Presentation — WestLight Energy Board of Directors, March 23, 2023

Peninsula Clean Energy
Board of Directors Meeting
March 23, 2023
Swearing In of New Board Members
and Alternates
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
o Please note, send any chats to Board Clerk, Nelly Wogberg • Action to set the Agenda and Approve Consent Item 1
o Consent - Public Comment
• Regular Agenda
• Adjournment
Chair Report (Discussion)
CEO Report (Discussion)
Peninsula Clean Energy
Topics to be Covered Tonight
• Staffing Updates
• Legislative Update
• All-Electric Awards Presentation
• Board Orientation
• Board Mentor Program
• Board Subcommittees
• Upcoming Meetings
Peninsula Clean Energy
Staffing Updates: New Hires
• Brianna Arroyo, Administrative Assistant, started March 7 • Roy Xu, Director of Power Resources, started March 13 • Gwen Rose, Director of Marketing and Community
Relations, started March 20
• Catherine Hansen, HR Manager, starting March 27
Peninsula Clean Energy
Staffing Updates: Open Positions
Currently posted on PCE website:
• Chief Executive Officer
• Power Resources Analyst/Specialist
Peninsula Clean Energy
Legislative Update
• SB 537 (Becker) – PCE is sponsor
• Governor’s Budget Proposal
Peninsula Clean Energy
2023 All-Electric Awards Presentation
• Sustainable San Mateo County
o March 30 at 24th Annual SSMC Awards
Peninsula Clean Energy
Board Orientation – March 29, 2023 – 6 to 9 pm
• Designed for new Board members and alternates; all are welcome • In-person meeting in PCE's main lobby
• Approx. 3-hour orientation
• Agenda:
o History and overview of PCE strategic goals and core functions o CA energy market training
o Department Directors’ discussion panel and Q&A
o Board member logistics
11 Peninsula Clean Energy
Board Mentor Program • Proposal from Vice Chair Colson to partner new Board Members with
tenured Board Members during first
year of service
• Provide new Board Members
with subject matter support and
Agency navigation as a supplement
to staff engagement
• Participation is voluntary but we are
seeking4-7 seasoned Board
members to match with our new
members
12 Peninsula Clean Energy
PCE Subcommittees
• Looking for Board Members and
Alternate Board Members to
serve on:
oMarketing Subcommittee
oProcurement Subcommittee
13 Peninsula Clean Energy
Upcoming Meetings
• Executive Committee:
o April 10, at 10:00 a.m. (In-person and zoom)
• Citizens Advisory Committee:
o April 13 at 6:30 p.m. (In-person and zoom)
• Board of Directors:
o April 27 at 6:30 p.m. (In-person and zoom)
• Audit and Finance Committee:
o May 8, at 8:30 a.m. (In-person and zoom)
CAC Report
Appointments to the
Executive Committee and
Audit and Finance Committee
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Financial Report to the Board
Kristina Alagar Cordero, CFO
March 23, 2023
Peninsula Clean Energy
Agenda
• No direct impact of Silicon Valley Bank Failure on PCE Finances • Summary of PCE Financial Policies
• Summary of PCE Financial Practices and Procedures and Calendar • Link to PCE Financial Reporting Documents
Peninsula Clean Energy
No Direct Impact on PCE Finances from Silicon Valley
Bank Failure
• No direct impact on PCE finances from Silicon Valley Bank failure • No exposure to Silicon Valley Bank as a counterparty bank in any of our Energy Product agreements
• No Silicon Valley Bank holdings in PCE investment portfolio • No payments to PCE vendors through SVB as vendor deposit bank • PCE’s active bank deposits with First Republic as PCE’s operating bank are guaranteed beyond FDIC insurance amounts by State of CA Government Code Section 16522
19 Peninsula Clean Energy
PCE Board Adopted Financial Policies Ensure Financial
Stability
• Policy 18 – Financial Reserves –
o Provides for the maintenance of 180 days of operating reserves in unrestricted cash o Last revised February 2021
• Policy 19 – Investments
o Purpose of policy is to protect pooled cash while producing a reasonable rate of return
o Last revised May 2020
• Policy 17 – Disbursement Policy
o Provides procedures of disbursement processes to ensure financial controls and segregation of duties for wire transfers
o Last revised January 2019
20 Peninsula Clean Energy
PCE Financial Practices and Procedures guided by
Strong PCE Board Adopted Financial Policies
• Monthly internal reporting and review of financial performance • Quarterly internal and external reporting and review of financial performance
o Cash reporting and projected performance against PCE reserve policy o Actual vs. budget financial variance reporting
o Investment holdings and performance review and reporting 21 Peninsula Clean Energy
PCE Finance Calendar
Prior Fiscal Year FYE 2022
FY 2021-2022
Current Fiscal Year FYE 23
FY 2022-2023
July 22
August 22 FYE 22 Q4 Results Published
September 22 FYE 22 Audit Field Work
October 22
November 22 FYE 23 Q1 Financial Reports Published
December 22 FYE 22 Audited Results Published
January 23
February 23 FYE 23 FY Q2 Financial Reports Published
March 23 FYE 24 FY Budget Development
April 23
May 23 FYE 23 Q3 Financial Reports Published
First Draft FYE 24 Budget Shared with A&F, BOD
June 23 Final FYE 24 Budget for A&F and BOD Adoption
22 Peninsula Clean Energy
Additional Steps undertaken to further strengthen
PCE’s financial position and resilience
• Further diversification of financial institutions holding liquid assets o Opening two new, highly liquid, and accessible Money Market Accounts at brokerage firms
o Fidelity MMA opened and funded last week with nearly one month of expenses
o Will maintain operating account at First Republic Bank funded with one month of operations on deposit
23 Peninsula Clean Energy
Cash Position
24 Actual December 31, 2022
Total Cash/Investments Balance $ 176,921,299
Restricted by Term/Covenant
Unrestricted Cash (per Approved Reserve Policy) $176,921,299 Days Cash on Hand (per Approved Reserve Policy) 219
Approved Reserve Policy (Days Cash on Hand) 180
Unrestricted Operating Reserve Requirement (180 Days) $ 145,198,104 Unrestricted Cash in Excess of Current Reserve Policy $31,723,195 Note: Days Cash on Hand based on full-year forecast of Operating Expenses Peninsula Clean Energy
Links to PCE Financial Reporting Documents
• Website
o Audit and Finance Committee Meeting Schedule, Agendas, Agenda Packets, Presentations and Minutes
• Key Documents
o Audited Financial Statements
o Quarterly Financial Reports
25 Zero Percent Loan Program
Extension
Board of Directors
March 23, 2023
Peninsula Clean Energy
Buildings Program: Request
Program: Zero Percent Loan
Request: Extend the program including an additional $1
million of capital for a total of $2 million
27 Peninsula Clean Energy
Overall Existing Building Incentive Program Status
• Launched in January 2021
• Initially $1,000 for heat pump water heater
• Integrated with BayREN (submit through BayREN for both incentives)
• Major program update in October 2022:
• Increased incentives ($3,000 for HPWH + short term $500) • Added HP HVAC ($3,500)
• Added non-BayREN option
• Added Zero Percent Loan
• Inflation Reduction Act $2,000 tax credit went into effect Jan. 2023 Peninsula Clean Energy
Rapid incentive uptake (as of 3/20/23)
29 Peninsula Clean Energy
Significant new volume with HVAC
30 Peninsula Clean Energy
Assessment

1. Uptake acceleration
a. Inflation Reduction Act
• communications on heat pump benefits
• Tax credits
b. Effects of program changes

2. May reflect pent up demand and may taper(?)

3. Still very small relative to overall replacement
• ~12,000 water heaters replaced per year
31 Peninsula Clean Energy
Zero Percent Loan Program Overview
• Launched in October 2022
• $1M PCE capital fund
• Up to $10,000 per customer
• 10-year max. loan term
• 0% interest
•Electrification & related measures
32 Peninsula Clean Energy
Loan: Rapid Uptake (1 of 2)
33 Peninsula Clean Energy
Loan: Rapid Uptake (2 of 2)
34 Peninsula Clean Energy
Buildings Program: Request
Program: Zero Percent Loan
Request: Extend the program including an additional $1
million of capital for a total of $2 million
35 Building Electrification Strategy
Executive Committee
March 13, 2023
Peninsula Clean Energy
Agenda
37 2035 Decarbonization Analysis
Building Electrification v2
Home Upgrade Program Status
Home Upgrade v2
Peninsula Clean Energy
Programs Portfolio
38 Peninsula Clean Energy
2035: PCE Scope
• Primary Scope
o Transportation
o private passenger, local gov & small commercial fleets, o ride-hailing, alternative mobility
o Buildings
o residential (single family & small multifamily),
o Office (incl. local gov.), small commercial
• Not in scope, or limited* (others lead)
o Transportation: heavy-duty vehicles, off-road
o Buildings: industrial, large commercial*, large multifamily* o Non-energy: land-use, compost, stationary sources, landfills o Out of territory: SF airport
o Embedded carbon, Climate Adaptation, Sequestration/restoration 39 Peninsula Clean Energy
2035: Buildings Electrification

1. Flexible Incentives
o All measures, incl. prewiring and panels
o Broader building segments
o Integrated load shaping & solar+storage
options

2. High touch support
o Advanced “right-sizing” design
o One-stop shop, hotline assist, turnkey option
o Procurement aggregation to lower costs
o Greater contractor support

3. Links to Finance
o Specific linkages by customer segment
40 Peninsula Clean Energy
CAC Supports Approach
41 1. “CAC wholeheartedly and
excitedly supports, endorses,
and recommendations adoption
of the Staff proposal”

2. CAC added a list of
recommendations available in the
Board Memo
Building Electrification v2
Goals and Architecture
42 2035 DECARBONIZATION ANALYSIS

RESULTS REFRESHER
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What we have
• Rebates
• Loan
• Home upgrade
43 Peninsula Clean Energy
Needs for Building Electrification 2.0 (“BE v2”)
• Current program provides incentives but minimal guidance/support • Updated program needs to address barriers customers face o Especially important to ensure city councils are comfortable adopting existing buildings reach codes
• Customer challenges include:
o Lack of clear information
o Difficulty selecting contractors and equipment
o Technically complicated installations
o Emergency replacements
o Limited time and money
Peninsula Clean Energy
Types of Residential Customers - Profiles
• "I want to choose“/DIY
o We need to take action on climate
o I’m interested in technology
o I like sorting it out myself
• “Just get it done”
o I’m busy (single parent)
o My water heater went out and I need one immediately
• "I cannot afford this"
o I’ve been without heating the last two years. My home has lots of problems.
o I don’t have the time or funds
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Peninsula Clean Energy
Residential Programs – BE v2
46 Rebates
One-Stop Website Turnkey install option Finance Options Contractor
network
Info &
education
Why, how,
rebates, etc.

Appliance
marketplace
Energy
calculator
Retail
Partners
Load
Shaping
PV +
Storage
Bulk buy
Workforce
development
Pilot tech
PCE financing
Third-party
financing
Appliance
install
Emergency
loaner
Whole home
planning Bulk buy
Dev supply
chain
Brick &
mortar
presence
Hotline
Program
navigation
Project
planning
Technical
guidance
Rebates
CPUC Flex market PCE rebates BayREN
rebates
IRA
rebates
CEC
rebates
Peninsula Clean Energy
First Priorities: One-Stop-Shop Website, Turnkey, Hotline • One-stop-shop website v1
a) Info & education: why, how, rebates
• Turnkey install
a) Direct install electrician and contractor
b) Gas WH loaner unit
o Supports emergency replacements
o Essential for deeper existing building reach codes
c) Point of sale finance option (OBF &/or 3rd pty)
• Hotline
a) Customer call support for
o basic program participation
o navigating PCE & other support
o basic project process
o technical support
b) Whole home electrification planning
48 Peninsula Clean Energy 49
Dedicated
contractors
Specifically
trained
Whole home
experience
Bulk buy
discounts
Virtual Power
Plant (VPP)
Pilot new
tech
Dedicated workforce can
support turnkey projects for
non-low-income customers
Equipment discounts
available to all
customers
Advanced designs
inform program
improvements
Home Upgrade Program Components
Dedicated workforce Embedded innovation
Leveraging Home Upgrade
Advanced
designs
Peninsula Clean Energy 50
Cost-Share Turnkey Program
• Installed as turnkey
• Costs paid by customer
• PCE rebates or financing applied seamlessly
• Emergency replacements administered in same way
Home Upgrade v2
51 2035 DECARBONIZATION ANALYSIS

RESULTS REFRESHER
Peninsula Clean Energy
Vision for Home Upgrade v2
52 Scale to Whole Home Increase Homes Impacted per Year Capture Federal & State Incentives Integrate with Turnkey Offering Develop VPP Peninsula Clean Energy
Whole homes & more of them
53 Scale to Whole Home Increase Homes Impacted per Year Electrification Cost
Water Heating (includes 240V circuit) $6,100
Space Heating $20,700
Cooking $1,098
Clothes Drying $925
Total $28,823
Panel, if required $3,700
Total non-optimized cost $32,523
Minor home repair $1,500
Estimated Average for Home Upgrade $31,500
250homes per year
Minimum to enable dedicated workforce
Aligns with 2035 analysis
Peninsula Clean Energy
Planning ahead to Capture Fed/State Incentives
Planning to integrate with
CPUC FLEXmarket
o $2,500 per home
CEC building decarb
funding being planned
currently
o $600m fund
Inflation Reduction Act
funds should come online in
late 2023/early 2024
o $10,000 per home
Capture Federal & State Incentives 54
Peninsula Clean Energy
Planning ahead to Capture Fed/State Incentives
55 Electrification Cost IRA Incentives
CEC Equitable
Decarb Estimate
Cost After
State/Fed
Incentives
Water Heating (includes 240V circuit) $6,100 $1,850
$6,600
$4,250
Space Heating $20,700 $10,000 $10,700
Cooking $1,098 $1,099
Clothes Drying $925 $925
Total $28,823 $11,850 $6,600 $10,373
Panel, if required $3,700 $3,700
Total non-optimized cost $32,523 $11,073
Minor home repair $1,500 $1,500
Estimated Average for Home Upgrade $31,500 $13,050
Peninsula Clean Energy
Prospective Budget Leveraging Fed/State Funds
56 $1.6m
$4.3m
$4.6m
$26.2m
$15.6m
Total Program Cost CPUC Flexmarket CEC Equitable Building Decarb
Inflation Reduction Act
Rebates
Remaining
Prospective 3-Year Budget for Turnkey Install & Hotline* $16-19m
$23-27m
*Most of the cost would be for the expanded Home Upgrade program to fully electrify 650 low-income homes. Non-low-income turnkey and hotline services is estimated at $900,000-$1,300,000 but will depend on services and volume. More detailed budget estimates will be developed based on proposals received in a competitive procurement process.

Peninsula Clean Energy
2023 2024 2025 2026
Approximate Timeline and Plan
57 First RHA
Contract
(Home Upgrade)
RFP Process Turnkey install and hotline program (including Home Upgrade v2) Building Electrification 2.0
March July
Feb Dec Jan
Jan
Inflation Reduction Act Incentives
State incentives
RHA Contract Amendment
(Home Upgrade)
March June
Develop one-stop
shop website v1
One-stop shop
website v2
One-stop shop
website v3
Board Members’ Reports (Discussion)
Peninsula Clean Energy
Closed Session
The Board will go into closed session to discuss:

10. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Title: Chief Executive Officer

11. CONFERENCE WITH LABOR NEGOTIATORS Agency Designated Representatives: Rick DeGolia and General Counsel/Assistant General Counsel; Unrepresented Employee: Chief Executive Officer

12. Reconvene Open Session (If Necessary) To Report Any Action(s) Taken During Closed Session
Adjournment
Peninsula Clean Energy

WestLight Energy Board of DirectorsMarch 23, 2023

WestLight Energy Board of Directors
March 23, 2023