Audit & Finance
Committee
Meeting
May 12, 2025
The meeting will begin shortly.
Thank you!
Agenda
Call to Order / Roll Call
Public Comment (for items not on the Agenda)
• Please note, send any chats to Administrative Assistant, Brianna Arroyo Action to set the Agenda and Approve Consent Item 1
• Consent - Public Comment
Regular Agenda
Adjournment
Chair Report
Staff Report
Q3 FY24-25
Financial Review
Nick Bijur, Chief Financial Officer
(in MWh) Actual Budget Variance Var (%)
Residential 1,098,089 1,126,661 (28,572) -2.5%
Commercial & Industrial 1,535,957 1,593,166 (57,209) -3.6% Total 2,634,046 2,719,827 (85,781) -3.2%
FY24-25 YTD Base Load
Customer Load
Year-to-Date (YTD) load 3.2% below budget;
Q3 load 4.7% below budget
• Lower residential load primarily due to mild
winter
• Reduced Small Commercial load relative to pre-2022 historical levels • Staff continues to re-calibrate model to improve
performance
YTD load 2.8% higher than last year
200,000
225,000
250,000
275,000
300,000
325,000
350,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar
Total Load (MWh)
Actuals Budget FY23-24 Actual
6 (in millions)
FY25 Q3
Actual
FY25 Q3
Budget
FY24 Q3
Actual
$Var vs
Budget
Fav/(Unf)
$Var vs
FY24 Q3
Fav/(Unf)
Electricity Sales 99.4 105.9 107.6 (6.5) (8.2)
Non-Electricity Revenues 4.2 3.7 3.1 0.5 1.1
Green Electricity Premium 1.0 1.1 0.7 (0.1) 0.3
Total Revenues $104.6 $110.7 $111.4 ($6.1) ($6.8)
(in millions)
FY25 YTD
Actual
FY25 YTD
Budget
FY24 YTD
Actual
$Var vs
Budget
Fav/(Unf)
$Var vs
FY24 YTD
Fav/(Unf)
Electricity Sales 340.1 349.9 337.4 (9.8) 2.7
Non-Electricity Revenues 13.4 10.9 4.3 2.4 9.1
Green Electricity Premium 2.6 2.7 2.3 (0.1) 0.3
Total Revenues $356.0 $363.5 $344.0 ($7.5) $12.0
Revenues
Q3 and YTD revenues
$6.1 million, and $7.5
million below budget,
respectively • Lower load • Rate decrease in Feb
2025 (increased
discount to 10%)
• Non-electricity revenues
driven by delayed
damages
Year-over-year change
impacted by 5% rate
decrease in August
2024 and $12 million
bill credit in December
2023
7 (in millions)
FY25 Q3
Actual
FY25 Q3
Budget
FY24 Q3
Actual
$Var vs
Budget
Fav/(Unf)
$Var vs
FY24 Q3
Fav/(Unf)
Energy 64.2 74.3 66.2 10.1 2.0
Capacity 16.7 19.5 13.8 2.8 (2.9)
REC/GHG-Free 12.3 3.1 2.6 (9.3) (9.8)
Other (0.6) 1.9 (0.7) 2.5 (0.1)
Contingency 0.0 7.2 0.0 7.2 0.0
Total Cost of Energy $92.7 $106.1 $82.0 $13.4 ($10.7)
(in millions)
FY25 YTD
Actual
FY25 YTD
Budget
FY24 YTD
Actual
$Var vs
Budget
Fav/(Unf)
$Var vs
FY24 YTD
Fav/(Unf)
Energy 177.4 197.1 174.5 19.8 (2.9)
Capacity 105.5 108.4 63.8 2.9 (41.7)
REC/GHG-Free 2.9 11.6 5.6 8.7 2.7
Other 1.6 4.8 1.4 3.2 (0.2)
Contingency 0.0 23.3 0.0 23.3 0.0
Total Cost of Energy $287.4 $345.3 $245.3 $57.9 ($42.1) Cost of Energy
Q3 cost of energy $13.4
million below budget
(13%) • Reduced load, higher
CRR revenue and CAISO
resettlements
• Lower capacity prices
and sale of excess RA
• Offset in part due to
timing of REC/GHG-Free
costs
• Contingency not used/
needed
YTD cost of energy
$57.9 million below
budget (17%) • REC resale in Q2
8 (in millions)
FY25 Q3
Actual
FY25 Q3
Budget
FY24 Q3
Actual
$Var vs
Budget
Fav/(Unf)
$Var vs
FY24 Q3
Fav/(Unf)
Revenues 104.6 110.7 111.4 (6.1) (6.8)
Cost of Energy 92.7 106.1 82.0 13.4 (10.7)
Revenue Less Cost of Energy $11.9 $4.6 $29.5 $7.3 ($17.6) Compensation 3.7 3.4 2.6 (0.3) (1.1)
Data Mgr and PG&E Fees 1.2 1.2 1.2 0.0 0.0
Professional Fees 0.6 0.9 0.5 0.3 (0.1)
Marketing 0.7 0.5 0.8 (0.2) 0.1
Programs 3.0 6.8 4.1 3.9 1.1
Other G&A 0.8 1.3 0.7 0.5 (0.1)
Operating Expenses $10.0 $14.2 $9.9 $4.2 ($0.1)
Non-Operating Income 6.6 2.3 4.6 4.3 2.1
Change in Net Position $8.5 ($7.3) $24.1 $15.8 ($15.6)
Q3 Change in Net Position (CINP)
Q3 CINP $15.8 million
higher than budget
• Primarily due to lower
energy costs offset in
part by lower
revenues
Non-energy costs
favorable to budget
and in-line with last
year
• Lower program spend
offset by higher
compensation
Higher interest income
and investment gains
9 (in millions)
FY25 YTD
Actual
FY25 YTD
Budget
FY24 YTD
Actual
$Var vs
Budget
Fav/(Unf)
$Var vs
FY24 YTD
Fav/(Unf)
Revenues 356.0 363.5 344.0 (7.5) 12.0
Cost of Energy 287.4 345.3 245.3 57.9 (42.1)
Revenue Less Cost of Energy $68.6 $18.2 $98.7 $50.4 ($30.1) Compensation 10.4 10.1 7.0 (0.3) (3.4)
Data Mgr and PG&E Fees 3.6 3.7 3.6 0.1 (0.0)
Professional Fees 1.8 2.7 1.5 0.9 (0.3)
Marketing 1.9 2.3 1.6 0.4 (0.3)
Programs 11.4 20.5 10.1 9.2 (1.3)
Other G&A 2.5 3.7 2.9 1.1 0.4
Operating Expenses $31.7 $43.0 $26.7 $11.3 ($5.0)
Non-Operating Income 17.1 6.8 12.5 10.3 4.6
Change in Net Position $54.1 ($18.0) $84.5 $72.0 ($30.4) YTD Change in Net Position (CINP)
YTD CINP $72 million
higher than budget
• Significantly lower
energy costs offset in
part by lower
revenues
• Lower programs
spend due to program
delays (BE) and
slower uptake (EV)
• Higher interest
income, including
$4.8 million of
investment gains
10 (in millions) Mar-24 Jun-24 Sep-24 Dec-24 Mar-25
Cash (First Republic / JP Morgan) $15.5 $16.3 $13.4 $15.5 $17.4 CAMP 141.8 163.8 166.0 168.1 180.0
PFM 107.0 107.9 111.6 110.9 113.1
Chandler 102.6 103.5 107.1 106.3 108.5
Total Investments $351.4 $375.2 $384.7 $385.2 $401.5
Total Cash & Investments $366.9 $391.6 $398.1 $400.7 $418.9 Days Cash on Hand 397 395 365 367 374
Cash and Investment Summary
11 March 2025 DCOH 313 days excluding $68 million Rate Stabilization Fund Appendix
Detailed Financial Statement
13 Actual Budget Var Fav/(Unf) Actual Budget Var Fav/(Unf) Electricity Sales $99,359,101 $105,863,977 ($6,504,876) $340,096,919 $349,921,800 ($9,824,881) Non-Energy Revenues $4,232,991 $3,713,571 $519,419 $13,364,252 $10,934,714 $2,429,538 Green Electricity Premium 1,009,766 1,108,614 (98,848) 2,572,641 2,672,520 (99,879) Revenue Less Cost of Energy 104,601,858 110,686,162 (6,084,305) 356,033,813 363,529,035 (7,495,222) Cost of Energy 92,668,696 106,062,978 13,394,282 287,420,411 345,317,181 57,896,770 Gross Profit 11,933,162 4,623,185 7,309,977 68,613,402 18,211,854 50,401,548 Compensation 3,736,861 3,419,671 (317,190) 10,429,270 10,132,795 (296,475) Data Manager 876,986 900,000 23,014 2,653,970 2,700,000 46,030 Service Fees (PG&E) 331,248 333,600 2,352 995,067 1,000,800 5,733 Consultants & Professional Services 309,802 537,410 227,607 1,192,618 1,635,929 443,311 Legal 262,429 348,491 86,063 634,227 1,045,474 411,246
Communications & Noticing 727,915 515,014 (212,901) 1,900,785 2,300,359 399,574 General & Administrative 765,017 1,154,932 389,915 2,450,434 3,463,209 1,012,774 Community Energy Programs 2,973,399 6,842,500 3,869,101 11,352,332 20,527,500 9,175,168 Depreciation 46,369 150,599 104,229 89,206 188,046 98,839 Operating Expenses 10,030,026 14,202,216 4,172,190 31,697,909 42,994,110 11,296,201 OPERATING INCOME 1,903,136 (9,579,031) 11,482,167 36,915,492 (24,782,257) 61,697,749 Non-Operating Income 6,617,859 2,275,795 4,342,064 17,144,769 6,827,384 10,317,385 CHANGE IN NET POSITION $8,520,995 ($7,303,237) $15,824,232 $54,060,261 ($17,954,873) $72,015,134 Quarter Ending March 2025 YTD FY 2024-2025
Revenues – Monthly Trend (13 months)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Mar-24 35.9 34.4 1.4 4.2%
Apr-24 32.4 31.2 1.2 3.9%
May-24 34.9 33.7 1.2 3.7%
Jun-24 42.6 44.0 (1.4) -3.2%
Jul-24 54.8 50.2 4.7 9.3%
Aug-24 44.9 46.4 (1.5) -3.3%
Sep-24 42.2 44.6 (2.4) -5.3%
Oct-24 36.7 37.2 (0.4) -1.1%
Nov-24 35.2 35.2 (0.0) -0.1%
Dec-24 37.5 39.3 (1.7) -4.4%
Jan-25 38.1 40.1 (2.0) -4.9%
Feb-25 33.2 37.5 (4.3) -11.5%
Mar-25 33.2 33.1 0.2 0.6%
Revenue Comparison vs. Budget (in millions)
14 Cost of Energy – Monthly Trend (13 months)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Mar-24 25.2 22.5 (2.7) -12.0%
Apr-24 16.8 20.4 3.5 17.4%
May-24 27.6 22.5 (5.1) -22.5%
Jun-24 34.3 27.0 (7.3) -27.1%
Jul-24 41.9 44.9 3.0 6.6%
Aug-24 48.5 48.9 0.4 0.9%
Sep-24 39.5 44.7 5.2 11.6%
Oct-24 33.8 34.5 0.7 2.0%
Nov-24 26.3 31.2 4.9 15.8%
Dec-24 4.8 35.0 30.2 86.4%
Jan-25 29.6 41.0 11.4 27.7%
Feb-25 32.9 31.9 (0.9) -3.0%
Mar-25 30.1 33.1 3.0 8.9%
Cost of Energy Comparison vs. Budget (in millions)
15 FY25-26 Draft
Budget
Nick Bijur, Chief Financial Officer
2025 2026
9 Mo. Act + Fcst Budget $ %
Energy 226,064,375 238,179,849 12,115,474 5%
Capacity 121,200,377 59,912,279 (61,288,098) -51%
REC/GHG-Free 12,311,495 7,625,369 (4,686,126) -38%
Other 3,700,889 3,207,043 (493,846) -13%
Contingency 5,575,469 30,928,025 25,352,556 455%
Cost of Energy 368,852,605 339,852,565 (29,000,040) -8% Variance vs FY25
Cost of Energy
$29 million decrease (-8%) in cost of energy vs FY25
• Significantly lower RA prices (~$12 vs ~$33)
• Lower REC/GHG-Free prices, nuclear allocation, and increased PPA generation • Offset in part by a full year of contingency at 10% and forecasted load growth (~2%)
17 2025 2026
Budget Refresh Budget $ %
Buildings 6,472,453 13,300,000 6,827,547 105%
EV 3,345,586 3,700,000 354,414 11%
DER 578,564 2,350,000 1,771,436 306%
Grants/ Govt 7,010,709 2,150,000 (4,860,709) -69%
Other 115,176 200,000 84,824 74%
Total 17,522,488 21,700,000 4,177,512 24%
Variance vs FY25
Programs - Expense
$4.2 million increase (24%) in Programs expense
• Buildings
• Direct install (home upgrade) ramp-up after initial “startup” phase • Increased marketing efforts should drive higher spend • Grants
• Roll-off of Surplus Fund allocation
• Seven outstanding agencies due to timing issues and slower approval process
• Distributed Energy Resources
(DER)
• Surplus Funds for GovPV storage
• Residential DERM platform subscription
costs
• Electric Vehicles (EV)
• Program stability
18 Programs Capital 2025 2026
Budget Refresh Budget $ %
On Bill Financing 5,032,515 6,000,000 967,485 19%
DER-Gov Solar 11,880,077 20,000,000 8,119,923 68%
GovBE 1,800,000 600,000 (1,200,000) -67%
Resi ESS 400,000 3,000,000 2,600,000 650%
Total 19,112,592 29,600,000 10,487,408 55%
Program Revenues 2025 2026
Budget Refresh Budget $ %
CPUC Revenues 86,909 1,000,000 913,091 1051%
Menlo Pk CEC Grant 608,000 1,000,000 392,000 64%
Other (CALVIP, SVCE, etc) - 450,000 450,000 -
On Bill Financing 1,153,863 1,500,000 346,137 30%
DER-Gov Solar 53,777 400,000 346,223 644%
Total 1,902,549 4,350,000 2,447,451 129%
Variance vs FY25
Variance vs FY25
Programs - Capital Expense and Revenues
$10.5 million increase in Programs capital
• Largely due to GovPV (note that GovPV3 is currently not included in forecast) • Residential solar and storage program launched
19 2025 2026
9 Mo. Act + Fcst Budget $ %
Staff Compensation 14,087,390 16,210,565 2,123,176 15%
# of Employees 63 67 4
% of Revenue 3.1% 4.0%
Variance vs FY25
Compensation
$2 million increase in total staff compensation
• ~5.5% salary increase in May 2025 (2.9% COLA + merit) • Four new positions requested in FY26
• Data Engineer
• Business Project Operations Manager
• Sr. Analyst, Innovation Strategy
• General Counsel
• Compensation as percentage of revenues in-line with peers 20 Other Operating Expenses
• Consultants: Additional support for Power Resources and HR • Legal: Innovation Strategies department
• Communications: Paid advertising to promote Programs, increased promotions/branding to support events, and additional direct mail to support DEIA efforts
• G&A: Increased software, subscription costs, and customer emergency fund 2025 2026
9 Mo. Act + Fcst Budget $ %
Data Manager 3,553,970 3,568,740 14,770 0%
Service Fees - PG&E 1,328,667 1,334,400 5,733 0%
Consultants & Professional Services 1,701,228 2,476,380 775,152 46% Legal 982,719 1,179,917 197,198 20%
Communications and Noticing 2,625,120 3,255,450 630,330 24% General and Administrative 3,575,413 4,308,949 733,536 21% Depreciation 239,805 361,398 121,593 51%
Variance vs FY25
21 2026 2026 Variance
Scenario 1 Scenario 2
Revenues 441,064,627 403,676,914 (37,387,713)
Cost of Energy 339,852,565 339,852,565 -
Revenue less Energy Costs 101,212,062 63,824,348 (37,387,713) Staff Compensation 16,210,565 16,210,565 -
Programs 21,700,000 21,700,000 -
General & Administrative 16,485,234 16,485,234 -
Operating Expenses 54,395,799 54,395,799 -
Operating Income (Loss) 46,816,263 9,428,549 (37,387,713) Interest Income 15,547,290 15,547,290 -
Change in Net Position 62,363,553 24,975,840 (37,387,713) Cash & Cash Equivalents 455,331,969 417,944,255 (37,387,713) Days Cash on Hand 422 387 (35)
FY 2026 Revenue and Rates Scenarios
• Scenario 1: Maintain rates at current
10% discount; no rate change for
entire year → $62.4 million CINP
• As we shared in April, early forecast
predicts PG&E generation rates will
decline and PCIA will increase in
January 2026, resulting “rate parity”
decrease of 28%, or almost
$0.04/kWh
• Scenario 2: Maintain rates at current
10% discount until Feb 2026, at which
time decrease rates to align with PG&E
rate change (net 5% discount) →
$25.0 million CINP
22 Preliminary 5-Year Forecast
• Forecast currently excludes impact from the Rate Stabilization Fund (currently $68 million) • Staff will return to the Committee in June with recommendation to defer additional revenue in FY25, with plans to utilize the Rate Stabilization Fund in FY27 and FY28 • FY27-30 assumes 5% net discount to PG&E (for planning purposes only) 23 2025 2026 2027 2028 2029 2030
9 Mo. Act + Fcst Budget Forecast Forecast Forecast Forecast Revenues 454,959,920 403,676,914 347,108,577 378,229,052 451,565,681 453,806,390 Cost of Energy 368,852,605 339,852,565 351,391,003 363,618,843 386,739,115 398,260,807 Revenue less Energy Costs 86,107,315 63,824,348 (4,282,427) 14,610,209 64,826,565 55,545,583 Staff Compensation 14,087,390 16,210,565 17,917,668 19,363,471 20,331,645 21,348,227 Programs 17,522,488 21,700,000 27,050,000 27,650,000 27,650,000 27,150,000 General & Administrative 14,006,921 16,485,234 16,770,182 17,599,787 17,978,275 18,455,907 Operating Expenses 45,616,799 54,395,799 61,737,850 64,613,258 65,959,920 66,954,134 Operating Income (Loss) 40,490,516 9,428,549 (66,020,277) (50,003,049) (1,133,355) (11,408,551) Interest Income 20,330,881 15,547,290 14,887,184 13,144,471 12,515,388 12,411,866 Change in Net Position 60,821,397 24,975,840 (51,133,093) (36,858,578) 11,382,034 1,003,315 Cash Forecast
$343
$411 $418
$360
$317 $321 $315
257
362
387
319 271 260
248
0 50
100
150
200
250
300
350
400
450
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2025 Budget 2025 Act + Fcst 2026 2027 2028 2029 2030
Cash DCOH Min DCOH Target DCOH
24 Accounting
Support Contract
Nick Bijur, Chief Financial Officer
Accounting RFP – Contract Recommendation
• PCE has engaged Maher Accountancy for accounting support since 2016 • Issued RFP in January 2025 (first time ever)
• Five responses, three firms “shortlisted” for interviews • Staff recommends continued engagement with Maher
o Maher supports all CA CCAs except one; industry expertise and experience is unmatched
o PCE very happy with level of support and service
o Costs comparable
• Action: Recommendation to the Board of Directors to approve a two-year contract with Maher Accountancy in an amount not to exceed $690,000 26 Residential Solar &
Storage Program and
Credit Enhancement
Options
Rafael Reyes, Senior Director
Energy Programs
Existing Programs Portfolio
*
*
+
+
* Low-income program + Includes low-income benefits
Since inception: $60M
investment (incentive &
capital)
Statewide impact:
• Reach codes: set standard
for clean buildings and EV
readiness, now in state code
• Cost-effectiveness via
right-sizing ex: 80% lower
cost for apt. EV charging
• Innovation: tech,
methods, business models.
Program Investment: Incentive + Capital
Does not include GovPV3
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Program Investments: Actual & Forecast
Actual Budget Exp Actual CPUC Exp Actual Capital Outlays Forecast Budget Exp Forecasted CPUC Exp Forecast Capital Outlays Overall Strategy
DER Framework
Grow PCE’s behind-the-meter Local Power Portfolio
by 15 MW of solar and 35 MWh of storage capacity
leveraging scalable and self-sustaining
financing solutions
Integrate additional DERs such as solar + storage
and EV readiness under PCE’s existing Home
Upgrade residential electrification program.
31 Scaling: Decarb incentive & finance trajectory
Fossil fuel incumbent
32 Residential Program
General Market Residential Program Objectives
1. Reduce friction (fees, rates, etc.) & accelerate adoption
2. Lower customer bills & improve cost-benefit of electrification
3. Lower install costs (right-sizing designs) and deliver resilience
4. Establish reliable grid services
5. Leverage third-party finance for scalability
6. Develop sustainable business model - revenues to offset gen revenue loss Residential Electrification: Prior Program
PCE Incentives
35 Customer finance (if applicable, esp. HVAC)
Customer installer
“DIY”
PCE Zero Percent Loan (up to $10k)
• Original program provided
only financial support
• Customers faced a lot of
challenges with complexity
(products, contractors,
install approach,
understanding operating
costs, etc.)
Residential Electrification: Today
PCE Turnkey Install
PCE Incentives
• Provide optionality to address
customer challenges
• Expand scope to “whole home”
• Added Personalized Support
36 Customer finance (if applicable)
Customer installer
“DIY” “Full Service”
PCE Zero Percent Loan (up to $10k)
Personalized Support
(Concierge)
New Solar & Storage Concept
PCE Turnkey Developer
(capture ITC, MACRS, SGIP; PPA/lease option)
PCE Finance Partner
• Provide customer options
• Finance necessary due to
total cost $30k+
• PCE Finance option
• Point of sale approval
• No/low fees
• Low rate
• Both options retain PCE
customer relationship and
grid services
• Support income qualified
through SGIP
37 Customer finance
Customer installer
Personalized
Support
“DIY” “Full Service”
Credit Enhanced
Future: Integrated Electrification, Solar & Storage
PCE Turnkey Install
PCE Incentives & Zero Percent Loan
(electrification measures)
• Provide optionality while
retaining PCE customer
relationship and grid services
38 Customer finance (if applicable)
Customer installer
“DIY” “Full Service”
PCE Finance Partner
Personalized Support
Option
Role of Credit Enhancement
Credit Enhancement: General Concept
3% 11%
Finance Fund 7%
• Improve credit terms via rate
“buy down”, loan-loss
reserve, or loan participation
• No asset ownership
• No PCE debt
• Generate return for PCE
OR
40 Credit Enhancement in other sectors
• Affordable housing
• Community Development
• Green banks
• International Development
Candidate companies
There are numerous firms with varied
approaches.
Several dedicated to consumer clean
energy.
Others: Figure, Mosaic, Enhancify, GreenSky, GoodLeap, Dividend Finance 42 Specific Example
Loan Loss Reserves
• The CCA sets aside funds in an interest-bearing reserve account • Cover a portion of defaults in a loan program administered by a licensed third-party lender. • The CCA does not originate (set terms, underwrite) or own the loans. • Why allowed: The reserve is not a loan or financial service—it's a risk mitigation fund, akin to a grant.
Objectives & Considerations
Objectives of Credit Enhancement
• Offer customers superior rate to accelerate market
• Generate some return to address revenue loss, sustainability Considerations
Specific mechanism may have considerations such as:
• Term for capital commitment
• Risk of loss of capital, lower returns than alternative investments • Reputational risk with private capital provider
Committee Member Reports
45 Adjournment
Peninsula Clean Energy