Peninsula Clean
Energy Executive
Committee
Meeting
June 8, 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, Deputy Clerk. • Action to set the Agenda and Approve Consent Item 1
• Consent – Public Comment
• Regular Agenda items
• Adjournment
Chair Report
CEO Report
Fiscal Year 26-27
(FY27) Budget
Nick Bijur, Chief Financial Officer
Budget Process Overview
6 • Bottoms-up, cross-departmental budgeting process incorporating DEAI principles • Department-specific budgets to increase accountability and transparency • Presented draft budget to the Audit & Finance Committee on May 11 o Committee was supportive and suggested no changes
o Since the A&FC meeting, net costs decreased slightly (~$4 million) due to updated cost of energy forecast
• PCE rates will be set to ensure sufficient revenues to support PCE operations (cost-of-service rate making)
• Final budget to be presented to Board of Directors for approval on June 25, 2026 Cost of Energy
7 (1) 9 months actual, 3 months updated forecast
(2) Includes Net Energy Metering and forecasting/scheduling costs • Cost of Energy is forecast to remain
flat in FY27 following an 18%
decrease in FY26
• Budget based on forward price
curves, which are lower than prior
forecast (“good” for cost of energy,
“bad” for PCIA)
• ~2% load growth
• Lower energy prices offset by
increasing storage resources
(capacity)
• Net seller of RECs as PPAs come on-line
• Includes $20 million contingency in
FY27 (~7% of energy costs)
($ in millions) FY25 FY26(1) FY27
Energy $224.9 $231.3 $204.5
Capacity 119.9 63.1 74.0
REC/GHG-Free 19.0 (2.1) (2.6)
Other(2) 2.1 2.8 3.2
Contingency 0.0 5.4 20.0
Cost of Energy $366.0 $300.5 $299.1
Increase/Decerase 13% -18% 0%
Operating Expenses
8 (1) 9 months actual, 3 months budget
(2) Excludes Program costs (see next page) and depreciation (see capital page) Growth in operating expenses
(excluding Programs) moderating,
with a 6% year-over-year increase
• Compensation – no additional
headcount in FY27 and assumes 5%
salary escalation
• Consulting/Legal – support of new
brand roll-out and Innovation
Strategies
• Communications – Programs support
• G&A – software costs, reclass of
investment mgmt. fees, offset in
part by 6-months of free rent ($ in millions) FY25 FY26(1) FY27 Compensation $14.6 $16.3 $17.4
Data Mgr./Service Fees 4.9 4.9 5.1
Consulting/Legal 3.4 3.5 3.7
Communication & Grants 1.5 1.6 1.8
General & Administrative 3.7 4.2 4.5
Operating Expense(2) $28.1 $30.6 $32.5
Increase/Decerase 33% 9% 6%
Programs Expenses and Reimbursements
9 • Launch of Home Upgrade
program driving growth,
particularly in income-qualified
segment (general market
program remains steady)
• Capping monthly e-bike volume
following record applications in
FY26; EV charging stable
• Energy efficiency costs entirely
offset by CPUC funding
(1) 9 months actual, 3 months budget
(2) Other expenses include EBD incentives, local government grants, pilot programs, and the portable battery program (3) Other reimbursements include various grants
($ in millions) FY25 FY26(1) FY27
Buildings $5.1 $7.0 $8.3
Electric Vehicles 4.3 5.8 4.5
Distributed Energy 0.1 0.1 0.4
Energy Efficiency 1.4 1.2 1.6
Other(2) 3.9 2.3 3.9
Total Expenses $14.8 $16.4 $18.6
Energy Efficiency Fund. 1.5 0.1 1.8
Other(3) 0.2 1.0 2.0
Total Reimbursements $1.6 $1.1 $3.8
Net Expenses $13.2 $15.3 $14.8
Capital Expense and Reimbursements/Revenues
10 • On-Bill-Financing largely offset by
customer repayments and is
expected to become “self-funding”
• $5.7 million allocated to GovPV3
projects, including batteries, offset
by expected Investment Tax Credit
(ITC)
• New office capital includes $500k
for tenant improvements, $600k
for furniture and AV equipment,
and $100k for EV chargers, which
is partially offset by six months of
free rent (~$400k) ($ in millions) FY25 FY26 FY27
On-Bill-Financing $3.0 $3.0 $3.6
GovPV Capital 7.4 12.0 5.7
New Office Capital - - 1.2
Total Capital $10.3 $15.0 $10.5
On-Bill-Financing $1.2 $1.4 $2.0
GovPV Revenues 0.1 0.3 1.8
Investment Tax Credit 3.9 - 7.5
Total Reimbursements $5.3 $1.7 $11.3
Net Capital $5.1 $13.3 ($0.8)
Depreciation Expense 0.2 0.4 1.4
($ in millions) FY25 FY26(1) FY27
Cost of Energy $366.0 $300.5 $299.1
Operating Expenses 43.1 47.4 52.5
(-) Non-Electricity Rev.(2) (3.1) (2.7) (10.3)
(-) Non-Operating Income(3) (26.4) (18.2) (22.8)
(-) ECO100 Revenues (3.6) (3.6) (2.6)
= Net Costs $375.9 $323.4 $315.9
Increase/Decerase 13% -14% -2%
Budget Recommendation
11 Recommend Board approval of
the FY27 budget, representing
total net costs of $315.9
million
• 2% decrease from FY26
• PCE rates to be set to support
operations (cost-of-service),
including utilization of the Rate
Stabilization Fund (discussed
next)
(1) 9 months actual, 3 months updated forecast
(2) Includes GovPV, grants, DAC-GT reimbursement and delayed damages (3) Includes interest income and ITC received
Rate Setting
Nick Bijur, Chief Financial Officer
Justin Kudo, Associate Director, Strategic
Analysis & Rates
System Average Net Parity Rate with PG&E
13 • Updated PCIA forecast creates
potential rate-comparison
challenges relative to PG&E
over the next two years
• 1 cent = ~$35 million
• As a result, need to revisit
current 10% rate discount to
ensure sufficient revenues to
support operations
$0.100
$0.055
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
PG&E Generation Rate Minus PCIA, 2020-2030
Early Forecast Current Market
Electricity Sales by Scenarios
14 $211 $227
$334 $359 $378
$229 $246
$356 $382 $402
$244 $260
$374 $401 $421
$316
$333
$369
$385
$401
-
$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
15 Cumulative Change In
Net Position
• 10% Disc: $(366) million
• 5% Disc: $(260) million
• 1% Disc: $(176) million
Rate Stabilization Fund
currently $128 million
• Potential to increase in
FY26
($118) ($118)
($48)
($42) ($40)
($99) ($100)
($26)
($19) ($16)
($85) ($86)
($9)
($0)
$3
($140)
($120)
($100)
($80)
($60)
($40)
($20)
$0
$20
FY27 FY28 FY29 FY30 FY31
10% Discount 5% Discount 1% Discount
Days Cash on Hand (DCOH) by Scenarios
16 366
237
169
119
74 385
275
223
191
165
400
304
267
250 237
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
17 About half of CCAs currently have rates at or above PG&E, with an average premium of 10% (about $5 per month)
Average Residential Bill by Scenario
18 $23.82 $25.93 $27.62
$149.55 $151.66 $153.35
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
10% Discount 5% Discount 1% Discount
Delivery Charge PCIA Generation Charge
Reducing discount from
10% to 5% would
increase average
residential bills by
$2.11 per month, or
1.4%
($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Revenues(2) $392 $352 $234 $260 $374 $401 $421
Cost of Energy (366) (301) (299) (302) (333) (348) (362) Revenues less Cost of Energy $26 $52 ($65) ($42) $41 $53 $59 Operating Expenses (43) (47) (53) (55) (60) (63) (65)
Operating Income (Loss) ($17) $4 ($117) ($97) ($19) ($10) ($6) Non-Operating Income 26 18 23 11 10 10 10
Change in Net Position $9 $22 ($95) ($86) ($9) ($0) $3
Cash $439 $472 $374 $287 $276 $270 $267
DCOH 392 494 390 294 258 241 229
Summary Financials (excluding Rate Stabilization)
19 (1) 9 months actual, 3 months forecast
(2) Assumes 5% discount until February 2027 and 1% thereafter • Given forecasted PCIA rates, PG&E rates, and PCE costs, Staff recommends setting PCE rates at a 5% discount in July 2026 and using the Rate Stabilization Fund to help lower and stabilize rates • Balances customer affordability and PCE financial stability Rate Stabilization Fund
20 • Board approved establishment of a Rate Stabilization Fund (RSF) in May 2024 o Defer revenues in years when financial results are strong to be used in future years to help “stabilize” / supplement rates
o Consider deferral of revenues when Change in Net Position greater than 3% of revenues
o Deposits can be made into the RSF until the balance equals 15% of revenues • PCE deferred $68 million of revenues in FY24, representing 15% of revenues • Board temporarily waived RSF limit last year and deferred additional $60 million in FY25 • Most peers have a RSF ranging from 9% to 52% of revenues • Given forecasted Change in Net Position of ~$20 million (6% of revenues), Staff recommends continuation of the waiver in FY26, which will allow us to defer additional revenues to be used in future periods
• As a reminder, a RSF and the deferral of revenues has no impact on cash ($ in millions) FY25 FY26(1) FY27 FY28 FY29 FY30 FY31
Revenues(2) $392 $352 $234 $260 $374 $401 $421
Costs (409) (348) (352) (357) (393) (411) (427)
Non-Operating Income 26 18 23 11 10 10 10
Change in Net Position $9 $22 ($95) ($86) ($9) ($0) $3
Rate Stabilization Fund(3)
- (20) 96 52 - - -
Change in Net Position $9 $2 $1 ($34) ($9) ($0) $3
Recommendation
21 (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 final financial results Recommend that the Board set PCE rates at a 5% net discount to PG&E • Generates sufficient revenues, in combination with utilization of the Rate Stabilization Fund, to support PCE operations
• Staff will return to the Board in January with an updated financial forecast, known PCIA rates, and recommendation for PCE rates in 2027.
Committee Members’ Reports
Adjournment