Peninsula Clean
Energy Executive
Committee
Meeting
January 12, 2026
This meeting will begin shortly. Thank you!
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Please note, send Zoom chats to Brianna Arroyo, Admin Asst. • Action to set the Agenda and Approve Consent items 1-2 • Consent – Public Comment
• Regular Agenda items
• Adjournment
Chair Report
CEO Report
CEO Report
• Welcome to 2026 and to new Executive Committee member, John Dugan, who replaces Director Lorraine.
• SB 707 updates – AFC and EC are able to meet 100% remotely upon approval of Resolution by the BOD every six months; Resolution will be included on the January 22 BOD Agenda • A reminder that an officers nominating committee will be formed at the January Board meeting, and interested candidates for the positions of Chair and Vice Chair can express their interest at that time.
Recommendation to
Establish a
Purchasing Agent
for Peninsula Clean
Energy (Action)
Jennifer Stalzer, Legal Counsel
PCE’s Current Procurement Limits
• Current procurement limits are set by the JPA Section 2.5 and tied closely to the County of San Mateo’s procurement limits • Staff proposes establishing a Purchasing Agent role at PCE and designating the CEO to serve as the Purchasing Agent
• The County of San Mateo also designates a Purchasing Agent under the Chief Executive's Office
• This is an administrative edit to Policy 14 to reflect current responsibilities and roles
• It does not increase authorized spending limits
Minor Administrative Edits to Policy 14
4. Policy Details
4.1 The Chief Executive Officer acts as the Purchasing Agent pursuant to Government Code Section 22550. The Purchasing Agent may approve and enter into any contract agreement if the total amount payable under the agreement is less than $250,000 in any fiscal year, as stated in the PCE Joint Powers Agreement, section 3.4, except for the specific approval authority granted in PCE Operating Rules and Regulations Policy 15 “Energy Supply Procurement Authority”,[,] and the approval amount is included in the Board-approved budget for the current fiscal year. In the event of the CEO's absence or unavailability, the Chief Executive Officer may delegate signing authority under this paragraph to the Chief Operating Officer (COO) or the Chief Financial Officer (CFO).
Summary of Requests
Recommend to the Board:
(1)Designating a Purchasing Agent pursuant to California Government Code Section 22550;
(2)Identifying CEO as Purchasing Agent in Policy 14;
(3)Permitting Policy 14 Amendments by Counsel to reflect this change.
Peninsula Clean
Energy 2026
Rate Proposal
Justin Kudo, Associate Director of
Rates and Strategic Analysis
Discussion
• PG&E 2026 Rate Changes
• Revised PCE Budget and Rate Proposal
• Rate Stabilization Fund (RSF) Usage and Alternative Rate Recommendation
• Other Adjustments
• Recommendation
11 Timeline
June 2025
PCE Rates and FY26
Budget Approved
• Revenue requirement:
$391M
• Customer discount to
PG&E: 10%
• Est. savings July - Dec
2025: ~$25M
December 2025
PG&E Annual Electric
True-Up
• Primary 2026 PG&E
rate change, effective
1/1/26
• T&D Rates: +7%
• Gen Rates: -24%
• PCIA Rates: +227%
January 2026
Proposed PCE Rate
Changes
• Recommend reducing
rates by 47%,
effective 2/1/26
• Customer discount to
remain at 10%
• Alternatively, consider
smaller rate reduction
and 5% discount
12 PG&E’s Publicized 2026 “Rate Reduction”
$- $5.0 $10.0 $15.0 $20.0 $25.0
2026
2025
Revenue Forecast (in Billions)
Non-Generation (T&D)
Bundled PG&E Generation
PCIA
While advertised as a “rate decrease”, PG&E’s 2026 rate change raised rates on customers overall (bundled and CCA combined)
13 PG&E’s January 2026 Rate Changes
System Avg. $/kWh Dec 2025 Jan 2026 Change
PG&E Generation $0.150 $0.114 ($0.036)
PG&E T&D $0.204 $0.219 $0.015
Total Bundled Rates $0.354 $0.333 ($0.020)
PG&E Bundled Rates
PCE Rates
System Avg. $/kWh Dec 2025 Jan 2026 Change
PCE Generation $0.124 $0.124
PG&E PCIA $0.011 $0.036 $0.025
PG&E T&D $0.204 $0.219 $0.015
Total Electricity
Rates
$0.339 $0.379 $0.040
PG&E’s bundled customer
rates decreased by
$0.020/kWh
PCE customer rates
increased by $0.040/kWh
Results in PCE rates that
are $0.046/kWh higher
than PG&E 14
PG&E Rate Forecast
• Much of the rate change in 2026 is a one-year correction; PG&E rates and PCIA expected to rebound in 2027, albeit not to 2022-2025 levels • Note that rates forecast uses best available data, but is very speculative $0.080
$0.061
$0.125
$0.145
$0.158
$0.139
$0.078
$0.108 $0.108 $0.108 $0.111
$-
$0.020
$0.040
$0.060
$0.080
$0.100
$0.120
$0.140
$0.160
$0.180
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
$/kWh
Rate Parity: PG&E Bundled Rate less PCIA
15 Effective Forecasting and Favorable Circumstances
• Board-approved budget used custom modeling to forecast market conditions and rates in 2026
• Assumed a significant rate decrease in Feb 2026 to maintain 10% discount • Revised budget uses five months actuals and updated financial forecast • Reduced load largely due to mild weather (reduces revenues and energy procurement costs)
• Lower customer programs spending due to program delays • Increased interest income
• After updating the forecast, setting rates at $0.066/kWh (a reduction of 47%) keeps PCE on budget and provides a 10% discount through June 2026
16 Updated Financial Forecast
Budget Updated Variance Reason
Sales Revenues $ 381.1 $ 351.2 $ (29.8) Lower load largely due to temperate weather Non-Operating Revenues $ 14.9 $ 18.9 $ 4.0 Increased interest income Total Revenue $ 396.0 $ 370.1 $ (25.8)
Cost of Energy $ 337.6 $ 320.3 $ (17.3) Lower load and reduced procurement costs Other Operating Expenses $ 54.3 $ 45.3 $ (9.0) Reduced customer programs costs Total Costs $ 392.0 $ 365.7 $ (26.3)
Change In Net Position $ 4.0 $ 4.5 $ 0.5
Updated forecast assumes approval of staff’s recommended rates (i.e., 10% below PG&E), and other rate adjustments
17 Rate Scenarios
• PCE is the only CCA considering rates which would provide a 10% savings • Most CCAs expect to be within ~1% of PG&E rates, or more expensive 18 Alternative Rate Setting
• Staff recommendation (i.e., 10%) is most consistent with the approved budget, but seeks Executive Committee feedback
• Significant drawdowns from PCE’s RSF ($128M) will be needed in FY27 and FY28 • As a result, Staff expects to recommend higher rates (~5%) starting July 2026 • Alternatively, the Board could set rates at a 5% discount in February 2026 • Minimizes rate changes, avoiding a July rate increase • Conserves ~$7M of cash and improves RSF longevity
• Still outperforms expected peer CCA rates
19 Other Adjustments - Rate Stabilization Credit
PCIA rates for customers enrolled in 2021 and 2022 increased $0.071/kWh While these customers did see greater savings in 2025, staff recommend a “Rate Stabilization Credit” of $0.016/kWh for these customers (15,713 accounts) • Limits rate shock
• Results in approximately the same costs paid by other PCE customers during 2026
20 Other Adjustments - $0 Minimum Rate
• In some rare cases, the PCIA rate exceeds PG&E’s generation rate during the March-May “super off-peak” period
• Staff recommend these rates be subject to a minimum of $0/kWh • Customers affected would still see savings on other time periods 21 Recommendation
Staff seeks a recommendation to PCE’s Board of Directors to reduce ECOplus rates by approximately 47% to a system average rate of $0.066/kWh, effective February 1, 2026, subject to a minimum rate of $0/kWh
Additionally, recommend the Board of Directors establish a temporary $0.016/kWh Rate Stabilization Credit for customers on the 2021 and 2022 PCIA Vintages
22 2026 Marketing
Update (Discussion)
Gwen Rose, Director of Marketing
and Community Relations
Phase 1: Jan - May
Brand identity &
planning
• Operational readiness
• Visual identity
• Narrative framework
• Planning campaigns / events
• Earth Day done as PCE
Phase 2: June – Aug
Reveal: We are
WestLight
• Public introduction of new
name & visual identity
• Integrate branding across
digital platforms, customer
comms, and materials
Phase 3: Sept - Dec
10-year Anniversary
• Community activations
• Impact report
• Policy symposium
• Office warming
Phase 4: 2027 →
Steady state campaign
• "Power of We..."
• Normalizing WestLight
2026 Roll Out Plan - Phases
Roll Out Plan - Board touchpoints
Phase 1: Jan - May
Brand identity &
planning
• Operational readiness
• Visual identity
• Narrative framework
• Planning campaigns / events
• Earth Day done as PCE
Phase 2: June – Aug
Reveal: We are
WestLight
• Public introduction of new
name & visual identity
• Integrate branding across
digital platforms, customer
comms, and materials
Phase 3: Sept - Dec
10-year Anniversary
• Community activations
• Impact report
• Policy symposium
• Office warming
Phase 4: 2027 →
Steady state campaign
• "Power of We..."
• Normalizing WestLight
Key touchpoints in Q1-Q2
• Marketing subcommittee: January – March
• Presentation to Board: March 26
• Roadshow to member jurisdictions: March - June
Engagement + Events
5 community activations (still in ideation)
• Art & technology installation (mural)
• Community block party (sponsorship + jazz + giveaways) • Marquee community event (EV parade + drone show)
3 signature events:
• Right-Sized ClimateTech Showcase Event Brief
• Policy forum
• Office warming
Owen
visual identity + website update
Good Stuff Partners
campaigns, media, events
Marketing Partners
Good Stuff Partners
campaigns, media, events
Marketing contract for Board approval
NTE: $788,950
• Professional services: NTE $523,000
• Outside supplier costs: NTE $266,000
• Doesn’t include: paid media spend
Next Steps & Questions
January - February
• Transition timeline firmed
• Brand identity discovery, research, strategy gets underway • Campaign discovery & alignment gets underway
Risks to manage:
• brand finalization
• regulatory and legal milestones
• PG&E coordination
• system readiness
Committee Members’ Reports
Adjournment