Pioneer Community Energy Board of Directors
January 16, 2025

Board of Directors
Chair: Alice Dowdin Calvillo
Vice Chair: Tom Ivy
City of Auburn
Alice Dowdin Calvillo
Sandra Amara, Alternate
City of Colfax
Sean Lomen
Kim Douglass, Alternate
County of El Dorado
vacant
Lori Parlin, Alternate
City of Grass Valley
Tom Ivy
Jan Arbuckle, Alternate
City of Lincoln
Richard Pearl
John Reedy, Alternate
Town of Loomis
David Ring
Danny Cartwright, Alternate
Nevada City
Gary Petersen
Lou Ceci, Alternate
County of Placer
Anthony DeMattei
Suzanne Jones
Bonnie Gore, Alternate
City of Placerville
David Yarbrough
John Clerici, Alternate
City of Rocklin
Greg Janda
David Bass, Alternate
Pioneer Community Energy
Board of Directors
January 16, 2025

REGULAR MEETING & PUBLIC HEARING
3:00 PM
Pioneer Community Energy Board Room
2510 Warren Drive, Suite B, Rocklin, CA 95677

PUBLIC HEARING
Public Hearing and Consideration of Adopting a Resolution Authorizing a Rate Adjustment in 2025
Persons may address the Board in person at the address above; by remitting written comment by mail or by email to: [email protected] received no later than 1:00 PM on day of meeting; or, by accessing the Zoom webinar link listed below. Comments are limited to three minutes.

This regular meeting will convene in person at the address printed above, be accessible on the Zoom platform at the following link:
https://us06web.zoom.us/j/89020017279;
and live streamed for viewing on the Pioneer website:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Members of the public may participate in person or by remote audio/visual access.

Those who participated remotely and wish to comment should be prepared to use the Zoom platform via computer or telephone. Public comment will be opened for each agenda item in sequence.

How to Participate Using Zoom
You can join the meeting using the following link:
https://us06web.zoom.us/j/89020017279.

When you join the meeting, you will be muted by default. To inform the Clerk that you would like to make a public comment, you will use the “Raise Hand” feature.

Public Comment via Computer or Smartphone
If you would like to make a comment, you will use the “Raise Your Hand” feature.

Please note that you should only raise your hand during the item to which you will comment. Instructions for using the “Raise Hand” feature when using a computer or mobile device can be found at the link:
https://support.zoom.us/hc/en-us/articles/205566129-Raising-your-hand-in-a-webinar Public Comment via telephone (Audio Only Option)

1. Dial 1 (699) 900-6833

2. When asked for the meeting ID, enter 890 2001 7279#

3. When asked for your participant ID, press # to continue.

You will be muted by default. To inform the Clerk that you would like to make a comment, during each agenda item, dial *9 to “Raise your hand.” When it is your turn to speak, the Clerk will identify you by the last three digits of your phone number; at that time, dial *6 to unmute yourself and state your name and comment for the record. Please note that you should only raise your hand during the item to which you will comment.

Plf)NEER

COMMUNITY ENERGY
I. GENERAL ADMINISTRATIVE FUNCTION – PART 1
A. CALL TO ORDER

1. Roll Call
B. PUBLIC REPORT OF CLOSED SESSION
C. ANNUAL SELECTION OF OFFICERS

1. Elect a Chair and Vice Chair of the Pioneer Governing Board i. Selection of Chair of the Pioneer Governing Board for 2025 ii. Selection of Vice Chair of the Pioneer Governing Board for 2025 D. AGENDA REVIEW
E. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE

JURISDICTION OF THE BOARD
Persons may address the Board on items not on this agenda. Please limit comments to 3 minutes per person. According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action. The Board is prohibited from discussing issues not on the agenda brought to them at this time.

II. CONSENT AGENDA
1) APPROVAL OF THE CONSENT AGENDA
All items on the Consent Agenda have been recommended for approval by the Chief Executive Officer.

All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve the minutes of the December 19, 2024 meeting. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Fiscal Year 2024-25 Draft Financial Reports through November 2024. (KOEHN) c) ADMINISTRATION
Adopt Resolution approving the 2025 Governing Board Meeting Schedule through January 2026. (ECKERT)
d) GENERAL COUNSEL
Adopt Resolution approving Amendment No. 5 to the Employment Agreement for Chief Executive Officer, Donald Eckert. (RUDERMAN)
2) FINANCE & ADMINISTRATION
Financial Audit Report from Pisenti & Brinker, LLP
Recommendation: Receive the Year-End Financial Statements and the Independent Auditor’s Report for the Fiscal Year 2023-24.

III. REGULAR AGENDA

PUBLIC HEARING
Persons may address the Board in person; by remitting written comment by mail or by email to:[email protected] received no later than 1:00 PM on day of meeting; or, by accessing the Zoom webinar link: https://us06web.zoom.us/j/89020017279. Comments are limited to three minutes. 3) PUBLIC HEARING
Public Hearing and Consideration of Adopting a Resolution Authorizing a Rate Adjustment in 2025 (ACTION-ECKERT)
Recommendation: 1) Conduct the public hearing; and, 2) Adopt Resolution approving implementation of Pioneer Community Energy’s Customer Generation Rate changes effective March 1, 2025. 4) PROGRAMS
Low Carbon Fuel Standard Program (DISCUSSION - STASSI-VANACORE) Recommendation: Receive a presentation on the Low Carbon Fuel Standard Program and its potential benefits to Pioneer Community Energy’s Member Agencies. 5) ADMINISTRATION
Western Placer Waste Management Authority Biomass Project (DISCUSSION-KANG) Recommendation: Receive an update on Western Placer Waste Management Authority Biomass Project.

IV. GENERAL ADMINISTRATIVE FUNCTION – PART 2
A. BOARD MEMBER COMMUNICATIONS
B. CHIEF EXECUTIVE OFFICER COMMUNICATIONS
C. ITEMS FOR INFORMATION

1. Glossary of Terms
D. ADJOURNMENT
Upcoming Meeting of the Board:

February 20, 2025
Accommodations
Pioneer Community Energy is committed to ensuring that persons with disabilities are provided with the resources to participate fully in its public meetings. If you are hearing impaired, we have listening devices available. If you require additional disability-related modifications or accommodations, including auxiliary aids or services, please contact the Clerk of the Board. If requested, the agenda shall be provided in appropriate alternative formats for persons with disabilities. All requests must be in writing and must be received by the Clerk five business days prior to the scheduled meeting for which you are requesting accommodation. Requests received after such time will be accommodated only if time permits.

Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the January 16, 2025 meeting of the Pioneer Community Energy Governing Board was posted and available for public review on January 13, 2025 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; was accessible for viewer participation on the Zoom platform at the following link:
https://us06web.zoom.us/j/89020017279; and, was live streamed for viewing on the Pioneer website at:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

All public materials related to an item on this agenda submitted to the Governing Board after distribution of the agenda packet are also made available for public inspection on Pioneer’s website at:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/. Any document provided at the meeting by staff or by the public will be provided by the Board Clerk upon request by phone at (916) 758-8946, or by email at: [email protected].

DRAFT

PIONEER COMMUNITY ENERGY

GOVERNING BOARD

MINUTES
December 19, 2024
Entry No. 1
Heard General Administrative Functions – Part I
Call to Order
Pioneer Community Energy Governing Board met in regular session at 2:30 PM on December 19, 2024. The Members convened in person and the meeting was accessible to the public at Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, California 95677; for viewer participation on the Zoom platform at the following link: https://us06web.zoom.us/j/89020017279; and, was live streamed for viewing on the Pioneer website at: https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Roll Call

Present: City of Auburn (Dowdin Calvillo), County of El Dorado (Parlin), City of Grass Valley (Ivy), City of Lincoln (Andreatta), Town of Loomis (Ring), Nevada City (Petersen), County of Placer (Holmes), City of Rocklin (Janda).

Absent: City of Colfax (Lomen), County of Placer (Jones), City of Placerville (Yarbrough).

Closed Session
Adjourned to Closed Session at 2:32 PM with expected time of 3:00 PM to reconvene Regular Session. 1) Public Employee Performance Evaluation - GC §54957
Title: Chief Executive Officer
2) Conference with Labor Negotiators - GC §54957.6
Agency Negotiator: Board Chair
Unrepresented Employee: Chief Executive Officer
Reconvened in Regular Session at 3:00 PM.

Director Jones joined the meeting during Closed Session.

Chair Dowdin Calvillo presided over the meeting.

Present: City of Auburn (Dowdin Calvillo), County of El Dorado (Parlin), City of Grass Valley (Ivy), City of Lincoln (Andreatta), Town of Loomis (Ring), Nevada City (Petersen), County of Placer (Holmes), County of Placer (Jones), City of Rocklin (Janda).

Absent: City of Colfax (Lomen), City of Placerville (Yarbrough).

Public Report of Closed Session
No reportable action was taken in the matters of Employee Performance Evaluation - GC §54957, no reportable action was taken; and in the matter of In the matter of Conference with Labor Negotiators - GC §54957.6, no reportable action was taken.

Agenda Review
Reviewed and made no revision to the meeting agenda for December 19, 2024.

Public Comment
There were no comments from members of the public on items not listed on this agenda.

ITEM 1a
DRAFT – December 19, 2024 – page 2
Entry No. 2
Acted on the Consent Agenda as follows:

Approved the minutes of the November 21, 2024 meeting.

Received Fiscal Year 2024-25 Draft Financial Reports through October 2024.

Adopted Resolution 2024-35 authorizing the Director of Finance and Administration to periodically perform the steps necessary to take possession of unclaimed funds pursuant to Government Code 50050-50057.

Adopted Resolution 2024-36 to authorize an increase of staffing positions by one to a total twenty-one (21) full time staffing positions and authorized a fiscal year 2024-25 budget increase of $110,000 to the Regulatory and Legislative Division.

Adopted Resolution 2024-37 establishing a Governance Committee for Pioneer Community Energy.

MOTION: Holmes/Andreatta. Vote: 9:0:2
ROLL CALL: Andreatta, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Parlin, Petersen, Ring.

No/Abstain: None.

Absent: Lomen, Yarbrough.

Entry No. 3
Public Hearing and Consideration of Adopting a Resolution Authorizing a Rate Adjustment in 2025
1) Received staff report and presentation; 2) Opened the public hearing. There were no written or verbal comments from members of the public. Closed the public hearing.

Director Janda moved to adopt resolution approving a minimum of five percent discount to rates.

The motion was seconded by Director Andreatta.

Chair Dowdin Calvillo moved an alternate motion to adopt resolution approving a four percent discount to rates. The motion was seconded by Director Holmes.

MOTION: Dowdin Calvillo/Holmes. Vote: 4:4:1:2 (Alternate Motion FAILED) ROLL CALL:

Ayes: Dowdin Calvillo, Holmes, Petersen, Ring.

Noes: Andreatta, Janda, Jones, Parlin.

Abstain: Ivy.

Absent: Lomen, Yarbrough.

Adopted Resolution 2024-38 approving implementation of Pioneer Community Energy’s Customer Generation Rate changes with a minimum five percent discount effective February 1, 2025; and directed staff to revisit the rates decision in January following the PG&E rates announcement.

MOTION: Janda/Andreatta. Vote: 7:2:0:2
ROLL CALL:

Ayes: Andreatta, Dowdin Calvillo, Ivy, Janda, Jones, Parlin, Ring.

Noes: Holmes, Petersen.

Absent: Lomen, Yarbrough.

DRAFT – December 19, 2024 – page 3
Entry No. 4
Update on Administrative Changes and Approval of a 30-day Notice to Amend the Joint Exercise of Powers Agreement Therewith
Received update on Administrative Changes and approved the 30-Day Notice to Amend the Joint Exercise of Powers Agreement for Pioneer Community Energy.

MOTION: Holmes/Janda. Vote: 9:0:2
ROLL CALL: Andreatta, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Parlin, Petersen, Ring.

No/Abstain: None.

Absent: Lomen, Yarbrough.

Entry No. 5
Update on Administrative Changes and Approval of a 30-day Notice to Amend the Joint Exercise of Powers Agreement Therewith
Received update for Membership and approved the 30-Day Notice to Amend the Joint Exercise of Powers Agreement for Pioneer Community Energy with a contingency regarding the pending results of the Impact Assessment Study to include County of Glenn, Cities of Orland and Willows.

MOTION: Holmes/Petersen. Vote: 9:0:2
ROLL CALL: Andreatta, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Parlin, Petersen, Ring.

No/Abstain: None.

Absent: Lomen, Yarbrough.

Entry No. 6
Adopt Resolution Commending Director Jim Holmes for His Dedicated Service to Pioneer Community Energy
Adopted Resolution 2024-33 in recognition of Director Jim Holmes for his dedication and outstanding service in directing Pioneer Community Energy.

MOTION: Jones/Petersen. Vote: 9:0:2
ROLL CALL: Andreatta, Dowdin Calvillo, Holmes, Ivy, Janda, Jones, Parlin, Petersen, Ring.

No/Abstain: None.

Absent: Lomen, Yarbrough.

Entry No. 7
Heard General Administrative Function – Part II
Board Member Communications
Committee Chair Dowdin Calvillo reported that the Expansion ad hoc Committee met on December 11, 2024.

The Committee received an update on discussions with New Member Applicants regarding an October 2027 start date; received an update on Power Procurement Resources to support expansion; and, considered findings and recommended the Board of Directors to approve the Expansion into all thirteen prospective agencies with a contingency regarding the pending results of the Impact Assessment Study to include County of Glenn, Cities of Orland and Willows.

Director Ivy provided an update on City of Grass Valley’s progress with a biomass project.

Director Petersen announced that Sunday, December 22nd, would be the closing day for the Victorian Christmas in Nevada City.

DRAFT – December 19, 2024 – page 4
Chief Executive Officer Communications
Chief Executive Officer Eckert informed the Board that the Pioneer offices would be closed from December 24, 2024 through January 1, 2025. Customer Care staff will still be receiving calls during this period.

Chair Dowdin Calvillo requested clarification regarding mention in the CEO Report regarding the City of South Lake Tahoe’s interest in joining Pioneer.

Chief Executive Officer Eckert confirmed that Pioneer had received an inquiry, however, the City of South Lake Tahoe is not eligible to join due to being located in the service territory of Liberty Utilities.

Lastly, Chief Executive Officer Eckert closed the meeting with a cheerful “Merry Christmas to all, and to all a good night.”
Items for Information
Received the Glossary of Terms.

Adjournment
The meeting adjourned at 4:14 PM.

Staff Report – Item 1b
To: The Governing Board
From: Eric Acedo, Sr. Financial Analyst
Item 1b: Receive Fiscal Year 2024-25 Draft Financial Reports Through November 2024 Date: 1/16/2025

RECOMMENDATION
Receive Fiscal Year 2024-25 Draft Financial Reports through November 2024.

BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. The mPOWER program accepted its last application August 2021 and mPOWER activity is now limited to the administering the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year end reports. For November 2024, the financial reporting package includes the following reports for the CCA Fund only:
• Statement of Net Position (Balance Sheet) – Accounting of Assets, Liabilities and Net Position as of the reporting period end date for the CCA program. • Statement of Revenues, Expenses, and Changes in Net Position (P&L) – Accounting of all revenues, expenses, and changes in net position on a YTD basis through the reporting period end date for the CCA program.
• Budgetary Comparison Schedule (Budget to Actuals) – Comparison of budget to actuals on a YTD basis through the reporting period end date for the CCA program.

FY 2023-24 Unused Program Budget Rollover
At the September 2023 Board meeting, the Board approved Resolution 2023-23 which established a special fund for Programs and authorized unused program budget to roll over from one fiscal year to the next. Per the completion of the audited FY 2023-24 financials and as authorized by Resolution 2023-23, One Million Three Hundred Thirty-One Thousand Three Hundred Forty-One dollars ($1,331,341.00) has been rolled over from the Fiscal Year 2023-2024 unused programs budget and added to the FY 2024-25 Programs – Contract Services budget effective November 1, 2024. This adjustment is reflected in the attached financials.

STRATEGIC PLAN
Strategic Priority: Be Fiscally Strong and Resilient

FISCAL IMPACT
The YTD change in net position through five months of the fiscal year is $23.9 million.

ATTACHMENTS

1. Financial Reports through November 30, 2024
Plf)NEER

COMMUNITY ENERGY
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Fund of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of November 30, 2024, and the related statement of revenues, expenses, and changes in net position for the five months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America in these interim financial statements. Pioneer Community Energy’s annual audited financial statements include the note disclosures and statement of cash flows omitted from these interim statements. If the omitted disclosures and the statement of cash flows were included in these financial statements, they might influence the user’s conclusions about Pioneer Community Energy’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to Pioneer Community Energy because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
January 9, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com CCA Program
ASSETS
Current assets
Cash and cash equivalents 40,216,063$
Investments 103,758,847
Accounts receivable, net of allowance 20,298,683
Accrued revenue 9,801,219
Other receivables 331,265
Interest receivable 534,000
Prepaid expenses 1,738,861
Deposits 5,875,619
Total current assets 182,554,557
Noncurrent assets
Capital assets, net of depreciation and amortization 1,209,203 Deposits 219,736
Total noncurrent assets 1,428,939
Total assets 183,983,496

LIABILITIES
Current liabilities
Accrued cost of electricity 16,809,589
Accounts payable 557,810
Other accrued liabilities 529,802
Lease liability 120,281
Note payable 776,800
Interest payable 13,352
Total current liabilities 18,807,634
Noncurrent liabilities
Lease liability 842,324
Note payable 3,384,870
Supplier security deposits 1,752,000
Total noncurrent liabilities 5,979,194
Total liabilities 24,786,828

NET POSITION
Net investment in capital assets 246,598
Unrestricted net position 158,950,070
Total net position $ 159,196,668

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of November 30, 2024

CCA PROGRAM
See accountants' compilation report. 2
CCA Program

OPERATING REVENUES
Electricity sales, net 113,673,616$
Total operating revenues 113,673,616

OPERATING EXPENSES
Cost of electricity 87,427,910
Contract services 2,320,145
Staff compensation 1,559,794
Other operating expenses 887,474
Depreciation and amortization 77,901
Total operating expenses 92,273,224
Operating income (loss) 21,400,392

NONOPERATING REVENUES (EXPENSES)
Investment income 2,664,637
Interest and financing expense (86,080)
Nonoperating revenues (expenses), net 2,578,557

NET POSITION
Change in net position 23,978,949
Net position at beginning of period 135,217,719
Net position at end of period 159,196,668$
Five Months Ended November 30, 2024

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CCA PROGRAM

PIONEER COMMUNITY ENERGY
See accountants' compilation report. 3
Participation Rates – November 2024
Participation Rate September 2024 October 2024 November 2024 AUBURN INC 85.12% 85.34% 85.51%
COLFAX INC 87.85% 88.33% 87.46%
GRASS VALLEY INC 97.12% 95.23% 96.45%
LINCOLN INC 82.22% 82.49% 82.56%
LOOMIS INC 86.92% 86.86% 86.98%
NEVADA CITY INC 98.30% 96.47% 96.47%
PLACERVILLE INC 85.24% 85.42% 85.37%
ROCKLIN INC 90.26% 90.19% 90.18%
UNINC EL DORADO CO 79.61% 79.66% 79.72%
UNINC PLACER CO 84.41% 84.64% 84.65%
Grand Total 84.12% 84.13% 84.22%
4 5
ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule for the CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the five months ended November 30, 2024, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Pioneer Community Energy.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

Pioneer Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about Pioneer Community Energy’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to Pioneer Community Energy because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
January 9, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 2024/25 YTD
Amended
Budget
2024/25 YTD
Actual
2024/25 YTD
Variance
(Under) Over
2024/25
YTD
Actual/
Budget %
2024/25
Amended
Budget
2024/25
Amended
Budget
Remaining

ENERGY REVENUES
Energy Sales $ 112,960,000 $ 115,199,221 $ 2,239,221 102% $ 235,801,000 $ 120,601,779 Green100 Sales 93,000 29,987 (63,013) 32% 200,000 170,013 Congestion Revenue Rights and Battery Optimization 5,702,381 7,342,723 1,640,342 129% 10,000,000 2,657,277 Less Uncollectible Accounts (1,526,000) (1,555,594) (29,594) 102% (3,186,000) (1,630,406) Total Operating Revenues 117,229,381 121,016,336 3,786,956 242,815,000 121,798,664

ENERGY EXPENSES
Power Supply 101,735,416 94,770,635 (6,964,781) 93% 208,976,000 114,205,365 OPERATING MARGIN 15,493,965 26,245,701 10,751,736 33,839,000 7,593,298

OPERATING EXPENSES
Administration
Compensation 288,077 248,231 (39,846) 86% 691,385 443,154 Contract services 132,635 49,234 (83,402) 37% 318,325 269,091 Operating expenses 666,358 316,284 (350,074) 47% 941,796 625,512 Total Administration expenses 1,087,071 613,749 (473,322) 56% 1,951,506 1,337,757 Finance
Compensation 458,771 389,694 (69,077) 85% 1,101,050 711,356 Contract services 268,913 133,652 (135,260) 50% 591,000 457,348 Operating expenses 119,575 108,632 (10,943) 91% 357,700 249,068 Total Finance expenses 847,258 631,978 (215,281) 75% 2,049,750 1,417,772 Power Procurement
Compensation 488,580 270,333 (218,247) 55% 1,032,592 762,259 Contract services 2,172,646 685,831 (1,486,815) 32% 3,343,538 2,657,707 Operating expenses 50,625 79,469 28,844 157% 261,500 182,031 Total Power Procurement expenses 2,711,851 1,035,633 (1,676,217) 38% 4,637,630 3,601,997 Customer Care
Compensation 166,251 164,417 (1,834) 99% 399,002 234,585 Contract services 1,133,333 1,201,384 68,051 106% 2,720,000 1,518,616 Operating expenses 89,479 57,903 (31,576) 65% 214,750 156,847 Total Customer Care expenses 1,389,063 1,423,704 34,640 102% 3,333,752 1,910,048 Marketing & Communications
Compensation 309,144 232,611 (76,533) 75% 741,946 509,335 Contract services 202,125 1,362 (200,763) 1% 420,000 418,638 Operating expenses 352,646 59,631 (293,015) 17% 846,350 786,719 Total Marketing expenses 863,915 293,604 (570,311) 34% 2,008,296 1,714,692 Legislative & Regulatory
Compensation 184,863 164,060 (20,803) 89% 443,670 279,610 Contract services 160,237 87,986 (72,250) 55% 377,807 289,821 Operating expenses 3,458 2,449 (1,009) 71% 8,300 5,851
Total Legislative expenses 348,558 254,495 (94,063) 73% 829,777 575,282 Programs
Compensation 122,227 82,779 (39,448) 68% 293,345 210,566 Contract services 218,501 - (218,501) 0% 1,456,341 1,456,341 Operating expenses 795,752 306,519 (489,233) 39% 1,909,805 1,603,286 Total Programs expenses 1,136,481 389,298 (747,183) 34% 3,659,491 3,270,193 Total Operating Expenses 8,384,196 4,642,461 (3,741,736) 55% 18,470,202 13,827,741

NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 717,750 2,664,637 1,946,887 2,871,000 206,363 Term Loan Debt Service (395,833) (383,384) 12,450 97% (950,000) (566,616) Additional Term Loan Principal - - - (2,100,000) (2,100,000) Line/Letter of Credit Fees (375,000) (205,959) 169,041 55% (750,000) (544,041) Financial Security Requirement - - - (800,000) (800,000) Nonoperating revenues (expenses), net (53,083) 2,075,295 2,128,378 (1,729,000) (3,804,295) Total Expenses and Non-Operating Activity 110,172,696 97,337,801 (12,834,894) 229,175,202 131,837,401 Contribution to/(from) Reserves 7,056,685$ 23,678,535$ 16,621,850$ 13,639,798$ (10,038,738)$

BUDGETARY COMPARISON SCHEDULE
Five Months Ended November 30, 2024

PIONEER COMMUNITY ENERGY

CCA PROGRAM

Staff Report – Item 1c
To: The Governing Board
From: Teresa Willock, Board Clerk
Item 1c: Adopt Resolution Approving the 2025 Governing Board Meeting Schedule Date: 1/16/2025

RECOMMENDATION
Adopt a Resolution approving the 2025 Governing Board Meeting Schedule through January 2026.

BACKGROUND
Pursuant to Section 54954 of the Brown Act and the Pioneer Community Energy Joint Powers Agreement, the Board must fix the date, hour, and place of regular meetings by resolution. On November 6, 2017, the Governing Board adopted Resolution 2017-10, establishing the regular meeting times of the Pioneer Governing Board to normally be held on Monday of each calendar week, except for state or federal holidays, commencing at 3:00 PM, and subject to Board approval of an annual schedule of meetings. Resolution 2017-10 further provided that the meetings would normally be held in the Placer County Board of Supervisors’ Chamber, provided, however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the County of Placer.

On June 10, 2020, the Governing Board adopted Resolution 2020-5, rescinding Resolution 2017-10 and changing the regular meetings of the Pioneer Community Energy Governing Board to Thursdays. Resolution 2020-5 also changed the meeting location to the Pioneer Community Energy office located at 2510 Warren Drive, Suite B, Rocklin, CA 95677, provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the County of Placer.

On February 18, 2021, the Governing Board approved the 2021 schedule of meetings through January 20, 2022, pursuant to Resolution 2020-5.

For the inclusion of current and any future Member Agencies of Pioneer Community Energy, on December 16, 2021, the Pioneer Community Energy Board of Directors adopted Resolution 2021-45 rescinding Resolution 2020-5. Regular meetings of the Governing Board shall normally be held on the third Thursday of each month, with the exception of state or federal holidays, commencing at 3:00 PM, subject to Board approval on an annual schedule of meetings. Such regular meetings shall be held at the Pioneer Community Energy office located at 2510 Warren Drive, Suite B, Rocklin, California 95677, provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the boundaries of any Pioneer Community Energy member agency; and approved the 2022 Governing Board Meeting Schedule.

Since that time, the regular schedule of meetings has followed the approved schedule; and pursuant to State of California Executive Order N-29-20, dated March 17, 2020, meetings had been conducted via live stream accessed by the Directors, Pioneer staff, and the public on the Zoom webinar platform.

On October 4, 2021, the Pioneer Community Energy Governing Board determined that as a result of the COVID-19 state of emergency, meeting in person would present imminent risks to the health or safety of attendees at the meetings of the Governing Board of Directors and all other legislative bodies of Pioneer Community Energy Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1c Agenda Date: 1/16/2025

which includes all of its Board appointed Committees; and directed that the meetings of the Governing Board of Directors and all other legislative bodies of Pioneer Community Energy be conducted pursuant to Government Code section 54953(e) (AB 361) and other applicable provisions of the Brown Act. And, every 30 days the Pioneer Community Energy Governing Board (1) reconsiders the circumstances of the state of emergency created by the COVID-19 pandemic and (2) determines if the state of emergency continues to directly impact the ability of the members to meet safely in person.

On February 17, 2022, the Pioneer Community Energy Governing Board authorized the Executive Director to move forward with development of hybrid in-person meetings. Since April 21, 2022, when the Pioneer Community Energy Governing Board directed that the meetings of the Governing Board of Directors and all other legislative bodies of Pioneer Community Energy be conducted by teleconferencing, pursuant to Government Code Section 54953€, with an option for in-person attendance of up to five Directors.

With the State of Emergency lifted in the State of California, the Pioneer Board Room accommodates in-person participation for all Member Agency Directors. Remote Member participation is acceptable when pre-arranged to meet the Brown Act posting requirements.

On December 15, 2022, the Governing Board approved the 2023 Pioneer Community Energy Governing Board Meeting Schedule for February 16, 2023 through January 18, 2024, following the prior schedule of meetings to be held on the third Thursday of each month, commencing at 3:00 PM, including an alternate meeting date accommodating holidays during the month of December, and allowing for a recess during the month of August.

ANALYSIS & DISCUSSION
Staff recommends that the Board adopt the proposed 2025 Pioneer Community Energy Governing Board Meeting Schedule for February 20, 2025 through January 15, 2026. The proposed schedule continues to follow the current schedule of meetings to be held on the third Thursday of each month, commencing at 3:00 PM.

Staff have reviewed the meeting schedule for potential conflicts with known reasons which could affect the achievement of a quorum and to allow for an August recess.

STRATEGIC PLAN
Strategic Priority 4: Operational Excellence

FISCAL IMPACT
There is no direct budget or cost impact associated with this item.

ATTACHMENTS

1. Resolution approving the 2025 Governing Board Meeting Schedule.

Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 16, 2025, by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, on November 6, 2017, the Governing Board adopted Resolution 2017-10, providing that regular meetings would be held on Monday of each calendar week, with the exception of state or federal holidays, commencing at 3:00 p.m., subject to Board approval of an annual schedule of meetings; and further providing that regular meetings would normally be held in the Placer County Board of Supervisors’ Chamber, but that the Board could in its discretion hold any such regular meeting at any other location within the County of Placer; and WHEREAS, on June 10, 2020, the Governing Board adopted Resolution 2020-5, rescinding Resolution 2017-10 and changing the date for regular meetings of the Pioneer Community Energy Governing Board to be held on Thursdays, with the exception of state or federal holidays, commencing at 3:00 PM, subject to Board approval of an annual schedule of meetings; and WHEREAS, on February 18, 2021, the Governing Board approved the 2021 schedule of meetings through January 20, 2022, pursuant to Resolution 2020-5; and WHEREAS, on December 16, 2021, the Governing Board approved the 2022 schedule of meetings through January 19, 2023, pursuant to Resolution 2021-45, rescinding Resolution 2020- 5, updating the regular meeting location for the Pioneer Community Energy Governing Board to be at the Pioneer Community Energy office located at 2510 Warren Drive, Suite B, Rocklin, California, 95677, provided however, that the Governing Board may, in its discretion, hold any such regular meeting at any other location within the boundaries of any Pioneer Community Energy member agency; and
In the matter of: RESOLUTION
APPROVING THE 2025 GOVERNING

BOARD MEETING SCHEDULE
Resolution 2025-xx
January 16, 2025
2 WHEREAS, on December 15, 2022, the Governing Board approved the 2023 Pioneer Community Energy Governing Board Meeting Schedule for February 16, 2023 through January 18, 2024, following the prior schedule of meetings to be held on the third Thursday of each month, commencing at 3:00 PM, including an alternate meeting date accommodating holidays during the month of December, and allowing for a recess during the month of August.

BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Governing Board does hereby approve the 2025 Pioneer Community Energy Governing Board Meeting Schedule for February 20, 2025 through January 15, 2026. The proposed schedule continues to follow the current schedule of meetings to be held on the third Thursday of each month, commencing at 3:00 PM; allowing for a recess during the month of August.

3. This Resolution shall take effect immediately upon its adoption.

Exhibit A: Pioneer Community Energy 2025 Governing Board Meeting Schedule Resolution 2025-__
Exhibit A

PIONEER COMMUNITY ENERGY
2025 GOVERNING BOARD MEETING SCHEDULE
(Meetings are subject to cancellation/change based upon need) February 20, 2025
March 20, 2025
April 17, 2025
May 15, 2025
June 19, 2025
July 17, 2025
September 18, 2025
October 16, 2025
November 20, 2025
December 18, 2025
January 15, 2026
Regular meetings of the Board are scheduled on the third Thursday of each month, commencing at 3:00 PM; and allowing for an August recess.

Such regular meetings shall be held at the Pioneer Community Energy office located at:

Pioneer Community Energy Offices
2510 Warren Drive, Suite B
Rocklin, CA 95677
Provided however, that the Governing Board, in its discretion, may hold any such regular meeting at any other location within the boundaries of any Pioneer Community Energy member agency.
385697.3 Page 1 of 2
Staff Report – Item 1d
To: The Governing Board
From: David Ruderman, General Counsel
Item 1d: Amendment No. 5 to the Employment Agreement for Chief Executive Officer, Donald Eckert
Date: 1/16/2025

RECOMMENDATION
Adopt Resolution Approving Amendment No. 5 to the Employment Agreement for Chief Executive Officer between Pioneer Community Energy (“Pioneer”) and Mr. Don Eckert.

BACKGROUND
Pioneer executed an Employment Agreement with Mr. Eckert dated May 28, 2020. The Agreement has been amended four times, most recently on June 20, 2024. The Employment Agreement calls for an annual performance review and compensation review by the Board.

Based upon Mr. Eckert’s 2024 performance review, Mr. Eckert has made valuable contributions to Pioneer by furthering Pioneer’s mission to provide ratepayer value and become a community partner. As detailed his self— evaluation, Mr. Eckert has:
• Maintained rate competitiveness, helping Pioneer ratepayers during the highest usage time of year and ending the year with an average discount to PG&E of 7%. • Collaborated with the Board to produce the Fiscal Year 2025-2027 Strategic Plan with a review of Pioneer’s mission and vision, reset of goals, updates to objectives to achieve those goals, and roadmap to success for the next three years.
• Achieved Pioneer’s cash reserve target for the year and developed an operating budget for Fiscal Year 2024-25 that supports significant ratepayer savings, programs funding and contributions to reserves to maintain financial health. • Achieved 100 percent compliance with Resource Adequacy (capacity) procurement and compliance with Pioneer’s Renewable Portfolio Standards amidst tight resources and changing rules.
• Launched several programs, including a rebate program to support Heating Ventilation Air Conditioning system which processed nearly 1,000 applications and paid out approximately $100,000 in rebates.
• Engaged with several project developers on biomass opportunities including one site located at Western Placer Waste Management Authority as well as City of Grass Valley. • Launched Nevada City and Grass Valley, resulting in a smooth transition for new members and extensive public outreach to our newest ratepayers that resulted in an overall participation exceeding 95%.

Along with this performance evaluation, the Board of Directors met with the designated negotiator, Board Chair Dowdin Calvillo, and provided direction on a compensation increase.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: [Keywords] Agenda Date: 1/16/2025
385697.3 Page 2 of 2

ANALYSIS & DISCUSSION
Amendment No. 5 to the Employment Agreement for Chief Executive Officer proposes a change to increase the Chief Executive Officer salary from $335,118 to $355,225 per year, retroactive to January 1, 2025, to reflect a six percent increase as a result of the Chief Executive Officer’s 2024 performance review.

STRATEGIC PLAN
The report supports the Strategic Priority 3: Employer of Choice

FISCAL IMPACT
Adequate appropriations exist in the current budget to fund the $20,107 increase in annual salary.

ATTACHMENTS

1. Resolution Approving Amendment No. 5 to the Employment Agreement for Chief Executive Officer, Donald Eckert.

2. Redline Version of Employment Agreement, including Amendments Nos. 1-4, showing changes for Amendment No. 5 to the Employment Agreement.

3. Chief Executive Officer Performance Evaluation Report 1d
385716.1 1
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 16, 2025 by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, on May 28, 2020, Pioneer Community Energy and Donald Eckert entered into an Employment Agreement for Executive Director; and
WHEREAS, the Agreement was amended by Amendment No. 1 on November 18, 2021, Amendment No. 2 on January 19, 2023, Amendment No. 3 on March 21, 2024, and Amendment No. 4 on June 20, 2024; and
WHEREAS, Amendment No. 3, among other things, changed the Executive Director’s working title to Chief Executive Officer; and
WHEREAS, the parties desire to amend the Employment Agreement to provide for an increase in the Chief Executive Officer’s salary effective January 1, 2025.

In the matter of:

A RESOLUTION APPROVING AMENDMENT NO. 5

TO EMPLOYMENT AGREEMENT FOR CHIEF

EXECUTIVE OFFICER DONALD ECKERT
385716.1 2
BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Governing Board hereby approves Amendment No. 5 to the Employment Agreement for the Chief Executive Officer, as attached to this Resolution as Exhibit A.

3. This Resolution shall take effect immediately upon its adoption.

Exhibit A: Amendment No. 5 to Employment Agreement for the Chief Executive Officer Resolution 2025-__
January 16, 2025
- 1 -
AMENDMENT NO. 5 TO EMPLOYMENT AGREEMENT FOR CHIEF EXECUTIVE

OFFICER DONALD ECKERT
The Employment Agreement, dated May 28, 2020, between Pioneer Community Energy (“Pioneer”) and Donald Eckert (“Employee”) is amended by this Amendment No. 5, dated January 16, 2025.

A. Pioneer and Employee entered into an Employment Agreement, identified above, providing for the employment of Employee as Executive Director / Chief Executive Officer of Pioneer, commencing on July 13, 2020. The Agreement was amended by Amendment No. 1 on November 18, 2021, Amendment No. 2 on January 19, 2023, Amendment No. 3 on March 21, 2024, and Amendment No. 4 on June 20, 2024 (together with Amendments Nos. 1-4, the “Agreement”).

B. Employee has received a positive performance evaluation for 2024, achieved or made significant progress on his goals, and has continued to develop Pioneer into an organization that provides savings and excellent service to its customers while strengthening Pioneer’s commitment to the community.

C. The parties desire to amend the Agreement with this Amendment No. 5 to provide for a six percent salary increase retroactive to January 1, 2025.

THEREFORE, the parties desire to amend the Agreement as follows:

1. Section 5, titled “SALARY,” is amended to read as follows:

SALARY.

Pioneer agrees to pay Employee a salary of $355,225 annually. This amount includes a six percent increase effective retroactive to January 1, 2025.

Annual salary adjustments will be based on Employee’s performance evaluations and achievement of goals and objectives agreed upon with the Pioneer Board. Salary is payable in accordance with Pioneer’s standard payroll schedule (biweekly).

The applicable law and Pioneer policies, ordinances and resolutions relevant to managers and division directors, will control on all elements of payment and accrual of compensation, and as they may be amended from time to time.

2. Except as expressly amended by this Amendment No. 5, all other provisions of the Agreement shall remain in full force and effect.
[Signatures on following page]
385674.3 - 2 -
IN WITNESS WHEREOF, the parties have executed this Amendment No. 5.

PIONEER COMMUNITY ENERGY
______________________________
Chair, Board of Directors

EMPLOYEE
___________________________
Donald Eckert
DATE: ________________________ DATE: _____________________ ATTEST:
____________________________
Teresa Willock
Board Clerk
APPROVED AS TO FORM:
____________________________
David J. Ruderman
General Counsel
1 EMPLOYMENT AGREEMENT
THIS AGREEMENT is between Pioneer Community Energy ("Pioneer") and Donald Eckert ("Employee") and is dated this 28th day of May 2020.

A. Pioneer desires to employ Employee as its Executive Director.

B. Employee desires to serve as the Executive Director of Pioneer Community Energy beginning July 13, 2020.

C. The Pioneer Community Energy Governing Board (hereinafter "Board") as appointing power, and Employee desire to agree in writing to the terms and conditions of Employee's employment as the Executive Director.

AGREEMENT

1. DUTIES.
(a) Pioneer hereby agrees to employ Employee as Chief Executive Officer (“CEO”) of Pioneer to perform the functions and duties as specified in the attached Executive Director Job Description (Attachment A), Pioneer policies, ordinances and resolutions, and to perform other legally permissible and proper duties and functions as the Board may from time to time assign. The change in title to CEO is consistent with the title of Chief Executive Officer of other Community Choice Aggregators.
(b) Employee shall perform Employee's duties to the best of Employee's ability in accordance with the highest professional and ethical standards of the profession and shall comply with all general rules and regulations established by Pioneer.
(c) Employee shall not engage in any activity which is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law and agrees that Employee will not take any position, paid or otherwise, which may, in any degree conflict or appear to conflict with the duties inherent in the position of Pioneer Executive Director. Prior to performing any services under this Agreement and annually thereafter, the employee must complete disclosure forms required by law.

2. TERM.
(a) The term of this Agreement shall be extended for three (3) years to July 13, 2027 (“Term”) unless terminated by either party in accordance with the provisions set forth in Paragraph 3, or unless terminated for cause, or in the event of death, or permanent disability of Employee.
(b) This Agreement may be renewed for additional terms of three (3) years per term upon written agreement of the parties. Negotiation of contract renewal is to commence 180 days prior to end of prior Term. Notice of non-renewal of this 2 Agreement shall be provided to either party one hundred eighty (180) days prior to end of the Term.
(c) Employee agrees to remain in the exclusive employ of Pioneer during the Term of this Agreement.

3. RESIGNATION AND TERMINATION.
(a) Employee may resign at any time and agrees to give Pioneer thirty (30) days advance written notice of the effective date of Employee's resignation.
(b) Pioneer may terminate Employee with or without cause upon thirty,(30) days written notice. If termination is without cause, paragraph 4 applies. (c) The parties recognize and affirm that: 1) Employee is an "at-will", exempt management employee whose employment may be terminated by Pioneer without cause; and 2) there is no express or implied promise made to Employee for any form of continued employment.
(d) At the discretion of the Board, the decision to terminate may be made in closed session in accordance with the Ralph M. Brown Act. (e) The Employee may choose to resign Employee's office instead of being terminated. In such an event, paragraph 4 remains applicable.

4. SEVERANCE PAY.

Except in the case of non-renewal of this Agreement, as described in 2.(b) or resignation as described in 3(a) above, if Employee is terminated by the Board without cause while still willing and able to perform the duties of Executive Director, Pioneer agrees to pay Employee a cash payment equal to six (6) months base salary (including any 30 day notice period provided) and no other cash compensation or benefits, defined as the Employees current salary. Employee may at his election continue to receive benefits provided by Pioneer consistent with State or Federal law but the full costs of any such benefits shall be exclusively at the cost of the Employee.

Pioneer will as required deduct appropriate employee costs for applicable Pioneer, State or Federal withholding for payroll taxes and other deductions and charges required by law. Such payment will release Pioneer from any further obligations under this Agreement and any other provisions of law. Any unpaid, previously accrued leave, including but not limited to vacation, management leave, sick leave, floating holidays, or any other accruable leave that may in effect at the time of severance, will be dispersed in the same manner as then provided to management employees, and as they may be amended from time to time. This provision shall not apply to termination for cause.

In exchange for severance pay, Employee agrees that at the time of payment of the severance Employee will execute a release of all claims related to Employee's employment with Pioneer. If Employee is terminated for good cause consisting of acts of moral turpitude Pioneer, or if Employee is convicted of a crime involving abuse of 3 office or position, as defined under Government Code Section 53243.4, Pioneer shall have no obligation to continue the employment of Employee or to pay the severance set forth in this paragraph.

5. SALARY.

Pioneer agrees to pay Employee a salary of $355,225 annually. This amount includes a six percent increase effective retroactive to January 1, 2025.

Annual salary adjustments will be based on Employee’s performance evaluations and achievement of goals and objective agreed upon with the Pioneer Board. Salary is payable in accordance with Pioneer’s standard payroll schedule (biweekly) The applicable law and Pioneer policies, ordinances and resolutions relevant to managers and division directors, will control on all elements of payment and accrual of compensation, and as they may be amended from time to time.

6. SUPPLEMENTAL BENEFITS.

Vacation. Employee will initially be eligible for 80 hours (two weeks) of paid vacation leave per year. The accrual of vacation will increase according to the schedule below.
o 0-2 years = 10 days,
o 3-4 years = 12 days,
o 5-9 years = 15 days,
o 10-19 years = 20 days,
o 20 years or more = 25 days.
o Maximum accrual 480 hours
Accrued amounts of vacation time in excess of 480 will be cashed out at the end of each fiscal year.

Management Leave. Employee will receive 80 hours of management leave per year which shall be added to Employee's leave balances at the beginning of each fiscal year. Employee may take Management Leave as paid time-off, or Employee may cash-out any unused balances of management leave at any time during the year in lieu of taking management leave time off. Cash-out amount shall be the number of hours requested to be cashed-out multiplied by the hourly rate at the time of the cash-out request. Employee shall make cash-out requests in writing and shall submit the request with payroll timekeeping. Any time which is cashed-out will not be available for time off. At the end of each fiscal year, any unused management leave will be cashed out. If Employee terminates under any circumstance, Pioneer shall calculate the pro-rated amount earned by Employee as of the date of termination and Employee shall reimburse Pioneer for any unearned leave taken as time off or cashed out. The pro-rated amount shall be calculated by dividing 4 the number of full-time hours elapsed to-date for the fiscal year, divided by 2080 multiplied by 80 hours. Any management hours used in excess of the pro-rated amount shall be then multiplied by the hourly rate at the time of termination to determine the amount Employee shall reimburse Pioneer.

Sick Leave. Employee will accrue sick leave at the rate of per hour or 12 days per year. Employee's unused sick balances leave will continue to accrue until Employee terminates employment with Pioneer. Unused balances at termination will be paid out based on the following formula.
((Sick Leave Balance Hours - 192 hours) * 0.5) * Hourly Rate= Pay Out Bereavement Leave. Three days of paid leave upon the death of an immediate family member.

Medical Insurance Plan. Pioneer will provide and Employee may participate in Pioneer’s medical program (medical, dental and vision insurance) in the amount equal and on the same basis to which it is provided to other Pioneer employees family coverage. Eligibility and benefits will be determined by the applicable laws, regulations and plan documents. In the event of a conflict between this Agreement and the applicable laws, regulations and plan documents, the latter shall prevail. Pioneer reserved the right to change or discontinue its programs at any time, to the maximum extent permitted by law.

Retirement Plan. Pioneer provides a qualified 401a deferred compensation plan and a 457b deferred compensation plan. In 2023, the annual contribution by Pioneer will be $22,500. The annual contribution will escalate consistent with increases allowed by IRS Code. Contributions shall be made on each pay-day.

Employee may at his option election make contributions to a 457b plan up to the IRS limit. Employee’s retirement benefit will be the maximum annual amount allowed by the IRS Code for a 457b plan (not including any catch-up provision amounts), contributed by Pioneer into a 401a plan.

All actions taken by Pioneer relating to benefits for management employees in general shall be considered actions granting the same benefits to or imposing the same restrictions on Employee.

Automobile Allowance. Employee will be provided an annual automobile allowance of $6,600 per year. Automobile allowance will be payable as special pay on each biweekly pay in the amount of $253.85. Auto allowance is provided in lieu of mileage.

Tool and Training Employee shall be provided appropriate basic office tools, cell phone, computer, and travel and training costs, including membership in professional associations and attendance at industry conferences, consistent with the Pioneer's budget process.
5 Relocation Expense. Employee shall be provided up to $5,000.00 for reimbursement of relocation costs subject to verification of actual costs, including temporary housing for the period from July 13, 2020 to January 9, 2021 (180 days).

7. PERFORMANCE EVALUATION.

The Board shall evaluate Employee's performance at least annually, and in any event thirty (30) to sixty (60) clays prior to employment anniversary date. Progress on the salary range set out in Paragraph 5 shall require action at a regular meeting and is expressly conditioned upon the Employee receiving a positive performance evaluation.

Employee may be eligible to be considered for a performance incentive each fiscal year. The performance incentive (if any) will be awarded based on objective or subjective criteria established by Pioneer's Governing Board. Employee's target performance incentive (if any) will be based on goals and objectives established during Employee's annual evaluation and the amount of performance incentive awarded will be determined annually at each subsequent annual evaluation. Any performance incentive for a fiscal year will be paid within six months after the close of that fiscal year, but only if Employee is still employed by Pioneer at the time of payment. The determinations of Pioneer's Governing Board with respect to Employee's performance incentive, if any, will be final and binding.

8. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.

The Board, by resolution or ordinance, shall fix any other terms and conditions of employment as it may determine from time to time relating to the performance of Employee, provided that such terms and conditions are not inconsistent with provisions of this Agreement or other law.

Conditions precedent to employment are satisfactory completion of a background check, including credit check and health exam.

9. NOTICES.

Any notices required by this Agreement shall be in writing and either given in person or by First Class Mail with the postage prepaid and addressed as follows:

TO: Pioneer Community Energy Governing Board
c/o Chairperson
2510 Warren Drive, Suite B
Rocklin, CA 95677
TO EMPLOYEE: Donald Eckert
2510 Warren Drive, Suite B
Rocklin, CA 95677
6 10 ASSIGNMENT.

This Agreement is not assignable by either Pioneer or Employee. Any assignment by either party shall be void.
11 COOPERATION.

Employee and Pioneer agree that at the time of severance they will cooperate fully in executing any and all further documents and taking any and all additional action necessary to carry out the intent of this Agreement.

12. SEVERABILITY.

In the event that any provision of this Agreement is finally held or determined to be Illegal or void by a court having jurisdiction over the parties, the remainder of the Agreement shall remain in full force and effect unless the parts found to be void are either wholly inseparable from or cause a failure of consideration regarding the remaining portion of the Agreement.

13. CONSULTATION WITH COUNSEL
Employee acknowledges he has had the opportunity to consult with his own legal counsel as to this Agreement prior to execution thereof.

14. COUNTERPARTS.

This Agreement may be executed simultaneously in counterparts and each of which shall be deemed an original, but all of which together shall constitute one and the same Instrument.

PICf)NEER

COMMUNITY ENERGY
December 6, 2024
Re: Chief Executive Officer Report to Accompany Performance Evaluation To the Pioneer Community Energy Governing Board:

Please find this letter as reference providing an overview of noteworthy events in calendar year 2024 and goals for 2025.

This has been an exciting and successful year for Pioneer. We supported our mission of ratepayer value and worked towards our vision of becoming a community partner. All areas of the agency finish the year stronger than at the beginning of the year.

Rate Competitiveness and Stability
Rate competitiveness and stability in rate changes are the primary driver in our mission.

Pioneer continued in 2024 with support of the mission by creating $21 million of utility bill savings. We began the year with rate adjustments that created a minimum 10% discount compared to Pacific Gas & Electric's ("PG&E") generation rate with higher discounts achieved based on the Power Charge Indifference Adjustment (e.g. exit fee) assigned.

Mid-Year, PG&E lowered its generation rate temporarily due to overcollection of costs for work done in prior years. This change did impact our competitiveness for Placer County and our Members within. Staff and the Board responded immediately by lowering our rates on average 5% to maintain our rate competitiveness and helped our ratepayers during the highest usage time of the year. We end the year with an average discount to PG&E of 7%.

Administration
This was a busy year with various special projects and board engagement. Successes include:
• Expansion - Engaged with many potential new members this year and landed with thirteen (13) potential new members to the JPA. The process involved discovery, education, relationship building, impact assessment studies, and we will end the year receiving Board direction to submit an implementation with the CPUC in Spring 2025. The goal of expansion is to make our JPA stronger with a better balance sheet, more purchasing power in procurement, and a greater access to elected officials to move issues through the legislative and regulatory process. • Strategic Plan - Collaboration with the Board to produce the Fiscal Year 2025-2027 Strategic Plan with a review of our mission and vision, reset the goals, updated the objectives to achieve those goals, and becomes our roadmap to success for the next three years.

PICf)NEEA

COMMUNITY ENERGY
• Board Engagement - Staff created several opportunities for engagement with the Board that included:
o Tour of the California Independent System Operator facility o Tour of the hydro-electric facilities of El Dorado Irrigation District o Ribbon cutting event for our latest solar + storage project o Guest speaker series featuring Dr. Ahmed Faruqui that provided a perspective on the upcoming Income Graduated Fixed Charge fee and the current state of electricity rates in California
o Workshops to educate new Board Members
• Joint Exercise of Powers Agreement ("JPA") - This was an extensive process throughout the year with the goal of improving the JPA for readability and clarity with regards to governance. We ended the year with clarity on governance of the JPA and will create a Governance Committee with a long-term view of providing guidance on important issues that will be extremely useful as the JPA membership expands.

Finance
Pioneer ends the year financially stable. Successes include:
• Began the year achieving an A- credit rating from Global S&P. This rating is not only a source of pride but converts to real savings when negotiating power supply contracts, reduced collateral postings, and attracting better power supplier options. • Ended the year by achieving our cash reserves target. • Development of Fiscal Year 2024-25 operating budget that supports significant ratepayer savings, programs funding and contributions to reserves to maintain our financial health.
• Staff have placed the proper controls in place resulting in a perfect financial audit for Fiscal Year 2022-23.
• Pioneer received a strong information technology audit report with recommendations that well protect the agency from cyber threats. This is extremely important in the protection of our customer data.
• Conducted quarterly Risk Oversight Committee meetings to ensure compliance with our Energy Risk Management Policy.

Power Supply
Power supply represents 92% of Pioneer's operating budget. During the course of the year, Pioneer procured power and resource adequacy that is economical, diversified the portfolio and complied with the CPUC and California Energy Commission. Power procurement is the key to maintaining competitive rates. Successes include:
• Achieved 100% compliance with Resource Adequacy (capacity) and compliance with our Renewable Portfolio Standards mandates in a year when resources have been tight and the rules keep changing.
• Submitted a proposal to Red Hawk Casino to become their electricity provider in 2025 as their Direct Access contract is expiring. We will know the results in early 2025.
2 Plf)NEER

COMMUNITY ENERGY
• Concluded negotiations on major solar+ storage long-term power purchase agreements.
• Launched the optimization software with NextEra analytics that is coordinated with the Yellow Pine project that discharges the battery during peak market times that creates revenue for Pioneer and mitigates against rising power supply costs. • Engaged with several project developers on biomass opportunities including one site located at Western Placer Waste Management Authority where action is expected at their December Board meeting and assumed the role of technical advisor with the issuance of a Request for Proposal for biomass developers for a site in Grass Valley.
• Negotiation with ICE Energy where Pioneer receives Resource Adequacy value through demand response. The program will launch in 2025 and will provide savings for qualified commercial and industrial accounts by shaving energy usage during the peak hours of the summer.

Human Resources
Employees are Pioneer's most important asset. Successes include:
•
•
•
•
•
Collaborated with the Board to enhance our health and welfare package that keeps our labor package competitive with the goals of attract and retain. o We began the year with expected and unexpected departures but end the year having filled nineteen out of twenty positions for a 5% open position rate.

We celebrate our staff with various events throughout the year .

Diversification - The utility industry has traditionally been underrepresented by women in the workforce. We end the year with our workforce at a near split with women occupying a Sr. Management position and three Manager positions. We also have diversified our workforce by attracting employees with various backgrounds of experience and skill sets.

We contribute to the community by supporting volunteer events including quarterly volunteering at the Feeding the Foothills that distributes food to Placer, El Dorado, and Nevada counties.

We received the Presidents Special Acknowledgement Award from the Special Districts Risk Management Authority for having no awarded claims in the past five years.

Programs
We began the year with no programs and ended the year strong with the following successes:
• Launch a rebate program to support Heating Ventilation Air Conditioning system that was well received. Nearly 1,000 applications were processed with approximately $100,000 paid out in rebates. We also developed relationships with approximately 150 contractors and received many positive reviews from our customers.
3 PIE~NEEA

COMMUNITY ENERGY
• Launched the Power Shift Rewards Program that supports grid reliability by rewarding customers to turn down their usage when the grid is stressed. The program was well received with nearly 500 households signing up in a shortened season. We expect even better participation next year.
• Launched the GridGen program that provides zero down leases for customers to receive a solar system plus Tesla battery that provides savings and reliability . This program has received significant attention and will continue to pay dividends to our brand.
• Launched Greenlite program providing energy saving lighting. Over 20 stores in our territory have participated and nearly $750,000 of budget has been applied. • Launched Electrum Marketplace program that is a resource for customers to explore solar installation investments and have access to reputable contractors. This has been a mixed success with an emphasis of expanding the pool for local contractors in 2025.
• Near launch of an Hourly Pricing Pilot Program focused on agricultural customers to save money by shifting their demand by receiving real-time market signals.

Legislative & Regulatory
It was an active year in the Legislative and Regulatory arenas with successes including:
•
•
•
Commissioned a lobbyist firm to help us navigate issues, build relationships with key legislators, and provide information.
o The Lobbyists coordinated a Pioneer "Lobby Day" this summer that included our Board Chair with legislators in our service territory that sets us up for support of biomass bills in 2025
Was co-sponsor of a Biomass Tour at the Sierra Pacific sawmill plant in Lincoln in February. The event included several legislators with the goal of education and support.

Collaborated with the Board on the 2024 Legislative Platform .

Communications
Pioneer has made a strong commitment to public outreach and education in 2024 with the following successes:
• Successful launch of Nevada City and Grass Valley in 2024 that resulted in a smooth transition for our new members and extensive outreach to our newest ratepayers that resulted in an overall participation exceeding 95%. • Continue to improve the ChatBot experience that has reduced call volume by nearly 30%.
• Have a community presence at major events in our territory including participation with Chambers of all our members.
• Customer satisfaction is on the rise this year and our Google reviews reflect the effort.
• Staff have launched and will continue to launch webinars on topics that are important to our customers such as "How to Read Your Bill", "NEM and Solar Billing", and "Who is Pioneer?" as examples.
4 PICt)NEEA

COMMUNITY ENERGY
• We continue to update and improve the website and the interest in programs has increased website traffic significantly this year.
• Social Media engagement steadily rising.

Goals
Progress on 2024 Goals:

1. Update of the Strategic Plan for Fiscal Year 2024-2027. Collaborate with the Board and staff to develop the roadmap of priorities to guide Pioneer for the next three years - Complete

2. Programs - Launch programs that provide value to our ratepayers that build trust between our ratepayers and Pioneer while enhancing our brand. - Complete

3. Local Energy Power Supply Development - We start the year with a Board approved Feed-In Tariff program that incentives local biomass and small-hydro projects in our service territory - Not Complete but progress has been made. As mentioned earlier, we did conclude the BioMAT process with the CPUC this year and are in discussions with Western Placer Waste Management Authority, City of Grass Valley, and others about small biomass projects.

4. Expansion - Continue to pursue expansion opportunities with like-minded communities when it financially makes sense - Complete

5. Engagement - Pioneer starts the year with strong momentum in public outreach.

Pioneer will continue to improve the website to enhance the customer experience while being active in the communities with serve - Complete

6. Rate Competitiveness - Rate competitiveness and stability will always be a priority and we will continue to operate in a fiscally responsible manner to continue to provide ratepayer savings. - Complete

7. Participation Rate - We start the year with a strong participation rate in our business community and our newest territory. We will continue to improve the residential participation rate, with particular focus on El Dorado County - Partially Complete. The participation rate for Nevada City and Grass Valley is above 95% and the participation rate for current members have been steady. We are still working on improving or at least stabilize El Dorado County as their rate has been approximately 800/o.
5 Plf)NEEA

COMMUNITY ENERGY
Goals for 2025:

1. Rate Stability and Competitiveness - Continue to deliver ratepayer value that supports our mission.

2. Programs - Continue the tremendous momentum achieved in 2024 by restarting programs that seasonally sunset this year for next summer and introduce new and innovative programs solutions that do not impact our rate competitiveness and improves our customers lives.

3. Expansion - We end the year with potentially thirteen New Member Agencies joining. Much work needs to be done in 2025 to bring those applications to a close by filing an implementation plan with the CPUC, procuring power upon receiving approval from the CPUC, and communications.

4. Biomass/Local Project Development - We end the year well positioned for a ground breaking of a biomass project in 2025. BioMAT and our Feed-In-Tariff are tools we are applying. We will bring updates to the Feed-In-Tariff in 2025 to include expansion of qualified technologies to support local project development.

5. Legislative Biomass Initiative - Sponsor a biomass tour to support education of legislators on the importance of biomass and float at least one bill in 2025 that supports our biomass objectives.

6. Participation Rate - Continue to work on improving our brand in Unincorporated El Dorado County while maintaining the participation rate with our other Members.

7. A Rating - Continue to build towards improving our A- to an A credit rating.

Closing Comments
It has been an honor to serve as Pioneer Community Energy's Chief Executive Officer in 2024. I am proud of what our team has accomplished and the collaboration staff has with the Board that turns ideas into results.

There are numerous challenges Pioneer has overcome this past year and new challenges will arise. However, having a supportive Board that makes smart decisions coordinated with a capable staff gives me confidence that 2025 will be even better. ~;?~
Chief Executive Officer
6

Staff Report – Item 2
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 2: Receive Financial Audit Report from Pisenti & Brinker, LLP Date: 1/16/2025

RECOMMENDATION
Receive the Year-End Financial Statements and the Independent Auditor’s Report for the Fiscal Year 2023-24.

AUDIT & FINANCE COMMITTEE RECOMMENDATION
At the January 9, 2025, meeting of the Audit Committee, committee members received a presentation from the Independent Auditor and discussed the status of the audit and the auditor’s opinion.

BACKGROUND
The annual audit of the financial statements has been completed and the report prepared by Pisenti & Brinker, LLP has been issued to the Agency. The auditors have rendered a clean opinion and “In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Pioneer as of June 30, 2024, and 2023, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.” The Statements described below are for the entirety of Pioneer and include both the Community Choice Aggregation and mPOWER program components.

Basic Financial Statements
The Statement of Net Position presents information about assets and liabilities and the difference between the two are reported as net position. The change in net position over time is an indicator of whether the financial position of Pioneer is improving or deteriorating.

The Statement of Revenues, Expenses and Changes in Net Position reports how the net position changed during the year and presents a comparison between operating and non-operating revenues and operating and non-operating expenses.

The Statement of Cash Flows reports the cash provided and used by operating activities, as well as other sources and uses, such as financing and investing activities.

Notes to the Financial Statements
Various notes provide additional information that is essential to a full understanding of the information provided in the basic financial statements. They are found immediately following the financial statements to which they refer.

ANALYSIS & DISCUSSION
The following are highlights of the financial statement as of June 30, 2024:
 Total assets were $169 million with current assets comprised of $163 million. Current assets are mostly comprised of cash and cash equivalents of $18.85 million; investments (LAIF) of $63 million; Plf)NEER

COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 1/16/2025

CalTrust Short-Term and Medium-Term Funds of $16.4 million; accounts receivable and other receivables of $29 million, and accrued revenue of $16.2 million. Current assets have increased each year since Pioneer’s launch because of operating surpluses.  Total liabilities were $33.37 million of which current liabilities totaled $23 million. Current liabilities primarily consist of the cost of electricity that has been delivered to customers, but not yet paid to Pioneer. Other liabilities include interest and bonds payable. Noncurrent liabilities include Bonds and Notes Payable due in more than a year.
 Total operating revenues were $222 million, which is almost exclusively generated from electricity sales.
 Total operating expenses were $161.5 million which was primarily the cost of electricity $150 million, contract services $6.6 million, and staffing cost of $3.5 million.

FISCAL IMPACT
During Fiscal Year 2023-24, Pioneer’s total revenues exceeded total expenses which resulted in the Net Position of increase of $63.4 million to total Net Position of $135.7 million.

ATTACHMENTS

1. Audited Financials for the fiscal year ended June 30, 2024.

TABLE OF CONTENTS
Independent Auditor’s Report .......................................................................................................1 Management’s Discussion and Analysis .....................................................................................4 Basic Financial Statements:

Statements of Net Position ……………………………………………………...……….. 11 Statements of Revenues, Expenses and Changes in Net Position …................. .................12 Statements of Cash Flows ……………………………………………………. .................13 Notes to the Basic Financial Statements ……………………………………. .................15 Supplementary Information:

Combining Statements of Net Position…………………………………...………............ 30 Combining Statements of Revenues, Expenses and Changes in Net Position…................ 31 Combining Statements of Cash Flows…………………………………...….……............ 32 SANTA ROSA  PETALUMA
.
3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343  Office
(707) 527-5608  Fax
pbllp.com
Independent Auditor's Report
To the Board of Directors
Pioneer Community Energy
Opinion
We have audited the accompanying financial statements of Pioneer Community Energy (Pioneer), which comprise the statements of net position as of June 30, 2024 and 2023, the related statements of revenue, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Pioneer as of June 30, 2024 and 2023, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Pioneer and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Pioneer’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued, including any currently known information that may raise substantial doubt shortly thereafter.

Independent Auditor's Report (continued)
Auditor's Responsibilities for the Audits of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audits. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Pioneer’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Pioneer’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

Independent Auditor's Report (continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole.

The supplementary information of Combining Financial Statements, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Santa Rosa, California
December 17, 2024

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
4 The purpose of management’s discussion and analysis (MD&A) is to help stakeholders and other readers understand what the financial statements and notes in this report say about Pioneer Community Energy’s (Pioneer) financial health and why it has changed since last year. It contains information drawn from other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of Pioneer’s finances.

BACKGROUND
Pioneer was established to provide electric power at competitive cost as well as to provide other benefits within Placer County, including reducing greenhouse gas emissions related to the use of power, procuring energy with a priority on stimulating local job creation through various programs and development, promoting long-term electric rate stability and energy reliability for residents and business, the use and development of local renewable resources, as well as promoting personal and community ownership of renewable resources.

Overview of the Financial Statements
Pioneer’s financial report contains basic financial statements, which include:
o The Statements of Net Position include all of Pioneer’s assets, liabilities, and net position and provides information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of Pioneer’s revenue and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as capital and investing activities. o The notes to the Basic Financial Statements provide additional details and information related to the basic financial statements.

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
5 Financial Summary
Pioneer’s Net Position
2024 2023 2022
Current assets $ 163,387,683 $ 97,006,292 $ 63,926,086
Noncurrent assets:

Capital assets, net 1,266,908 1,450,242 1,566,259
Other noncurrent assets 4,319,777 4,554,962 5,560,981
Total noncurrent assets 5,586,685 6,005,204 7,127,240
Total assets 168,974,368 103,011,496 71,053,326
Current liabilities 22,987,281 16,904,468 17,195,547
Noncurrent liabilities 10,278,300 13,782,038 17,392,289 Total liabilities 33,265,581 30,686,506 34,587,836
Net position
Net investment (deficit) in capital assets 256,381 (191,411) (133,169) Unrestricted 135,452,406 72,516,401 36,598,659
Total net position $ 135,708,787 $ 72,324,990 $ 36,465,490 As of June 30, 2024, Pioneer’s total net position was approximately $136,000,000, an increase of $63,000,000 or 88% as compared to June 30, 2023. Most of the increase in net position was in increases in cash and investments, as a result of Pioneer’s operating surplus discussed below.

Pioneer’s Changes in Net Position
2024 2023 2022
Operating revenues $ 222,096,379 $ 199,600,868 $ 115,635,810 Nonoperating revenues - grants 1,041,957 - 1,396,552
Nonoperating - investment income 3,825,396 247,223 (142,111) Total revenues 225,921,775 200,890,048 116,890,251
Operating expenses 161,525,035 164,224,209 103,735,929
Nonoperating expenses 1,012,943 806,339 790,215
Total expenses 162,537,978 165,030,548 104,526,144
Change in net position 63,383,797 $ $ 35,859,500 $ 12,364,107 Electricity sales increased from fiscal year 2023 to fiscal year 2024 as the result of rate increases and a small territory expansion. Territory expansion largely accounted for the increase from fiscal year 2022 to fiscal year 2023. The cost of electricity, a component of operating expenses, was stable from fiscal year 2023 to fiscal year 2024.

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
6 Detailed Analysis
Current assets increased from $97,000,000 at the end of fiscal year 2023 to $163,000,000 at the end of fiscal year 2024. The increase was a result of operating surpluses. Current assets at the end of fiscal year 2024 were primarily comprised of cash and investments of $98,000,000, accounts receivable of $24,000,000, and accrued revenue of $16,000,000.

Capital assets are reported net of depreciation and amortization. Each year, the change is due to capital asset acquisitions less depreciation and amortization expense. Capital assets include leasehold improvements, furniture, equipment and an intangible right-of-use lease asset.

Other noncurrent assets include the long-term portion of the outstanding principal balance on Property Assessed Clean Energy (PACE) program loans. The balance of the PACE program receivables (Contractual Assessments) has declined each year as balances are collected. The PACE program ceased to take new applications after August 2021 and is no longer making new loans.

The largest component of current liabilities is the cost of electricity delivered to customers that is not due to be paid by Pioneer until after the fiscal year-end. Current liabilities for the cost of energy increased from 2023 to 2024 due to changes in payment terms of certain energy products, increased volumes purchased, and the prices of those products. Accrued cost of electricity was approximately $20,000,000 and $15,000,000 at the end of fiscal years 2024 and 2023, respectively.

Noncurrent liabilities include the portion of bonds and note payable principal due after one year.

The balance in bonds and note payable decreased from 2023 to 2024 as principal payments have been made, and no new debt has been acquired.

Operating revenues increased each year from the fiscal years 2022 to 2024, primarily from territory expansions and increases in rates charged to customers. Pioneer also receives revenues from sources other than retail customer sales.

Nonoperating revenues included grant income from the California Arrearage Payment Plan (CAPP) for fiscal years 2022 and 2023. This grant was applicable for two years and did not recur in fiscal year 2024. Investment income increased each year due to changes in market interest rates as well as increases in invested assets.

Operating expenses increased from fiscal year 2022 to 2023 primarily due to market forces that resulted in increases in the cost of electricity, as well as an expanded customer base that increased the volume of electricity purchased. Despite rising costs in the resource adequacy market, total cost of electricity decreased slightly from 2023 to 2024 as there were price decreases in other market prices. Pioneer procures energy from a variety of sources to reduce market risk and to maintain a balanced power portfolio.

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
7 Significant Capital Asset and Long-Term Financing Activity Pioneer does not own assets used for electrical generation or distribution.

Capital assets include a vehicle and office equipment, such as computers, furniture, and leasehold improvements and lease assets for Pioneer’s office premises. The lease in effect as of June 2023 was terminated effective October 2023 and replaced. During fiscal year 2024, a leased asset was terminated, and a new lease was entered into with a related liability for future obligations.

The decrease in bonds and note payable reflects scheduled debt payments during each fiscal year.

The notes to the financial statements describe the changes in capital assets, bonds payable and note payable.

Currently Known Facts, Decisions, or Conditions
Pioneer serves approximately 84% of all eligible customers in the jurisdictions it serves and for members launched before 2024, this has remained relatively stable. In 2024, Pioneer launched service in Nevada City and City of Grass Valley. The impact in customers and load was an approximate increase of 6%. Staff applied lessons learned from a previous expansion and conducted a robust outreach campaign. Through twelve months of this latest expansion, we are experiencing a 95% participation rate in the new territories.

Pioneer’s mission is to provide competitive electric rates, reliable service, and a choice in energy options. Since launching in February 2018, actual and projected customer electricity savings through December 2024 are estimated to be $108 million compared to Pacific Gas & Electric (“PG&E”). At the end of Fiscal Year 2024, Pioneer’s customers were receiving a 10%-20% discount compared to PG&E’s generation rates. In response to PG&E’s rate reduction in July 2024, Pioneer’s also reduced their rates 5% maintaining a competitive position compared to PG&E.

Strategic Plan
In September 2021, the Governing Board adopted the FY 2022-2024 Strategic Plan. In March of 2024, the process to update the Strategic Plan for the next three years began. The process concluded with the adoption of the FY 2025-2027 Strategic Plan in September 2024.

The plan is our guide for the next three years of not losing sight of our mission but achieving tasks that move us closer to the vision. While the Board reaffirmed the mission and vision, there were updates to the goals, objectives, and tasks. The five goals for the next three years include:

1. Be a Community Partner

2. Be Fiscally Strong & Resilient

3. Provide an Exceptional Customer Experience

4. Achieve Operational Optimization

5. Be a Great Place to Work

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
8 Currently Known Facts, Decisions, or Conditions (continued) Expansion
Pioneer will look to expand its territory with like-minded communities when it makes financial sense. There are several reasons to consider expansion including but not limited to:

1. Increases the strength of the balance sheet

2. Provides purchasing power in power supply

3. Expands the pool of elected officials and legislators for support in Sacramento or with the CPUC

4. Enhances opportunities for local power supply projects and energy efficiency programs During Fiscal Year 2023-2024, staff ran a strong campaign in our region for interest in joining Pioneer. Ten (10) communities initially showed interest, and we ended calendar year 2024 with thirteen (13) under consideration. An Impact Assessment Study was commissioned which projects power supply costs compared to current generation rates and concluded the most optimal time to launch the next expansion is October 2027.

This expansion is massive. It will double our customer accounts, double our electrical load to serve and will result in a stronger agency. The first half of calendar year 2025 will be focused on closing the administrative process on expansion.

Programs
Fiscal 2023-24 did include 1% of operating revenues to be used to build up the Programs budget which resulted in approximately $2 million. Pioneer began the fiscal year with no programs launched and ended the fiscal year with three (3) programs launched while launching two more later in calendar year 2024.

Pioneer searches for programs that are effective, supports grid reliability, impacts our customers’ lives, and minimizes impact to our rates. We have tremendous momentum in programs for the Fiscal Year 2024-2025.

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
9 Currently Known Facts, Decisions, or Conditions (continued) Power Procurement
Pioneer procures energy consistent with its Board-approved Energy Risk Management Policy that aligns customer demand for clean energy with short and long-term purchases of clean energy resources. California’s Renewable Portfolio Standard (“RPS”) requires load-serving entities ("LSEs"), such as Pioneer, to supply their retail sales with minimum quantities of eligible renewable energy both on an annual basis and through long-term commitments greater than ten years. The State has also directed LSEs to procure 60% of their portfolios from RPS-eligible resources by 2030 and 100% of their retails sales from greenhouse gas (“GHG”) free and/or other eligible renewable resources by 2045. Pioneer’s standard product offering complies with the state laws for renewable and GHG-free energy. Pioneer also offers a “Green100” product that consists of 100% renewable energy. Pioneer also procures electric capacity or Resource Adequacy (“RA”), a state program jointly administered by the California Public Utilities Commission (CPUC”), the California Energy Commission (“CEC”), and the California Independent System Operator (“CAISO”). The RA resources support grid reliability by ensuring there will be enough supply in the right locations and with sufficient ramping capability to meet load in the CAISO market.

Pioneer is approximately100% hedged for CAISO energy in 2025, 100% procured for its 2025 and compliance period 4 renewable energy requirements, and fully compliant for its 2025 year-ahead RA requirements.

Starting in 2021, there has been a significant runup in energy, REC, and RA prices, mainly due to scarcity in the market for the latter two, but the prices have since leveled off in 2024 and started to see a slight dip. CAISO energy has seen a decrease since that time as PG&E Citygate gas prices came down along with Henry Hub prices in general. Additional CPUC RA regulatory requirements and lack of available new resources were primary drivers of the high RA prices, while interconnection constraints led to delays in renewable energy and storage projects that in turn drove both REC and RA prices higher. Pioneer has been able to weather the price increases through its laddered hedging strategy (i.e., purchasing percentages of energy, REC, and RA on a scheduled basis similar to "dollar cost averaging") and strong relations with its counterparties to be given first rights to available projects.

Of all the renewable energy resources, Pioneer puts a high priority on procuring biomass energy due to the abundance of biomass in the region and the resulting benefits of local investment, job creation, reduction of wildfire risk, and serving as a baseload renewable energy resource that provides grid resiliency in an otherwise intermittent renewable energy space. The issue has always been its higher associated cost, and in order to help lower the cost of biomass energy procurement and level the playing field with the investor-owned utilities ("IOUs"). Following up with the passage of Pioneer-led Assembly Bill (AB) 843 that modified the Bioenergy Market Adjusting Tariff Program (BioMAT) to allow CCAs to participate, Pioneer completed the implementation of that bill this year. Since then, Pioneer has been working on two projects to contract with and intends to secure more. In addition to the implementation of the BioMAT program, Pioneer adopted in November 2023 a feed-in tariff program that offers local biomass and small hydroelectric projects above market prices to further bolster biomass energy procurement efforts.

PIONEER COMMUNITY ENERGY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2024 AND 2023
10 Currently Known Facts, Decisions, or Conditions (continued) Regulatory and Legislative
In line with its Legislative platform, Pioneer continues to actively support legislation that enables, protects, and enhances Pioneer’s priorities and ability to serve its customers including the maintenance of local control for the purpose of preserving the ability to self-procure its power resources, provision of lower and more stable rates for its customers, and provision of economic benefits to its customers and the communities it serves. To that extent, some key bills that were supported in the 2024 legislative session include AB 2787 (Patterson), AB 2902 (Wood), SB 867 (Allen), SB 1014 (Dodd), SB 1062 (Dahle), and AB 2750 (Gallagher). As stated earlier, AB 843 was also successfully implemented this year.

On the regulatory front, Pioneer partners with other CCAs, California Community Choice Association, and their contracted regulatory attorneys, and consultants to oversee several regulatory proceedings that directly impact our operations in the realm of procurement orders, billing operations, PG&E cost recovery processes, and more. Through our partnership, Pioneer is able to advocate for and get demonstrable results for our member agencies and customers. The total of those wins is approximately $1.3 billion mainly attributable to ongoing errors and disputes in the IOUs’ energy resource recovery account proceedings.

Financial Strength
Pioneer has a strong focus on continuing to build credit capacity through increased cash reserves and entering favorable energy purchase commitments. Recognizing Pioneer’s financial resiliency, Board commitment to building reserves, and prudent energy purchase commitments, S & P assigned Pioneer an A- credit rating in 2024.

The Board adopted in the of Fall 2021 a reserve target of 160 days of liquidity with a three-to-five-year timeline to reach that target. Pioneer finished Fiscal Year 2023-24 achieving the targeted reserve. The 2024-25 Budget continues to build the reserve’s days of liquidity which should open the door at the appropriate time for a credit rating increase discussion. Management intends to continue its conservative use of financial resources and expects ongoing operating surpluses that will build the reserves.

Requests for Information
This financial report is designed to provide Pioneer’s board members, stakeholders, customers, and creditors with a general overview of Pioneer’s finances and to demonstrate Pioneer’s accountability for the funds under its stewardship.

Please address any questions about this report or requests for additional financial information to the finance department at 2510 Warren Drive, Suite B, Rocklin, CA 95677 or contact [email protected].

BASIC FINANCIAL STATEMENTS

PIONEER COMMUNITY ENERGY

STATEMENTS OF NET POSITION
AS OF JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 11 2024 2023
ASSETS
Current assets
Cash and cash equivalents $ 18,851,933 $ 18,318,638
Investments 79,354,103 41,205,891
Accounts receivable, net of allowance 23,818,280 18,853,246 Accrued revenue 16,169,373 9,787,087
Other receivables 3,987,179 2,361,347
Interest receivable 812,680 286,831
Contractual assessments receivable 503,432 540,445
Prepaid expenses 16,465,428 41,041
Deposits 3,425,275 5,611,766
Total current assets 163,387,683 97,006,292
Noncurrent assets
Capital assets, net of depreciation and amortization 1,266,908 1,450,242 Deposits 219,033 -
Contractual assessments receivable 4,100,744 4,554,962
Total noncurrent assets 5,586,685 6,005,204
Total assets 168,974,368 103,011,496

LIABILITIES
Current liabilities
Accrued cost of energy 20,325,702 14,974,963
Accounts payable 812,855 474,783
Other accrued liabilities 668,298 406,504
Interest payable 79,799 95,767
Lease liability 116,659 75,621
Note payable 764,458 655,164
Bonds payable 219,510 221,666
Total current liabilities 22,987,281 16,904,468
Noncurrent liabilities
Lease liability 893,868 1,566,032
Note payable 3,710,418 6,601,857
Bonds payable 4,684,014 5,220,393
Supplier security deposits 990,000 393,756
Total noncurrent liabilities 10,278,300 13,782,038
Total liabilities 33,265,581 30,686,506

NET POSITION
Net investment (deficit) in capital assets 256,381 (191,411) Unrestricted net position 135,452,406 72,516,401
Total net position $ 135,708,787 $ 72,324,990

PIONEER COMMUNITY ENERGY

STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 12 2024 2023

OPERATING REVENUES
Electricity sales, net $ 221,505,197 $ 199,266,165
Other income 591,182 334,703
Total operating revenues 222,096,379 199,600,868

OPERATING EXPENSES
Cost of electricity 150,015,889 154,793,109
Contract services 6,622,605 5,675,881
Staff compensation 3,524,661 2,987,978
Other operating expenses 1,240,048 651,224
Depreciation and amortization 121,832 116,017
Total operating expenses 161,525,035 164,224,209
Operating income 60,571,344 35,376,659

NONOPERATING REVENUES (EXPENSES)
Grant revenue 1,041,957 -
Investment income 3,825,396 247,223
Interest and financing expense (1,012,943) (806,339)
Nonoperating revenues (expenses), net 2,812,453 482,841 CHANGE IN NET POSITION 63,383,797 35,859,500
Net position at beginning of year 72,324,990 36,465,490 Net position at end of year $ 135,708,787 $ 72,324,990

PIONEER COMMUNITY ENERGY

STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 13 2024 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 210,657,377 $ 198,140,056
Receipts of deposits and collateral 16,567,619 17,092,040 Other operating receipts 15,000 616,957
Contractual assessments received 838,805 999,913
Payments to suppliers for electricity (173,907,430) (165,177,787) Payments for goods and services (7,514,446) (6,584,112) Payments of staff compensation (3,477,966) (2,895,943)
Payments of deposits and collateral (2,614,250) (7,150,724) Payments of taxes and surcharges to other governments (492,142) (517,943) Net cash provided by operating activities 40,072,567 34,522,457

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Grant revenue received 1,041,957 -
Principal paid on bonds and note (3,320,680) (3,810,089) Interest and related expense payments (968,794) (765,615) Net cash used by non-capital financing activities (4,289,474) (3,533,747)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (262,372) -
Payments of lease obligation (138,760) (122,325)
Net cash used by capital and related financing activities (401,132) (122,325)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment sales 15,000,000 13,500,000
Investment income received 651,334 190,109
Purchase of investments (50,500,000) (40,000,000)
Net cash used by investing activities (34,848,666) (26,309,891) Net change in cash and cash equivalents 533,295 4,556,494 Cash and cash equivalents at beginning of year 18,318,638 13,762,144 Cash and cash equivalents at end of year $ 18,851,933 $ 18,318,638

PIONEER COMMUNITY ENERGY

STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED JUNE 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 14 2024 2023
Operating income $ 60,571,344 $ 35,376,659
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 121,832 116,017
(Increase) decrease in:

Accounts receivable, net of allowance (4,965,034) (1,388,205) Accrued revenue (6,382,286) (259,357)
Other receivables (1,625,832) (2,361,347)
Prepaid expenses (16,424,387) 2,014,995
Deposits 1,738,850 323,125
Contractual assessments receivable 491,231 710,210
Increase (decrease) in:

Accrued cost of electricity 5,350,739 (382,136)
Accounts payable 338,072 84,369
Other accrued liabilities 254,437 (296,338)
Energy surcharges due to other governments 7,357 3,509
Supplier security deposits 596,244 580,956
Net cash provided by operating activities $ 40,072,567 $ 34,522,457

NONCASH INVESTING ACTIVITIES
Unrealized appreciation and timing differences
in investment income $ 3,174,062 $ 57,114

NONCASH CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of lease asset $ 1,020,020 $ -
Gain on termination of lease $ 228,614 $ -

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED BY OPERATING ACTIVITIES

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
15 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
Pioneer Community Energy (Pioneer) is a California joint powers authority created in August of 2015. As of June 30, 2024, parties to its Joint Powers Agreement consist of the following local governments:

Counties
El Dorado Auburn Lincoln
Placer Colfax Nevada City
Grass Valley Placerville
Loomis Rocklin
Cities and Towns
Pioneer is separate from and derives no financial support from its members. Pioneer is governed by a Board of Directors whose membership is composed of elected officials representing the member governments.

A core function of Pioneer is to provide electric service that includes providing electric energy at competitive rates and it operates as a Community Choice Aggregator (CCA) subject to California Public Utilities Code Section 366.2.

Pioneer operates two programs, the CCA Program and the mPOWER Program.

CCA Program – Pioneer began providing electric generation services to its customers in February of 2018. Pioneer supplies electric energy to retail customers through its CCA Program.

Pioneer participates in the wholesale energy market to acquire its energy and related products (resource adequacy and renewable energy) from a variety of wholesale energy suppliers.

Pioneer’s energy is delivered through existing physical infrastructure and equipment owned and operated by the incumbent utility.
mPOWER Program – The mPOWER Program provides assessment financing to property owners for the installation of energy efficiency, water conservation and distributed generation improvements. The mPOWER Program is supported from revenues derived from assessments attached to and collected on participating property owners’ property tax bills. Pioneer stopped accepting new applications for the mPOWER program after August 31, 2021.

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
16 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

BASIS OF ACCOUNTING
Pioneer’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.

Pioneer’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories, if applicable – net investment in capital assets, restricted and unrestricted.

When both restricted and unrestricted resources are available for use, it is Pioneer’s policy to use restricted resources first, and then unrestricted resources as they are needed.

CASH AND CASH EQUIVALENTS
For the purpose of the Statements of Cash Flows, Pioneer defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with an original maturity of three months or less.

INVESTMENTS
Investments are stated at fair value based on information from the State of California’s Local Agency Investment Fund (LAIF) and CalTrust. Investments with a maturity of less than one year are shown as current assets in the Statement of Net Position.

Pioneer’s Investment Policy permits the investment of funds in United States Treasury obligations, LAIF, shares of beneficial interest issued by CalTrust, commercial paper, certificates of deposits, and money market mutual funds.

PREPAID EXPENSES AND DEPOSITS
Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid expenses.

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
17 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

DEPOSITS
Contracts to purchase energy may require Pioneer to provide the supplier with advanced payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.

LEASE ASSET AND LEASE LIABILITY
Pioneer recognizes an asset and liability when it enters into certain leasing arrangements. The leased asset is amortized over the term of the lease. The lease liability is the present value of payments expected to be paid to the lessor during the lease term. Pioneer’s only leased asset and liability relate to its office premises.

CAPITAL ASSETS AND DEPRECIATION
Pioneer’s policy is to capitalize furniture and equipment valued over $10,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, five years for vehicles and furniture, and seven for leasehold improvements.

SUPPLIER SECURITY DEPOSITS
Various energy contracts entered into by Pioneer require the supplier to provide Pioneer with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.

NET POSITION
Net position is presented in the following components:

Net investment in capital assets: This component of net position consists of capital assets, lease assets, net of accumulated depreciation and amortization, and reduced by outstanding borrowings that are attributable to the acquisition, constructions, or improvement of those assets.

Restricted: This component of net position consists of constraints placed on net asset use primarily imposed by creditors (such as through debt or credit covenants), grantors, contributors, or laws or regulations of other governments, or constraints imposed by law through constitutional provisions or enabling legislation. Pioneer had no restricted net position as of June 30, 2024 or 2023.

Unrestricted: This component of net position consists of net position that does not meet the definition of “net investment in capital assets” or “restricted.”

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

OPERATING AND NONOPERATING REVENUES
Operating revenues include revenue from the sale of electricity to customers for the CCA Program, and assessments and fees for the mPOWER program.

Investment income is considered nonoperating revenue.

REVENUE RECOGNITION
Pioneer recognizes revenue according to the accrual basis of accounting. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet invoiced. Management estimates that a portion of the invoiced amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded.

OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity and services, administrative expenses and amortization of right-to-use assets. Expenses not meeting this definition are reported as nonoperating expenses.

ELECTRIC POWER PURCHASED
During the normal course of business, Pioneer purchases electric power from numerous suppliers.

Electricity costs include the cost of electricity and capacity arising from bilateral contracts with energy suppliers as well as generation credits, and load and other charges arising from Pioneer’s participation in the California Independent System Operator’s (CAISO) centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position.

To comply with the State of California’s Renewable Portfolio Standards (RPS) and self-imposed benchmarks, Pioneer acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System. Pioneer obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. Pioneer recognizes an expense on a monthly basis that corresponds to the volume of electricity sold to its customers. This expense recognition increases accrued cost of electricity reported on the Statements of Net Position. Payments made to suppliers reduce the accrued cost of electricity.

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
19 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

ELECTRIC POWER PURCHASED (CONTINUED)
Pioneer purchases capacity commitments from qualifying generators to comply with the California Public Utilities Commission’s Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to CAISO to ensure the safe and reliable operation of the grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.

STAFFING COSTS
Pioneer pays employees bi-weekly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. Pioneer is not obligated to provide post-employment healthcare or other post-employment benefits (OPEB), and, accordingly, no related liability is reported in these financial statements. Pioneer provides compensated time off, and the related liability is reported in these financial statements.

ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

RECLASSIFICATIONS
Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements. These reclassifications did not result in any change in the previously reported net position or change in net position.

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
20 2. CASH AND CASH EQUIVALENTS
Pioneer maintains its cash in both interest-bearing and non-interest-bearing deposit accounts at Umpqua Bank and the Placer County Treasurer. Pioneer’s bank deposits are subject to California Government Code Section 16521, which requires banks to collateralize public funds in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 by 110%. Certain short-term investments with original maturities of less than three months are classified as cash and cash equivalents, which are not subject to the collateral requirement or FDIC coverage. Accordingly, the amount of risk is not disclosed. Pioneer monitors its risk exposure on an ongoing basis.

3. INVESTMENTS
As of June 30, the fair value of investments was as follows:
2024 2023
Local Agency Investment Fund 63,001,897 $ $ 41,205,891
CalTRUST Short Term Fund 8,190,182 -
CalTRUST Medium Term Fund 8,162,024 -
Total $ 79,354,103 $ 41,205,891

FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. Pioneer’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

Deposits and withdrawals from LAIF are made on the basis of $1 which is substantially equal to fair value. Pioneer’s proportionate share of investments at LAIF as of June 30, 2024 and 2023 of approximately $63,002,000 and $41,206,000 respectively, are not required to be categorized under the fair value hierarchy.

Deposits and withdrawals from CalTrust are made on the basis of $1 which is substantially equal to fair value. Pioneer’s proportionate share of investments at CalTrust as of June 30, 2024 and 2023 of approximately $16,352,206 and $0, respectively, are not required to be categorized under the fair value hierarchy.

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
21 3. INVESTMENTS (Continued)

CREDIT RISK
Credit risk is the risk an issuer or other counterparty to an investment will not fulfill its obligations. Pioneer’s investment policy addresses this risk. It is Pioneer's policy to purchase investments with ratings required in accordance with the California Government Code.

CUSTODIAL CREDIT RISK – CASH AND CASH EQUIVALENTS
Custodial credit risk is the risk that in the event of a financial institution failure, Pioneer’s deposits may not be returned to Pioneer. Pioneer’s deposits are subject to California Government Code Section 16521, which requires banks to collateralize public funds in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 by 110%.

As of June 30, 2024 and 2023, none of Pioneer’s bank balances are known to be individually exposed to custodial credit risk.

CUSTODIAL CREDIT RISK – INVESTMENTS
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, Pioneer would not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. All of Pioneer’s investments are exposed to custodial credit risk.

Pioneer’s investment policy requires that all investments owned by Pioneer shall be held in safekeeping by a third-party custodian, acting as an agent for Pioneer under the terms of a custody agreement.

INTEREST RATE RISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. It is calculated as the weighted average time to receive a bond’s coupon and principal payments. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates. Pioneer manages its exposure to declines in fair values by limiting the weighted average maturity of its investments.

Following is a summary of investment maturities, in days, as of June 30, 2024 and 2023:
2024 2023
Local Agency Investment Fund 217 260
CalTRUST Short Term Fund 318 -
CalTRUST Medium Term Fund 869 -

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
22 4. ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of June 30:
2024 2023
Accounts receivable from customers 27,745,685 $ $ 22,965,272 Allowance for uncollectible accounts (3,927,405) (4,112,026) Net accounts receivable $ 23,818,280 $ 18,853,246
The majority of account collections occur within the first few months customer invoices are issued. Pioneer estimates that a portion of the billed accounts will not be collected. Pioneer continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, Pioneer continues to have success in collecting older accounts. Amounts estimated to be uncollectible are reported as a reduction in electricity sales on the Statement of Revenues, Expenses and Changes in Net Position. The allowance for uncollectible accounts at the end of a period represents allowances made for amounts invoiced during the current and prior fiscal years, reduced by accounts written off.

5. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024 was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated
and amortized:

Vehicle $ 45,701 - $ -$ 45,701 $
Leasehold improvements 216,672 - - 216,672
Lease asset 1,798,297 1,020,020 (1,798,297) 1,020,020
Total capital assets being depreciated
and amortized 1,798,297 1,282,393 (1,798,297) 1,282,393 Less accumulated depreciation
and amortization:

Vehicle and
leasehold improvements (3,341) - - (3,341)
Lease asset (348,055) (118,491) 454,402 (12,144)
Total accumulated depreciation
and amortization (348,055) (121,832) 454,402 (15,485)
Total capital assets, net of depreciation
and amortization $ 1,450,242 $ 1,160,561 $ (1,343,895) $ 1,266,908

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
23 5. CAPITAL ASSETS (Continued)
Capital asset activity for the year ended June 30, 2023 was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated
and amortized:

Lease asset $ 1,798,297 $ - -$ 1,798,297 $
Total capital assets being depreciated
and amortized 1,798,297 - - 1,798,297
Less accumulated depreciation
and amortization:

Lease asset (232,038) (116,017) - (348,055)
Total accumulated depreciation
and amortization (232,038) (116,017) - (348,055)
Total capital assets, net of depreciation
and amortization $ 1,566,259 $ (116,017) -$ 1,450,242 $

6. LEASE
A lease asset is reported in accordance with Governmental Accounting Standards Board No. 87 (GASB 87) which requires reporting of certain lease assets and liabilities in the statement of net position.

During the year ended June 30, 2024, Pioneer entered into an 84-month non-cancelable lease for office space in Rocklin. The lease includes an option to renew for two consecutive terms of five years each. Pioneer terminated its previously existing lease early and replaced it with this new lease. Payments under these leases were $142,000 and $123,000 for the years ended June 30, 2024 and 2023, respectively.

As of June 30, 2024, future minimum lease payments under the new lease were projected as follows:

Principal Interest Total
Years ending June 30,
2025 116,659$ 36,867$ 153,526$
2026 125,460 32,222 157,682
2027 134,733 27,229 161,962
2028 144,500 21,871 166,371
2029 154,785 16,128 170,913
2030-31 334,390 13,359 347,749
Total 1,010,527$ 147,676$ 1,158,203$

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
24 7. DEBT

NOTE PAYABLE
In May 2021, Pioneer borrowed $10,500,000 from Umpqua Bank at an interest rate of 3.85% per annum. Minimum monthly payments of principal and interest are $76,880 and the loan is scheduled to be paid off in October 2029. Pioneer has pledged net revenues to secure payment of the note.

BONDS PAYABLE
mPOWER PROGRAM REVENUE BONDS
On January 26, 2017, the Pioneer Board authorized the issuance of revenue bonds to provide the capital necessary for financing energy efficiency improvements of $25 million each for residential properties and non-residential properties through the mPower program. Pioneer uses the designation “R” in its bond series naming system to signify bonds financing residential improvements and “NR” to signify bonds financing non-residential improvements.

All mPOWER Program series bonds are classified as direct borrowings and are payable solely from assessments and fees from participating property owners.

The following is a summary of Pioneer’s bonds outstanding as of June 30, 2024:

Maturity
Interest
Rates
Issuance
Amount
Outstanding
Balance June 30,
2024
Type of indebtedness
Revenue bonds - (mPOWER Program)
Series R 2016-17 9/2/2037 3.00% 492,589$ $ 53,414
Series R 2017-18 9/2/2038 3.00% 5,380,276 1,272,463
Series NR 2017-18 9/2/2038 3.00% 138,323 117,126
Series R 2018-19 9/2/2039 4.50% 5,656,485 923,839
Series NR 2018-19 9/2/2039 4.50% 418,152 276,035
Series R 2019-20 9/2/2040 4.50% 2,730,091 742,902
Series R 2020-21 9/2/2041 4.50% 1,544,622 717,522
Series R 2021-22 9/2/2042 4.50% 1,013,989 800,223
Total (mPOWER Program) 17,374,527$ 4,903,524
Less: Amounts due within one year 219,510
Amounts due after one year $ 4,684,014

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
25 7. DEBT (Continued)

CHANGES IN NOTE AND BONDS PAYABLE
The following is a summary of changes in the note and bonds payable for the year ended June 30, 2024:

Balance
July 1, 2023
Principal
Repayments
Balance
June 30, 2024
Due Within
One Year
Note Payable
Umpqua Bank $ 7,257,021 $ (2,782,145) $ 4,474,876 $ 764,458 Balance
July 1, 2023
Principal
Repayments
Balance
June 30, 2024
Due Within
One Year
Bond Title, Series Number
Series R 2016-17 (mPOWER) $ 63,093 $ (9,679) $ 53,414 $ 3,132 Series R 2017-18 (mPOWER) 1,442,876 (170,413) 1,272,463 60,616 Series NR 2017-18 (mPOWER) 121,873 (4,747) 117,126 5,032 Series R 2018-19 (mPOWER) 1,071,482 (147,643) 923,839 48,018 Series NR 2018-19 (mPOWER) 290,577 (14,542) 276,035 15,414 Series R 2019-20 (mPOWER) 842,662 (99,760) 742,902 27,502 Series R 2020-21 (mPOWER) 776,264 (58,742) 717,522 24,806 Series R 2021-22 (mPOWER) 833,232 (33,009) 800,223 34,990 Total $ 5,442,059 $ (538,535) $ 4,903,524 $ 219,510

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
26 7. DEBT (Continued)
The following is a summary of changes in the note and bonds payable for the year ended June 30, 2023:

Balance
July 1, 2022
Principal
Repayments
Balance
June 30, 2023
Due Within
One Year
Note Payable
Umpqua Bank $ 9,931,998 $ (2,674,977) $ 7,257,021 $ 655,164 Balance
July 1, 2022
Principal
Repayments
Balance
June 30, 2023
Due Within
One Year
Bond Title, Series Number
Series R 2016-17 (mPOWER) $ 69,439 $ (6,346) $ 63,093 $ 3,244 Series R 2017-18 (mPOWER) 1,746,262 (303,386) 1,442,876 64,212 Series NR 2017-18 (mPOWER) 126,351 (4,478) 121,873 4,747 Series R 2018-19 (mPOWER) 1,375,811 (304,329) 1,071,482 49,130 Series NR 2018-19 (mPOWER) 304,295 (13,718) 290,577 14,541 Series R 2019-20 (mPOWER) 1,111,353 (268,691) 842,662 28,334 Series R 2020-21 (mPOWER) 890,568 (114,304) 776,264 24,449 Series R 2021-22 (mPOWER) 953,091 (119,859) 833,232 33,009 Total $ 6,577,170 $ (1,135,111) $ 5,442,059 $ 221,666

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
27 7. DEBT (Continued)

MINIMUM FUTURE OBLIGATIONS
Minimum future obligations for the outstanding mPOWER Program Revenue Bonds and the note payable are as follows:

Principal Interest Principal Interest Total
Years ended June 30,
2025 764,458$ 158,106$ $ 219,510 194,249$ $ 1,336,323
2026 794,415 128,149 229,974 185,198 1,337,736
2027 825,545 97,019 243,772 175,665 1,342,001
2028 857,895 64,669 258,399 165,561 1,346,524
2029 891,514 31,050 273,903 154,849 1,351,316
2030-2034 341,049 2,653 1,517,577 591,182 2,452,461
2035-2039 - - 1,644,245 284,325 1,928,570
2040-2043 - - 516,144 34,590 550,734
Total 4,474,876$ 481,646$ $ 4,903,524 1,785,619$ $ 11,645,665 Note Payable Bonds Payble

AVAILABLE LINE OF CREDIT
Pioneer has a Revolving Credit Agreement with Umpqua Bank with a borrowing limit of $30,000,000. The credit agreement enhances Pioneers overall liquidity for potential working capital needs and collateral requirements. This agreement terminates in March 2027. The borrowing rate on the credit facility is based on the higher of the prime rate (a variable rate set by Umpqua Bank) plus 0.50% or 4.0% per annum. Pioneer has not drawn any debt on the line of credit but has used the line to secure multiple Standby Letters of Credit. As of June 30, 2024 and 2023, these letters reduce the available portion of the line by approximately $8,749,000 and $693,000, respectively, but are not considered debt to Pioneer.

8. GRANT REVENUE
Pioneer administered a grant from the California Arrearage Payment Program (CAPP) that offers financial assistance for California energy utility customers to help reduce past-due energy account balances that increased during the COVID-19 pandemic. This program is funded through the federal American Rescue Plan Act with Coronavirus State and Local Fiscal Recovery Funds.

Grant revenue recognized for the years ended June 30, 2024 and 2023 was $0 and $1,041,957, respectively. This program concluded in 2023.

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
28 9. DEFINED CONTRIBUTION RETIREMENT PLAN
Pioneer established the Pioneer Community Energy defined contribution retirement plan under Internal Revenue Code Section 401(a) and 457(b), to provide retirement benefits for its employees. The Plan is administered by a third-party retirement plan administrator. As of June 30, 2024, there were 17 active plan members. Pioneer contributes a minimum of $1,215 per employee per month to the Plan and an additional 3% of the employee’s salary, totaling $386,000 and $256,000 in in fiscal years ended June 30, 2024 and 2023, respectively. Plan provisions and contribution levels were established by and may be amended by the Pioneer Board at any time.

The Plan does not create long-term liabilities such as those associated with defined benefit pension plans.

10. RISK MANAGEMENT
Pioneer is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the years ended June 30, 2024 and 2023, Pioneer purchased liability and property insurance from commercial carriers. Coverage includes property, general liability, errors and omissions and non-owned automobile. Pioneer has general liability coverage of $4,000,000 and $10,000,000 of cyber liability coverage. Deductibles on the various policies range from $0 to $10,000.

11. PURCHASE COMMITMENTS
In the ordinary course of business, Pioneer enters into various power purchase agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of either natural gas or electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind, and hydro-electric facilities.

The following table details the obligations to purchase existing energy, renewable, and resource adequacy contracts as of June 30, 2024:

Years ending June 30,
2025 $ 186,800,000
2026 172,300,000
2027 108,500,000
2028 73,600,000
2029 64,900,000
2030-2048 431,200,000
Total $ 1,037,300,000

PIONEER COMMUNITY ENERGY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2024 AND 2023
29 12. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for years ending after June 30, 2024:

GASB has approved GASB No. 102, Certain Risk Disclosures, and GASB No. 103, Financial Reporting Model Improvements.

Management is evaluating the effect of implementation of these statements.

13. JOINT VENTURE
Pioneer participates in a joint powers agreement (JPA) through the California Community Choice Financing Authority (CCCFA). CCCFA was formed to assist its members by undertaking the financing or refinancing of energy prepayments that can be financed with tax advantaged bonds on behalf of one or more of the members by issuing or incurring bonds and entering into related contracts with its members. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member. Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member does not constitute an asset or reserve of that member.

Some of the bonds CCCFA issues are to be used to finance energy purchases that will be delivered to Pioneer. No debt, liability, or obligation of CCCFA is a debt, liability, or obligation of Pioneer.

Pioneer will purchase energy from CCCFA in the same manner as it purchases energy from other suppliers. Pioneer purchased approximately $6,186,000 and $326,000 from CCCFA during the fiscal years ended June 30, 2024 and 2023, respectively. The related outstanding purchase commitments of approximately $330,000,000 are included in Note 10.

Each member of CCCFA is responsible for paying an equal portion of CCCFA’s general and administrative operating costs as determined by its board. During the years ended June 30 2024, and 2023, Pioneer contributed approximately $30,000 and $68,000, respectively, to CCCFA to assist in its operating activities.

The financial statements of CCCFA are available online at http://www.cccfa.org/key-documents.html.

PIONEER COMMUNITY ENERGY

SUPPLEMENTARY INFORMATION

COMBINING STATEMENTS OF NET POSITION
AS OF JUNE 30, 2024 AND 2023
30 2024 2023
CCA
Program
mPOWER
Program Total
CCA
Program
mPOWER
Program Total
ASSETS
Current assets
Cash and cash equivalents $ 18,053,064 $ 798,869 $ 18,851,933 $ 17,570,066 $ 18,318,638 748,572 $ Investments 79,354,103 79,354,103 - 41,205,891 41,205,891 - Accounts receivable, net of allowance 23,818,280 23,818,280 - 18,853,246 18,853,246 - Accrued revenue 16,169,373 16,169,373 - 9,787,087 9,787,087 - Other receivables 3,987,179 3,987,179 - 2,361,347 2,361,347 - Interest receivable 754,460 58,220 812,680 275,053 11,778 286,831 Contractual assessments receivable 503,432 - 503,432 540,445 - 540,445 Prepaid expenses 16,465,428 16,465,428 - 41,041 41,041 - Deposits 3,425,275 3,425,275 - 5,611,766 5,611,766 -
Total current assets 162,027,162 1,360,521 163,387,683 95,705,497 1,300,795 97,006,292 Noncurrent assets
Capital assets, net 1,266,908 1,266,908 - 1,450,242 1,450,242 - Deposits 219,033 219,033 - - - -
Contractual assessments receivable 4,100,744 - 4,100,744 4,554,962 - 4,554,962 Total noncurrent assets 1,485,941 4,100,744 5,586,685 1,450,242 4,554,962 6,005,204 Total assets 163,513,103 5,461,265 168,974,368 97,155,739 5,855,757 103,011,496

LIABILITIES
Current liabilities
Accrued cost of energy 20,325,702 20,325,702 - 14,974,963 14,974,963 - Accounts payable 812,855 812,855 - 474,783 474,783 -
Other accrued liabilities 667,054 1,244 668,298 404,873 1,631 406,504 Interest payable 14,370 65,429 79,799 23,283 72,484 95,767 Lease liability 116,659 116,659 - 75,621 75,621 -
Note payable 764,458 764,458 - 655,164 655,164 -
Bonds payable 219,510 - 219,510 221,666 - 221,666
Total current liabilities 22,701,098 286,183 22,987,281 16,608,687 16,904,468 295,781 Noncurrent liabilities
Lease liability 893,868 893,868 - 1,566,032 1,566,032 - Note payable 3,710,418 3,710,418 - 6,601,857 6,601,857 - Bonds payable 4,684,014 - 4,684,014 5,220,393 - 5,220,393 Supplier security deposits 990,000 990,000 - 393,756 393,756 - Total noncurrent liabilities 5,594,286 4,684,014 10,278,300 8,561,645 5,220,393 13,782,038 Total liabilities 28,295,384 4,970,197 33,265,581 25,170,332 5,516,174 30,686,506

NET POSITION
Net investment (deficit) in capital assets 256,381 256,381 - (191,411) (191,411) - Unrestricted net position 134,961,338 135,452,406 491,068 72,176,818 72,516,401 339,583 Total net position $ 135,217,719 $ 135,708,787 491,068 $ $ 71,985,407 $ 72,324,990 339,583 $

PIONEER COMMUNITY ENERGY

SUPPLEMENTARY INFORMATION

COMBINING STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2024 AND 2023
31 2024 2023
CCA
Program
mPOWER
Program Total
CCA
Program
mPOWER
Program Total

OPERATING REVENUES
Electricity sales, net $ 221,505,197 $ 221,505,197 - $ $ 199,266,165 $ 199,266,165 - $ Other income 243,608 347,574 591,182 45,000 289,703 334,703 Total operating revenues 221,748,805 347,574 222,096,379 199,311,165 289,703 199,600,868

OPERATING EXPENSES
Cost of electricity 150,015,889 150,015,889 - 154,793,109 154,793,109 - Contract services 6,603,074 19,531 6,622,605 5,624,070 51,811 5,675,881 Staff compensation 3,524,661 3,524,661 - 2,987,978 2,987,978 - Other operating expenses 1,239,997 1,240,048 51 650,826 398 651,224 Depreciation and amortization 121,832 121,832 - 116,017 116,017 - Total operating expenses 161,505,453 161,525,035 19,582 164,172,000 164,224,209 52,209 Operating income 60,243,352 327,992 60,571,344 35,139,165 237,494 35,376,659

NONOPERATING REVENUES (EXPENSES)
Grant revenue - - 1,041,957 - 1,041,957 -
Investment income 3,796,193 29,203 3,825,396 222,492 24,731 247,223 Interest and financing expense (807,233) (205,710) (1,012,943) (574,844) (231,495) (806,339) Nonoperating revenues (expenses), net 2,988,960 (176,507) 2,812,453 689,605 (206,764) 482,841 CHANGE IN NET POSITION 63,232,312 151,485 63,383,797 35,828,770 30,730 35,859,500 Net position at beginning of year 71,985,407 339,583 72,324,990 36,156,637 308,853 36,465,490 Net position at end of year $ 135,217,719 $ 491,068 $ 135,708,787 $ 71,985,407 $ 339,583 $ 72,324,990

PIONEER COMMUNITY ENERGY

SUPPLEMENTARY INFORMATION

COMBINING STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2024 AND 2023
32 2024 2023
CCA
Program
mPOWER
Program Total
CCA
Program
mPOWER
Program Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 210,657,377 $ 210,657,377 - $ $ 198,140,056 $ 198,140,056 - $ Receipts of deposits and collateral 16,567,619 16,567,619 - 17,092,040 17,092,040 - Other operating receipts 15,000 15,000 - 616,957 616,957 - Contractual assessments received 838,805 - 838,805 999,913 - 999,913 Payments to suppliers for electricity (173,907,430) (173,907,430) - (165,177,787) (165,177,787) - Payments for goods and services (7,494,477) (19,969) (7,514,446) (6,499,835) (84,277) (6,584,112) Payments of staff compensation (3,477,966) (3,477,966) - (2,895,943) (2,895,943) - Payments of deposits and collateral (2,614,250) (2,614,250) - (7,150,724) (7,150,724) - Payments of taxes and surcharges to other governments (492,142) (492,142) - (517,943) (517,943) - Net cash provided by operating activities 39,253,731 818,836 40,072,567 33,606,821 915,636 34,522,457

CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES
Grant revenue received - - 1,041,957 - 1,041,957 -
Principal paid on bonds and note (2,782,145) (538,535) (3,320,680) (2,674,978) (1,135,111) (3,810,089) Interest and related expense payments (756,029) (212,765) (968,794) (518,874) (246,741) (765,615) Net cash used by non-capital
financing activities (3,538,174) (751,300) (4,289,474) (2,151,895) (1,381,852) (3,533,747)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments to acquire capital assets (262,372) (262,372) - - - - Payments of lease liabilities (138,760) (138,760) - (122,325) (122,325) - Net cash used by capital
and related financing activities (401,132) (401,132) - (122,325) (122,325) -

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment sales 15,000,000 15,000,000 - 13,500,000 13,500,000 - Investment income 668,573 (17,239) 651,334 99,970 90,139 190,109 Purchase of investments (50,500,000) (50,500,000) - (40,000,000) (40,000,000) - Net cash provided (used) by investing activities (34,831,427) (34,848,666) (17,239) (26,400,030) (26,309,891) 90,139 Net change in cash and cash equivalents 482,998 50,297 533,295 4,932,571 (376,077) 4,556,494 Cash and cash equivalents at beginning of year 17,570,066 748,572 18,318,638 12,637,495 1,124,649 13,762,144 Cash and cash equivalents at end of year $ 18,053,064 $ 798,869 $ 18,851,933 $ 17,570,066 $ 748,572 $ 18,318,638

PIONEER COMMUNITY ENERGY

SUPPLEMENTARY INFORMATION

COMBINING STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2024 AND 2023
33 Reconciliation of Operating Income to Net Cash Provided by Operating Activities
2024 2023
CCA
Program
mPOWER
Program Total
CCA
Program
mPOWER
Program Total
Operating income $ 60,243,352 $ 327,992 $ 60,571,344 $ 35,139,165 $ 237,494 $ 35,376,659 Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 121,832 121,832 - 116,017 116,017 - (Increase) decrease in:

Accounts receivable, net of allowance (4,965,034) (4,965,034) - (1,388,205) (1,388,205) - Accrued revenue (6,382,286) (6,382,286) - (259,357) (259,357) - Other receivables (1,625,832) (1,625,832) - (2,361,347) (2,361,347) - Prepaid expenses (16,424,387) (16,424,387) - 2,014,995 2,014,995 - Deposits 1,738,850 1,738,850 - 323,125 323,125 -
Contractual assessments receivable 491,231 - 491,231 710,210 - 710,210 Increase (decrease) in: -
Accrued cost of electricity 5,350,739 5,350,739 - (382,136) (382,136) - Accounts payable 338,072 338,072 - 84,369 84,369 -
Other accrued liabilities 254,824 (387) 254,437 (264,270) (32,068) (296,338) Energy surcharges due to other governments 7,357 7,357 - 3,509 3,509 - Supplier security deposits 596,244 596,244 - 580,956 580,956 - Net cash provided by operating activities $ 39,253,731 $ 818,836 $ 40,072,567 $ 33,606,821 $ 915,636 $ 34,522,457

NONCASH INVESTING ACTIVITIES
Unrealized appreciation and timing differences
in investment income $ 3,174,062 $ 3,174,062 - $ $ 57,114 $ 57,114 - $

NONCASH CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of lease asset $ 1,020,020 $ 1,020,020 - $ $ - $ - $ - Gain on termination of lease $ 228,614 $ 228,614 - $ $ - $ - $ -

Staff Report – Item 3
To: The Governing Board
From: Donald Eckert Jr., Chief Executive Officer
Item 3: Adopt Resolution Authorizing a Rate Adjustment in 2025 Date: 1/16/2025

RECOMMENDATION
Adopt Resolution approving implementation of Pioneer Community Energy’s (“Pioneer”) Customer Generation Rate changes effective March 1, 2025.

AUDIT & FINANCE COMMITTEE RECOMMENDATION
At the January 9, 2025, Audit & Finance Committee meeting, the Committee received an update on Pacific Gas & Electric’s (“PG&E”) final generation rates and Power Charge Indifference Adjustment (“PCIA”) for 2025.

Staff presented the impact on Pioneer’s contribution margin and discussed options. The Committee recommended to the Governing Board the Minimum 4% Discount Option.

BACKGROUND
At the December 19, 2024, Governing Board (“Board”) meeting, the Board set rates for 2025 to achieve a minimum 5% discount to PG&E’s generation rate. The action was based on forecasted rates and PCIA based on the most recent Energy Resource Recovery Account (“ERRA”) filing in November with the actual rates expected to be released late in December.

Staff committed that if the actual rates resulted in a significant variance to Pioneer’s forecasted financials, activity to implement rates would be suspended and rates will be brought back to the Board in January.

ANALYSIS & DISCUSSION
With the final rates released near the end of December, there were variances to expectations in both PG&E’s rate and the PCIA rate. PG&E’s generation rate did increase as expected but was offset by PG&E’s bundled PCIA rate that netted to a slight decrease to their overall generation rate. The PCIA applied to Pioneer’s ratepayers also slightly decreased.

The main consideration for the Board when deciding rates in December was the financial impact to Pioneer in Fiscal Year 2026. Fiscal Year 2026 is the expected last year of abnormally high-power supply costs with new generation coming online in late 2026/early 2027 that will ease power supply prices moving forward.

The overall impact of the variance between final rates and the assumptions used in December increased the Fiscal Year 2026 deficit from ($7.0 million) to ($10.1 million). This increase prompted staff to return the rates discussion to the Board.

The following tables illustrates the variance between the assumptions used in December and the final rates:

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 1/16/2025

Note: NC = Nevada City and GV = Grass Valley
Options for Board Consideration
Option 1: Break-Even – In this option, the discount is set to maintain a positive contribution margin in each of the next three fiscal years including Fiscal Year 2026.

Option 2: Current Discount – Pioneer ended 2024 with a minimum 3% discount. This option would continue for 2025.

Option 3: Recommended – Achieve a minimum 4% discount that is both recommended by the Audit & Finance Committee and staff.

Option 4: December 2024 Board Action – Maintain the course from Board action in December with the minimum 5% discount.

The following table illustrates the options, the discount based on service territory, the average rate adjustment to Pioneer’s current rates, and the ratepayer savings achieved for calendar year 2025:

The Recommended Option Deliverables:

The Minimum 4% Discount Option delivers on Pioneer’s priorities by:
 Rate Competitiveness – Pioneer rate will be at a minimum discount of 4% with approximately 40% of the territory at a discount greater than 20%.
 Rate Stability – Results in a decrease of 1% to our current generation rate.  Value – Creates $31.8 million of utility bill savings for 2025.  Sustainability – Results in an $8.1 million to Pioneer’s reserves maintaining Pioneer’s financial health
Next Steps
If the Board should take action to change direction on Pioneer’s rates to achieve a minimum 4% discount, then staff begin work on the implementation of those rates to be effective in the billing system by March 1, 2025.

PCIA December Final Change
2017 - Placer $0.00850 $0.01178 $0.00328
2021 - El Dorado -$0.02262 -$0.01781 $0.00481
2023 - NC GV -$0.02625 -$0.02073 $0.00552
($/kWh)
PG&E's Generation Rate December Final Change $ Change % Residential E-1 Rate 0.15825 0.15569 -0.00256 -1.6%
($/kWh)
Option Placer El Dorado NC/GV
Average
Pioneer
Adjustment
Estimated
Savings
2025 FY25 FY26 FY27
Break-Even 1% 20% 22% 3% $24.5 $10.9 $0.7 $12.0
Current
Discount 3% 22% 24% <1% $29.4 $9.0 $4.7 $6.5
Recommended 4% 23% 25% -1% $31.8 $8.1 $7.4 $3.7
December Board
Action 5% 24% 26% -2% $34.3 $7.2 $10.1 $1.0
PCIA Vintage Financial Impact
Agenda Item: 3 Agenda Date: 1/16/2025

Updated 2025 rate schedules will be included in the February CEO Report.

STRATEGIC PLAN
The recommendation supports both the Fiscally Strong & Resilient and Provide an Exceptional Customer Experience goals.

FISCAL IMPACT
If the Board approves the Minimum 4% Discount Option. It will result in an $8.1 million contribution to reserves for Fiscal Year 2025 and ratepayer savings of $31.8 million for calendar year 2025.

ATTACHMENTS

1. Resolution Authorizing Implementation of Pioneer’s Customer Generation Rate Changes Effective March 1, 2025.
383947.1
Before the Governing Board of
Pioneer Community Energy
Resolution No.: ____________
The following Resolution was duly passed by the Governing Board of Pioneer Community Energy at a regular meeting held January 16, 2025, by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, Pioneer Community Energy (“Pioneer”) was formed for the purpose of providing local control of energy resources, to provide competitive and stable rates, and to provide programs to foster economic development, energy efficiency, and resource conservation; and WHEREAS, Pioneer has the authority to aggregate electric load to purchase and supply electricity for customers within its jurisdiction; and
WHEREAS, Pioneer has provided electric generation service to its customers since initiating service on February 1, 2018; and
WHEREAS, Pioneer has a need to adopt customer generation rates that are competitive and maintain a Pioneer’s cash reserve that allows Pioneer to respond to risk, and provide competitive and stable rates; and
WHEREAS, on December 19, 2024, the Governing Board adopted Resolution No. 2024-38 which approved rates based on projected PG&E Power Charge Indifference Adjustment (“PCIA”) costs and generation rates, but which would not go into effect until30 days after PG&E released its final 2025 customer generation rates and are therefore not yet effective; and WHEREAS, Pioneer’s generation rates currently in effect remain those effective July 1, 2024 under Resolution No. 2024-25; and
In the matter of: APPROVE IMPLEMENTATION OF

PIONEER GENERATION RATE CHANGES
EFFECTIVE MARCH 1, 2025
Resolution 2025-__
January 16, 2025
2 383947.1
WHEREAS, the January 1, 2025 PG&E implemented generation rates and 2025 bundled PCIA are materially different than what was anticipated, and continuing with the rates set under Resolution 2024-25 would cause Pioneer’s Fiscal Year 2025-26 operating income to decrease more than anticipated; and
WHEREAS, Resolution 2024-38 deferred its authorized rate adjustment if PG&E’s customer generation rates were materially less than estimated in the November Annual Electric True-Up; and
Whereas, there is a material difference between the anticipated and actual PG&E’s generation rate and PCIA for 2025; and
WHEREAS, on January 16, 2025, the Board conducted a public hearing and reviewed, considered, discussed rate adjustment scenarios; and
WHEREAS, all the rate adjustment scenarios considered by the Board offered Pioneer customers savings compared to the PG&E January 1, 2025 rates.

BE IT RESOLVED, the Governing Board of Pioneer Community Energy, State of California, hereby finds, declares, and resolves as follows:

1. The above recitals are true and correct.

2. The Chief Executive Officer is hereby authorized to amend Pioneers’ current Electric Generation Rates Schedule authorized by Resolution 2024-25 so that Pioneer’s customer generation rates will be at least 4% lower than the sum of PG&E’s generation rates and the 2017 Vintage PCIA,

3. Pioneer’s electric generation rates, as adjusted by the Chief Executive Officer per this Resolution above, shall become effective on March 1, 2025.

4. Pioneer’s adjusted electric generation rates shall be set forth in the 2025 Electric Generation Rates Schedule. The Chief Executive Officer shall provide a copy of the 2025 Electric Generation Rates Schedule to the Governing Board at its first meeting after the 2025 electric generation rates are implemented.

5. The 2025 Electric Generation Rates:
a. do not exceed the actual or estimated reasonable costs to Pioneer of providing the services to which the fees relate;
b. are reasonable and necessary to enable Pioneer to provide the benefit or privilege, service or product to which they relate; and c. have been allocated in a manner such that the costs to the payor bear a fair and reasonable relationship to the payor’s burden on, or benefits received, from Pioneer.

6. The Governing Board finds and determines that this resolution is not subject to the California Environmental Quality Act (“CEQA”) and, therefore, an environmental review is not required pursuant to section 21080, subdivision (b)(8) of the Public Resources Code and sections 15273(a) and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because CEQA does not apply to the establishment, modification, restructuring, or approval of rates and other charges by public agencies for purposes such as those set forth herein.

Resolution 2025-__
January 16, 2025
3 383947.1

7. Resolution 2024-38, adjusting rates to be effective 30 days after PG&E released its final 2025 customer generation rates rescinded effective immediately.

8. Resolution No. 2024-25 is hereby rescinded upon the effective date of the updated 2025 Electric Generation Rates Schedule.

Staff Report – Item 4
To: The Governing Board
From: Paige Garcia, Program Manager
Item 4: Low Carbon Fuel Standard Program
Date: 1/16/2024

RECOMMENDATION
Receive a Presentation on the Low Carbon Fuel Standard (LCFS) program and its Potential Benefits to Pioneer Community Energy’s Member Agencies.

COMMITTEE RECOMMENDATION
On September 25, 2024, Pioneer Community Energy’s Community Advisory Committee reviewed and approved the Low Carbon Fuel Standard (LCFS) program with FuSE Energy.

BACKGROUND
Assembly Bill 32 created LCFS program, which is managed by the California Air Resources Board (CARB). LCFS operates similarly to the Cap-and-Trade program in that some entities generate credits and some generate deficits based on the carbon intensity of their activities. LCFS is exclusive to transportation fuel emissions.

Entities that produce low, or no, carbon transportation fuels generate credits. Entities that produce transportation fuel emissions create a deficit. These credits have a floating value based on the program market dynamics. Entities with credits can sell them to entities that create emissions and realize the monetary value associated with the credits.

At the October 24, 2024 Board Meeting, the Pioneer Board was introduced to the LCFS program and potential program partner, FuSE. At this meeting, the Board requested additional information on potential revenue from the program and for staff to return at a later date to review information.

ANALYSIS & DISCUSSION
As the State of California enacts aggressive clean energy policies to reach Climate Change goals, clean fleets and other transportation systems have become a priority. Local governments, including Pioneer members, can benefit from monetizing credits from their clean fuel transportation efforts. Electric vehicles, electric vehicle charging infrastructure, electric forklifts, and other clean transportation elements can contribute to LCFS credits.

Pioneer can support its member agencies with these clean transportation efforts by monetizing LCFS credits.

Profits earned from selling LCFS credits could then be used to further clean transportation efforts. For example, profits from LCFS credits can be used to buy a new electric vehicle to replace a gas vehicle or install new chargers.

To sell these credits, agencies must utilize a credit broker, which is where the potential program partner, FuSE, would be engaged. Pioneer was introduced to FuSE through their work with other CCAs. FuSE supports these CCAs efforts to monetize their own credits they produce through their charging stations. FuSE is a software-as-a-service (SaaS) company that designs, manages and executes electricity consumption data products and services for forward-thinking on- and off-road fleet operators. They work with public agencies, larger companies, and other CCAs to buy and sell LCFS credits.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 1/16/2024

The LCFS credit program would work with FuSE, Pioneer, and the member agency to inventory and track potential sources for credit. FuSE then would sell the credits on behalf of the member agency. FuSE and Pioneer would receive a portion of the profits from the credits, with the majority of the profits being returned to the member agency.

The following table shows potential areas of credit generation for Pioneer’s member agencies. The estimated numbers are based on readily available public information and more charging assets could be found through work with the members. The energy consumption values used is $75 per credit. On the lower end, a member agency with EV chargers that use about 2,240 kWh equates to $196 per year. A member agency that has EV chargers that use 19,600 kWh equates to $1,718 per year.

Member Agency Estimated number of Chargers Estimated credit value (per year) El Dorado County 24 chargers $4,704 - $41,232
Placer County 13 chargers $2,548 - $22,334
Loomis 9 chargers $1,764 - $15,462
Auburn 8 chargers $1,568 - $13,744
Nevada City 6 chargers $1,568 - $13,744
Placerville 6 chargers $1,176 - $10,308
Rocklin 4 chargers $784 - $6,872
Total 70 $13,720 - $120,260
Next Steps
If the Board expresses interest in the program, then staff will bring a contract with FuSE Energy to the Board at a later date.

STRATEGIC PLAN
The recommendation supports Pioneer’s strategic priorities including being a community partner and achieving operational optimization.

FISCAL IMPACT
There is no fiscal impact with this item.

ATTACHMENTS
There are no attachments with this item.

Staff Report – Item 5
To: The Governing Board
From: Sam Kang, Chief Operating Officer
Item 5: Western Placer Waste Management Authority Biomass Project Date: 1/16/2025

RECOMMENDATION
Receive an Update on Western Placer Waste Management Authority (WPWMA) Biomass Project.

BACKGROUND
Biomass energy is a key resource priority for Pioneer Community Energy (Pioneer) as evidenced in its 2022 Integrated Resource Plan1, as well as its Mission, Vision, and Values for providing reliable electric service2. In its efforts to develop biomass projects, Pioneer has worked together with WPWMA and Wisewood Energy (Wisewood) since 2021 to investigate the feasibility of a 3-5 MW wood biomass facility on WPWMA’s campus.

Pioneer would commit to purchasing 3 MW produced from forest-based biomass under the bioenergy market adjusting tariff (BioMAT) program, with the remaining 2 MW available to WPWMA which could be used to power the landfill gas blower flare station, offset a portion of material recovery facility (MRF) power requirements, or be used develop a heavy-duty electric vehicle charging yard on the WPWMA’s campus. On December 12, 2024, the WPWMA Board authorized staff to negotiate a lease agreement with Wisewood allowing for the design, construction and operation of a wood biomass facility on the WPWMA’s campus consistent with certain proposed deal points.

ANALYSIS & DISCUSSION
One of the bigger cost components in running a biomass plant is the cost of getting the woody biomass (feedstock) to the facility. At WPWMA, the feedstock is delivered to the facility in the ordinary course of business and there is cost savings associated with not having to bury recovered wood. WPWMA Staff believe a lease agreement with Wisewood would provide significant benefit to the WPWMA including: 1) an additional source of revenue from rent and royalties from Wisewood, 2) improved market stability for recovered wood, 3) the potential to receive tip fees for forest-based woody materials that historically have not been delivered to WPWMA, and 4) establishing a commercial scale compatible technology project consistent with the WPWMA’s Renewable Waste Action Plan.

The synergy between a biomass plant and a MRF like WPWMA is tremendous. For Wisewood, some further benefits in addition to reduced feedstock costs include the potential to not only sell excess electricity (not consumed by WPWMA) to a neighboring Buzz Oates development (expected construction starting in Spring 2025 with a full build-out in 6-10 years) but they could also sell heat to them to improve its business case.

Proctor and Gamble is also developing a facility that is expected to come online in 5-6 years that could benefit from any excess electricity or heat from the biomass plant.

In addition to procuring biomass energy as part of its mission to invest back into its member communities, helping reduce wildfire risk and provide reliable electricity at a low/competitive cost (competitive cost due to the inclusion of Community Choice Aggregators in the BioMAT program via Assembly Bill 843), Pioneer would 1 https://pioneercommunityenergy.org/about-us/key-documents/ 2 https://pioneercommunityenergy.org/about-us/ Plf)NEER

COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 1/16/2025

also be fostering and supporting the development of alternative energy generating facilities proximate to the WPWMA’s campus.

Next Steps
Pioneer will be working closely with WPWMA and Wisewood to get the project through the BioMAT application process which currently expires at the end of 2025.

FISCAL IMPACT
There is no fiscal impact with the recommendation.

ATTACHMENTS
There are no attachments to this report.

Staff Report – Item IV-B
To: The Governing Board
From: Donald Eckert Jr., Chief Executive Officer
Item IV-B: CEO Report
Date: 1/16/2025

PERSONNEL
Pioneer Community Energy starts the year with eighteen (18) of twenty-one (21) positions filled.

The following are active recruitments:
• Project Development Manager
• Manager of Legislative and Regulatory Affairs

CHIEF EXECUTIVE OFFICER AGREEMENTS EXECUTED (NON-POWER SUPPLY) There are no items to report this month.

BOARD WORKSHOP
With three (3) new Board Members joining our Board, staff will host an educational workshop March/April of this year. Details forthcoming.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (“CAISO”) TOUR
With the addition of new employees this past year and new Board Members, staff will arrange a CAISO tour in early April. We engaged in a tour last year and it was both informative and well received. Details of the tour will be revealed well ahead of the date.

CHIEF EXECUTIVE OFFICER POWER SUPPLY CONTRACTS EXECUTIED The following agreements have been executed by the Chief Executive Officer, consistent with the authority delegated by the Board:

Presentations and Relevant Meetings attended by the Chief Executive Officer

1. Participated in CalCCA Weekly/Monthly Board meetings.

2. Participated in Rural Counties Representatives of California Annual Leadership Meeting

ATTACHMENTS

1. Agenda Planning Document

2. Legislative and Regulatory Report

3. Communications Report

4. Programs Report
Counterparty Name Execution
Date Type Product Start Date End Date Notional Value
Morgan Stanley Capital Group 12/23/2024 Buy Unspecified Energy 1/1/2025 12/31/2028 $100,364,996 Calpine Energy Services, L.P. 12/9/2024 Sell Resource Adequacy Flex 3/1/2025 3/31/2025 $60,000 Plf)NEER

COMMUNITY ENERGY
Agenda Planning Document – Pioneer Community Energy Updated 01-13-2025

BOARD OF

DIRECTORS
JANUARY 16, 2025
2:45 PM - SPECIAL (CS)
3:00 PM - REGULAR
(Post Agenda: January 10)
FEBRUARY 20, 2025

REGULAR MEETING
3:00 PM
(Post Agenda: February 14)
MARCH 20, 2025

REGULAR MEETING
3:00 PM
(Post Agenda: March 14)

IN THE FUTURE
Special Meeting
2:45 PM
Closed Session (1 item)
Regular Meeting
3:00 PM
(APR-SPECIAL) 2025 Board Workshop
(MAR/APR) CalCCA presentation (Vaughn)
(FEB>APR) CAISO Tour(Board)
General Function I Selection of Officers
Consent 1a Minutes for Approval-DEC 19, 2024 Minutes for Approval-JAN 16, 2025 Minutes for Approval-FEB 20, 2025 1b Receive Draft Financials: NOV 2024
(Koehn)
RES Adopt Amendment to Uncollectible
Accounts Policy (Koehn)
Receive Draft Financials: JAN 2025
(Koehn)
1c RES Adopt 2025 Governing Board
Meeting Schedule through JAN 2026
(Eckert)
RES Adopt Amendment to Purchasing
Policy (Koehn)
AMI audit (Koehn)
1d RES CEO contract Amendment No. 4
(GC)
RES amending Resolution 2021-1
executing Long-term PPAs not exceeding

1.5% of Pioneer’s annual procurement
budget as a maximum annual notional
amount, together with a maximum of a
20-year term (action-Kang)
Regular 2 Financial Audit Report
(discussion-Koehn) P&B
Affirm & Appoint Committee Members
(action-Eckert)
ICE Energy (discussion- Stassi-Vanacore)
guest
(APR) Legislative Platform
(discussion-Kang)
3 PH-RES Rates 2025 (action-Eckert)
PEA
RES Marketing Contract
(action - Stassi-Vanacore) guest
RES Amendment to RES 2023-33 Feed-in Tariff (FiT) re: adding Biomass NEM and solar + storage (action-Kang)
RES Revised NEM Policy
(action-Koehn)
4 LCFS update
(discussion-Stassi-Vanacore) guest
RES approving Amendment No. 6 to
the Amended & Restated JPA
(action-Eckert)
RES Toolkit program
(action - Stassi-Vanacore)
RES GridGen Expansion
(action- Stassi-Vanacore)
5 Receive an update on biomass
development at WPWMA
(discussion-Kang)
RES approving Amendment No. 7 to
the Amended & Restated JPA -
Membership (action-Eckert)
State of the Utility (discussion-Eckert)
6 RES approving Addendum No. 3 to the
Community Choice Aggregation
Implementation Plan & Statement of
Intent (action-Eckert)
7 Mid-Year Budget (Koehn)
General Function II Chief Executive Officer’s Report
REG Reports: Leg/Reg; Communications;
Programs;
Chief Executive Officer’s Report
REG Reports: Leg/Reg; Communications;
Programs;
QTRLY Updates: Strategic Plan Objectives;
Sponsorship Activity
Chief Executive Officer’s Report
REG Reports: Leg/Reg; Communications;
Programs;
Chief Executive Officer’s Report
-QTRLY Updates requested by the Board
JAN – APR – JULY – OCT
 Strategic Plan Objectives
 Sponsorship Activity
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Agenda Planning Document – Pioneer Community Energy Updated 01-13-2025

AUDIT/FINANCE COMMITTEE TO BE SCHEDULED
in-person & remote locations IN THE FUTURE
Greg Janda, Chair
Gary Petersen
David Ring
vacancy

ENERGY PROCUREMENT REVIEW

AD HOC COMMITTEE TO BE SCHEDULED - FEBRUARY
zoom only

IN THE FUTURE
Greg Janda, Chair
Gary Petersen, Vice Chair
Alice Dowdin Calvillo
vacancy
o Review of EPRC Authority in Approval of Long-Term
PPAs
o Approve long-term PPA (2)

EXPANSION
AD HOC COMMITTEE TO BE SCHEDULED – APRIL / EARLY MAY
zoom only

IN THE FUTURE
Alice Dowdin Calvillo, Chair
David Yarbrough, Vice Chair
vacancy

COMMUNITY ADVISORY COMMITTEE

TO THE CHIEF EXECUTIVE OFFICER IN THE FUTURE
Meets on the 4th Wednesday
(even-numbered months)

Attachment 2: Legislative and Regulatory Update
Date: 1/16/2025

Legislative Affairs
• In preparation for the 2025 Legislative Session, Pioneer is engaging in early talks within the Legislature, whose primary objective this year is to address the energy affordability crisis as outlined in Governor Newsom’s Executive Order N-5-24. Pioneer will advocate for biomass development by educating legislators on its potential to be an integral tool in facilitating cost effective wildfire mitigation, which has been the main contributor in the sharp rise of utility bills over the last few years.

Pioneer aims to support a legislative proposal that will provide funding for biomass development, through existing sources of funding.
• Pioneer is planning a Lobby Day on February 26, 2025 to introduce our organization to our new constituent representatives including Assemblymembers Heather Hadwick and David Tangipa and Senator Christopher Cabaldon. Pioneer will also meet with our existing delegation members to brief them on our legislative priorities in the 2025 session, and garner support for our policy initiatives. • Pioneer is planning a Legislator Biomass Education Tour at Sierra Pacific Industries in Lincoln, CA on March 7, 2025. Legislators will have the opportunity to tour a biomass facility and learn about the importance of biomass in producing renewable and reliable energy, while maintaining our forest health and protecting our communities from wildfire risk.

Regulatory Proceedings
Below is a summary table of the key issues, followed by further details on activities since our last Board Meeting on a few ongoing priority Pioneer regulatory proceedings and matters. More updates will follow at future Board meetings as regulatory proceedings and matters evolve.

Proceeding Issue Pioneer Position
R.22-10-010 Order Instituting Rulemaking
(OIR) to Implement AB 843
(2022) – The Bioenergy
Adjusting Tariff Program
(BioMAT)
Expeditiously implement AB
843 to allow CCA access to the
BioMAT program for future
subsidies for biomass
procurement
R.20-05-003 OIR to Continue Electric
Integrated Resource Planning
(IRP) and Related Procurement
Processes
Advocate for procurement
planning policies that prioritize
affordable baseload resources
such as biomass energy
R.24-01-017; CEC OIR 21-RPS-02
OIR to Continue
Implementation and
Administration, and Consider
Further Development, of
California Renewables Portfolio
Standard Program (RPS)
Ensure Pioneer maintains
compliance with RPS mandates
and advocate for fair inclusion
of biomass in RPS guidelines
R.23-10-011 OIR to Oversee the Resource
Adequacy (RA) Program,
Consider Program Reforms and
Refinements, and Establish
Refine the current RA Program
construct; reduce volatility of
RA prices; increase RA
procurement availability and
grid reliability
Attachment 2 Agenda Date: 1/16/2025

Forward Resource Adequacy
Procurement Obligations
R.22-07-005 OIR to advance Demand
Flexibility Through Electric
Rates
Limit negative impacts of the
Income Based Graduated Fixed
Charge and educate Pioneer
Board and customers prior to
the rollout.

A.20-02-009; A.21-03-008;
A.21-06-001; A.22-05-029;
A.24-05-009
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E
2020 ERRA Compliance
Application; 2021 ERRA
Compliance Application; 2022
ERRA Compliance Application;
2023 ERRA Compliance
Application; 2023 ERRA
Forecast Application; 2024
ERRA Forecast Application;
2025 ERRA Forecast Application
Reduce the ERRA impact on the
PCIA; increase data
transparency from the IOUs
R.20-08-020 Rulemaking to develop a
successor to existing Net
Energy Metering (NEM) tariffs
and to review and refine
existing NEM tariffs
Mitigate impacts to Pioneer NBT
customers and inform
customers of upcoming changes
to the program
R.21-03-011 Provider of Last Resort (POLR)
Order Instituting Rulemaking
Limit the impacts of changes to
the Financial Security
Requirement (FSR)
R.18-12-005 Utility De-energization, Public
Safety Power Shutoffs (PSPS),
and Enhanced Powerline Safety
Settings (EPSS)
Reduce impacts of PSPS and
EPSS events; increase
coordination and
communications with IOUs to
ensure public safety during de-energization; limit PSPS and EPSS impacts on CCA load
scheduling
CEC - OIR – 21-OIR-03, 23-
LMS-01
Load Management Standards
(LMS)
Ensure Pioneer maintains
compliance with CEC mandates
and requirements
AB 843 BioMAT Implementation:
• October 20, 2022- The OIR was opened to examine the implementation of AB 843. • April 28, 2023- Workshop held.
• November 30, 2023- CPUC voted to approve the revised Proposed Decision, which clarified many of the issues raised in the comments of the PD, while retaining the favorable outcome for CCAs. • January 2, 2024- the IOUs submitted their Tier 2 ALs modifying the BioMAT Tariff to incorporate CCAs. • January 29, 2024- 60 days from the Decision- CCAs finalized two provisions with Accion for website work and third-party administrator. In addition, CCAs submitted a revised tariff, a program participation request, power purchase agreement, rate schedule, and balancing statement as part of a Tier II AL to the CPUC. • February 1, 2024- Tier III ALs were submitted by 4 CCAs indicating interest in participating in the BioMAT program (3CE, Pioneer, RCEA, and OCPA).
• February 23, 2024- CalCCA submitted a 15-day extension until March 14 to meet the requirement for the Attachment 2 Agenda Date: 1/16/2025

central BioMAT Accion webpage and standard framework for individual CCA webpages within 90 days of the decision due to an issue raised by Accion in the third-party administrator Statement of Work that the CCAs, IOUs, and Accion are attempting to resolve.
• February 25, 2024- RCRC submitted reply comments in support of the Joint CCAs proposal to consider extending the BioMAT program sunset date.
• March 1, 2024- A group of CCAs (Pioneer, RCEA, 3CE, OCPA, MCE, and VCE) submitted comments in the RPS proceeding asking the CPUC to consider expediting consideration of an extension to the BioMAT program beyond 2025.
• March 5, 2024- There is an agreement with Accion as the Third-Party Administrator. The agreement has been reviewed and signed by Pioneer as well as the other 3 CCAs. • On March 13, 2024- CalCCA submitted a second request for extension of time for an additional 15-day extension.
• March 20, 2024- CPUC granted CalCCA’s first request for a 15-day extension of time. • March 21, 2024- There was a meeting with CPUC staff on implementation of AB 843. Brad Hill will be moving over to Natural Resources Agency.
• March 28, 2024- Assembly Member Aguiar-Curry submitted a letter of support to the CPUC for the extension of the BioMAT program. This letter included the support of other legislators: Senator Alvarado-Gil, Senator Dahle, Senator Talamantes Eggman, and Assembly Member Dahle. • March 28, 2024- CalCCA submitted a third request for extension of time for an additional 31-day extension of time (until April 29) for the central BioMAT Accion webpage and standard framework for individual CCA webpages to be completed within 90 day of the effective date of the decision. Work has been delayed pending final agreement from all parties to revisions to the third-party administrator Statement of Work. • April 4, 2024- There was a prehearing conference to address the preliminary scope of issues in the OIR for IRP where the Joint CCAs are asking for an extension of the BioMAT program. During this conference, Scott Blaising represented the Joint CCAs and asked for 1) the CPUC to expedite the extension of the BioMAT program and 2) broadly review the program.
• May 1, 2024- CPUC approved the joint CCAs Tier 2 Advice Letter which approved the BioMAT standard program documentation which included the tariff, the pro-forma power purchase agreement, program participation request forms, BioMAT program website and portal development contracts, independent third-party contracts, initial balancing account statements, and non-bypassable charge rate scheduled. • Pioneer has completed the implementation of the BioMAT program. The website and all necessary documents for BioMAT are live.
• June 20, 2024- CPUC issued a Draft Resolution to approve participating CCAs’ forecast revenue requirements, which is $0 for 2024-2026 for all participating CCAs, since no BioMAT projects are forecasted to COD before then.
• September 1, 2024- CPUC granted the joint CCAs’ extension request for the BioMAT application for prudent contract management, since there are no BioMAT contracts to report on. The new deadline will be 6 months after the first BioMAT contract is executed or September 1, 2025, whichever date comes first.

Integrated Resource Planning:
• October 7, 2015- The California Legislature adopted SB 350, the Clean Energy and Pollution Reduction Act of 2015, which increased the state’s greenhouse gas reduction target, requiring 50% renewable electricity procurement by 2030, and mandating a doubling of energy efficiency. To meet these goals, SB 350 ordered large utilities to develop and submit integrated resource plans (IRPs), which will be reviewed by the CPUC.

The IRP proceeding serves as the vehicle for the CPUC to evaluate utilities’ progress towards meeting the SB 350 goals, as well as the general planning proceeding to consider California’s long-term energy needs and electric procurement policies.
• June 24, 2021- In Decision 21-06-035, the CPUC ordered the collective procurement of 11,500 MW of new net qualify capacity (NQC) to come online in 2023-2026. 2,000 MW NQC must come from long lead-time resources providing clean firm power or long duration energy storage.

Attachment 2 Agenda Date: 1/16/2025

• March 13, 2023- In Decision 23-02-040, the CPUC ordered the collective procurement of an additional new 4,000 MW NQC in 2026-2027. The decision also extends the deadline for procurement of new long lead-time resources to 2028.
• October 7, 2024- Pioneer filed reply comments on the proposed resource portfolios for the 2025-2026 transmission planning process. Pioneer urged the Commission to recognize the value of biomass as a clean firm resource needed to meet reliability and renewable energy goals. Our comments ultimately recommended an increase of 0.1 GW growth of biomass in the proposed portfolio.

Renewables Portfolio Standards:
• September 12, 2002- The California Legislature adopted SB 1078 which established the renewables portfolio standards (RPS) program with the initial requirement that 20% of electricity retail sales must be served by renewable resources by 2017. The program was accelerated in 2015 with SB 350 which mandated a 50% RPS target by 2030. The RPS proceeding at the CPUC serves as the vehicle for the CPUC to implement and administer RPS compliance rules for LSEs including Pioneer. Concurrently, the CEC is responsible for the certification of electrical generation facilities as eligible renewable energy resources and adopting regulations for the enforcement of RPS procurement requirements.
• July 22, 2024- Pioneer filed our Draft 2024 RPS Procurement Plan to the CPUC. • August 1, 2024- Pioneer submitted our 2023 RPS Compliance Reporting materials to the CPUC. • November 1, 2024- Pioneer filed comments on the CEC RA docket, regarding the Draft 10th Edition of the RPS Eligibility Guidebook. Our comments urge the CEC to consider changes to the Guidebook that would reduce barriers to the certification of biomass facilities and burdens associated with reporting and verification. Furthermore, Pioneer recommended that the Guidebook should provide guidance to potential developers on eligible biomass conversion technologies and ensure accurate accounting of the generation from these sources.

Resource Adequacy:
• May 25, 2023- The CPUC issued a PD barring non-compliant LSEs from expansion for two calendar years following a system RA deficiency.
• June 14, 2023- CalCCA filed comments recommending the CPUC fully reject the PD’s restrictions on LSE expansion due to RA deficiencies and modify the RA deficiency penalty.

June 29, 2023- The CPUC issued a decision adopting a one percent minimum threshold for RA deficiencies that would limit CCA expansions; clarifying that if an LSE “cures” its year-ahead RA deficiency in the month-ahead timeframe, the year-ahead deficiency will not be applied to the expansion requirement. • July 26, 2023- CalCCA and CCCE filed two Applications for Rehearing (AfR) of the decision to limit CCA expansion for two years due to uncured RA deficiencies. CalCCA’s PfR cited a lack of CPUC statutory authority to limit CCA expansion, and that it gives itself new unauthorized powers to needlessly discriminate against CCAs to prevent their growth; it also asserted, that without credible evidence, the CPUC determined that addition of new CCA load would be detrimental to grid reliability, and that the decision violates the CPUC’s legal requirement to apply RA enforcement measures in a nondiscriminatory manner, not just to CCAs.
• On September 19, 2023, PG&E and SCE submitted their annual CPE reports. PG&E is short RA for all months - up to 4,400 MW.
• October 12, 2023- The Commission opened the new RA proceeding through its Order Instituting Rulemaking (OIR). The OIR proposes the scope, schedule, and administration of this next RA proceeding. • November 9, 2023- CalCCA submitted comments recommending additional scoping items for the RA proceeding, including additional refinements to the RA program for the local RA CPE, compliance and penalty structure, SOD transactability, and RA import rules.
• December 14, 2023- CPUC denied CalCCA’s request for a rehearing of the decision on RA procurement obligations and the prohibition against CCA expansion for failure to comply. • January 17, 2024- Petition for Writ of Review prohibition of CCA expansion filed. Shell also filed a petition for somewhat different reasons. CPUC is seeking to consolidate since there are two filings. CalCCA did not Attachment 2 Agenda Date: 1/16/2025

oppose the motion.
• January 19, 2024- Proposals due in the RA proceeding for Track 1, addressing time-sensitive issues that must be resolved for the 2025 RA compliance year. CalCCA has identified 3 major problems that the RA proposals should address: RA market scarcity, the potential exercise of market power, and removing the economic incentives not to comply. CalCCA is seeking to remove the prohibition from CCA expansion in the event of noncompliance and add the ability for the CPUC to waive penalties if CCAs can show reasonable efforts to comply were unsuccessful. The RA proposal approved by CalCCA’s Board included a temporary waiver proposal for system and flexible RA from 2025 to 2027. Partial waivers would waive the penalty points and non-fiscal consequences, and a full waiver would also be available that would waive financial penalties as well under certain circumstances. A slice of day waiver would also be available. • February 14, 2024- There was Proposal Workshop to discuss the various proposals. Since not everyone was able to make a presentation, there was a second workshop on February 28 where CalCCA presented its proposal.
• February 23, 2024- There was a SOD proposal workshop. CalCCA is asking for a delay in SOD implementation from 2025 until 2026 because the showing and compliance tools are not working properly. • March 22, 2024- CalCCA submitted comments on the RA Program with regards to considering RA reforms and refinements and establishing forward RA procurement obligations. CalCCA believes the focus should be to adopt proposals that protect customers against excessive RA costs and increase RA capacity availability. • March 22, 2024- The CPUC issued a response to CalCCA’s Writ Petition #2 and denied that a writ should be issued. Comments are due May 16.
• June 6, 2024- CalCCA filed comments on the CPUC’s RA Track 1 Proposed Decision (PD), regarding key issues with SOD implementation. CalCCA emphasized how customer affordability will be put at risk due to the hourly transactability issue, and the CPUC’s refusal to delay SOD implementation or offer system RA waivers. The comments also included a host of other issues including the CPUC’s insistence on using a higher than necessary planning reserve margin (PRM), exclusion of existing resources in cure period extensions, restrictions on the amount of RA imports allowed, and concerns about the resource counting methodology.
• June 14, 2024- CalCCA filed comments on the Assigned Commissioner’s Scoping Memo and Ruling on Track 2, proposing an adjustment of the central procurement entity (CPE) timeline. Currently, the Commission authorizes the CPE to procure local RA until 2 months before LSEs must submit their year-ahead RA showings. This leaves LSEs with limited time to fill their shortages in response to CPE allocation. CalCCA’s proposal urges the Commission to require the CPE provide their LSEs with their local RA allocations at least 1 year prior to their year-ahead RA filings.
• June 20, 2024- The CPUC issued a decision to adopt local capacity requirements for 2025-2027, flexible capacity requirements for 2025, and refinements to the RA program as scoped in Track 1. The Commission maintains that the 2025 RA compliance year will be the first year for the new SOD framework, but remains open to considering hourly transactability after implementation, should any issues arise. • August 23, 2024- CalCCA filed reply comments on the ALJ ruling modifying the Track 2 schedule, expressing concerns about the upcoming loss of load expectation (LOLE) study and how it will be used to set the PRM for SOD implementation, and the proposed changes to the CPE framework and timeline. • August 30, 2024- Energy Division (ED) published the revised version of their RA LOLE study, which the CPUC will use to calibrate the PRM for the 2026 SOD implementation. Based on the LOLE study, ED staff recommended the CPUC adopt a 26.5% PRM during the months of January to May and a 23.5% PRM during the months of June through December, to maintain the target reliability level of 1 day in 10 years (0.1 LOLE). This recommended PRM is much higher than the originally set 17% PRM in the 2025 SOD implementation framework.
• September 9, 2024- CalCCA filed comments on the published RA LOLE study, urging the Commission to conduct further analysis before adopting the recommended PRM of 26.5% PRM during the months of January to May and a 23.5% PRM during the months of June through December. CalCCA cited concerns with potential study methodology flaws and significant impacts to ratepayer affordability associated with the recommended PRM.

Attachment 2 Agenda Date: 1/16/2025

• September 19, 2024- PG&E released their 2024 Central Procurement Entity Annual Compliance report. The report shows they are short in their centralized procurement of RA for 3 years forward. • October 29, 2024- The CPUC issued a proposed decision (PD) for RA Track 2, which deals with the PRM and CPE framework. Regarding the proposed PRM, the Commission agreed additional vetting and further analysis is needed, authorizing ED to undertake a further revision of the 2026 PRM analysis which will be considered in Track 3 of the proceeding. As for the CPE framework, the Commission successfully adopted CalCCA’s proposal to lock in CPE allocations one year earlier, giving LSEs more time to self-procure, along with various other revisions.
• November 18, 2024- CalCCA filed comments on the RA Track 2 PD, recommending that the CPUC recognize the significant impact that changes to the PRM can have on reliability and affordability, and allow for earlier adoption of the 2026 PRM if thorough analysis is completed by all relevant stakeholders in advance of the Track 3 timeline. CalCCA also urged the CPUC to adopt revisions to the CPE framework as outlined in the PD, with an opportunity to review their effectiveness at the end of 2027.

Demand Flexibility:
• June 30, 2022- AB 205 passed giving the CPUC the authority to approve a pricing structure that incorporates an Income Based Graduated Fixed Electricity Charge (IGFC). • July 14, 2022- The Commission issued an OIR to begin this proceeding to establish demand flexibility policies and modify electric rates to advance the following objectives: 1) enhance the reliability of California’s electric system; 2) make electric bills more affordable and equitable; 3) reduce the curtailment of renewable energy and greenhouse gas emissions associated with meeting the state’s future system load; 4) enable widespread electrification of buildings and transportation to meet the state’s climate goals; 5) reduce long-term system costs through more efficient pricing of electricity; and 6) to enable participation in demand flexibility by both bundled and unbundled customers. • July 31, 2023- Parties submitted Comments on the IGFC Implementation Pathways considering the ALJ Ruling’s questions.
• August 21, 2023- CalCCA submitted Reply Comments to refute parties’ arguments regarding including the PCIA or Competitive Transition Charge (CTC) as fixed costs eligible for inclusion in the IGFC. • October 27, 2023- 22 Democratic lawmakers sent a letter to the CPUC asking for an extension of the timeline for the proceeding and require public participation hearings before implementing an IGFC. • November 3, 2023- Track A (IGFC)- CalCCA filed a reply brief continuing to refute party proposals that the PCIA be included in the IGFC and noting that the parties advocating for inclusion of the PCIA have not addressed the arguments put forth by CalCCA.
• December 15, 2023- Track B (demand flexibility)- The CPUC issued a PD which directs PG&E to expand the Valley Clean Energy Ag-Fit pilot program. CCAs that participate in the expanded pilot may receive $20/kW for each year of customer enrollment in the PGE Ag-Fit pilot as an incentive. The incentive is capped at $1.8 million for PG&E’s territory. The budgets are for all the CCAs wanting to participate to share. PG&E will be administering the pilot so there will be no administrative costs, but several of the CCAs want to have a say in how the pilot is administered and the education and outreach of the pilot. December 18, 2023- Track A (IGFC)- CPUC issued a ruling requesting implementation information from the IOUs on the IGFC. The ruling directs the IOUs to file additional information about the proposed budgets for implementing the first income-graduated fixed charges by January 24, 2024. • January 23, 2024- (Track B) There was a revised PD on the expanded pilots. Pioneer is considering offering the expanded Ag-Fit program to its customers. The pilot will be administered by PG&E so it will involve minimal work on behalf of Pioneer staff, but it will also bolster our Load Management Standards program and keep us competitive with PG&E.
• January 26, 2024- The CPUC approved the expanded pilots revised decision. In D.24-01-032 to Advance Demand Flexibility Through Electric Rates, the CPUC directed PG&E to expand the Valley Clean Energy Ag Real Time Pricing Pilot (VCE AgFIT Pilot). The decision orders PG&E to extend the duration and expand participation of the VCE AgFIT Pilot to agricultural customers throughout PG&E’s service territory. • January 30, 2024- (Track A)- There was a press conference held by a group of 20 Democratic Legislators calling for the repeal of income-graduated fixed charge. AB 1999 would repeal the income-graduated fixed Attachment 2 Agenda Date: 1/16/2025

charge approved under AB 205 (2022) and replace it with a $5 fixed charge for CARE customers and a $10 fixed charge for all other residential customers.
• February 13, 2024- Pioneer staff sent PG&E an email indicating interest in possibly participating in the expanded pilot expansion program, particularly the Ag Pilot. • February 13, 2024- at the Senate Utilities, Energy and Communications hearing the IGFC was brought up by CPUC president, Alice Reynolds, who indicated the CPUC was working on an IGFC decision possibly by the end of Q1.
• March 1, 2024- There is an expanded pilot workshop to address dual participation, since some demand flexibility programs are dual enrollment prohibited. Dual Participation is allowed for- Critical Peak Pricing:
(Peak Day Pricing and SmartRate), Electrification Rates: (E-ELEC), TOU Rates (E-TOU, E-TOU-D), Simple NEM and NBT, and ELRP Subgroup A: (A1-A6). Dual Participation is Prohibited- Supply-Side DR Programs (BIP, CBP, ART, DRAM, non-DRAM DR RA Contracts, DSGS Option 2), Flex Market Pilot, DAHRTP, ELRP Subgroup B: B1-B2, and Other Event-Based Load-Modifying Programs (OBMC, SLRP). • March 25, 2024- PG&E submitted their Tier 2 AL for implementation plans for PG&E’s Expanded Ag Pilot. 5 CCAs have expressed an interest in participating in PG&E’s Ag Pilot in 2024 (Ava, SVCE, VCE, 3CE, and Pioneer). PG&E will launch the pilot in June of 2024. Participants will continue to pay their current bill and will receive the shadow bill, which they will not pay. The shadow bill will illustrate a customer’s potential savings under the dynamic pilot rate. There is also a $20 per unbundled kW per year incentive, subject to a $1.8 million cap for all CCA incentives.
• March 27, 2024- The CPUC issued a proposed decision addressing AB 205 (Income Graduated Fixed Charge) requirements for electric utilities. The earliest this proposed decision could be adopted is May 9, 2024. This decision authorizes all IOUs to shift the recovery of a portion of fixed costs from volumetric rates to a separate, fixed amount on bills without changing the total costs that utilities may recover from customers.

As a result, this decision reduces the volumetric price of electricity (in cents per kilowatt hour) for all residential customers of IOUs. The CPUC did not adopt the IOUs’ proposal and instead the proposal would have Tier 1 (customers enrolled in CARE) pay $5 a month, Tier 2 (customers enrolled in FERA or who live in affordable housing restricted to residents with incomes at or below 80% of Area Median Income) pay $12 a month, and Tier 3 (all other customers) pay $24.15 per month. This new billing structure would apply to all residential rates of the IOUs, except for master-meter rates that are not sub-metered. • May 9, 2024- CPUC approved implementation of the Income Graduated Fixed Charge without any changes to the structure described in the previous bullet.
• June 12, 2024- CalCCA filed reply comments on the Track B Proposal, urging the CPUC to reconsider the process for updating marginal cost values and to clarify a cost recovery structure that ensures CCA customers do not get double-charged for being unbundled.

PG&E ERRA Compliance and ERRA Forecast:
• The ERRA Proceedings act as a review of an IOU’s prior year portfolio management and accounting and seeks to identify errors and discrepancies between PG&E’s revenue requirements vis-à-vis collected revenues through the IOUs’ General Rate Case (GRC) which ultimately affects CCA rates through the Power Charge Indifference Adjustment (PCIA).
• May 14, 2023- PG&E’s 2023 – 2024 ERRA Forecast and Testimony was released. • June 1, 2023- NewGen sent over the new rate forecast spreadsheet. The forecast looks good with the PCIA remaining negative over many vintages, but this will change before the October Update. • June 16, 2023- Keyes and Fox filed a Protest to PG&E's Forecast Application. • August 10, 2023- CalCCA filed a Protest to PG&E’s ERRA Trigger Application proposing a rate increase in November to correct and account for under-collections.
• September 6, 2023- CalCCA provided Testimony on the 2024 PG&E ERRA Forecast case and touched upon the fixed generation cost issue.
• October 16, 2023- PG&E’s October Update to its 2024 ERRA Forecast came out. Energy prices have softened relative to PG&E’s original forecast (which would, all else equal, cause PCIA rates to increase), but RA and RPS benchmarks have increased significantly since PG&E's filing (dampening the impact of energy prices).

Attachment 2 Agenda Date: 1/16/2025

All told, forecast rates increased relative to the original forecast across the board, but forecast rates remain negative for vintages 2021 and later.
• November 1, 2023- Keyes and Fox submitted comments on PG&E’s ERRA Trigger proposal and comments on PG&E’s October update.
• November 16, 2023- The CPUC unanimously approved the Alternate Proposed Decision and indicated that “the decision balances a myriad of competing interests- affordability, feasibility, safety, and reliability.” PG&E requested $15.4 billion for 2023 and the decision reduced that amount by $1.8 billion to $13.5 billion.

This is an 11% increase from the authorized 2022 revenue requirement. For the typical residential customer, their combined monthly electric and natural gas bill will increase by $32.62 or 12.8%, compared to PG&E’s request of $38.73 or 17.9% increase.
• November 30, 2023- The PD for the PG&E ERRA Forecast came out. There were a couple of disputed issues including whether to amortize the 2023 trigger balance over 6 months or 12. CalCCA was asking for 12 and PG&E was asking for 6 months. The CPUC adopted PG&E’s recommendation. The second issue was whether PG&E should apply a first-in-first-out methodology to the use of excess prior year RECs or a last-in-first-out methodology. The CPUC ruled with PG&E on a last-in-first-out methodology. • December 12, 2023- A revision to the proposed decision came out and CalCCA won its argument on first-in-first-out, meaning the CPUC is requiring PG&E to use a first-in-first-out methodology for RECs banked in or after 2019.
• December 29, 2023- PG&E submitted their Annual True-Up to change PG&E’s electric rates on January 1, 2024.
• March 21, 2024- There was a Preliminary Issue Review with Keyes and Fox. 2021 ERRA proceeding is still open but coming to an end, 2022 is still busy and 2023 is just starting up. Some of the big issues to watch include PG&E’s RA Sales and Accounting; DWR reimbursement to PG&E; and Retained, Sold and Unsold RPS. • June 12, 2024- The Assigned Commissioner issued the Scope Ruling in PG&E’s 2023 ERRA Compliance proceeding. The ruling does not adopt CalCCA’s recommendation to expressly clarify that the reasonableness of PG&E’s record year RA activities and sales is within the scope of this proceeding. It excludes the RA scoping issue out of this proceeding altogether, possibly in hopes the issue will be settled in PG&E’s 2022 ERRA Compliance proceeding. The Scope Ruling also lays out the procedural schedule. NewGen and Keyes & Fox will continue to work on discovery and reconvene with CalCCA before Intervenor testimony is due in September.
• June 17, 2024- CalCCA filed a protest to PG&E’s 2025 ERRA Forecast application. In this proceeding, the 2025 levels for the PCIA will be established. Due to forecasted low brown energy prices and high RA prices, the PCIA is expected to decrease, which will result in increased generation rates for PG&E’s bundled customers. PG&E’s 2025 ERRA Forecast application proposes a new ratemaking method to ensure reasonable rates for bundled ratepayers, by freezing the RA market price benchmark (MPB) at its 2024 forecast level, rather than using the 2025 forecast or the 2024 actual RA MPBs. CalCCA responded, urging the Commission against considering these broad policy questions, which fall outside the scope of the ERRA Forecast proceeding. CalCCA also argues that implementing an RA value cap would inappropriately inflate PCIA rates, shifting costs to unbundled customers, in violation of the PCIA ratemaking framework that has been established.
• July 25, 2024- The CPUC issued an ALJ ruling in PG&E’s 2022 ERRA Compliance proceeding, re-opening discovery to examine potential RA withholding actions taken by PG&E. • August 1, 2024- Assigned Commissioner issued a Scoping Memo and Ruling in PG&E’s 2025 ERRA Forecast application, supporting CalCCA’s protest that this proceeding is not the correct venue to address the RA MPB issue.
• September 3, 2024- CalCCA filed a direct testimony, prepared by Brian Dickman, in PG&E’s 2025 ERRA Forecast proceeding on behalf of CCAs. The testimony urges the CPUC to reject PG&E’s proposed change to its common cost allocation method and its proposal to create a new category of RPS-eligible resources outside of the previously recognized context of the PCIA calculation. The testimony also calls upon PG&E to make corrections to their calculation of “negative retained system RA” and “amount included as the amortization of the gain on the sale of its San Francisco General Office headquarters”.

Attachment 2 Agenda Date: 1/16/2025

• October 4, 2024- CalCCA filed an opening brief, prepared by Keyes and Fox, in PG&E’s 2022 ERRA Compliance proceeding regarding the issue of PG&E withholding excess RA. CalCCA urged the Commission to revisit PG&E’s Bundled Procurement Plan in the IRP proceeding to ensure PG&E is making its excess RA available to the market in a timely and comprehensive manner, which is critical due to current RA market shortages. The brief incorporated the new discovery responses received from PG&E, once the ALJ re-opened the discovery window for CalCCA in July 2024.
• October 4, 2024- Energy Division released the 2024 Final MPBs and 2025 Forecast MPBs that are used to calculate the PCIA in PG&E’s 2025 ERRA Forecast proceeding. They have since issued corrections to the MPBs several times.
• October 8, 2024- In the PG&E 2025 ERRA Forecast proceeding, the ALJ issued an email ruling asking for comments regarding the impact of the recently released MPBs. The questions posed ask parties whether they expect the released MPBs to have a significant impact on the issues within the scope of the proceeding, and to offer any procedural options to address these impacts. • October 14, 2024- PG&E and CalCCA replied to the ALJ ruling asking for party comments relating to the impact of the released MPBs. PG&E stated the released RA MPBs will result in a $500 million increase to the bundled customer generate revenue requirement, while departed load customers would see a net reduction of $500 million through their PCIA. Furthermore, the released RPS MPB would increase the bundled service customer generation revenue requirement by an additional $250 million, with a corresponding reduction to departed load customers. For these reasons, PG&E asks the Commission to delay the procedural timeline and consider various mitigation methods such as producing additional rate-setting scenarios and establishing a tracking account to remediate any potential cost shifts while further investigating this issue.

CalCCA stated in their replies that the RA MPB is operating as the Commission intended, therefore, no modifications to the ratemaking process in this proceeding are warranted. CalCCA reiterated that proposals to modify the PCIA revenue requirement calculation methodology are outside the scope of this proceeding and should not be considered in response to the ALJ ruling. • October 23, 2024- PG&E filed their Fall Update, in which they argue the recently released MPBs were wrongly calculated and inflated. Considering how the high price of the RA MPB does not appropriately incentivize procurement compliance, PG&E urges the Commission to consider mitigation measures. They present various mitigation proposals which involve freezing the RA and/ or RPS MPBs to 2024 forecast levels and tracking the differences in a balancing account.
• October 31, 2024- CalCCA filed a motion to strike PG&E’s MPB discussion and mitigation proposals from the record, as they were already deemed out of scope for this proceeding in a previous ALJ ruling. CalCCA also filed a reply brief which reiterates that the Commission should not consider MPB mitigation measures in this proceeding, and argues that the “gross revenue requirement” methodology equitably allocates common costs to customers.
• November 15, 2024- CalCCA held an ex parte and met with Maria Sotero from Commissioner Reynold’s office to discuss the MPB issues and better understand what strategies the CPUC wants to pursue in this case. The CPUC expressed understanding of CalCCA’s recommendation to maintain consistent usage of the MPB methodology in PG&E’s 2025 ERRA Forecast proceeding, but did indicate a desire to open a new rulemaking to consider changes to the MPB methodology.
• November 15, 2024- PG&E submitted their Annual Electric True-Up to change PG&E’s electric rates on January 1, 2025.
• November 25, 2024- The CPUC issued a PD for the PG&E 2025 ERRA Forecast proceeding which maintained that PG&E’s RA mitigation proposal is out of scope, securing CalCCA’s win in preventing $1B in costs to the PCIA. PG&E was ordered to use the 2024 MPBs that ED released. However, the PD states that the CPUC may open a new rulemaking to consider modifications to MPB methodology, with possible retroactive rate collections in PG&E’s 2025 Annual Electric True-Up. Furthermore, the PD adopts PG&E’s common cost allocation proposal, but sides with CalCCA that the change should be applied prospectively in 2025 and forward, not to 2024 costs.
• December 2, 2024- CalCCA filed opening comments to the PD in PG&E’s 2025 ERRA Forecast proceeding, emphasizing the importance of providing adequate timelines and discovery rights for non-IOU parties in any Attachment 2 Agenda Date: 1/16/2025

future proceeding that will deal with modifications to the RA MPB methodology. Considering recent changes in the RA market including System RA scarcity and sharp price increases in short-term RA, CalCCA does not oppose revisiting the RA MPB methodology, but urges the Commission to consider a more comprehensive evaluation of the methodology. CalCCA’s comments also push back on the CPUC’s adoption of PG&E’s common cost allocation methodology and urges the CPUC to instead adopt CalCCA’s proposal based on gross revenue requirements.
• December 19, 2024- The CPUC issued a final decision in PG&E’s 2025 ERRA Forecast proceeding, bringing it to a close. The decision adopts PG&E’s revised proposal of common costs allocation beginning with January 1, 2025 rates. PG&E’s estimated 12-month net revenue requirement for 2025 is $2.25 billion, resulting in an expected decrease of bundled residential customers’ rates by 2% and a decrease of unbundled residential customers’ rates of 4.4%.
• December 30, 2024- PG&E filed their final Annual Electric True-Up, reflecting the CPUC’s final decision, to update their electric rates effective January 1, 2025.

Net Billing Tariff (NBT):
• December 15, 2022- The CPUC issued a PD that was voted out unanimously. New solar customers that sign up after April 14, 2023, will be placed on NBT. This proceeding created a successor program to NEM 2.0 to address some of the identified issues with the existing Program. The objective is to increase equity and eliminate cost shifts onto lower income customers who are subsidizing, to some degree, residential solar owners.
• August 2, 2023- The CPUC issued a Proposed Decision on the remaining issues in the NBT proceeding, including virtual NEM, enhanced consumer protection, and fuel cell participation. • August 8 ,2023- Comments were filed by Joint CCAs: SDCP, PCE, Pioneer, SCP, RCEA, and SJCE. The comments argued that the Proposed Decision, with some adjustments, can improve bill clarity for NEM customers and future NBT customers.
• September 14, 2023- A California appeals court will hear a lawsuit seeking to overturn the CPUC’s rooftop solar decision which would significantly reduce the credits customers receive. • September 16, 2023- There was a letter signed by members of the Legislature on the NEM program for agricultural users.
• October 26, 2023- Joint CCAs have held ex parte meetings with the CPUC, and President Reynolds, who recommended meeting with the Energy Division.
• October 30, 2023- Energy Division released a Proposed Resolution approving the IOUs NBTs, with modifications.
• November 2, 2023- CPUC has delayed their decision implementing Virtual Net Energy Metering (VNEM) and other aspects of NBT until November 16, 2023, at the earliest. • November 16, 2023- CPUC adopted revision 2 of the VNEM Decision. • November 20, 2023- PG&E requested an extension of time to comply with the Residential Net Billing Tariff to August 31, 2024. Pioneer led a coalition of CCAs that submitted a letter to the CPUC in support of the extension request to allow for a more enhanced customer service process. • December 14, 2023- CPUC granted an extension for PG&E until April 15, 2024. • December 20, 2023- An appeals court in San Francisco upholds the CPUC decision on the vote to overhaul rooftop solar rules. Protect Our Communities Foundation, Center for Biological Diversity, and the Environmental Working Group filed the lawsuit. This decision could be taken to the Supreme Court. • Week of April 22, 2024- Pioneer will send a postcard to all customers impacted or potentially impacted by the Solar Billing Plan. Themed as “Top 5 Things to Know About the Sollar Billing Plan,” this mailer clarifies information provided in PG&E’s required mailers and will arrive before customers receive bills that reflect changes due to the Solar Billing Plan. Roughly 175 customers in Pioneer’s service area will be immediately affected. The mailer will go to all 723 customers with interconnection applications pending, as well as those who will see billing changes over the next year (about 1,800). • September 25, 2024- This proceeding was closed, as ordered in Decision 24-07-036. Pioneer will continue to administer the program per the regulations and this section will be removed from future reports.

Attachment 2 Agenda Date: 1/16/2025

Provider of Last Resort (POLR):
• October 2, 2019- SB 520 passed requiring the establishment of a Provider of Last Resort (POLR). As part of the proceeding to implement SB 520, the CPUC is seeking to establish new policies to plan for and prevent catastrophic failures in the event of an unplanned return en masse of CCA customers to IOU service.

Additionally, the CPUC will review and update existing procedures and policies for Financial Security Requirements (FSR), reentry fees, and LSE deregistration process and compliance requirements. • July 31, 2023- CalCCA's Reply Briefs were submitted and address PG&E’s proposal to modify the FSR to reflect two months of forecast energy costs, other parties’ recommendations on elements of the existing FSR calculation, mandatory contract assignments, financial monitoring, and the duration of POLR service. • March 14, 2024- the CPUC came out with a proposed decision. April 18 is the first opportunity the CPUC could adopt the decision. The proposed decision has a mix of favorable and unfavorable decisions. For example, it rejected PG&E’s proposal to require FSR postings to reflect 2 months of POLR service, it maintains the ability to use service bonds, and it keeps confidential the information about LSEs that trigger financial monitoring. However, the proposed decision also approved using PG&E’s Administrative Fee ($4.24) without sufficient evidence of the costs, the CPUC should clarify that November 2024 FSR Calculation would be the earliest possible calculation under the new rules, and the CPUC should clarify the timing of the second tier of reporting requirements so CCAs know when to evaluate their metrics. The biggest issue the proposed decision addressed was updating the FSR requirements. The minimum remains $147,000, but now CCAs must use the IOU’s Administrative and multiply that figure by the number of accounts the CCA has.

The higher of that amount or the $147,000 will be the new FSR. For CCAs that are in PG&E’s territory the administrative fee is $4.24 per customer, while the other IOUs’ administrative fees are significantly less (around $.50 per customer). If the final decision requires CCAs within PG&E’s service territory to use PG&E’s administrative fee, all CCAs within PG&E’s service territory will likely be paying an FSR well over the $147,000 minimum.
• April 23, 2024- CPUC adopted a revised POLR Decision inclusive of several of CalCCA’s requests.

Specifically:
o Reducing RA costs in the FSR by accounting for returning CPE RA allocations, in addition to the CAM and DR RA allocations.
o Nets PCIA in the FSR whether the PCIA is positive or negative. o Affirms current timing for calculating FSRs.
o Provides CCAs with an additional 60 days to file first FSR following IOU tariffs implementing this decision.
o Requires CCAs to file the Tier 1 audited financial report to Energy Division once a year, in January or July, whichever comes earlier relative to the availability of the audited financial statement.
o Allows 90 days for CCAs to submit joint advice letter on new CCA registration process • July 12, 2024- CalCCA, on behalf of Pioneer, filed a Tier 2 AL to formalize the Financial Monitoring and Reporting Guidance document. The CPUC requires financial reporting to be done on a 2-tier system. Tier 1 requires every CCA to submit an annual audited financial report. Tier 2 requires CCAs to submit additional financial reporting, if certain trigger events such as a change in credit rating occur. This document clarifies the process and procedures CCAs must follow to comply with Tier 2 financial reporting conditions. o July 22, 2024- The joint IOUs filed a protest to the joint CCAs’ AL on Financial Monitoring and Reporting Guidance, insisting CCAs’ use “lines of credit” instead of “letters of credit” as the primary financial instrument to demonstrate days of liquidity of hand (DLOH). The IOUs also insisted CCAs report financial triggers 10 days after they occur, instead of the proposed 60 days.
o September 6, 2024- CalCCA met with Energy Division to express that CCAs agree to comply with the joint IOUs’ request to use “lines of credit” to calculate DLOH. On the issue of minimum days required to report financial trigger events, CCAs insist on keeping 60 days, as this is the minimum amount of time required to prepare accurate financial statements due to complex billing and accounting systems.

Attachment 2 Agenda Date: 1/16/2025

• July 17, 2024- CalCCA, on behalf of Pioneer, filed a Tier 2 AL to clarify requirements for the new CCA registration process and implementation plan. These requirements include (1) submission of a feasibility study and pro forma financial statement with the Implementation Plan, (2) establishment of annual assumptions to be included in the pro forma financial statement, (3) establishment of milestones for critical implementation action and review progress, and (4) submission of an updated proforma financial statement six months prior to launch. The AL served to provide additional examples for annual assumptions and critical milestones.
o August 6, 2024- PG&E filed a protest to the joint CCAs’ AL on additional implementation plan requirements, citing the proposal would limit the CPUC’s ability to assess whether enhancements to the implementation plan would result in cost shifts to bundled customers. o August 13, 2024- CalCCA filed a reply to PG&E’s protest on the additional implementation plan requirements, citing the additional requirements proposed are correctly slotted under the umbrella of CPUC authority to certify implementation plans and determine a cost-recovery mechanism for CCA customers that prevents cost shifts to bundled customers. • August 6, 2024- An ALJ Ruling was issued to define the scoping issues in Phase 2 of the POLR proceeding, which will be primarily concerned with clarifying requirements for an application for a non-IOU LSE to become the POLR.
• August 23, 2024- The prehearing conference for Phase 2 was held, in which CalCCA filed a statement agreeing with the current set of questions proposed in the Phase 2 scope. In its statement, CalCCA also urged the CPUC to reject PG&E’s request to scope in issues regarding the liquidity needs of the POLR and analysis of seasonal RA pricing.
• October 24, 2024- The CPUC issued a scoping ruling for Phase 2 of the POLR proceeding which sets two primary topic areas. The first is establishing the regulatory framework for non-IOU POLRs and the second is the development of the joint application for a non-IOU LSE to serve as POLR. • November 12, 2024- The IOUs filed their ALs for the bi-annual FSR updates. CalCCA compiled the IOU ALs and confirmed they all made their FSR calculations consistent with the current authorization. Given that the IOU ALs implementing Phase 1 are still pending resolution, the FSR updates use the methodology in place without the Phase 1 Decision modifications. Due to the hold on the ALs, all CCAs will be obliged to post the minimum FSR of $147,000 come January 1, 2025.
• November 26, 2024- The CalCCA Regulatory Committee voted in favor of CalCCA engaging in Phase 2 of the POLR proceeding on behalf of its members, to ensure CCAs have a voice in the discussion for how a non-IOU POLR will be established and regulated. CalCCA will present the results of the Regulatory Committee’s vote to the Executive Committee on December 3, 2024, and to the CalCCA Board on December 12, 2024. • December 12, 2024- CalCCA’s Board of Directors voted to engage in Phase 2 of the POLR proceeding.

Utility Deenergization, PSPS, and EPSS:
• July 12, 2022-Pioneer, along with Joint CCAs, Joint Local Governments, and Rural County Representatives of California (RCRC), filed a motion with the CPUC on July 12, 2022, to consider EPSS issues in the Deenergization or its own Proceeding. The arguments in the motion seek to treat EPSS events with the same regulations and oversight as Public Safety Power Shutoff (PSPS) events. • September 21, 2023- The CPUC approved a PSPS citation program for violations of the established PSPS guidelines.
• August 30-31, 2023- PG&E provided a post PSPS report. A total of 3,928 customers were deenergized. • October 10, 2023- The Joint CCAs, RCRC, and Joint Local Governments had a meeting with the Public Advocates Office to see if there is agreement on the need to further do more with regards to Fast Trips. The Public Advocates Office indicated that the CPUC and Office of Energy Infrastructure Safety are not inclined to act to regulate Fast Trips and that more data is needed. The Public Advocates Office is looking to submit a report in the beginning of 2024.
• January 16, 2024- The data for December’s Fast Trips and YTD data came out. These are the following circuits in Pioneer’s territory with 8 or more outages in 2023:
o Placerville 2106 (EDH)- 19
o Apple Hill 2102 (EDH)- 18
Attachment 2 Agenda Date: 1/16/2025

o Shingle Springs 2109 (EDH)- 11
o Mountain Quarries 2101 (EDH)- 11
o El Dorado PH 2101 (EDH)- 11
o Clarksville 2104 (EDH)- 9
o Apple Hill 2104 (EDH)- 9
o Lincoln 1101 (Placer)- 8
o Penryn 1103 (Placer)- 8
o Penryn 1107 (Placer)- 8
o Brunswick 1105 (Nevada)- 17
o Brunswick 1106 (Nevada)- 15
• January 29, 2024- A data request was made by joint CCAs (including Pioneer) using the circuits listed above to PG&E requesting the number of customers served by each circuit, the number of life support customers, the number of medical baseline customers, and the number of critical facilities served by each circuit. • March 8, 2024- Part of the information we were seeking regarding the data request came back. Pioneer staff will be reviewing this information.
• August 23, 2024- PG&E completed our data request made in January, except for information regarding hardening projects on the circuit including their pole numbers, project location and timeline, and type of hardening work to be completed, on the grounds these questions are out of scope and are unduly burdensome. Pioneer staff will be reviewing the rest of the data request provided.

CEC Load Management Standards (LMS):
• October 12, 2022- The CEC adopted the Load Management Standards regulation which requires the development of a statewide standard tool for authorized rate data access by third parties that is compatible with each IOU, large POUs, and large CCAs with the idea that electricity customers or their authorized third-party agents can look at rates that the customer is eligible to switch and allow the customer to change the customer’s current rate to rates they are eligible for. • June 8, 2023- CEC staff provided a schedule of the key LMS adoption and compliance dates. • August 1, 2023- Pioneer, through Calpine, uploaded its rates and will continue to work with Calpine on uploading all time dependent rates to meet deadlines.
• January 17, 2024- Workshop on implementation of LMS. Comments on the workshop are due on January

31. • March 21, 2024- Pioneer’s LMS plan presented to the Pioneer’s Board for approval. • March 26, 2024- Pioneer submitted the Board-approved LMS plan. • April 1, 2024- All large CCAs are required to file their plan for compliance with LMS regulations. • April 16, 2024- CEC held a scoping meeting to discuss development of the statewide rate access tool.

Discussions on how the tool will be funded are ongoing. • May 31, 2024- CPUC granted PG&E’s request to delay commencement of enrollment in its dynamic rates pilots from June 1, 2024 to November 1, 2024.
• July 15, 2024- The CEC requires LSEs to jointly develop and submit a Single Statewide Tool (SST) for their review by October 1, 2024. The joint IOUs, led by SDG&E, released a 50-page draft of a proposed model for the SST, and will host weekly workshops to receive input from CCAs and POUs. • September 4, 2024- Pioneer met with CEC staff to receive feedback on our LMS Compliance Plan and discuss the development of our LMS programs.
• October 1, 2024- In compliance with LMS regulation requirements, Pioneer filed the Single Statewide Tool concept design, terms and conditions, and pleading document, jointly with the IOUs, Large CCAs, and POUs.

In addition, Pioneer submitted our individual LMS Load Flexibility Programs List to the CEC. 1 Attachment 3 Communications and Outreach Updates
Date: 1/16/2025
NOTABLE ACHIEVEMENTS – DECEMBER 2024:

OUTREACH AND ENGAGEMENT:

In addition to having an on-site presence at several community events, Pioneer used the holidays as an opportunity to reach out to key stakeholders via holiday cards. Additionally, we sent our Top 75 business customers a small gift (a branded journal) as a way to remind them about the savings and benefits Pioneer offers. We also sent thank you gifts to the nearly 150 HVAC contractors that participated in the 2024 rebate program to remind them that the program continues in spring of 2025.

December Community Outreach
• Auburn Festival of Lights sponsorship
• Colfax Winterfest sponsorship
• Grass Valley Cornish Christmas sponsorship
• Nevada City Victorian Christmas sponsorship
• Rocklin Chamber Tree Lighting
• Lincoln Chamber Tree Lighting
• Joint Chambers of Commerce GRC meeting
• Regional Economic Development Stakeholder Meeting
• PG&E Fourth Quarter North Valley/Sierra Regional Working Group Meeting • Sunrise with the Rocklin Chamber of Commerce
• Feeding the Foothills Group Volunteer Opportunity
• Lincoln Chamber of Commerce Networking Meeting
• Willows City Council meeting, answered expansion questions • Impact Assessment Study findings - presentation to the Sonora City Council

LINKEDIN FOLLOWING HITS A MILESTONE
The year ended with a near doubling of followers on LinkedIn and Instagram platforms. Posts that show real people continue to have the highest engagement. For December, our second post about • Pioneer’s year-end newsletter was sent electronically to 140,000 customers, marking a complete year of distributing quarterly newsletters. With a 53% open rate, customer
interest far exceeds industry standards (roughly 20%) and drove considerable website traffic to our Home and Programs pages.
• Pioneer now has more than 500 LinkedIn followers, a 98 percent increase in following since moving social media management in-house at the beginning of the fiscal year. • The required regulatory distribution of our Power Content Label and customer privacy statement were completed in
December, ensuring CPUC and CEC compliance.

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COMMUNITY ENERGY

the opening of the Yellow Pine II ribbon cutting performed best, followed by our posts about employee volunteerism and Supervisor Holmes’ retirement.

Honoring Jim Holmes Feeding the Foothills volunteer event

WEBSITE
Website traffic and engagement eased in December (down 14% from November) due in part to the pause in paid media. However, we still saw signs that our customer base is interested based on response to outreach efforts, with our Q4 newsletter sent on December 19th, producing one of the highest single days of traffic in 2024. Our organic search and “direct” traffic acquisition numbers increased over November’s by 31%, which also shows the impact from our newsletter and other marketing efforts outside of paid media.

CHATBOT
December chatbot activity was quiet, with a total of 21 conversations and an average duration of 12 minutes, 29 seconds. We still hold a strong customer satisfaction rating of 4.6 out of 5.

COMMUNICATIONS & OUTREACH: 2024 BY THE NUMBERS
116,000 Visitors to the Pioneer Community Energy website 7,860 Customer calls with an average satisfaction rating of 95% o February: Busiest month with 1,213 calls (likely due to expansion) o November: Least busy month with 232 calls
1,596 Social media followers by the end of the year
566 Live chatbot conversations with an average rating of 4.5 out of 5 o August: Busiest month with 83 conversations
o November: Least busy month with 14 conversations
84 Community meetings attended
25 Event sponsorships
21 Field days
5 Programs launched
3 New webinars recorded
2 New territories launched
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Attachment 4: Program Updates
Date: 1/16/2025

Community Advisory Committee
• The next Community Advisory Committee meeting is scheduled for February 26, 2025.

GridGen (solar + storage)
• The GridGen program has 73 customers in the pipeline, two customers installed, and six more on their way to installations.
• Pioneer is reaching out to installed customers for testimonials and feedback on their experience with the program to help promote the program and improve customer experience. •
PowerShift Rewards (incentives for energy conservation) • PowerShift Rewards will relaunch May 1, 2025.

A/C Tune-up Rebate (rebate for receiving an A/C tune-up) • The A/C tune-up rebate program will relaunch April 1, 2025. Staff contacted contractors who participated in 2024 to alert them of the program relaunch.

LED Discount (discounted LEDs at local hardware stores) • The LED discount program will be sunsetting in 2025 once funds are depleted.

Online Marketplace (solar and/or battery storage purchasing) • Eighteen (18) leads have been generated through the Electrum Marketplace. • Pioneer is working with Electrum to address improving local contractor participation in the program to increase customer satisfaction and utilization of the marketplace.

Hourly Plex Pricing Pilot (credits for energy conservation for Ag customers) • The Hourly Flex Pricing Pilot Program is available for agriculture customers in Pioneer territory. This program is administered by PG&E.
• Outreach to agriculture customers and agriculture commissions will begin in Q1 of 2025.

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Pioneer Community Energy
Glossary of Terms
CAISO - California Independent System Operator - a non-profit independent system operator that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (~80% of California's electric flow). Its stated mission is to "operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate
effective markets and promote infrastructure development. CAISO is regulated by FERC and governed by a five-member governing board appointed by the governor.

CALCCA - California Community Choice Association -Association made up of Community Choice Aggregation {CCA) groups which represents the interests of California's community choice electricity providers.

CARB - California Air Resources Board - The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.

CEC- California Energy Commission
CPUC - California Public Utility Commission
C&I - Commercial and Industrial - Business customers
CP - Compliance Period -Time period to become RPS compliant, set by the CPUC {California Public Utilities Commission)
DA- Direct Access - An option that allows eligible customers to purchase their electricity directly from third party providers known as Electric Service Providers (ESP).

DA Cap- the maximum amount of electric usage that may be allocated to Direct Access customers in California, or more specifically, within an Investor-Owned Utility service territory.

DA Lottery - a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently-applicable Direct Access Cap.

DA Waitlist - customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.

DAC - Disadvantaged Community
DASR - Direct Access Service Request - Request submitted by C&I to become direct access eligible.

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Demand - The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts {kW), megawatts {MW), or gigawatts {GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.

DER - Distributed Energy Resource -A small-scale physical or virtual asset {e.g., EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.

Distribution - The delivery of electricity to the retail customer's home or business through low voltage distribution lines.

DLAP- Default Load Aggregation Point- In the CAISO's electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled. Pioneer settles its CAISO load at the PG&E DLAP as Pioneer is in the PG&E transmission access charge area.

DR - Demand Response - An opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.

DWR - Department of Water Resources - DWR manages California's water resources, systems, and infrastructure in a responsible, sustainable way.

ELCC- Effective Load Carrying Capacity -The additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources the ELCC is the amount of capacity which can be counted for Resource Adequacy purposes.

EPIC - Electric Program Investment Charge -The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of PG&E, San Diego Gas & Electric Company {SDG&E), and Southern California Edison Company {SCE) ERRA - Energy Resource Recovery Account - ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, then the utility gives money back, and vice versa.

ESP- Energy Service Provider - An energy entity that provides service to a retail or end-use customer.

EV - Electric Vehicle
GHG - Greenhouse gas - water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane, and chlorofluorocarbons (CFCs). A gas that causes the atmosphere to trap heat radiating from the earth. The most common GHG is Carbon Dioxide, though Methane and others have this effect as well.

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GRC- General Rate Case - Proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California's three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocates Office and interested parties and approval by the CPUC.

GWh - Gigawatt-hour - The unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.

IEP - Independent Energy Producers - California's oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.

IOU - Investor Owned Utility- A private electricity and natural gas provider.

IRP- Integrated Resource Plan -A plan which outlines an electric utility's resource needs in order to meet expected electricity demand long-term.
kW - Kilowatt - Measure of power where power (watts)= voltage (volts) x amperage (amps) and 1 kW= 1000 watts
kWh - Kilowatt-hour - This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.

LCFS- Low Carbon Fuel Standard -A CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels, and therefore, reduce greenhouse gas emissions.

LCR - Local (RA) Capacity Requirements -The amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.

LMP - Locational Marginal Price - Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day- ahead and real time market as it balances the system using the least cost. The LMP is comprised of three components: the marginal cost of energy, congestion, and losses. The LMP is used to financially settle transactions in the CAISO.

Load - An end use device or customer that receives power from an energy delivery system. Load should not be confused with Demand, which is the measure of power that a load receives or requires.

See Demand.

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SE - Load-serving Entity- Entities that have been granted authority by state, local law, or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.

NEM - Net Energy Metering -A program in which solar customers receive credit for excess electricity generated by solar panels.

NRDC- Natural Resources Defense Council
OIR - Order Instituting Rulemaking - A procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five Commissioners of the CPUC.

MW - Megawatt - measure of power. A megawatt equals 1,000 kilowatts or 1 million watts.

MWH - Megawatt-hour- measure of energy
NP-15 - North Path 15 - NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in northern California in PG&E's service territory.

PCCl - RPS Portfolio Content Category 1- Bundled renewables where the energy and REC are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO. Also known as "in-state" renewables.

PCC2 - RPS Portfolio Content Category 2 - Bundled renewables where the energy and REC are from out-of-state and not dynamically scheduled to a CBA.

PCC3 - RPS Portfolio Content Category 3 - Unbundled REC PCIA or "exit fee" - Power Charge Indifference Adjustment (PCIA) is an "exit fee" based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.

PCL - Power Content Label - A user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Statue of 2009) and Senate Bill 1305 (Statutes of 1997).

PD- Proposed Decision -A procedural document in a CPUC Rulemaking process that is formally commented on by Parties to the proceeding. A PD is a precursor to a final Decision voted on by the five Commissioners of the CPUC.

Pnode - Pricing Node - In the CAISO optimization model, it is a point where a physical injection or withdrawal of energy is modeled and for which a LMP is calculated.

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PPA- Power Purchase Agreement -A contract used to purchase the energy, capacity, and attributes from a renewable resource project.

RA - Resource Adequacy - Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities-both independently owned utilities and electric service providers-to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.

RE - Renewable Energy - Energy from a source that is not depleted when used, such as wind or solar power.

REC - Renewable Energy Certificate - A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every MWh of electricity they produce. Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.

RPS - Renewable Portfolio Standard - Law that requires CA utilities and other load serving entities (including CCAs) to provide an escalating percentage of CA qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.

SCE - Southern California Edison
SDG&E - San Diego Gas & Electric
SGIP - Self-Generation Incentive Program - A program which provides incentives to support existing, new, and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.)
TCR EPS Protocol - The Climate Registry Electric Power Sector Protocol - Online tools and resources provided by The Climate Registry to assist organizations to measure, report, and reduce carbon emissions.

Time-of-Use (TOU) Rates - The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block. Time-of-use rates are usually divided into three or four time-blocks per 24-hour period (on-peak, mid-peak, off-peak and sometimes super off­ peak) and by seasons of the year (summer and winter). Real time pricing differs from TOU rates in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.

TURN - The Utility Reform Network - A ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.

Unbundled RECs - Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are "unbundled" and sold to different buyers.

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VPP - Virtual Power Plant - A cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid. For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.