgeted for this fiscal year. Note: MCE signs power contracts ahead of time and has to pay for the contracted amounts, even if actual electricity demand ends up being lower. This limits MCE's ability to buy less power even when sales are lower.
Operating Expenses - $21.8 million
Total Operating Expenses were under budget by $3.1 million or 13%. This reflects a continued shift of work from outside consultants to internal staff, along with certain costs scheduled for later in the fiscal year. Operating expenses have historically trended below budget.
Non-Operating Revenues - $16.0 million
Total non-operating revenues were $6.8 million (75%) above expectations. The Finance department strategically allocates surplus working capital in high-yield money market accounts and carefully monitors MCE's fixed income portfolio. MCE's high yield securities, like U.S. treasury and corporate notes, have continued to appreciate in value as interest rates have fallen, generating strong investment income.
Non-Operating Expenses - $410 thousand
Total non-operating expenses were under budget by $1.3 million (77%), mainly due to how spending from the DAC-GT program is recorded. The program offers bill discounts to eligible customers, so its impact appears as reduced energy revenue, not as a non operating expenses. The discounts are reimbursed to MCE by grant income captured in non-operating revenues. Grant revenue can only be recognized when there is a corresponding eligible expense.
Change in Net Position -$5.2 million
The change in net position was a gain of $5.2 million, which is $223 thousand (4.7%) greater than budgeted.
Note: For reconciliation purposes, Operating Fund budgetary numbers may differ from those in the Statement of Revenues, Expenses and Changes to Net Position as the statement captures activity across all the funds. Numbers shown here are net of any grant reimbursements.
Cost of Energy
392,110,104
95%
Operating Expenses
21,804,763
5%
Cost of Energy and Operating Expenses
6 Months Ended September 30th 2025
One month results for September 2025 are shown above. Sales volume remained lower than planned due to the weather effect previosly described. As a result, electricity sales revenue was below budget by 10% while the cost of energy was under by 13%.
Operating expenses were under budget by 9% while non-operating revenues were above expectations by 114% largely due to strong investment and interest income. A lower cost of energy coupled with strong non-operating revenue led to a change in net position of $8.4 million which was $3.7 million (80.6%) above expectations for the month. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Millions
Cost of Energy Actuals
Actual Budget
+$8.9
-$2.6
-$4.6
-$8.6 -$9.9
-$8.7
9 Customer Statistics
Numbers shown as of the end of September 2025 for both tables below.
County Customer Class Total Accounts MCE Accounts Opt-in Rate Contra Costa AGR 366 282 77%
Contra Costa COM/IND 31,920 28,590 90%
Contra Costa RES 354,621 314,482 89%
Contra Costa ST GOV 776 769 99%
Marin AGR 154 127 82%
Marin COM/IND 14,292 11,941 84%
Marin RES 106,807 87,195 82%
Marin ST GOV 252 248 98%
Napa AGR 1,494 1,345 90%
Napa COM/IND 8,327 7,538 91%
Napa RES 54,237 48,156 89%
Napa ST GOV 174 173 99%
Solano AGR 1,150 950 83%
Solano COM/IND 11,145 9,926 89%
Solano RES 102,977 88,493 86%
Solano ST GOV 335 327 98%
Total 689,027 600,542 87%
County Total Accounts MCE Accounts Opt-In Rate
Contra Costa 387,684 344,124 89%
Marin 121,506 99,512 82%
Solano 115,607 99,696 86%
Napa 64,232 57,212 89%
Total 689,029 600,544 87%
Financial Results Highlights and Customer Statistics
Q1 through Q2 and December 2025
Net Usage (in MWh) = Delivered Volumes - Volumes returned to Grid Contra Costa county holds the largest number of customer accounts followed by Solano, Marin, and Napa. Numbers are a snapshot at the end of September 2025.
MCE
Opt-in rate = MCE accounts / All accounts in the service area. Numbers are are snapshots at the end of each month shown. The Opt-in rate remains at 87%, reflecting strong and stable customer participation across MCE's service area.
Contra Costa
344,124
Marin
99,512
Solano
99,696
Napa Number of MCE accounts 57,212
by County
Key
AGR = Agriculture
COM/IND = Commercial / Industrial
RES = Residential
ST GOV = Street-Goverment
598 599 599 600 600 601
688 688 688 689 689 689
87% 87% 87% 87% 87% 87%
87%
87%
87%
87%
87%
87%
87%
87%
87%
0 100
200
300
400
500
600
700
800
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25
Thousands
MCE Accounts and Opt-in Rate
MCE Total Accounts % Opt-In Rate
376,644 393,130 395,304
434,528
484,878 472,908
0 100,000
200,000
300,000
400,000
500,000
600,000
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25
MWh
Net Usage
Contra Costa Marin Napa Solano
10 Supplemental Graphs on Investment and Interest Income Financial Results Highlights and Customer Statistics
Q1 through Q2 and December 2025
*Graph includes monthly earned income on the portfolio. For reconciliation purposes, the financial statements will show monthly changes in fair market value as required by GASB 31.
*Graph shows monthly earned income on the portfolio. For reconciliation purposes, the financial statements will show monthly changes in fair market value as required by GASB 31.
MCE
-$0.3
$0.2
$0.7
$1.2
$1.7
$2.2
Millions
Investment and Interest Income
Last 12 Months
CDARs Cash Balances at RCB and JP Morgan Chase Fixed Income Portfolio* CAISO Collateral The market value and yield of MCE's CDARs are shown above. As of December 31st, 2025, CDARs had an average yield of 4.47% and a total balance of $69,700,000 (includes par amount and accrued interest).
The amount and purchase yield of the fixed income portfolio is shown above. As of December 31st, 2025 the fixed income portfolio had a market value of over $202 million and a purchase yield of 4.45%.
4.00%
4.10%
4.20%
4.30%
4.40%
4.50%
4.60%
4.70%
$170
$175
$180
$185
$190
$195
$200
$205
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Millions
Fixed Income Portfolio
Market Value and Yield
3.00%
3.40%
3.80%
4.20%
4.60%
5.00%
$0
$20
$40
$60
$80
$100
$120
$140
$160
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Millions
CDARs
Amounts and Yield
$22.48
$21.20
$14.07
$0
$5
$10
$15
$20
$25
Millions
Investment and Interest Income
Actuals and Projections
FY 2023/24 FY 2024/25 FY 2025/26 FY 2025/26 Projection
11 April - September
Budget
April - September
Actuals Variance $ Variance %
ENERGY REVENUE
REVENUE - ELECTRICITY NET 440,262,000$ 403,571,000$ (36,691,000) -8.3%
ENERGY EXPENSES -
Cost of Energy 417,733,000 392,110,000 (25,623,000) -6.1% NET ENERGY REVENUE 22,529,000 11,461,000 (11,068,000) -49%
OPERATING EXPENSES
Personnel 12,494,000 11,512,000 (982,000) -7.9%
Data Manager 2,638,000 2,699,000 61,000 2.3%
Technical and Scheduling Consultants 700,000 514,000 (186,000) -26.6% Service Fees - PG&E 1,369,000 1,298,000 (71,000) -5.2%
Legal and Policy Services 767,000 585,000 (182,000) -23.7% Communication Services 1,112,000 1,009,000 (103,000) -9.3% Other Professional Services 2,377,000 1,919,000 (458,000) -19.3% General and Administrative 2,488,000 2,105,000 (383,000) -15.4% Occupancy 227,000 164,000 (63,000) -27.8%
Contingency 750,000 - (750,000) -100.0%
TOTAL OPERATING EXPENSES 24,922,000 21,805,000 (3,117,000) -12.5% OPERATING INCOME (2,393,000) (10,344,000) (7,951,000) 332.3%
NONOPERATING REVENUES
Grant Income 1,639,000 3,378,000 1,739,075 106.1%
Other Income - 597,000 597,489
Interest Income 7,500,000 12,039,000 4,538,623 60.5%
TOTAL NONOPERATING REVENUES 9,139,000 16,014,000 6,875,000 75.2%
NONOPERATING EXPENSES
Banking Fees and Financing Costs 113,000 123,000 10,000 8.8% Grant Expenses 1,639,000 287,000 (1,352,000) -82.5%
TOTAL NONOPERATING EXPENSES 1,752,000 410,000 (1,342,000) -76.6% CHANGE IN NET POSITION 4,994,000 5,260,000 266,000 5.3% Budgeted Net Position Beginning of Period 416,863,000 416,863,000 - - Change in Net Position 4,994,000 5,260,000 266,000 5.3% BUDGETED NET POSITION END OF PERIOD 421,857,000 422,123,000 266,000 0.1%
CAPITAL EXPENDITURES, INTERFUND TRANSFERS & OTHER
San Rafael Office Building Purchase 5,400,000 5,401,000 1,000 0.0% Office Improvements and Retrofits 175,000 129,000 (46,000) -26.3% Transfer to Program Development Fund 2,392,000 2,392,000 - 0.0%
TOTAL CAPITAL EXPENDITURES, INTERFUND TRANSFERS &
OTHER 7,967,000 7,922,000 (45,000) -0.6%
-
BUDGETED NET INCREASE IN OPERATING FUND BALANCE (2,973,000)$ (2,662,000)$ 311,000 -10.5% From April 1, 2025 through September 30, 2025
Approved Budget Comparison Fiscal Year 2025/26
MCE Operating Fund
Attachment C: Budgetary Comparison Schedules
12 Months 6
April - Sept Budget April - Sept
Actual Variance $ Variance %
Revenue And Other Sources
CEC VPP Flex Grant 600,000$ -$ (600,000)$ -100%
Federal Earkmark Funding 100,000 - (100,000) -100%
Marin Community Foundation Grant 36,000 170,000 134,000 372% Total Revenue and Other Sources 736,000 170,000 (566,000) -77% Expenditures And Other Uses
CEC VPP Flex Grant Expenses 600,000 45,000 (555,000) -93% Energy Storage Program 153,000 47,000 (106,000) -69%
CEC VPP Flex Grant Match 500,000 51,000 (449,000) -90%
MCE Sync 476,000 345,000 (131,000) -28%
PeakFLEX 50,000 - (50,000) -100%
Federal Earmark- Energy Storage 100,000 - (100,000) -100% MCE Resilency at Critical Facilities 36,000 170,000 134,000 372% Federal Earmark Match Expense 100,000 35,000 (65,000) -65% San Rafael Office Resilency Buildout 100,000 - (100,000) -100% Richmond VPP Pilot 85,500 12,000 (73,500) -86%
Total Expenditures And Other Uses 2,200,500 705,000 (1,495,500) -68% Net Increase (Decrease) in Fund Balance (1,464,500) (535,000) - - Fund Balance at Beginning of Period 3,878,000 3,878,000 - - Fund Balance at End of Period 2,413,500 3,343,000 - -
MCE
Resiliency VPP Fund
Approved Budget Comparison Fiscal Year 2025/26
From April 1, 2025 through September 30, 2025
13 Months 6
April - Sept
Budget
April - Sept
Actual Variance $ Variance %
Revenue And Other Sources
Public Purpose Energy Efficiency Program 9,380,500$ 4,999,000$ (4,381,500)$ -47% Public Purpose Low Income Families and Tenants
Pilot Program 400,000 374,000 (26,000) -7%
Total Revenue And Other Sources 9,780,500 5,373,000 (4,407,500) -45% Expenditure And Other Uses -
Public Purpose Energy Efficiency Program 9,380,500 4,999,000 (4,381,500) -47% Public Purpose Low Income Families and Tenants
Pilot Program 400,000 374,000 (26,000) -7%
Total Expenditures And Other Uses 9,780,500 5,373,000 (4,407,500) -45% Balance - - - -
MCE
Energy Efficiency Fund
Approved Budget Comparison Fiscal Year 2025/26
From April 1, 2025 through September 30, 2025
14 April - Sept
Budget
April - Sept
Actual Variance $ Variance %
Revenue And Other Sources
Transfer from Operating Fund and Deep Green
Premium 2,392,000$ 2,392,000$ -$ 0%
Marin Community Foundation Grant 130,000 18,000 (112,000) -86% Community Benefits Funds 50,000 54,000 4,000 8%
Total Revenue and Other Sources 2,572,000 2,464,000 (108,000) -4% Expenditures And Committed Funds 0
Transportation Electrification Programs 2,655,000 2,965,000 310,000 12% Heat Pump Water Heater Incentives 270,000 103,000 (167,000) -62% Emergency Water Heater Loaner Fund 71,000 6,000 (65,000) -92% Marin Community Foundation EV Charging at Affordab 18,000 130,000 (112,000) -86% Community Housing Grants 130,000 54,000 (76,000) -58%
Total Expenditures And Other Uses 3,256,000 3,146,000 (110,000) -3% Net Increase (Decrease) in Fund Balance (684,000) (682,000) - - Fund Balance at Beginning of Period 3,760,000 3,738,000 - - Fund Balance at End of Period 3,076,000 3,056,000 - -
MCE
Program Development Fund
Approved Budget Comparison Fiscal Year 2025/26
From April 1, 2025 through September 30, 2025
15 Attachment D: Statement of Investments held at USBank Issuer Security Type Purchase Date Maturity Date Par Value $ Market Value $ Purchase Price $ Purchase Yield in % Honda Auto Receivables Owner Trust ABS 05/14/2024 11/15/2027 519,127.49 526,394.26 519,064.41 3.84 Hyundai Auto Receivables Trust ABS 03/11/2024 11/15/2027 623,382.95 630,101.01 623,245.50 3.96 GM Financial Securitized Term ABS 10/24/2023 06/16/2028 843,437.73 851,419.04 838,693.39 4.14 Honda Auto Receivables Owner Trust ABS 08/22/2023 06/21/2028 521,347.18 524,906.48 516,072.61 3.97 GM Financial Securitized Term ABS 02/23/2024 08/15/2028 828,976.92 835,710.56 824,767.28 4.00 Toyota Auto Receivables Owner Trust ABS 11/07/2023 02/25/2028 346,998.76 351,674.99 346,961.35 4.10 BMW Vehicle Owner Trust ABS 11/09/2023 05/15/2028 437,162.96 440,198.47 436,411.58 4.08 American Express Credit Master Trust ABS 05/06/2025 04/20/2027 1,600,000.00 1,621,305.96 1,599,971.04 3.79 John Deere Owner Trust ABS 04/17/2023 12/18/2028 270,167.34 272,011.96 272,921.79 4.01 Ford Credit Auto Owner Trust ABS 11/19/2024 01/22/2029 1,070,000.00 1,083,961.24 1,069,965.65 3.89 Verizon Master Trust ABS 02/29/2024 01/16/2029 1,500,000.00 1,502,371.42 1,483,242.19 5.16 American Express Credit Master Trust ABS 04/16/2024 02/15/2029 1,235,000.00 1,261,215.89 1,234,746.83 3.75 Chase Issuance Trust ABS 02/29/2024 11/15/2028 1,100,000.00 1,112,103.79 1,092,910.16 3.75 John Deere Owner Trust ABS 03/25/2024 04/16/2029 500,000.00 505,483.72 499,765.63 3.98 Honda Auto Receivables Owner Trust ABS --- 05/17/2027 708,691.99 717,542.13 710,925.62 4.09 Hyundai Auto Lease Securitization Tr ABS 05/14/2024 11/20/2028 560,116.93 564,319.74 560,101.36 4.11 Toyota Lease Owner Trust ABS 02/21/2024 01/18/2028 187,909.00 188,897.06 187,901.07 3.51 BMW Vehicle Owner Trust ABS 06/04/2024 02/26/2029 689,929.26 696,821.88 689,824.46 3.98 Mercedes-Benz Auto Lease Trust ABS 05/17/2024 08/15/2029 410,000.00 414,953.39 409,952.03 4.03 American Express Credit Master Trust ABS 10/25/2023 04/15/2030 500,000.00 506,093.72 495,781.25 3.84 Bank of America Credit Card Trust ABS 02/20/2024 09/15/2026 1,000,000.00 1,012,593.33 1,003,515.63 3.79 John Deere Owner Trust ABS 12/18/2023 11/16/2026 329,233.00 332,972.61 333,682.78 4.03 Federal Home Loan Banks Agency 10/24/2023 03/10/2028 3,000,000.00 3,063,077.83 2,969,070.00 3.60 Farm Credit System Agency 08/21/2023 06/08/2028 2,500,000.00 2,556,525.00 2,478,850.00 3.59 Farm Credit System Agency 06/02/2023 08/07/2028 2,000,000.00 2,022,205.39 1,996,034.00 3.50 Farm Credit System Agency 08/17/2023 11/15/2027 1,000,000.00 1,034,306.00 989,510.00 3.55 Farm Credit System Agency 11/09/2023 08/14/2026 2,000,000.00 2,051,575.44 1,992,580.00 3.51 Federal Home Loan Banks Agency 03/22/2023 09/11/2026 1,500,000.00 1,552,171.50 1,529,865.00 3.50 FHLMC Agency CMBS --- 11/25/2027 1,500,000.00 1,506,481.50 1,427,285.16 3.76 FHLMC Agency CMBS 10/01/2024 09/25/2027 2,175,000.00 2,072,130.84 2,041,101.56 3.90 FHLMC Agency CMBS 01/29/2025 07/25/2027 800,000.00 802,300.67 780,343.75 3.81 FHLMC Agency CMBS 02/27/2024 12/25/2026 3,650,000.00 3,611,589.83 3,445,542.97 3.83 FHLMC Agency CMBS --- 01/25/2028 1,500,000.00 1,490,302.00 1,448,730.47 3.75 FHLMC Agency CMBS --- 05/25/2028 3,000,000.00 2,870,995.00 2,757,109.38 3.84 FHLMC Agency CMBS --- 04/25/2028 910,317.35 908,533.28 876,869.67 3.72 FHLMC Agency CMBS 03/30/2023 09/25/2028 1,000,000.00 993,474.50 955,625.00 3.74 FHLMC Agency CMBS 11/14/2025 12/25/2027 1,700,000.00 1,523,922.50 1,518,910.16 4.04 FHLMC Agency CMBS 04/13/2023 02/25/2029 1,000,000.00 993,742.67 964,531.20 3.69 FHLMC Agency CMBS 10/30/2023 01/25/2029 1,500,000.00 1,507,997.50 1,411,113.28 3.76 FHLMC Agency CMBS 10/31/2023 08/25/2029 1,500,000.00 1,493,170.50 1,397,167.97 3.75 FHLMC Agency CMBS 12/16/2025 11/25/2028 1,400,000.00 1,271,501.47 1,272,796.88 3.97 FHLMC Agency CMBS 04/11/2023 09/25/2030 971,136.93 963,304.55 935,174.52 3.74 FHLMC Agency CMBS --- 11/30/2025 2,512,000.00 2,520,112.09 2,382,240.00 3.76 Cash Cash --- 11/30/2025 0.00 0.00 0.00 0.00
Cash Cash --- 09/15/2027 2,390.85 2,390.85 2,390.85 --- New York Life Insurance Company Corporate 10/24/2023 04/15/2028 500,000.00 512,409.50 481,860.00 3.93 Royal Bank of Canada Corporate 02/20/2024 03/09/2028 1,000,000.00 1,047,104.00 996,120.00 4.03 PepsiCo, Inc. Corporate 02/07/2025 05/17/2028 1,000,000.00 1,041,211.00 994,710.00 3.99 Meta Platforms, Inc. Corporate --- 05/30/2028 1,500,000.00 1,542,438.67 1,500,395.13 3.94 Amazon.com, Inc. Corporate 12/11/2025 08/10/2028 2,000,000.00 2,011,518.89 2,002,620.00 4.07 Massachusetts Mutual Life Insurance Corporate 05/28/2024 06/13/2028 500,000.00 516,944.36 498,975.00 4.21 Bank of America Corporation Corporate 12/18/2023 06/12/2028 1,000,000.00 1,036,012.67 996,710.00 4.67 Mastercard Incorporated Corporate --- 10/18/2028 1,350,000.00 1,401,179.40 1,348,072.20 3.78 Pricoa Global Funding I Corporate 06/01/2023 07/25/2028 500,000.00 514,618.83 502,005.00 4.01 Metropolitan Life Global Funding I Corporate 01/02/2025 07/22/2028 1,440,000.00 1,507,091.20 1,437,033.60 4.27 PACCAR Inc Corporate 08/03/2023 01/17/2029 405,000.00 424,302.10 404,360.10 3.80 Toyota Motor Corporation Corporate 01/06/2025 02/09/2029 1,550,000.00 1,632,638.25 1,546,683.00 4.14 Eli Lilly and Company Corporate 05/16/2025 01/16/2029 1,000,000.00 1,046,620.28 1,011,760.00 4.00 Met Tower Global Funding Corporate 05/28/2024 01/05/2029 500,000.00 522,307.92 499,395.00 4.16 Guardian Life Global Funding Corporate 09/30/2025 02/01/2029 1,650,000.00 1,669,885.02 1,650,000.00 4.28 Bank of America Corporation Corporate 02/12/2025 02/26/2029 1,000,000.00 1,010,265.00 958,580.00 4.40 State Street Corporation Corporate 11/29/2024 01/29/2029 2,000,000.00 2,068,681.33 2,016,280.00 3.96 Guardian Life Global Funding Corporate 09/23/2024 01/10/2029 1,220,000.00 1,232,646.42 1,220,000.00 4.20 Wells Fargo & Company Corporate 09/26/2025 03/14/2029 2,000,000.00 2,022,408.89 1,990,760.00 4.24 New York Life Insurance Company Corporate 02/29/2024 04/12/2029 750,000.00 777,630.33 740,580.00 4.10 Blackrock, Inc. Corporate 03/05/2024 05/30/2029 1,740,000.00 1,802,973.11 1,736,850.60 3.95 Merck & Co., Inc. Corporate 06/01/2023 07/17/2029 1,000,000.00 1,012,155.00 997,360.00 3.73 Morgan Stanley Corporate 01/13/2025 08/15/2029 1,350,000.00 1,417,873.39 1,339,537.50 4.45 Pricoa Global Funding I Corporate 08/19/2025 08/16/2029 1,500,000.00 1,532,916.50 1,519,215.00 4.26 Cisco Systems, Inc. Corporate --- 07/23/2029 1,500,000.00 1,564,878.42 1,501,104.25 3.95 Toyota Motor Corporation Corporate 02/20/2024 09/26/2029 1,000,000.00 1,040,916.33 992,770.00 4.00 Walmart Inc. Corporate --- 11/15/2029 1,250,000.00 1,266,882.92 1,239,252.50 3.66 Northwestern Mutual Global Funding Corporate 10/24/2023 11/23/2029 750,000.00 768,565.58 722,362.50 3.94 Morgan Stanley Corporate 10/27/2023 01/09/2030 1,000,000.00 1,051,582.89 1,002,120.00 4.69 PACCAR Inc Corporate 05/05/2025 01/10/2030 2,160,000.00 2,214,362.04 2,156,652.00 4.08 Eli Lilly and Company Corporate 02/07/2024 01/09/2030 935,000.00 969,229.42 934,382.90 3.85 Caterpillar Inc. Corporate 11/22/2024 01/16/2030 1,000,000.00 1,031,982.56 999,600.00 3.97 Meta Platforms, Inc. Corporate 11/12/2025 02/07/2030 1,250,000.00 1,261,099.58 1,255,000.00 4.15 Deere & Company Corporate 11/04/2025 02/07/2030 2,000,000.00 2,039,540.22 2,013,840.00 4.13 Massachusetts Mutual Life Insurance Corporate 01/03/2025 02/28/2028 1,050,000.00 1,099,625.63 1,049,496.00 4.30 CME Group Inc. Corporate 09/12/2025 05/08/2030 2,000,000.00 2,054,679.11 2,032,560.00 4.02 JPMorgan Chase & Co. Corporate 10/27/2023 02/12/2030 1,000,000.00 1,033,877.00 958,670.00 4.64 JPMorgan Chase & Co. Corporate 09/12/2024 05/28/2030 1,000,000.00 1,021,689.50 995,730.00 4.37 Caterpillar Inc. Corporate 08/16/2024 03/15/2030 1,500,000.00 1,545,183.38 1,502,595.00 3.96 Northwestern Mutual Global Funding Corporate 02/29/2024 09/15/2029 750,000.00 780,022.13 740,122.50 4.08 Deere & Company Corporate 02/20/2024 10/06/2030 500,000.00 518,298.50 495,830.00 3.94 Northern Trust Corporation Corporate 11/12/2025 10/15/2030 1,800,000.00 1,810,664.40 1,799,118.00 4.12 Massachusetts Mutual Life Insurance Corporate 01/09/2024 11/19/2030 780,000.00 813,142.55 779,898.60 4.13 Marin Clean Energy
Statement of Investments held at USBank
As of 12/31/2025
16 PepsiCo, Inc. Corporate 07/15/2024 11/15/2030 1,140,000.00 1,185,686.64 1,138,233.00 3.90 First American Govt Oblig Fund Money Market Fund --- 11/30/2025 826,324.59 826,324.59 826,324.59 3.40 State of California Municipal Bonds 10/30/2024 08/01/2029 1,755,000.00 1,831,254.75 1,764,248.85 3.76 International Bank for Recon and Dev Supranational 08/25/2023 07/12/2028 2,500,000.00 2,535,663.89 2,385,525.00 3.59 Inter-American Development Bank Supranational 02/20/2024 02/15/2029 2,500,000.00 2,575,423.33 2,474,725.00 3.63 International Bank for Recon and Dev Supranational 12/12/2024 10/16/2029 1,750,000.00 1,776,369.00 1,721,510.00 3.68 International Bank for Recon and Dev Supranational 03/14/2025 03/20/2030 2,000,000.00 2,052,907.83 1,993,200.00 3.74 United States US Treasury --- 06/30/2027 4,000,000.00 4,035,047.96 3,987,734.37 3.71 United States US Treasury --- 10/31/2027 1,500,000.00 1,511,352.07 1,520,419.92 3.48 United States US Treasury 06/01/2023 03/31/2027 2,000,000.00 2,009,954.98 1,979,843.75 3.53 United States US Treasury 08/21/2025 12/31/2027 2,500,000.00 2,558,997.58 2,502,734.38 3.70 United States US Treasury 11/09/2023 05/31/2028 1,500,000.00 1,522,409.75 1,496,308.59 3.57 United States US Treasury 12/16/2024 07/31/2028 2,000,000.00 2,041,784.75 1,988,515.63 3.65 United States US Treasury 05/08/2025 08/31/2028 3,000,000.00 3,043,349.22 2,983,593.75 3.68 United States US Treasury 08/21/2023 10/31/2028 2,500,000.00 2,580,460.57 2,463,964.84 3.51 United States US Treasury 02/27/2024 01/31/2029 3,000,000.00 3,066,431.53 2,971,171.88 3.52 United States US Treasury 06/01/2023 02/15/2027 2,000,000.00 2,011,607.63 1,993,046.88 3.51 United States US Treasury 10/04/2024 03/31/2029 2,000,000.00 2,008,588.62 1,976,250.00 3.63 United States US Treasury --- 04/30/2029 1,000,000.00 995,879.13 933,953.13 3.60 United States US Treasury 04/04/2025 05/31/2029 2,000,000.00 2,014,773.35 2,000,078.13 3.67 United States US Treasury --- 06/30/2029 5,000,000.00 5,081,252.42 4,998,007.81 3.68 United States US Treasury 09/25/2023 08/31/2029 400,000.00 414,399.33 395,781.25 3.53 United States US Treasury 11/05/2025 09/30/2029 1,500,000.00 1,502,984.35 1,490,566.41 3.72 United States US Treasury --- 10/31/2029 4,400,000.00 4,543,906.59 4,442,750.00 3.60 United States US Treasury 07/18/2024 12/15/2025 1,500,000.00 1,531,875.61 1,510,605.47 3.60 United States US Treasury 07/09/2025 11/30/2029 3,000,000.00 3,022,938.13 2,989,687.50 3.69 United States US Treasury --- 01/15/2026 3,000,000.00 3,053,825.45 2,974,648.44 3.69 United States US Treasury --- 02/15/2026 1,000,000.00 989,383.69 923,117.19 3.56 United States US Treasury 11/19/2024 03/31/2030 3,000,000.00 3,072,521.75 2,985,234.38 3.64 United States US Treasury 10/26/2023 04/15/2026 3,000,000.00 3,131,338.34 3,002,929.69 3.54 United States US Treasury 06/14/2023 04/30/2030 2,000,000.00 2,017,015.43 1,963,984.38 3.55 United States US Treasury 05/03/2024 05/15/2026 2,500,000.00 2,600,565.68 2,515,966.80 3.58 United States US Treasury 04/29/2024 05/31/2030 1,000,000.00 1,027,102.15 976,367.19 3.58 United States US Treasury 02/16/2024 05/31/2026 2,000,000.00 2,058,946.26 1,972,500.00 3.56 United States US Treasury --- 06/30/2030 1,000,000.00 1,018,158.92 1,005,632.81 3.49 United States US Treasury --- 07/31/2030 3,000,000.00 2,982,013.09 2,851,679.68 3.53 United States US Treasury 12/03/2025 08/31/2030 2,500,000.00 2,482,497.31 2,485,644.53 3.73 United States US Treasury --- 10/15/2026 1,000,000.00 996,652.78 968,453.13 3.49 United States US Treasury 02/26/2024 10/31/2030 3,000,000.00 3,046,199.09 2,960,156.25 3.70 United States US Treasury --- 11/15/2026 6,500,000.00 6,579,046.43 6,539,550.78 3.63 United States US Treasury 10/30/2023 11/15/2026 3,000,000.00 3,053,903.14 2,978,789.06 3.57 199,353,651.23 202,345,710.83 196,917,666.26 3.80
17 Attachment E: Statement of Transactions at USBank
Marin Clean Energy
Statement of Transactions at USBank
For December 2025
Transaction
Type
Settlement
Date
Security Description Acq/Disp Yield Amount Purchased/
Sold Interest
Total Amount Net Realized
Gain/Loss
Buy 12/11/2025 AMAZON.COM INC 4.1 11/20/2030 4.070 (2,002,620.00) 5,011.11 (2,007,631.11) 0.00 Buy 12/16/2025 FHMS K-109 A2 1.558 04/25/2030 3.894 (1,272,796.88) 1,090.60 (1,273,887.48) 0.00 Buy 12/03/2025 UNITED STATES TREASURY 3.5 11/30/2030 3.627 (2,485,644.53) 961.54 (2,486,606.07) 0.00 Buy Total (5,761,061) 7,063 (5,768,125) -
Sell 12/11/2025 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.35 09/15/2027 4.744 705,040.00 (7,358.75) 712,398.75 9,356.41 Sell 12/11/2025 STATE STREET CORP 4.536 02/28/2028 4.511 1,369,183.50 (17,690.40) 1,386,873.90 19,183.50 Sell Total 2,074,224 (25,049) 2,099,273 28,540
18 CONFIDENTIAL | 2
Marin Clean Energy | Account #10993 | As of December 31, 2025 Execution Time: 01/05/2026 05:17:57 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747
PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Performance Review
Account Summary
Maturity Distribution
Top Issuers
Credit Quality*
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (01/01/23)
Marin Clean Energy 0.19% 1.13% 6.16% 6.16% 4.97% 4.94% -- -- 4.94% Benchmark Return 0.19% 1.11% 5.73% 5.73% 4.57% 4.48% -- -- 4.48% Average Modified Duration 2.57
Average Coupon 4.10%
Average Purchase YTM 4.45%
Average Market YTM 3.80%
Average Credit Quality* AA+
Average Final Maturity 3.01
Average Life 2.82
End Values as of
11/30/2025
End Values as of
12/31/2025
Market Value 200,489,203.94 200,554,323.12
Accrued Interest 1,479,417.04 1,791,387.71
Total Market Value 201,968,620.97 202,345,710.83
Income Earned 402,955.03 1,058,284.60
Cont/WD 0.00 0.00
Par 198,817,184.78 199,353,651.22
Book Value 197,571,764.51 198,022,720.88
Cost Value 196,510,324.85 196,917,666.25
United States 41.34%
FHLMC 12.20%
Farm Credit System 3.78%
International Bank for Recon and Dev 3.13%
Federal Home Loan Banks 2.27%
American Express Credit Master Trust 1.69%
Guardian Life Global Funding 1.43%
Meta Platforms, Inc. 1.38%
**Periods over 1 year are annualized.
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index *The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
Attachment F: Fixed Income Portfolio at USBank Summary
19 Attachment G: Statement of Investments held at River City Bank Investment Description Purchase Date Maturity Date Interest Rate Purchase Price Yield Most Recent Price (MTM)
% Total
Portfolio
River City Bank CDARS, 2 years 1/30/2025 1/29/2026 4.24% 1,000,000 4.33% 1,000,000 1.50% River City Bank CDARS, 2 years 2/15/2024 2/12/2026 4.74% 1,000,000 4.85% 1,000,000 1.50% River City Bank CDARS, 2 years 2/22/2024 2/19/2026 4.69% 4,000,000 4.80% 4,000,000 6.02% River City Bank CDARS, 52 weeks 8/21/2025 2/19/2026 4.11% 5,000,000 4.21% 5,000,000 7.52% River City Bank CDARS, 2 years 2/29/2024 2/26/2026 4.80% 2,000,000 4.92% 2,000,000 3.01% River City Bank CDARS, 52 weeks 8/28/2025 2/26/2026 4.06% 5,000,000 4.14% 5,000,000 7.52% River City Bank CDARS, 2 years 3/28/2024 3/26/2026 4.66% 2,000,000 4.77% 2,000,000 3.01% River City Bank CDARS, 2 years 4/11/2024 4/9/2026 4.84% 1,500,000 4.96% 1,500,000 2.26% River City Bank CDARS, 2 years 4/18/2024 4/16/2026 5.07% 4,000,000 5.20% 4,000,000 6.02% River City Bank CDARS, 2 years 5/9/2024 5/7/2026 4.92% 5,000,000 5.04% 5,000,000 7.52% River City Bank CDARS, 2 years 5/30/2024 5/28/2026 5.04% 4,000,000 5.17% 4,000,000 6.02% River City Bank CDARS, 52 weeks 6/20/2024 6/19/2026 4.85% 4,000,000 4.97% 4,000,000 6.02% River City Bank CDARS, 2 years 8/1/2024 7/30/2026 4.45% 4,000,000 4.55% 4,000,000 6.02% River City Bank CDARS, 52 weeks 8/14/2025 8/13/2026 3.90% 5,000,000 3.98% 5,000,000 7.52% River City Bank CDARS, 52 weeks 8/21/2025 8/20/2026 3.91% 5,000,000 3.99% 5,000,000 7.52% River City Bank CDARS, 2 years 1/9/2025 1/7/2027 4.40% 4,000,000 4.50% 4,000,000 6.02% - River City Bank CDARS, 2 years 8/7/2025 8/5/2027 3.72% 5,000,000 3.79% 5,000,000 7.52% River City Bank CDARS, 52 weeks 11/20/2025 11/19/2026 3.67% 5,000,000 3.76% 5,000,000 7.52% Total $66,500,000 $66,500,000 100%
Weighted Average Interest and Yield on All Investments 4.37% 4.47% Marin Clean Energy
Statement of Investments held at River City Bank
As of 12/31/2025
20 Attachment H: Statement of Transactions at River City Bank Marin Clean Energy
Statement of Transactions at River City Bank
For December 2025
Transaction Type Investment Description Effective Date Maturity/Purchase Date
Principal Interest Paid Total Amount Realized Gain Realized Loss Annualized Yield
Maturity River City Bank CDARS, 2 years 12/14/2023 12/11/2025 6,000,000 606,727.44$ 6,606,727.44$ 606,727.44$ - 4.95% Maturity River City Bank CDARS, 2 years 12/21/2023 12/18/2025 5,000,000 470,583.22 5,470,583.22 470,583.22 - 4.61% Maturity Total 11,000,000.00 1,077,310.65 12,077,310.65 1,077,310.65 No CDARs were purchased in December 2025
Purchase Total
21 MCE Finance Committee Overview
Scope
The scope of the MCE Finance Committee is to explore, discuss, and provide input to the Board of Directors on general issues related to MCE’s finances.
Finance Committee will:
• Receive, review, and discuss monthly investment reports from the Treasurer • Receive, review, and discuss quarterly reports from the Treasurer • Receive, review, and discuss annual Audit
• Evaluate rate proposals
• Consider budget-setting proposals
• Consider high-level risk analysis and forward-looking financial forecasts • Regularly review contracts for financial vendors (investment advisors, auditors, banking)
The Finance Committee may also choose to make recommendations to the Board of Directors regarding:
• Rate setting proposals
• Annual budget and budget adjustments
• Entering into debt
• MCE Policies related to finance such as Policy 013: Reserve Policy and Policy 014:
Investment Policy
• Financial controls
• Contracts for financial vendors
Committee Size and Member Selection Process
The Finance Committee will consist of 5-7 MCE Board representatives. MCE strives to assemble a Finance Committee comprised of at least one representative from each county in the MCE service area. Available seats on the Finance Committee are therefore first offered to any interested Board member whose county is not yet represented. The Board may evaluate skills and abilities relative to finance, budget, risk management, and investments. Interested members can be added at a meeting of the Board of Directors when it is included in the agenda. Any member interested in joining is required to be a representative on the Board for six (6) months prior to serving on the Finance Committee.
The Finance Committee selects its own chair for a term of one year. The Finance Committee Chair is limited to two one-year terms.
Meeting Schedule
Every other month, or as needed. Meetings may be held in-person at MCE’s San Rafael and/or Concord offices. Participation via teleconferencing can be accommodated upon request if the address is provided to MCE’s Board clerk a minimum of 10 days before the meeting (for public noticing purposes) and the location and committee members follow applicable requirements for public access.
Attachment B. Summary of CCA Finance Committee Scopes and 2025 Meeting Cadence
AGENCY SCOPE
Ava Community
Energy
(Ava)
5 meetings in 2025
No official scope.
Per their clerk: "The scope of the Finance, Administrative and Procurement subcommittee is defined by its name and the staff members (from our internal finance, administration and procurement teams) who participate in the meetings."
Central Coast
Community Energy
(3CE)
3 meetings in 2025
The Boards’ Audit and Finance Committee ("AF Committee”) shall be a permanent standing committee. The AF Committee shall consist of up to five voting members made up of Directors from the Boards. (Note: 3CE has two boards, one made up of elected officials and the other made up of City Managers.) All members of the AF Committee shall be: (1) generally knowledgeable about governmental accounting and finance issues and (2) selected by the Chair of the Policy Board. The purpose of the AF Committee is primarily to provide financial oversight for the Authority. The AF Committee shall meet quarterly, and as needed. AF Committee members shall serve two, three-year terms. The AF Committee shall have the following duties:
a. Advise and work with the Authority’s staff on budgeting, audits, financial planning/reporting, internal controls, accountability policies and investments. b. Review the proposed annual budget of the Authority prior to presentation to the Policy Board. c. Provide oversight of the preparation of the annual audit of the Authority's financial statements and review the completed audit reports for clarity, soundness and potential issues prior to the Policy Board’s review.
d. Recommend policies and procedures on financial matters to the Policy Board. e. Be available to review the proposed budget or any financial transactions that might require an in-depth review prior to the Policy Board’s approval.
f. Perform other duties as assigned by the Policy Board. g. Delegate any of these duties and responsibilities as it deems appropriate.
Clean Power
Alliance
(CPA)
6 meetings in 2025
The Standing Finance Committee's duties shall include but not be limited to reviewing and recommending to the Executive Director and Board:
a. Fiscal year budgets;
b. Financial policies and procedures including a reserve and investment policy; and c. Other measures ensuring the sound financial management of CPA or as similarly directed by the Board.
The Finance Committee shall select an Independent Auditor who shall perform a financial audit of accounts of CPA on an annual basis. The Independent Auditor shall be accredited in the State of California and provide independent, accurate, and timely assessments of CPA’s financial activities in compliance with generally accepted government auditing standards.
The Finance Committee shall recommend to the Board an Internal Auditor. The Internal Auditor may assess compliance with CPA’s financial policies and procedures; review CPA’s internal processes or the adequacy of financial controls; make recommendations for improvement; and any similar duties as the Board may direct.
Peninsula Clean
Energy
(PCE)
4 meetings in 2025
As a Standing Board Committee, the role of the Board Audit and Finance Committee is to consider and make recommendations on matters referred to it by the Board relating to PCE finance, budget, financial audits, and debt.
The Audit and Finance Committee will consist of up to five members elected by the Board to serve one-year terms.
Pioneer Community
Energy (Pioneer)
3 meetings in 2025
1. The Committee shall annually retain or renew the appointment of an independent auditor to conduct the audit and any related management letter.
2. Review with the independent auditor the scope and planning of the audit prior to its commencement.
3. Upon completion of the audit, review and discuss the following with the independent auditor:
a. Any material risks and weaknesses in internal controls identified by the independent auditor b. Any restrictions placed on the independent auditor’s scope of the activities or access to requested information
c. The adequacy of the Agency’s interim and annual accounting and financial reporting process d. Any recommendations made by the independent auditor
4.Report to the Governing Board of the Committee’s activities and recommend the results of audit findings for approval.
Additional responsibilities include: Budgeting and Financial Reporting, Internal Controls and Accountability Policies, and Investments.
Redwood Coast
Energy Authority
(RCEA)
2 meetings in 2025
The Finance Subcommittee will work with staff in an advisory capacity, and provide recommendations and advice to the Board of Directors, on matters relating to audit, finance and budget.
San Diego
Community Power
(SDCP)
8 meetings in 2025
The Finance and Risk Management Committee (FRMC) is a standing committee of the Community Power Board whose purpose, as stated in section 5.10.2 of the SDCP’s JPA Agreement, is to provide input and oversight on matters related to the agency’s funding plan, its fiscal year budgets, financial policies and procedures, risk management policies and procedures, and other responsibilities as may be directed by the Board. The FRMC is composed of three members of the Board.
Silicon Valley Clean
Energy
(SVCE)
The purpose of the SVCE Finance & Administration Committee is to primarily provide financial oversight for SVCE. They work with SVCE staff on budgeting, financial planning/reporting, 4 meetings in 2025 internal controls, accountability policies, and investments. The Finance & Administration Committee meets quarterly, and as needed.