Peninsula Clean
Energy Board
Meeting
June 25, 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. • Closed Session
• Action to set the Agenda and Approve Consent Items 4-6 • Consent – Public Comment
• Regular Agenda items
• Adjournment
Closed Session
The Board went into closed session at 6:3x p.m. and
will return at approximately 7:15 p.m.
Chair Report
Chair Report: Rebrand is Here!
This is our last Board Meeting as Peninsula Clean Energy! WestLight officially goes live on July 1st
Chair Report: SunZia Ribbon Cutting in New Mexico
• 3.65 GW project and 550 mile transmission line - enough to power 1M homes • Largest wind project in the western hemisphere delivering power to 12 offtakers, including 8 CCAs in California
• PCE's share: 15 Year 220 MW Contract; COD 5/23/2026
• US manufacturing = US jobs; 90% local hire
• Developer: Pattern Energy based in San Francisco
CEO Report
Tumbleweed Ribbon Cutting in Kern County
• 125 MW 8-hour duration energy storage project in Kern County • PCE's Share: 15 MW through 2041
• COD: June 1, 2026
• First joint procurement through CCPower achieving commercial operation
• First operating 8-hour battery storage in California
CEO Report: General Updates
• Second Pre-Pay Goes Live July 1st
• Name Change/Rebrand is Upon Us
• New Office Update
• MCE Report / Press
• Board Survey – Please complete by cob tomorrow
Dave Pine Community Energy
Award nominations due 6/29
• Recognizes organizations, partnerships,
and community members whose work
advances PCE’s mission
• Board members and staff are invited to
submit nominations by Monday, June 29,
at 10 a.m.
Visit bit.ly/dave-pine-award or
scan the QR code to nominate
Refreshed BOD Webpage – Incl. Board Photos
• Budget Deal Reached: GGRF spending decisions
deferred
• Governor’s Race: Affordability reshaping CA
energy policy
• Major CalCCA Bills Advance
o AB 1761: PCIA Data Transparency
o SB 1138: Resource Adequacy
• PCE Co-sponsored Legislation Advances
o AB 2111(Papan): Passed Senate Energy
unanimously
• Policymaker Focus
o Affordability; reliability; load growth; AI / DCs;
transmission; cost allocation
CEO Report: State Legislative Update
• Uncertainty Reins: Federal energy policy uncertainty
remains elevated heading into the 2026 midterms.
• Grid Reliability Focus: Bipartisan efforts support grid resilience and advanced transmission technologies.
• Large Loads Focus: FERC advances action on AI/data
center interconnection and cost allocation.
• Federal Incentives Shift: DOE revises electrification rebate guidance.
• Permitting Momentum: Bi-partisan permitting
certainty legislation has been released.
CEO Report: Federal Update
Mark Your Calendars!
Peninsula Pines EV Ready Ribbon Cutting: Wednesday, July 29th, 11:45 am – 2:00 pm
Fall Summit: Wednesday, September 30th, ~3:30 pm -7:30 pm Office Warming Holiday Party: Tuesday,
December 1st, after work
Upcoming Meetings – July 2026
Executive Committee:
• Monday, July 13, at 10:00 a.m.
Board of Directors Meeting:
• Thursday, July 23 at 6:30 p.m.
Audit and Finance Committee:
• Next: September 14, at 8:30 a.m.
Reminder that there will be no public meetings in August Fiscal Year 26-27
(FY27) Budget
Nick Bijur, Chief Financial Officer
Budget Process Overview
17 • Bottoms-up, cross-departmental budgeting process incorporating DEAI principles • Department-specific budgets to increase accountability and transparency • Draft budgets presented to the Audit & Finance Committee on May 11 and the Executive Committee on June 8
o Both committees were supportive, suggested no changes and recommended approval of the proposed budget
• Final budget being presented to the Board of Directors for approval o Total net costs of $315.9 million, representing a 2% increase from FY26 • PCE rates will be set to ensure sufficient revenues to support PCE operations (cost-of-service ratemaking)
Cost of Energy
18 (1) 10 months actual, 2 months updated forecast
(2) Includes Net Energy Metering and forecasting/scheduling costs • Cost of Energy is forecast to increase
3% in FY27 following a 19% 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 in FY27 as PPAs
come on-line
• Includes $20 million contingency in
FY27 (~7% of energy costs)
($ in millions) FY25 FY26(1) FY27
Energy $224.9 $222.5 $204.5
Capacity 119.9 62.1 74.0
REC/GHG-Free 19.0 2.4 (2.6)
Other(2) 2.1 1.5 3.2
Contingency 0.0 0.0 20.0
Cost of Energy $366.0 $288.4 $299.1
Delayed Damages (10.7) 0.0 (2.4)
Net Cost of Energy $355.2 $288.4 $296.7
Increase/Decrease 12% -19% 3%
Operating Expenses (excluding Programs)
19 (1) 10 months actual, 2 months budget
(2) Excludes Program costs (see next page) and depreciation (see capital page) Growth in operating expenses
moderating
• Compensation – no additional
headcount in FY27 and assumes 5%
salary escalation
• Consulting/Legal – increase driven
by support of new brand roll-out and
Innovation Strategies
• Communications – additional
Programs support
• G&A – increasing software costs
($ in millions) FY25 FY26(1) FY27
Compensation $14.6 $16.3 $17.4
Data Mgr./Service Fees 4.9 5.0 5.1
Consulting/Legal 3.4 3.3 3.7
Communication & Grants 1.5 1.6 1.8
General & Administrative 3.7 4.4 4.5
Operating Expense(2) $28.1 $30.5 $32.5
Increase/Decrease 33% 8% 7%
Programs Expenses and Reimbursements
20 • Launch of Home Upgrade
program driving growth,
particularly in income-qualified
segment (general market
program remains steady)
• Capping monthly e-bike volume
following record applications in
FY26; EV charging stable
• Energy efficiency costs entirely
offset by CPUC funding
(1) 10 months actual, 2 months budget
(2) Other expenses include EBD incentives, local government grants, pilot programs, and the portable battery program (3) Other reimbursements include various grants
($ in millions) FY25 FY26(1) FY27
Buildings $5.1 $6.7 $8.3
Electric Vehicles 4.3 6.3 4.5
Distributed Energy 0.1 0.1 0.4
Energy Efficiency 1.4 0.1 1.6
Other(2) 3.9 2.2 3.9
Total Expenses $14.8 $15.4 $18.6
Energy Efficiency Fund. 1.5 0.1 1.8
Other(3) 0.2 1.0 2.0
Total Reimbursements $1.6 $1.2 $3.8
Net Expenses $13.2 $14.3 $14.8
Capital Expense and Reimbursements/Revenues
21 • 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 $3.3 $3.6
GovPV Capital 7.4 12.0 5.7
New Office Capital - - 1.2
Total Capital $10.3 $15.3 $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 $13.6 ($0.8)
Depreciation Expense 0.2 0.4 1.4
($ in millions) FY25 FY26(1) FY27
Cost of Energy $366.0 $288.4 $299.1
Operating Expenses 43.1 46.4 52.5
(-) Non-Operating Income(2) (26.4) (17.8) (22.8)
(-) Non-Electricity Rev.(3) (13.8) (3.3) (10.3)
(-) ECO100 Revenues (3.6) (3.6) (2.6)
= Net Costs $365.1 $310.1 $315.9
Increase/Decrease 10% -15% 2%
Budget Recommendation
22 Recommend approval of the
FY27 budget, representing
total net costs of $315.9
million
• 2% increase from FY26
• PCE rates to be set to support
operations (cost-of-service),
including utilization of the Rate
Stabilization Fund (discussed
next)
(1) 10 months actual, 2 months updated forecast
(2) Includes interest income on cash and ITC received
(3) Includes GovPV revenues, grants, delayed damages and DAC-GT reimbursement Rate Setting
Nick Bijur, Chief Financial Officer
Justin Kudo, Associate Director,
Strategic Analysis & Rates
System Average Net Parity Rate with PG&E
24 $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
$/kWh
Calendar Year
Historical Current Market
• Increasing PCIA creates 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
Electricity Sales by Scenarios
25 $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
26 Cumulative Change In
Net Position
• 10% Disc: $(367) million
• 5% Disc: $(261) million
• 1% Disc: $(177) million
Rate Stabilization Fund
currently $128 million
• Potential to increase in
FY26
($118) ($119)
($48)
($42) ($40)
($99) ($101)
($26)
($19) ($16)
($85) ($87)
($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
27 370
242
174
123
79 389
279
228
196
170
404
309
272
254 242
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 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
29 $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 the discount
from 10% to 5% would
increase average
residential bills by
$2.11 per month, or
1.4%
+$2.11
($ in millions) FY25 FY26 FY27 FY28 FY29 FY30 FY31
ECOplus Sales(1) $434 $343 $221 $247 $360 $385 $404
Rate Stabilization Fund(2) (60) (30) 96 62 - - -
Rate Revenues 374 313 317 309 360 385 404
Net Costs(3) (365) (310) (316) (333) (369) (385) (401)
Change in Net Position $9 $2 $1 ($25) ($9) ($0) $3
Days Cash On Hand 392 519 394 299 263 246 234
Proposed Rates and the Rate Stabilization Fund (RSF)
30 • Given forecasted PCIA rates, PG&E rates, and incorporating cost-of-service ratemaking, Staff proposes setting rates at a 5% discount and using the RSF to help lower and stabilize rates • Balances customer affordability and PCE financial stability • Staff will return to the Board in January with an updated financial forecast, known PCIA rates, and recommendation for PCE rates in 2027, which will likely include a significant rate decrease (1) Assumes 5% discount until February 2027 and 1% thereafter (2) Staff recommends continuing to waive the RSF limit (15%) and deferring ~$30 million in FY26 (amount TBD) (3) Includes cost of energy and operating expenses, less non-electricity revenues, ECO100 revenues and non-operating income 5-Year Financial Forecast
31 ($ in millions) FY26 FY27 FY28 FY29 FY30 FY31
Operating Revenues $349.4 $234.1 $260.2 $374.0 $400.8 $421.2 Rate Stabilization Fund (30.0) 96.0 62.0 - - -
Total Revenues 319.4 330.1 322.2 374.0 400.8 421.2
Cost of Energy 288.4 299.1 301.9 333.1 347.5 362.2
Revenues less Cost of Energy 31.0 31.0 20.4 40.9 53.3 58.9 Compensation 16.3 17.4 19.2 21.2 22.1 23.3
Data Mgr. & Service Fees 5.0 5.1 5.2 5.4 5.6 5.7
Consulting & Legal 3.3 3.7 3.4 3.3 3.4 3.4
Communication & Grants 1.6 1.8 1.9 1.9 2.0 2.0
Programs 15.4 18.6 19.7 21.3 22.7 22.7
General & Administrative 4.4 4.5 5.2 5.4 5.7 5.9
Depreciation 0.4 1.4 1.5 1.5 1.8 2.2
Operating Expenses 46.4 52.5 56.1 60.0 63.2 65.2
Operating Income (Loss) (15.3) (21.5) (35.7) (19.1) (10.0) (6.3) Non-Operating Income 17.8 22.8 11.2 10.3 9.9 9.8
Change in Net Position $2.4 $1.3 ($24.5) ($8.9) ($0.1) $3.5 Recommendation
Approve Staff's proposal to set ECOplus rates at a system average of $0.072/kWh, effective July 1, 2026, subject to a minimum rate of $0/kWh, resulting in a 5% discount to PG&E
32 Commercial
Electrification
Program
Shelby Bush, Energy Efficiency
Programs Manager
Request to Board of Directors
Approve the Commercial Electrification Program to provide financial incentives to business customers for the installation of eligible electric equipment that replaces existing fossil fuel-powered equipment.
34 Agenda
• Background
• Program Design
• Budget & Staffing
• Recommendation
Programs Portfolio
36 *
*
+
+
* Low-income program + Includes low-income benefits
Single
Family
50%
Multifamily
12%
Commercial
38%
PCE Methane Emissions,
Buildings
Single Family Multifamily Commercial
• Customers asking for help
• No substantial existing
support from any provider
(BayREN, PG&E)
• 38% of methane emissions
• Integrates with future energy
efficiency programs (2028)
Why a Commercial Electrification Program?
Strategic Plan – Environmental & Economic Impact
In order to achieve targeted decarbonization by 2035, PCE will double the reductions of greenhouse gas emissions to 100,000 metric tons annually by accelerating electrification of transportation and buildings and the continued supply of carbon-free power.
Invest at least $150 million in advanced energy solutions to reduce emissions and create local clean energy jobs.
Commercial Electrification Program
Program Design Priority
GOAL: Electrify simple “off-the-shelf”, commercial equipment
Budget & Staffing
Request to Board of Directors
Approve the Commercial Electrification Program to provide financial incentives to business customers for the installation of eligible electric equipment that replaces existing fossil fuel-powered equipment.
43 Questions?
Board Members’ Reports
Adjournment