Audit & Finance
Committee
Meeting
February 9, 2026
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 Items 1-2
• Consent - Public Comment
Agenda
Adjournment
Chair Report
Staff Report
Staff Report
• PCE rate change (47% reduction) effective February 1
• Prepay #2 closed on December 19, 2025
• Preparing to kick-off FY 2027 budgeting process
• Nearing decision on banking RFP (discussion today)
• 2025 investment returns (see next page)
5 2025 Investment Returns
4.36%
6.19% 6.03%
5.92%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
CAMP Chandler PFM
Market Value ($M)
(as of 12/31/25)
$195.7 $143.6 $148.1
Annual Cash Return ($M) $7.6 $7.3 $7.2
Yield at Cost 3.90% 3.97% 4.15%
Maturity 47 days 3.02 yrs 2.54 yrs
Rating AAA AA AA
(1) ICE BofA 1-5 Year AAA-A US Corporate & Government Index Note: Interest rate on JPMorgan cash balance currently 2.48% Benchmark(1)
Chandler Asset
Management
Update on Portfolio, Strategy, and
Market Conditions
7 INVESTMENT REPORT
Peninsula Clean Energy | As of December 31, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.
Components of GDP 12/24 3/25 6/25 9/25
2.6% 0.4% 1.7% 2.3%
-1.3% 3.8% -2.7% 0.0%
-0.1% -4.7% 4.8% 1.6%
0.3% -0.4% -0.4% 0.2%
0.3% 0.2% 0.3% 0.2%
1.9% -0.6% 3.8% 4.4%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product (GDP) demonstrated continued strength in the third quarter, with the third estimate showing a 4.4% annualized quarter-over-quarter increase, up from 3.8% in the second quarter. Consumer spending accelerated, alongside of upturns in investment, exports, and government spending. The stronger-than-expected result represented the fastest pace of U.S. economic expansion in two years. The consensus projection calls for 1.1% growth in the fourth quarter and 2.0% growth for the full year 2025.
GROSS DOMESTIC PRODUCT (GDP)
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve left its benchmark interest rate unchanged in January, keeping the target range at 3.50% to 3.75% after the December quarter point cut that was justified by signs of softening in the labor market. Policymakers maintained a cautious tone, acknowledging that inflation has continued to moderate but emphasizing that the outlook remains uncertain and that future adjustments will depend on incoming data. The Committee also reaffirmed its December decision to halt balance sheet runoff and to reinvest principal and interest payments from its securities holdings, signaling a desire to maintain ample reserves and support orderly market functioning while it assesses the effects of earlier tightening and recent rate cuts.
FEDERAL RESERVE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Jan-26
Oct-25
Jan-25
Yield (%)
At the end of January, the 2-year yield was 8 basis points lower, and the 10-year yield was 7 basis points higher, year-over-year. The spread between the 2-year and 10-year Treasury yield points on the curve increased to +71 basis points at January month-end versus +69 basis points at December month-end. The prior 2-year/10-year yield curve inversion, which spanned from July 2022 to August 2024, was historically long. The average historical spread (since 2005) is about +95 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +58 basis points in January versus +54 basis points in December.
BOND YIELDS
OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index, ICE BofA 1-5 Year AAA-A US Corporate and Treasury Index.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities that comply with the investment policy and all regulation governing the funds.
PORTFOLIO CHARACTERISTICS
Peninsula Clean Energy | Account #11161 | As of December 31, 2025 Benchmark* 12/31/2025
Portfolio
12/31/2024
Portfolio
Average Maturity (yrs) 2.69 3.02 3.09
Average Modified Duration 2.50 2.60 2.55
Average Purchase Yield 3.97% 3.67%
Average Market Yield 3.65% 3.79% 4.50%
Average Quality** AA AA AA+
TotalMarket Value 143,612,971 106,308,113
*Benchmark: ICE BofA 1-5 Year AAA-A US Corporate & Government Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
SECTOR DISTRIBUTION
Peninsula Clean Energy | Account #11161 | As of December 31, 2025 Sector as a Percentage of Market Value
Sector 12/31/2025 12/31/2024
US Treasury 50.87% 46.61%
Corporate 26.65% 24.33%
Agency CMBS 11.21% 11.84%
ABS 7.16% 12.29%
Supras 2.13% 2.80%
Money Mkt Fd 1.19% 0.15%
Muni Bonds 0.79% 1.04%
Agency -- 0.95%
DURATION DISTRIBUTION
Peninsula Clean Energy | Account #11161 | As of December 31, 2025 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
12/31/2025 7.4% 0.6% 8.1% 10.5% 32.8% 25.5% 15.0% 0.0% 0.0% 12/31/2024 0.2% 5.7% 3.7% 31.4% 17.5% 31.7% 9.9% 0.0% 0.0% TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception Peninsula Clean Energy 1.14% 6.19% 5.12% 5.12%
Benchmark 1.13% 5.92% 4.79% 4.79%
*Periods over 1 year are annualized.
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Benchmark: ICE BofA 1-5 Year AAA-A US Corporate & Government Index
INVESTMENT PERFORMANCE
Peninsula Clean Energy | Account #11161 | As of December 31, 2025 Total Rate of Return : Inception | 01/01/2024
ESG Score Detail
S&P Global ESG Score
The overarching score reflecting a company's performance on and management of key Environmental, Social, and Governance (“ESG”) issues. All ESG scores range from 0-100 and reflect the performance of a company according to an industry specific assessment methodology and aggregation schemes. The S&P Global ESG Score should be used to compare a company's performance against its industry peers.
The S&P Global ESG Score is based on the Corporate Sustainability Assessment (CSA), the underlying assessment of sustainability factors that are relevant for investors and other stakeholders. These scores provide multiple layers of ESG intelligence with three underlying Environmental, Social, and Governance & Economic Dimension Scores, and an average of 23 Criteria Scores informed by 61 industry-specific approaches.
All companies are assessed using the industry-specific CSA questionnaire and methodology reflecting a company's score compared to its industry peers.
Companies assessed using the CSA fall into two categories, participating companies (companies that are assessed on publicly available disclosures and additional disclosure provided to S&P Global as part of their active participation in the CSA process) and non-participating companies (companies that are assessed solely on publicly available disclosures only and do not actively participate in the CSA process).
ESG Scores can be viewed in their raw form or with the addition of estimated scores to fill disclosure gaps for non-participating companies. All assessed companies are provided the opportunity to participate in the CSA process.
Please also refer to the additional important disclosures on the last page of this report.
Sector Allocation as of 4Q 2025
• Green shades represent ESG-rated sectors
• 33 out of 37 issuers were rated comprising approximately $64.8 million or 45.1% of the portfolio’s market value • Non ESG-rated issuers: US Treasuries, Inter-American Development Bank, International Bank for Reconstruction and Development, State of California
Source: Peninsula Clean Energy portfolio holdings as of Dec 31st ,2025, which are subject to change. Please see disclosures at the end of this presentation.
US Treasury 50.8%
Agency CMBS 11.2%
Corporates 26.8%
Asset-Backed Securities
7.1%
Supranationals 2.1%
Cash 0.3%
Municipals 0.8%
ESG Summary Scores
Source: S&P Global ESG Scores as of Sept 30th,2025 and Dec 31st,2025. Please see disclosures at the end of this presentation. 0 10
20 30
40 50
60 70
80 90
100
ESG Score Environmental
Score
Social Score Governance
Score
ESG Score Environmental
Score
Social Score Governance
Score
4Q 2025 3Q 2025
Quarter-Over-Quarter Comparison
ESG Scores by Industry
Source: S&P Global ESG Scores as of Sept 30th,2025 and Dec 31st, 2025. Please see disclosures at the end of this presentation 0 10
20 30
40 50
60 70
80 90
100
4Q 2025 3Q 2025
ESG Risk Exposure
Source: S&P Global ESG Scores as of Dec 31st, 2025. Please see disclosures at the end of this presentation.
Top 5 Holdings ESG Score
Hyundai Motor Company 70
Cisco Systems Inc. 65
Air Products and Chemicals, Inc. 62
Bank of America Corp. 58
AbbVie Inc. 58
Bottom 5 Holdings ESG Score
Massachusetts Mutual Life Insurance Company 28
New York Life Insurance Company 29
Federal Home Loan Mortgage Corporation 33
JPMorgan Chase & Co. 33
Simon Property Group Inc. 35
0%
5%
10%
15%
20%
25%
30%
35%
40%
3rd 4th 5th 6th 7th
ESG Scores by Decile as of 4Q 2025
Material Changes in ESG Scores, Quarter-Over-Quarter
Improvements :
Source: S&P Global ESG Scores as of Dec 31st, 2025. Please see disclosures at the end of this presentation.
Issuer Change in ESG Score Commentary
AbbVie Inc. -11 Investigation of their role in the opioid epidemic
General Motors Company -9 Allegations of safety failures with Robotaxi business
Honda Motor Co., Ltd. -6 EU violation involving restricting competition in recycling end-of-life
vehicles from 2002-2017
Issuer Change in ESG Score Commentary
Home Depot +2 Improvement to their Environmental
Strategy related to packaging, waste
and pollutants
Eli Lilly and Company +1 Increased disclosures on Fair Pricing which improved their Social score
PepsiCo, Inc. +1 Climate strategy reduced their
emissions targets which improved
their Environmental Score
Decliners :
Banking RPF
Discussion
Nick Bijur, Chief Financial Officer
23 Background
• RFP for treasury services issued on November 3, 2025
• Proactively reached out to banks active in the CCA space • Posted RFP on PCE’s website and LinkedIn
• Received 6 proposals; 4 banks shortlisted for in-person meetings with Staff • JP Morgan (incumbent)
• River City Bank
• US Bank
• Columbia Bank
• Finalists: JP Morgan and River City Bank – both well qualified with different value propositions
• Seeking feedback from Audit & Finance Committee; will move to PCE Board in March if a change in service is recommended
Overview of Finalists
JP Morgan River City Bank
• Large, globally-established financial institution
• Comprehensive range of banking products and
services
• Fortress balance sheet with “A” credit rating
• Mature risk management practices and extensive
operational infrastructure
• Deep public-entity experience
• Outstanding credit lines to several peer CCAs
• No operational disruption if retained
• One-year fee waiver
• Relationship-focused regional bank
• Emphasizes personalized service, flexibility, and
responsiveness to client needs
• Deep and unique CCA expertise – 19 CCA clients
• Mission-aligned and does not lend to fossil fuels
industry
• Five-year fee waiver
• Favorable interest rates on cash deposits
JP Morgan River City Bank
Ability to Provide Services
Qualifications
CCA Experience
Customer Service
Fraud Prevention
Financial Strength
Mission/Vision Alignment
Implementation
Commercial Terms
Both banks are qualified to
serve PCE with different
value propositions
The following is staff’s
ranking of the RFP evaluation
criteria
Comparison of Proposals
Q2 FY25-26
Financial Review
Nick Bijur, Chief Financial Officer
(in MWh) Actual Budget Variance Var (%)
Residential 695,823 737,304 (41,481) -5.6%
Commercial & Industrial 1,030,085 1,093,107 (63,022) -5.8% Total 1,725,908 1,830,411 (104,504) -5.7%
FY25-26 YTD Base Load
Customer Load
YTD load 5.7% below budget
• Mild summer, especially July
• Staff continues to refine model to account
for evolving trends
• 2% below last year
200,000
225,000
250,000
275,000
300,000
325,000
350,000
Jul Aug Sept Oct Nov Dec
Total Load (MWh)
Actuals Budget FY24-25 Actual
(in millions)
FY26 Q2
Actual
FY26 Q2
Budget
FY25 Q2
Actual
$Var vs
Budget
Fav/(Unf)
Electricity Sales 98.9 107.6 107.6 (8.7)
Non-Electricity Revenues 0.3 0.5 1.1 (0.2)
Green Electricity Premium 0.9 1.1 0.8 (0.1)
Total Revenues $100.2 $109.1 $109.5 ($9.0)
(in millions)
FY26 YTD
Actual
FY26 YTD
Budget
FY25 YTD
Actual
$Var vs
Budget
Fav/(Unf)
Electricity Sales 222.0 237.5 240.7 (15.5)
Non-Electricity Revenues 1.0 1.0 9.1 0.0
Green Electricity Premium 1.9 2.2 1.6 (0.3)
Total Revenues $225.0 $240.7 $251.4 ($15.8)
Revenues
YTD electricity sales
$15.5 million (6%)
below budget
• Due to lower load than
budgeted
• Year-over-year decrease
largely due to rate
reduction in 2025
(increased discount to
10%)
(in millions)
FY26 Q2
Actual
FY26 Q2
Budget
FY25 Q2
Actual
$Var vs
Budget
Fav/(Unf)
Energy 63.2 64.5 59.9 1.4
Capacity 15.6 17.7 25.1 2.1
REC/GHG-Free 0.5 1.2 (19.5) 0.7
Other (0.7) 0.8 (0.6) 1.5
Contingency 0.0 5.6 0.0 5.6
Total Cost of Energy $78.6 $89.9 $64.8 $11.3
(in millions)
FY26 YTD
Actual
FY26 YTD
Budget
FY25 YTD
Actual
$Var vs
Budget
Fav/(Unf)
Energy 116.1 116.8 113.1 0.7
Capacity 25.5 28.4 88.8 2.9
REC/GHG-Free 3.3 3.0 (9.4) (0.3)
Other 2.5 1.8 2.2 (0.7)
Contingency 0.0 10.0 0.0 10.0
Total Cost of Energy $147.5 $160.0 $194.8 $12.4
Cost of Energy
YTD cost of energy $12.4
million below budget (8%
variance)
• Higher congestion costs
and lower CRR revenue
offsetting lower load than
budgeted
• Lower capacity cost due to
sale of excess RA and price
adjustment to an RA
contract
• Offset in part by timing of
NEM expenses and
REC/GHG-Free costs
(in millions)
FY26 Q2
Actual
FY26 Q2
Budget
FY25 Q2
Actual
$Var vs
Budget
Fav/(Unf)
Revenues 100.2 109.1 109.5 (9.0)
Cost of Energy 78.6 89.9 64.8 11.3
Revenue Less Cost of Energy $21.6 $19.3 $44.7 $2.4
Compensation 3.9 4.1 3.4 0.2
Data Mgr and PG&E Fees 1.2 1.2 1.2 (0.0)
Professional Fees 0.7 0.8 0.6 0.1
Marketing 0.4 1.0 0.4 0.6
Programs 3.5 5.4 5.7 2.0
Other G&A 1.1 1.1 0.9 0.1
Operating Expenses $10.8 $13.7 $12.1 $2.9
Non-Operating Income 5.2 3.7 0.8 1.4
Change in Net Position $16.0 $9.3 $33.3 $6.7
Q2 Change in Net Position (CINP)
Q2 CINP of $16 million,
$6.7 million above
budget
• Lower revenues due to
load, offset by reduced
cost of energy
• Operating expense
favorability largely due to
Programs (Home
Upgrade)
• Higher interest
income/gains
(in millions)
FY26 YTD
Actual
FY26 YTD
Budget
FY25 YTD
Actual
$Var vs
Budget
Fav/(Unf)
Revenues 225.0 240.7 251.4 (15.8)
Cost of Energy 147.5 160.0 194.8 12.4
Revenue Less Cost of Energy $77.4 $80.8 $56.7 ($3.3)
Compensation 7.8 8.0 6.7 0.3
Data Mgr and PG&E Fees 2.5 2.4 2.4 (0.0)
Professional Fees 1.4 1.7 1.3 0.3
Marketing 1.1 2.0 1.2 0.9
Programs 7.8 10.9 8.4 3.0
Other G&A 2.1 2.4 1.7 0.3
Operating Expenses $22.6 $27.3 $21.6 $4.7
Non-Operating Income 10.8 7.5 10.5 3.3
Change in Net Position $65.6 $60.9 $45.6 $4.7
YTD Change in Net Position (CINP)
YTD CINP of $65.6
million, $4.7 million
above budget
• Lower revenues due to
load, offset by reduced
cost of energy
• Operating expense
favorability largely due to
Programs (Home
Upgrade)
• Higher interest
income/gains
(in millions) Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
Cash (JP Morgan) 15.5 17.4 14.7 16.9 18.9
CAMP 168.1 180.0 182.0 173.8 195.7
PFM 110.9 113.1 114.7 146.4 148.1
Chandler 106.3 108.5 130.1 142.0 143.6
Total Cash & Investments $400.7 $418.9 $441.5 $479.1 $506.4 Days Cash on Hand 367 374 394 499 509
Adjusted Days Cash on Hand(1) 255 265 235 314 333
Cash and Investment Summary – Quarterly Trend
(1) Adjusted for Rate Stabilization Fund and Board-approved capital projects Appendix
Detailed Financial Statement
Actual Budget Var Fav/(Unf) Actual Budget Var Fav/(Unf) Electricity Sales $98,882,576 $107,571,957 ($8,689,381) $222,002,227 $237,542,867 ($15,540,640) Non-Energy Revenues $330,449 $494,688 ($164,238) $1,020,147 $989,375 $30,772 Green Electricity Premium 946,827 1,081,212 (134,385) 1,944,738 2,203,563 (258,824) Revenue Less Cost of Energy 100,159,853 109,147,856 (8,988,004) 224,967,113 240,735,805 (15,768,693) Cost of Energy 78,550,549 89,889,865 11,339,317 147,517,958 159,954,033 12,436,074 Gross Profit 21,609,304 19,257,991 2,351,313 77,449,154 80,781,772 (3,332,618) Compensation 3,881,511 4,078,151 196,640 7,767,918 8,045,485 277,566 Data Manager 886,811 879,000 (7,811) 1,789,502 1,758,000 (31,502) Service Fees (PG&E) 333,134 333,600 466 667,500 667,200 (300) Consultants & Professional Services 488,081 539,099 51,017 856,816 1,087,197 230,381 Legal 244,520 295,500 50,980 548,720 588,917 40,197
Communications & Noticing 419,299 982,563 563,263 1,083,291 1,965,325 882,034 General & Administrative 960,266 1,045,214 68,461 1,863,214 2,201,020 337,806 Community Energy Programs 3,463,107 5,425,000 1,961,893 7,840,830 10,850,000 3,009,170 Depreciation 109,165 90,350 (18,815) 218,330 180,699 (37,631) Operating Expenses 10,785,895 13,668,476 2,866,093 22,636,122 27,343,843 4,707,721 OPERATING INCOME 10,823,409 5,589,515 5,233,894 54,813,032 53,437,930 1,375,103 Non-Operating Income 5,164,100 3,725,573 1,438,527 10,772,066 7,451,146 3,320,920 CHANGE IN NET POSITION $15,987,509 $9,315,088 $6,672,421 $65,585,098 $60,889,076 $4,696,022 Quarter Ending December 2025 YTD FY 2025-2026
Revenues – Monthly Trend (13 months)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Dec-24 37.5 39.3 (1.7) -4.4%
Jan-25 38.1 40.1 (2.0) -4.9%
Feb-25 32.9 37.5 (4.6) -12.3%
Mar-25 33.2 33.1 0.2 0.6%
Apr-25 28.2 29.8 (1.6) -5.3%
May-25 28.6 31.8 (3.2) -10.2%
Jun-25 39.2 42.2 (3.0) -7.1%
Jul-25 40.1 44.3 (4.2) -9.5%
Aug-25 42.2 44.3 (2.2) -4.9%
Sep-25 42.5 43.0 (0.4) -1.0%
Oct-25 33.3 37.0 (3.7) -10.0%
Nov-25 30.9 34.0 (3.0) -8.9%
Dec-25 36.0 38.2 (2.3) -5.9%
Revenue Comparison vs. Budget (in millions)
Cost of Energy – Monthly Trend (13 months)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
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%
Apr-25 24.0 29.3 5.3 18.2%
May-25 28.9 28.4 (0.5) -1.6%
Jun-25 25.7 26.1 0.4 1.4%
Jul-25 22.5 21.6 (1.0) -4.6%
Aug-25 21.9 23.9 1.9 8.0%
Sep-25 24.5 24.7 0.2 0.7%
Oct-25 23.8 27.7 3.8 13.9%
Nov-25 26.2 28.8 2.6 9.1%
Dec-25 28.6 33.4 4.9 14.6%
Cost of Energy Comparison vs. Budget (in millions)
AFC Approval of Remote
Meetings Pursuant to
SB 707 and In-Person
Meeting Cadence for
2026 (Action)
Jennifer Stalzer, General Counsel
38 SB 707 Overview and Board Action
• Senate Bill 707 (Remote Meetings)
• SB 707 authorizes eligible local agencies to hold remote meetings under specified conditions.
• PCE Board Action
• On January 29, 2026, the Board approved the use of remote meetings pursuant to SB 707.
• This approval enables subsidiary committees to opt into remote meeting participation.
39 Audit and Finance Committee Next Steps
• The Audit and Finance Committee must vote to accept the ability to meet remotely under SB 707.
• Committee discussion on a self-selected cadence for in-person meetings.
40 Committee Member Reports
Peninsula Clean Energy
Adjournment
Peninsula Clean Energy