JPA Board Correspondence
At-Places Memorandum
DATE: April 23, 2026
MEETING DATE: April 23, 2026
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Nicholas Bijur, Chief Financial Officer
SUBJECT: Agenda Item 4, Approve Renewal of Peninsula Clean Energy's Insurance Package Coverage for the Period of May 1, 2026 Through May 1, 2027 in an Amount Not-to-Exceed $301,539
_____________________________________________________________________ Staff would like to update the not-to-exceed (NTE) amount for the Renewal of Peninsula Clean Energy's Insurance Package Coverage for the Period of May 1, 2026 Through May 1, 2027. The NTE is updated to $277,421 due to a decrease in the Inland Marine premium rate. The staff report along with a revised resolution that reflect the revised amounts, are attached. Please let us know if you have any questions.
ATTACHMENTS:
Updated Staff Report for Agenda Item 4
Updated Resolution for Agenda Item 4
Item No. 4
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: April 15, 2026
MEETING DATE: April 23, 2026
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Nicholas Bijur, Chief Financial Officer
SUBJECT: Approve Renewal of Peninsula Clean Energy's Insurance Package Coverage for the Period of May 1, 2026 Through May 1, 2027 in an Amount Not-to-Exceed $301,539277,421
RECOMMENDATION
Approve the renewal of Peninsula Clean Energy's insurance coverage for the period of May 1, 2026 through May 1, 2027 in an amount not to exceed $301,539277,421.
BACKGROUND
Peninsula Clean Energy (PCE) purchases various insurance policies as part of its risk management and business practices. PCE has partnered with USI Insurance Services (and predecessor companies) as its insurance broker since 2019. USI advises on coverage limits based on risk tolerance, benchmarking and best practices, and seeks competitive bids from the insurance marketplace to obtain the best pricing possible. PCE’s current insurance policies expire on May 1, 2026, and are renewed annually.
Below is a summary of PCE’s current insurance coverage and limits:
General Liability – Covers claims from third parties for property damage and personal injury; $1 million per occurrence and $2 million in the aggregate.
Property – Covers business and personal property and provides business income and/or extra expenses following loss at PCE’s office locations; insured value of $300,000.
Automobile – Covers vehicles that are leased, rented, or hired, and protects PCE from auto liability claims arising from employees driving their own vehicles on company business; coverage limit of $1 million.
Workers’ Compensation – Covers work-related injuries and protects PCE from third-party claims related to employee injuries; liability limit of $1 million, consistent with State of California requirements.
Umbrella – Provides excess coverage above the base individual policy limits; coverage limit of $10 million in excess of primary coverage.
Fiduciary Liability – Protects PCE against claims of mismanagement and liability associated with serving as a fiduciary when managing employee benefit plans; coverage limit of $1 million.
Cyber – Covers claims related to cyberattacks, data breaches, and sub-limit coverage for social engineering; coverage limit is confidential.
Crime – Covers claims associated with employee dishonesty and includes sub-limit coverage for social engineering; coverage limit of $500,000.
Public Officials/Management Liability, which includes Directors and Officers (D&O), Employment Practices Liability (EPL), and Errors and Omissions (E&O) – EPL protects PCE from lawsuits brought by employees for discrimination, wrongful termination, etc.
E&O protects PCE from claims of negligence. D&O refers to the legal responsibility that directors and officers can face. Coverage limit of $5 million for each claim and in the annual aggregate.
Inland Marine – Coverage of physical solar assets installed as part of the GovPV program and includes damage related to earthquakes, floods, windstorms and wildfires; insured value of $6.8 million increasing to $16.2 million.
DISCUSSION
The corporate insurance market has been challenging over the past several years but has recently stabilized. The $70,16346,045 increase in the annual premium, or 320%, is primarily due to the addition of GovPV2 projects into the program, as well as overall growth in PCE’s business. Of note, the increase excluding GovPV is 12.8%, as compared to 8.9% last year.
The increase in the Inland Marine premium is due to the inclusion of GovPV2 projects, which increased the insured value from $ 6.9 million to $16.2 million. The increase was anticipated and included in the modeling and pricing assumptions for the associated Power Purchase Agreements. We expect the premium to continue to increase as we add batteries and the program expands.
The increase in the Workers’ Compensation premium is primarily due to an increase in payroll.
Of note, the premium in 2025 was based on an out-of-date payroll number and will likely be revised higher following an audit by the underwriter, which is why the increase appears higher than the increase in payroll expense. The increase in the Public Officials/Management Liability premium is due to a 13% increase in expenditures, as well as a slight increase in the rate. The decrease in the Cyber premium is due to competitive market dynamics which have driven down pricing
2026 Insurance Premium Summary
FISCAL IMPACT
The annual cost of the proposed insurance renewal is $301,539277,421, an increase of $70,16346,045 over last year. This increase will be reflected in the Fiscal Year 2027 budget.
RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO, STATE OF
CALIFORNIA
APPROVE RENEWAL OF PENINSULA CLEAN ENERGY'S INSURANCE PACKAGE COVERAGE FOR THE PERIOD OF MAY 1, 2026 THROUGH MAY 1, 2027 IN AN AMOUNT NOT-TO-EXCEED $301,539277,421
RESOLVED, by the Peninsula Clean Energy Authority of the County of San Mateo and the City of Los Banos, State of California (PCE), that
WHEREAS, the Board of PCE reviewed and approved a revised and expanded insurance package at its meeting on April 25, 2019; and
WHEREAS, the policies in the current insurance package were renewed by approval of the Board in April 2020, April 2021, April 2022, April 2023, and April 2024; and WHEREAS, the policies in the current insurance package have an expiration date of May 1, 2026; and
WHEREAS, PCE staff engaged its insurance broker to seek competitive bids from the insurance marketplace; and
WHEREAS, PCE desires to continue its insurance policies and coverage, including General Liability, Property, Automotive, Workers’ Compensation, Umbrella, Fiduciary Liability, Cyber, Crime, Public Official and Management Liability, and Inland Marine for the period of May 1, 2026 through May 1, 2027.
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board approves the renewal of the Peninsula Clean Energy insurance policy package coverage for the period from May 1, 2026 through May 1, 2027 in an amount not to exceed $301,539277,421.