Audit & Finance
Committee
Meeting
May 11, 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
• Opened River City Bank account for diversification benefits and transferred $20 million; currently earning return similar to CAMP • Established Money Market Sweep account at JP Morgan to maximize investment returns
• Completed insurance renewal effective May 1, 2026
• In middle of Budget process
5 Q3 FY25-26
Financial Review
Nick Bijur, Chief Financial Officer
(in MWh) Actual Budget Variance Var (%)
Residential 1,064,968 1,146,240 (81,272) -7.1%
Commercial & Industrial 1,530,112 1,613,272 (83,160) -5.2% Total 2,595,080 2,759,512 (164,432) -6.0%
FY25-26 YTD Base Load
Customer Load
YTD load 6% below budget
• Mild summer, especially July
• Staff updated load forecast in December to
incorporate revised modeling and recent
trends (1.7% variance to updated fcst)
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 FY25 Actual Updated Fcst
(in millions)
FY26 Q3
Actual
FY26 Q3
Budget
FY25 Q3
Actual
$Var vs
Budget
Fav/(Unf)
Electricity Sales 64.5 76.5 100.4 (12.0)
Non-Electricity Revenues 1.0 2.2 3.9 (1.2)
Total Revenues $65.5 $78.7 $104.3 ($13.2)
(in millions)
FY26 YTD
Actual
FY26 YTD
Budget
FY25 YTD
Actual
$Var vs
Budget
Fav/(Unf)
Electricity Sales 288.5 316.3 342.7 (27.8)
Non-Electricity Revenues 2.0 3.2 13.0 (1.1)
Total Revenues $290.5 $319.4 $355.7 ($28.9)
Revenues
Q3 and YTD electricity
sales 16% and 9%
below budget,
respectively • Largely due to lower load
than budgeted (6%)
• Maintained discount at
10% in February 2026
• Expect similar variance in
4Q 2026
(in millions)
FY26 Q3
Actual
FY26 Q3
Budget
FY25 Q3
Actual
$Var vs
Budget
Fav/(Unf)
Energy 56.9 67.1 64.2 10.2
Capacity 18.5 19.2 16.7 0.6
REC/GHG-Free (2.8) 2.1 12.3 4.9
Other (0.5) 0.9 (0.6) 1.4
Contingency 0.0 5.9 0.0 5.9
Total Cost of Energy $72.1 $95.1 $92.7 $23.0
(in millions)
FY26 YTD
Actual
FY26 YTD
Budget
FY25 YTD
Actual
$Var vs
Budget
Fav/(Unf)
Energy 173.1 183.9 177.4 10.9
Capacity 44.1 47.5 105.5 3.5
REC/GHG-Free 0.5 5.1 2.9 4.6
Other 2.0 2.7 1.6 0.6
Contingency 0.0 15.9 0.0 15.9
Total Cost of Energy $219.6 $255.1 $287.4 $35.4
Cost of Energy
Q3 cost of energy $23
million below budget (24%
variance) • Lower load and lower energy
prices
• PPA generation below
forecast (beneficial in
periods of low prices)
• Timing of PCC1 sales and
portfolio optimization
YTD cost of energy $35
million below budget (14%
variance) • Sale of excess RA • Unused contingency
Lower prices good for cost of
energy, but “bad” for PCIA
(in millions)
FY26 YTD
Actual
FY26 YTD
Budget
FY25 YTD
Actual
$Var vs
Budget
Fav/(Unf)
Revenues 290.5 319.4 355.7 (28.9)
Cost of Energy 219.6 255.1 287.4 35.4
Revenue Less Cost of Energy $70.9 $64.4 $68.3 $6.5
Compensation 12.0 12.1 10.4 0.1
Data Mgr and PG&E Fees 3.7 3.7 3.6 0.0
Professional Fees 2.0 2.5 1.8 0.5
Marketing 2.1 2.6 1.9 0.5
Programs 11.9 16.3 11.4 4.3
Other G&A 3.1 3.7 2.5 0.6
Operating Expenses $34.8 $40.8 $31.6 $6.0
Non-Operating Income 14.4 11.2 17.5 3.3
Change in Net Position $50.5 $34.7 $54.1 $15.8
YTD Change in Net Position (CINP)
YTD CINP of $51 million,
$16 million above budget
• Lower revenues largely
due to load, offset by
reduced cost of energy
• Favorability in all
operating expense
categories ☺
• Lower Programs spend
largely due to Home
Upgrade delays
• Higher interest income
(in millions)
FY26 Q3
Actual
FY26 Q3
Budget
FY25 Q3
Actual
$Var vs
Budget
Fav/(Unf)
Revenues 65.5 78.7 104.3 (13.2)
Cost of Energy 72.1 95.1 92.7 23.0
Revenue Less Cost of Energy ($6.6) ($16.4) $11.6 $9.8
Compensation 4.2 4.1 3.7 (0.2)
Data Mgr and PG&E Fees 1.2 1.2 1.2 (0.0)
Professional Fees 0.6 0.8 0.6 0.2
Marketing 1.0 0.6 0.7 (0.4)
Programs 4.1 5.4 3.0 1.3
Other G&A 1.0 1.3 0.8 0.3
Operating Expenses $12.2 $13.5 $10.0 $1.3
Non-Operating Income 3.7 3.7 6.9 (0.1)
Change in Net Position ($15.1) ($26.1) $8.6 $11.1
Q3 Change in Net Position (CINP)
Q3 CINP negative $15
million, $11 greater than
budget
• Lower revenues due to
load and increased
discount, offset by
reduced cost of energy
• Operating expense
favorability largely due to
Programs
(in millions) Mar-25 Jun-25 Sep-25 Dec-25 Mar-26
Cash (JP Morgan) 17.4 14.7 16.9 18.9 18.5
CAMP 180.0 182.0 173.8 195.7 197.6
PFM 113.1 114.7 146.4 148.1 148.4
Chandler 108.5 130.1 142.0 143.6 144.0
Total Cash & Investments $418.9 $441.5 $479.1 $506.4 $508.5 Adjusted Days Cash on Hand(1) 265 235 314 333 368
Cash and Investment Summary – Quarterly Trend
(1) Adjusted for Rate Stabilization Fund and Board-approved capital projects FY26-27 Budget
and 5 Year
Financial Outlook
Nick Bijur, Chief Financial Officer
($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Energy $224.9 $231.3 $207.5 $205.0 $218.9 $228.5 $228.1 Capacity 119.9 63.1 73.6 81.7 98.0 96.3 99.0
REC/GHG-Free 19.0 (2.1) (3.4) (2.6) (2.8) 2.9 14.5
Other 2.1 2.8 3.2 3.2 3.3 3.4 3.5
Contingency 0.0 5.4 20.0 14.3 15.8 16.5 17.1
Cost of Energy $366.0 $300.5 $300.9 $301.5 $333.1 $347.5 $362.2 Increase/Decrease 13% -18% 0% 0% 10% 4% 4%
Cost of Energy Summary
18 (1) 9 months actual, 3 months updated forecast
• Cost of Energy forecasted to be flat in FY27 and FY28 following an 18% decrease this year • Forecast based on forward price curves and assumes 2% load growth • Budget includes $20 million contingency (~7% of energy costs) ($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Compensation $14.6 $16.3 $17.3 $19.1 $21.1 $22.1 $23.2
Data Mgr./Service Fees 4.9 4.9 5.1 5.2 5.4 5.6 5.7
Consulting/Legal 2.6 2.8 3.2 3.1 3.0 3.1 3.1
Marketing 2.7 2.7 3.0 2.8 2.9 3.0 3.1
General & Admin 3.4 3.8 4.0 4.7 4.9 5.1 5.4
Operating Expense
(excl Programs)(2) $28.1 $30.6 $32.5 $35.0 $37.3 $38.9 $40.5 Increase/Decerase 22% 9% 6% 7% 7% 4% 4%
Operating Expenses Summary
19 (1) 9 months actual, 3 months budget
(2) Excludes depreciation expense (see capital page)
• Operating expenses (excluding Programs) forecasted to increase 6% in FY27 • Budget assumes no additional headcount in FY27 and 5% salary escalation; portion of compensation growth being reimbursed by third parties
• Increased marketing costs to support new brand
($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Buildings $5.1 $7.0 $8.3 $9.8 $9.8 $9.8 $9.5
Electric Vehicles 4.3 5.8 4.5 3.9 3.9 3.7 3.2
Distributed Energy 0.1 1.1 0.4 0.4 0.3 0.3 0.3
Energy Efficiency 1.4 1.2 1.6 3.7 6.7 8.2 9.0
Other (2) 3.9 2.3 3.9 2.0 0.7 0.7 0.7
Total Expenses $14.8 $17.4 $18.6 $19.7 $21.3 $22.7 $22.7 Energy Efficiency Funding 1.5 0.1 1.8 4.2 7.8 9.4 10.2
Other (3) 0.2 1.0 2.0 0.1 0.1 0.1 0.0
Total Reimbursements $1.6 $1.1 $3.8 $4.3 $7.9 $9.5 $10.2 Net Expenses $13.2 $16.3 $14.8 $15.4 $13.4 $13.2 $12.5
Programs Expenses and Reimbursements
20 • Increase in Programs expense in FY27 largely due to launch of Home Upgrade • Growth in energy efficiency expense largely offset by CPUC funding (1) 9 months actual, 3 months budget
(2) Other expenses includes EBD incentives, local government grants, pilot programs and portable battery program (3) Other reimbursements includes various grants
($ in millions) FY25 FY26 FY27 FY28 FY29 FY30 FY31
On-Bill-Financing $3.0 $3.0 $3.6 $3.6 $3.6 $3.6 $3.6
GovPV Capital 7.4 12.0 5.7 - - - -
Microgrid Capital - - - 1.7 3.9 9.0 9.0
New Office Capital - - 1.2 - - - -
Total Capital $10.3 $15.0 $10.5 $5.3 $7.5 $12.6 $12.6
On-Bill-Financing $1.2 $1.4 $2.0 $3.5 $3.4 $3.6 $3.6
GovPV Revenues 0.1 0.3 1.8 1.8 1.8 1.8 1.8
Investment Tax Credit 3.9 - 7.5 - - - -
Microgrid Reimbursement - - - 3.0 2.5 2.5 2.5
Total Reimbursements $5.3 $1.7 $11.3 $8.3 $7.7 $7.9 $7.9 Net Capital $5.1 $13.3 ($0.8) ($3.0) ($0.3) $4.7 $4.7
Depreciation Expense 0.2 0.4 1.4 1.5 1.5 1.8 2.2
Capital Expense and Reimbursements/Revenues
21 • GovPV3 capital offset by expected ITC
• New office capital includes $500k for tenant improvements, $600k for furniture and AV equipment, and $100k for EV chargers, which is offset by six months of free rent (~$400k) ($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Cost of Energy $366.0 $300.5 $300.9 $301.5 $333.1 $347.5 $362.2 Operating Expenses 43.1 48.4 52.6 56.2 60.1 63.4 65.4
(-) Revenues 3.1 2.7 7.9 8.5 11.7 13.4 14.1
(-) Non-operating Income 26.4 18.2 22.8 10.6 9.1 8.0 7.2 = Net Costs $379.5 $328.0 $322.8 $338.6 $372.4 $389.5 $406.3 Increase/Decerase 13% -14% -2% 5% 10% 5% 4%
Net Costs / Revenue Requirement
22 • Total “net” costs forecasted to decrease slightly (-2%) in FY27, with moderate growth thereafter
• Net costs / revenue requirement significantly exceeds electricity sales if rates continue to be set at a 10% discount to PG&E
• Largely due to elevated PCIA rates in FY27 and FY28
(1) 9 months actual, 3 months updated forecast
PG&E Rate Parity
23 $0.100
$0.055
0 0.02
0.04 0.06
0.08 0.1
0.12 0.14
0.16 0.18
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
$/kWh
Calendar Year
System Avg. Net Parity Rate with PG&E
Historical Early Forecast Current Market
1 cent = ~$35M
Electricity Sales by Scenarios
24 $200 $216
$322 $346 $364
$218 $234
$344 $369 $388
$232 $249
$362 $387 $407
$323
$339
$372
$389
$406
-
$50
$100
$150
$200
$250
$300
$350
$400
$450
FY27 FY28 FY29 FY30 FY31
10% Discount 5% Discount 1% Discount Revenue Requirement Change in Net Position by Scenarios
25 ($123) ($122)
($50)
($44) ($43)
($105) ($104)
($28)
($21) ($19)
($90) ($90)
($10)
($2)
$0
($140)
($120)
($100)
($80)
($60)
($40)
($20)
$0
$20
FY27 FY28 FY29 FY30 FY31
10% Discount 5% Discount 1% Discount
Cumulative Change In
Net Position
• 10% Disc: $(382) million
• 5% Disc: $(277) million
• 1% Disc: $(192) million
Rate Stabilization Fund
currently $128 million
• Potential to increase in
F26
Cash Position by Scenarios
26 $348
$226
$175
$124
$75
$366
$263
$233
$206
$180
$380
$292
$280 $271 $265
0 50
100
150
200
250
300
350
400
FY27 FY28 FY29 FY30 FY31
10% Discount 5% Discount 1% Discount
Days Cash on Hand (DCOH) by Scenarios
27 360
232
163
111
64 379
269
217
183
155
394
299
261
242
227
0 50
100
150
200
250
300
350
400
450
FY27 FY28 FY29 FY30 FY31
10% Discount 5% Discount 1% Discount Target DCOH Min DCOH CCA Rate Comparison
28 • Majority of CCAs rates are currently at or above PG&E rates, with an average premium of 10% and a median of rate parity
($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Revenues(2) $392 $352 $231 $257 $374 $401 $421
Cost of Energy (366) (301) (301) (302) (333) (348) (362) Revenues less Cost of Energy $26 $52 ($70) ($44) $41 $53 $59 Operating Expenses (43) (48) (53) (56) (60) (63) (66)
Operating Income (Loss) ($17) $3 ($123) ($100) ($20) ($10) ($7) Non-Operating Income 26 18 23 11 9 8 7
Change in Net Position $9 $22 ($100) ($90) ($10) ($2) $1 Cash $439 $472 $370 $282 $270 $261 $255
DCOH 392 494 384 289 252 233 219
Summary Financials (Recommended Forecast)
29 (1) 9 months actual, 3 months forecast
(2) Assumes 5% discount until February 2027 and 1% thereafter • Staff recommends setting rates at a 5% discount in July, with the expectation of decreasing discount in February 2027, at which time we will have a better idea of the PCIA and PG&E rates ($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Revenues(2) $392 $352 $231 $257 $374 $401 $421
Cost of Energy (366) (301) (301) (302) (333) (348) (362) Revenues less Cost of Energy $26 $52 ($70) ($44) $41 $53 $59 Operating Expenses (43) (48) (53) (56) (60) (63) (66)
Operating Income (Loss) ($17) $3 ($123) ($100) ($20) ($10) ($7) Non-Operating Income 26 18 23 11 9 8 7
Change in Net Position $9 $22 ($100) ($90) ($10) ($2) $1 Rate Stabilization Fund(3)
- (20) 101 47 - - -
Change in Net Position $9 $2 $1 ($43) ($10) ($2) $1
Summary Financials (Recommended Forecast)
30 (1) 9 months actual, 3 months forecast
(2) Assumes 5% discount until February 2027 and 1% thereafter (3) Assumes $20 million addition to Rate Stabilization Fund in FY26, pending financial results and Board approval Assumes utilization of Rate Stabilization Fund