Pioneer Community Energy Board of Directors
June 19, 2025

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369617.3

EXHIBIT A

SCOPE OF SERVICES
A. Monthly Financial Operational Assistance:

1. Maintain accounting system, accounts payable system and processes.

2. Maintain the general ledger with proper support and documentation, including:
a. Posting accrued revenue, cash receipts, accounts payable, cash disbursements, payroll, accrued expenses, aggregate customer billings, etc. b. Prepare or maintain the following monthly analysis regarding general ledger account balances:
i. Reconciliation to statements from Pioneer's financial institution for cash activity and balances;
ii. Reconciliation of customer data manager reports of customer activity and accounts receivable aging to general ledger;
iii. Computation of estimated user fees earned but not billed as of the end of the reporting period;
iv. Schedule of depreciation of capital assets;
v. Aged schedule of accounts payable;
vi. Schedules of details regarding all remaining balance sheet accounts.

3. Manage accounts payable: Maher utilizes a cloud-based accounts payable document management system to provide for documentation of management review, proper segregation of duties, and access to source data. Maher ensures that required authorization is documented and that account coding is correct. Pioneer's staff then authorizes the release of payment, providing an additional safeguard.

4. Assist with compliance of fiscal provisions of non-energy vendor contracts for services.

Before remitting vendor invoices for management approval, Maher verifies that each vendor invoice is compliant with contract provisions regarding time periods, rates, and financial limits.

5. Provide periodic and year-to-date financial statements in compliance with GAAP (without disclosures). The financial statements will be considered a compilation engagement in accordance with the Statements on Standards for Accounting and Review Services promulgated by the AICPA.

6. Provide monthly financial statements with comparison to budget. a. Provide timely budget amendments and insight suggestions.

7. Filing annual information returns, such as form 1099/1096's.

8. Prepare and file various compliance reports for state and local agencies such as user taxes, energy surcharges and state controller reports including financial transaction and government compensation in California.

9. Assist in treasury function and assist staff with development of the operating budget.

10. The responsibility of the accounting and reporting for all mPOWER activity rests with Pioneer Community Energy’s treasurer and the County of Placer Treasurer Tax-Collector’s Office. Maher Accountancy will incorporate data prepared by the treasurer in the annual financial statements.

B. Financial Statement Audit Support

1. Draft financial statements, notes, and MD&A letter

2. Prepare audit workpapers

3. Coordinate with Pioneer and auditor
C. Provide access to unified web portal for professional services contract management and review

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1. Maintain listing of open and recently closed contracts, documents, and basic metadata as available from accounting system or Bill.com.

2. Track Actual spend against commitments and report on available balances.

3. Maher will maintain the data, but ongoing accuracy will require cooperation from vendor relationship managers

4. Pioneer will timely provide Maher with contracts and contract amendments

5. Pioneer will review Maher’s input of the contract data into the portal

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EXHIBIT B

PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount for services rendered shall not exceed $207,200.

Maher Fee Summary
Task Fixed Monthly Fee Annual Maximum Notes
Monthly Financial
Operations Support $15,850 $190,200
Annual Financial Statement
Audit Report N/A $17,000 Payable upon audit completion
Contract/Budget Portal N/A N/A Waived
Not-to-Exceed Total N/A $207,200
Invoices
Invoices shall include a list of work performed by billable hour including date, hours and services provided.

Work performed by Consultant will be subject to final acceptance by Pioneer.

Reimbursable Expenses
Administrative, overhead, secretarial time or overtime, word processing, photocopying, in house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. Travel expenses must be authorized in advance in writing by Pioneer.

Submit all invoices to: Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677

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369617.3

EXHIBIT C

FACILITIES, EQUIPMENT, AND OTHER

MATERIALS, AND OBLIGATIONS OF PIONEER
(Specify all equipment and facilities to be provided or made available by Pioneer, and any other Pioneer obligations.)

NOT APPLICABLE

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369617.3

EXHIBIT D

HOLD HARMLESS AGREEMENT

AND INSURANCE REQUIREMENTS

1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
A. To the fullest extent permitted by law, CONSULTANT hereby agrees to protect, defend, indemnify, and hold PIONEER free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, reasonable attorneys’ fees for counsel of Pioneer’s choice, expert fees, and all other expenses incurred by PIONEER arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to any real or personal property (including employees or property of PIONEER) and without limitation by enumeration, all other claims or demands of every character, to the extent attributable to CONSULTANT’S negligence, recklessness, or willful misconduct or other wrongful acts, errors or omission of CONSULTANT or CONSULTANT’S failure to comply with any provision in this Agreement. This provision is not intended to create any cause of action in favor of any third party against CONSULTANT or PIONEER or to enlarge in any way the CONSULTANT’s liability but is intended solely to provide for indemnification of PIONEER from liability for damages or injuries to third persons or property to the extent attributable to CONSULTANT’s performance pursuant to this Agreement. PIONEER’s right to indemnity under this Agreement shall arise immediately upon the occurrence of the event giving rise to the indemnified liability. PIONEER shall be entitled to a defense under this Agreement immediately upon the institution of a claim or action that is covered by this indemnity, even though liability for said claim or action has not yet been determined at the time the duty to defend the PIONEER hereunder has arisen. CONSULTANT shall not be required to indemnify PIONEER for such loss or damage as is caused by the active negligence, sole negligence, or willful misconduct of PIONEER.

B. As used in this section, the term PIONEER means Pioneer or its officers, agents, employees, and volunteers.The term CONSULTANT means Consultant, its officers, employees, servants, agents, or subconsultants, or anyone directly or indirectly employed by either Consultant or its subconsultants, in the performance of this Agreement.

C. The obligations of CONSULTANT set forth herein are not limited by the provisions of any workers’ compensation or similar statute. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to PIONEER.

D. PIONEER does not waive any indemnity rights by accepting any insurance policy or certificate required pursuant to this Agreement. CONSULTANT’s indemnification obligations apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

E. PIONEER may request a deposit for defense costs from CONSULTANT with respect to a claim. If PIONEER requests a defense deposit, CONSULTANT shall provide it within 15 days of the request.

F. CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth here from each and every subconsultant or any other person or entity involved in the performance of this Agreement on CONSULTANT’s behalf.

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2. INSURANCE:

CONSULTANT shall file with PIONEER concurrently herewith a Certificate of Insurance, in companies acceptable to PIONEER, with a Best’s Rating of no less than A-:VII showing, and complete, certified copies of all required insurance policies, including endorsements affecting the coverage for all policies required by this Agreement. CONSULTANT shall require all of its subcontractors, subconsultants, and other agents to do the same. Approval of the insurance by PIONEER shall not relieve or decrease any liability of CONSULTANT.

3. WORKER’S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

Worker’s Compensation Insurance shall be provided as required by any applicable law or regulation.

Employer’s liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.

If there is an exposure of injury to CONSULTANT’s employees under the U.S. Longshoremen’s and Harbor Worker’s Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.

Each Worker’s Compensation policy shall be endorsed with the following specific language:
 Cancellation Notice - “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy”.
 Waiver of Subrogation - The workers’ compensation policy shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against Pioneer, its officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.
 CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers’ Compensation insurance. Certificates of Workers’ Compensation shall be filed forthwith with Pioneer upon demand.

4. GENERAL LIABILITY INSURANCE:

A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONSULTANT, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:
(1) Contractual liability insuring the obligations assumed by CONSULTANT in this Agreement.

B. Commercial General Liability Insurance shall be no less broad than ISO form CG 00 01.

Coverage must be on a standard Occurrence form. One of the following forms is required:
(1) Comprehensive General Liability; or

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(2) Commercial General Liability (Occurrence).

C. If CONSULTANT carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
 Two million dollars ($2,000,000) each occurrence
 Four million dollars ($4,000,000) aggregate
D. If CONSULTANT carries a Commercial General Liability (Occurrence) policy:
(1) The limits of liability shall not be less than:
Two million dollars ($2,000,000) each occurrence (combined single limit for bodily injury and property damage)
Two million dollars ($2,000,000) for Products-Completed Operations Four million dollars ($4,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).

E. Special Claims Made Policy Form Provisions:

Coverage must be on a standard Occurrence form. Claims-Made, modified, limited or restricted Occurrence forms are not acceptable. If any of the required policies provide coverage on a claims-made basis the Retroactive Date must be shown and must be before the Effective Date of the Agreement or the beginning of work. Claims-Made Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, CONSULTANT must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work Conformity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. In no cases shall the types of polices be different.

5. ENDORSEMENTS:

Each policy required herein, other than Professional Errors and Omissions and Worker’s Compensation, shall be endorsed with the following specific language:

A. “Pioneer Community Energy, its officers, agents, employees, and volunteers are to be covered as insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.”
B. “The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss.”

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C. “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy.”
All endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf.

6. AUTOMOBILE LIABILITY INSURANCE:

Automobile Liability insurance covering bodily injury and property damage in an amount no less than two million dollars ($2,000,000) combined single limit for each occurrence.

Covered vehicles shall include owned, non-owned, and hired automobiles/trucks using ISO Business Auto Coverage form CA 00 01 (or equivalent).

7. PROFESSIONAL LIABILITY INSURANCE:

Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000 per occurrence and $2,000,000 aggregate.

The deductible or self-insured retention may not exceed $50,000. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the Effective Date of the Agreement or commencement of the work. Coverage shall be continued for two years after the completion of the work by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the work under this Agreement. In the event CONSULTANT’s policy is a “claims made” policy only covering those claims made during the policy period, then CONSULTANT agrees to maintain the professional liability insurance required hereunder and with respect to this project in effect for at least three (3) years after acceptance of the work.

8. PRIVACY AND CYBERSECURITY LIABILITY INSURANCE:

Privacy and cybersecurity liability (including costs arising from data destruction, hacking or intentional breaches, crisis management activity related to data breaches, and legal claims for security breach, privacy violations, and notification costs of at least $5,000,000 US per occurrence.

9. ADDITIONAL REQUIREMENTS:

Premium Payments - The insurance companies shall have no recourse against PIONEER and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.

Policy Deductibles - The CONSULTANT shall be responsible for all deductibles in all of the CONSULTANT’s insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.

CONSULTANT’s Obligations - CONSULTANT’s indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this Agreement.

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Verification of Coverage - CONSULTANT shall furnish Pioneer with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by Pioneer before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Material Breach - Failure of the CONSULTANT to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire Agreement. In the event any policy is canceled prior to the completion of the Agreement and CONSULTANT does not furnish a new certificate of insurance prior to cancellation, PIONEER has the right, but not the duty, to obtain the required insurance and deduct the premium(s) from any amounts due CONSULTANT under this Agreement.

Subrogation – CONSULTANT hereby waives all rights of subrogation against PIONEER.

CONSULTANT shall additionally waive such rights either by endorsement to each policy or provide proof of such waiver in the policy itself.

Report of Claims – CONSULTANT shall report to PIONEER, in addition to CONSULTANT’s insurer, any and all insurance claims submitted to CONSULTANT’s insurer in connection with the services under this Agreement.

Premium Payments and Deductibles - CONSULTANT must disclose all deductibles and self-insured retention amounts to PIONEER. PIONEER may require Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within retention amounts. Ultimately, PIONEER must approve all such amounts prior to execution of this Agreement.

PIONEER has no obligation to pay any premiums, assessments, or deductibles under any policy required in this Agreement. CONSULTANT shall be responsible for all premiums and deductibles in all of CONSULTANT’s insurance policies. The amount of deductibles for insurance coverage required herein are subject to PIONEER’s approval.

Duty to Defend and Indemnify – CONSULTANT’s duties to defend and indemnify PIONEER under this Agreement shall not be limited by the foregoing insurance requirements and shall survive the expiration or termination of this Agreement.

369617.3

EXHIBIT E

CAMPAIGN CONTRIBUTION DISCLOSURE FORM
Local governments are subject to the campaign disclosure provisions detailed in Government Code Section 84308.

Please carefully read the following information to
determine if the provisions apply to you. If you
determine that the provisions are applicable, the
Campaign Disclosure Form must be completed and
returned to Pioneer with your application.

No Pioneer Board member or other Pioneer official shall accept, solicit, or direct a campaign contribution of more than $500 from any party1 financial interested
participant,2 or agent3 for 12 months after the Pioneer approves a contract. This prohibition commences when
an application is filed, or a proceeding is otherwise
initiated.

A party to a Pioneer proceeding shall disclose on the record of the proceeding any campaign contribution of more than $500 by a party or agent to any Pioneer member or other Pioneer official during the preceding 12 months. No party to or participant in a Pioneer proceeding, shall make a
contribution of more than $500 to a Pioneer Board member or other Pioneer official during a proceeding and for 12 months after the Pioneer approves a contract. No agent to a party or participant shall make a contribution in any amount to a Pioneer board member or other Pioneer official during the preceding 12 months following the date a final
decision is rendered by Pioneer.

A Pioneer Board member or other Pioneer official who
received a campaign contribution of more than $500 within the preceding 12 months from any party, or agent, to a
proceeding shall disclose that fact on the record of the proceeding, and shall abstain from participating in the proceeding. However, if he or she receives a contribution that otherwise would require disqualification, and returns the contribution within 30 days of making the decision, or
knowing about the contribution and the relevant proceeding, whichever comes last, , he or she may participate in the proceeding.
1 “Party” is defined as any person who files an
application for, or is the subject of, a proceeding.
2 “Participant” is defined as any person who actively supports or opposes a particular decision in a proceeding.
3 “Agent” is defined as a person who represents a party in connection with a proceeding. If an individual acting as an agent also is acting as an employee or member of
a law, architectural, engineering, or consulting firm, or a similar entity or corporation, both the individual and the entity or corporation are agents. When a closed
To determine whether you or your agent made a campaign
contribution of more than $500 to a Pioneer Board member or other Pioneer official within the preceding 12 months, you must aggregate all such contributions.

Names of current Pioneer Board members and other Pioneer officials are available on Pioneer’s website. If you have questions about Government Code Section 84308, FPPC regulations, or the Campaign Disclosure Form, please contact the Pioneer Clerk.

CAMPAIGN CONTRIBUTION DISCLOSURE FORM
(a) Document:
□ License
□ Lease
□ Permit
□ Franchise
□ Other Contract
□ Other Entitlement
Name and address of any party, participant, or agent, who has contributed more than $500 to any Pioneer Board
Member or other Pioneer official within the preceding 12 months:

1. ____________________________________

2. ____________________________________

3. ____________________________________
(b) Date and amount of contribution:

Date Amount $
Date Amount $
(c) Name of Pioneer Board member or other Pioneer
official to whom contribution was made:

1. ____________________________________

2. ____________________________________

3. ____________________________________
(d) □ Check here If no contributions have been made to
any Board member or other Pioneer official in the
preceding 12 months.
(e) I certify that the above information is provided to the best of my knowledge.

Printed Name
Signature
Michael Maher

369617.3
corporation is a party to a proceeding, the majority
shareholder is subject to these provisions.

Date Phone

Staff Report – Item 1h
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1h: Adopt Resolution to Authorize the Chief Executive Officer to Execute an Amendment to the Agreement with Colantuono Highsmith Whatley, PC for an Increase of $200,000 for a Total Contract Amount Not to Exceed $350,000
Date: 6/19/2025

RECOMMENDATION
Adopt resolution to authorize the Chief Executive Officer to execute an amendment to the agreement with Colantuono Highsmith Whatley, PC for an increase of $200,000 for a total contract amount not to exceed $350,000.

BACKGROUND
After completing a Request for Proposals (“RFP”) process in March 2024, Colantuono Highsmith Whatley, PC was selected as Pioneer’s General Counsel. At the May 25, 2024 Governing Board meeting, the Board approved a contract with Colantuono Highsmith Whatley, PC for an amount not to exceed $150,000. Pioneer seeks approval of this amendment to allow additional funding sufficient for continued services through June 30, 2026.

Staff recommended Colantuono Highsmith Whatley, PC based on their special counsel work with CCA’s, CCCFA, and other JPA’s. The firm also maintains offices in Pioneer’s service territory and provides general counsel services to two of Pioneer’s member agencies.

ANALYSIS & DISCUSSION
The scope of work is included in Exhibit A to the original Agreement with Colantuono Highsmith Whatley, PC and is attached for reference. The scope of work includes:
• Attendance at the monthly Pioneer Governing Board meetings and any committee and special meetings, workshops required by Chief Executive Officer or Chair of the Board. • Brown Act, Conflict of Interest and Public Records Act advice and representation. • Advice to the Chief Executive Officer and designated staff on administrative and operational matters.
• Research and advise on legal questions asked by the Governing Board, Chief Executive Officer, and designated staff.
• Provide prompt responses and have availability for consultation and to render written opinions on given issues related to Pioneer business in a timely manner. • Prepare or review all resolutions, consultant and vendor contracts, deeds, leases, agreements, easements, and all other legal documents as requested by the Chief Executive Officer or staff.

STRATEGIC PLAN
The recommendation supports the Strategic Goal to “Achieve Operational Optimization."

FISCAL IMPACT
The cost of the general and special legal services provided by the firm will vary based on Pioneer’s needs but is expected to not exceed $200,000 for Fiscal Year 2025-26.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1h Agenda Date: 6/19/2025

ATTACHMENTS

1. Resolution to Authorize the Chief Executive Officer to Execute an Amendment to the Agreement with Colantuono Highsmith Whatley, PC for an Increase of $200,000 for a total contract amount not to exceed $350,000.

2. Original Agreement between Pioneer and Colantuono Highsmith Whatley, PC.

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 June 19, 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, the Governing Board of Pioneer Community Energy (“Pioneer”) desire General and Special Legal Services; and
WHEREAS, Pioneer issued a Request for Proposals (“RFP”) for legal services during January 2024; and
WHEREAS, Colantuono Highsmith Whatley, PC was selected as Pioneer’s General Counsel as a result of Pioneer’s RFP process; and
WHEREAS, Pioneer Community Energy and Colantuono Highsmith Whatley, PC entered into a Consultant Services Agreement for general counsel services on May 1, 2024 (“Original Agreement”), wherein Colantuono Highsmith Whatley, PC agreed to provide legal counsel services to Pioneer, with compensation not-to-exceed $150,000; and WHEREAS, Pioneer and Colantuono Highsmith Whatley, PC desire to amend the Original Agreement to increase the total not-to-exceed amount by $200,000 to a total of $350,000.

In the matter of: Resolution to Authorize the Chief
Executive Officer to Execute an Amendment to the
Agreement with Colantuono Highsmith Whatley,
PC for an Increase of $200,000 for a Total Contract
Amount Not to Exceed $350,000.

Resolution 2025-__
June 19, 2025
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 the Amendment to the Consultant Services Agreement with Colantuono Highsmith Whatley, PC, as attached hereto as Exhibit “A”, and authorizes the Chief Executive Officer to execute the First Amendment on behalf of Pioneer Community Energy with any minor clerical or clarifying changes proposed by the Chief Executive Officer and General Counsel.

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

Exhibit A: First Amendment to Consultant Services Agreement with Colantuono Highsmith Whatley, PC.

Administering Agency:

Contract Description:

Pioneer Community Energy
Legal Services

CONSULTANT SERVICES AGREEMENT
AMENDMENT NO. 1
THIS AGREEMENT, originally executed May 1, 2024, by and between the Pioneer Community Energy ("Pioneer"), and Colantuono, Highsmith & Whatley, PC ("Consultant"), is hereby amended as described below:
• Section 2 - Payment is amended to say:

The amount of the contract shall not exceed Three Hundred Fifty Thousand Dollars ($350,000.00).
• Exhibit B - Payment for Services Rendered is amended to say:

Maximum Limit & Fee Schedule
The total amount for services rendered not to exceed $350,000.00.

Unless expressly amended in this Amendment, all provisions, conditions, covenants, and terms of the Consultant Services Agreement shall remain in full force and effect.

Executed as of the last date indicated below:

PIONEER COMMUNITY ENERGY
By: __________ _ Date:

Name: Donald Eckert
Title: Chief Executive Officer

COLANTUONO, HIGHSMITH & WHATLEY, PC
E-SIGNED by David Ruderman
By: on 2025-06-02 20:37:14 PDT Date: June 02, 2025
Name: David Ruderman
Title: Assistant Secretary
399710.1
Administering Agency: Pioneer Community Energy
Contract No.

Contract Description: Legal Services

CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of May 1 , 2024, by and between Pioneer Community Energy, ("Pioneer"), and Colantuono, Highsmith & Whatley, PC ("Consultant"), who agree as follows:

I. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A.

2. Payment. Pioneer shall pay Consultant for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payment specified in Exhibit B shall be the only payment made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to Pioneer in the manner specified therein, or, if no manner be specified, then according to the usual and customary procedures which Consultant uses for billing clients similar to Pioneer. The amount of the contract shall not exceed One-Hundred and Fifty Thousand Dollars ($150,000).

3. Facilities, Equipment and Other Materials, and Obligations of Pioneer. Unless otherwise specified in Exhibit C, Consultant shall, at its sole cost and expense, furnish all facilities, equipment, and other materials which may be required for furnishing services pursuant to this Agreement.

4. Exhibits. All exhibits referred to herein will be attached hereto and by this reference incorporated herein.

5. Time for Performance. Time is of the essence. Failure of Consultant to perfon11 any services within the time limits set forth in Exhibit A shall constitute material breach of this contract.

6. Independent Consultant. At all times during the term of this Agreement, Consultant shall be an independent Consultant and shall not be an employee of Pioneer. Pioneer shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement. Pioneer shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement.

7. Licenses; Permits; Etc. Consultant represents and warrants to Pioneer that it has all licenses, permits, qualifications, and approvals of whatsoever nature, which are legally required for Consultant to practice its profession. Consultant represents and warrants to Pioneer that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the tem1 of this Agreement, any licenses, permits, and approvals which are legally required for Consultant to practice its profession at the time the services are performed. 352038.2

8. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.

9. Hold Harmless and Indemnification Agreement. At all times during the performance of this agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Exhibit D.

10. Insurance. Consultant shall file with Pioneer concurrently herewith a Ce1tificate of Insurance, in companies acceptable to Pioneer, with a Best's Rating of no less than A-:VII, for the coverage shown in Exhibit D. All costs of complying with these insurance requirements shall be included in Consultant's fee(s). These costs shall not be considered a "reimbursable" expense under any circumstances.

11. Consultant Not Agent. Except as Pioneer may specify in writing Consultant shall have no authority, express or implied, to act on behalf of Pioneer in any capacity whatsoever as an agent.

Consultant shall have no authority, express or implied pursuant to this Agreement to Bind Pioneer to any obligation whatsoever.

12. Assignment Prohibited. Consultant may assign its rights and obligations under this Agreement only upon the prior written approval of Pioneer, said approval to be in the sole discretion of Pioneer.

13. Personnel.

A. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that Pioneer, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, including those members of the Project Team as explained below, Consultant shall remove any such person immediately upon receiving notice from Pioneer of the desire of Pioneer for removal of such person or persons.

B. Notwithstanding the foregoing, if specific persons are designated as the "Project Team" in Exhibit A, Consultant agrees to perform the work under this agreement with those individuals identified. Reassignment or substitution of individuals or subcontractors named in the Project Team by Consultant without the prior written consent of Pioneer shall be grounds for cancellation of the agreement by Pioneer, and payment shall be made pursuant to Section 15 (Termination) of this Agreement only for that work performed by Project Team members.

I 4. Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. All products of whatsoever nature which Consultant delivers to Pioneer pursuant to this Agreement shall be prepared in a substantial first class and workmanlike manner and conform to the standards or quality normally observed by a person practicing in Consultant's profession.
352038.2

15. Termination.

A. Pioneer shall have the right to terminate this Agreement at any time by giving notice in writing of such termination to Consultant. In the event Pioneer shall give notice of termination, Consultant shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement except to the extent the Rules of Professional Conduct or other law requires otherwise. In the event Pioneer shall terminate this Agreement:
1) Consultant shall deliver copies of all writings prepared by it pursuant to this Agreement. The term "writings" shall be construed to mean and include:
handwriting, typewriting, printing, Photostatting, photographing, and every other means of recording upon any tangible thing any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof.
2) Pioneer shall have full ownership and control of all such writings delivered by Consultant pursuant to this Agreement.
3) Pioneer shall pay Consultant the reasonable value of services rendered by Consultant to the date of termination pursuant to this Agreement not to exceed the amount documented by Consultant and approved by Pioneer as work accomplished to date; provided, however, that in no event shall any payment hereunder exceed the amount of the agreement specified in Exhibit B, and further provided, however, Pioneer shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Agreement. In this regard, Consultant shall furnish to Pioneer such financial information as in the judgment of Pioneer is necessary to determine the reasonable value of the services rendered by Consultant. The foregoing is cumulative and does not affect any right or remedy, which Pioneer may have in law or equity.

B. Consultant may terminate its services under this Agreement upon thirty (30) working days' advance written notice to Pioneer.

16. Contract Term. This agreement shall remain in place until the Scope of Services described in Exhibit A is completed, or until contract is terminated pursuant to Section 15 of this contract.

17. Non-Discrimination. Consultant shall not discriminate in its employment practices because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, or sexual orientation in contravention of the California Fair Employment and Housing Act, Government Code section 12900 et seq.

18. Recortls. Consultant shall maintain, at all times, complete detailed records with regard to work performed under this agreement in a form acceptable to Pioneer, and Pioneer shall have the right to inspect such records at any reasonable time. Notwithstanding any other tem1s of this agreement, no payments shall be made to Consultant until Pioneer is satisfied that work of such value has been rendered pursuant to this agreement. However, Pioneer shall not unreasonably withhold payment and, if a dispute exists, the withheld payment shall be proportional only to the item in dispute.
352038.2
Pioneer agrees that Consultant may, in Consultant's discretion, maintain all or part of Pioneer's client file in electronic format. Consultant may store part or all of Pioneer's documents using secure cloud storage services. If so, Consultant will apply all reasonable methods to maintain the confidentiality of Pioneer's files, just as it does for Pioneer's non-digital information. Pioneer's data will be password protected and encrypted using currently available technology. Clients requiring information from their files may obtain that information only by written request to Consultant.

19. Ownership oflnformation. All professional and technical infonnation developed under this Agreement and all work sheets, reports, and related data shall become the property of Pioneer, and Consultant agrees to deliver reproducible copies of such documents to Pioneer on completion of the services hereunder. Pioneer agrees to indemnify and hold Consultant hannless from any claim arising out of reuse of the information for other than this project.

20. Waiver. One or more waivers by one party of any major or minor breach or default of any provision, term, condition, or covenant of this Agreement shall not operate as a waiver of any subsequent breach or default by the other party.

21. Conflict oflnterest. Consultant certifies that no official or employee of Pioneer, nor any business entity in which an official of Pioneer has an interest, has been employed or retained to solicit or aid in the procuring of this agreement. In addition, Consultant agrees that no such person will be employed in the performance of this agreement without immediately notifying Pioneer.

Pioneer acknowledges that Consultant currently represents City of Auburn and the City of Grass Valley, member agencies of Pioneer, as City Attorney for each city. Additionally, Consultant represents the California Community Choice Financing Authority (CCCFA), of which Pioneer is an associate member agency. Consultant is not aware, and Pioneer hereby represents and warrants that it is not aware, of any past or present adverse interests between Pioneer and the City of Auburn, the City of Grass Valley, or CCCF A that would prevent Consultant from performing the Scope of Services commencing on the effective date of this Agreement. Pioneer and Consultant agree to notify each other promptly of any potential or actual adverse interests between Pioneer and the City of Auburn, the City of Grass Valley, and/or CCCF A that may arise hereafter. In such an event, Pioneer hereby consents: (a) to Consultant withdrawing from representing Pioneer under this Agreement or otherwise, and (b) to Consultant's continued representation of the City of Auburn, the City of Grass Valley, and CCCFA including, but not limited to, in matters related to Pioneer but unrelated to work previously performed by Consultant for Pioneer, provided Consultant refrains from disclosing to the City of Auburn, or the City of Grass Valley, or CCCFA (as applicable) confidential communications obtained from Pioneer during Consultant's performance of the Scope of Services.

22. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.

23. Alteration. No waiver, alteration, modification, or termination of this Agreement shall be valid unless made in writing and signed by all parties, except as expressly provided in Section 15, Termination.

24. Governing Law. This Agreement is executed and intended to be performed in the State of California, and the laws of that State shall govern its interpretation and effect. Any legal proceedings on this agreement shall be brought under the jurisdiction of the Superior Court of County of Placer, State of California, and Consultant hereby expressly waives those provisions in 352038.2
California Code of Civil Procedure §394 that may have allowed it to transfer venue to another jurisdiction.
25 . Notification. Any notice or demand desired or required to be given hereunder shall be in writing and deemed given when personally delivered or deposited in the mail, postage prepaid, and addressed to the parties as follows:
352038.2
PIONEER COMMUNITY ENERGY:

Pioneer Community Energy
Attn: Eric Acedo
2510 Warren Drive Suite B
Rocklin, CA 95677
[email protected]
Phone: (916)758-8943
CONSULT ANT:

David J. Ruderman, Esq.

Colantuono, Highsmith & Whatley, PC
420 Sierra College Dr., Suite 140
Grass Valley, CA 95945
[email protected]
Phone: (530) 432-7357
Any notice so delivered personally shall be deemed to be received on the date of delivery, and any notice mailed shall be deemed to be received five (5) days after the date on which it was mailed.

Executed as of the day first above stated:

PIONEER COMMUNITY ENERGY
By:

Printed Name/Title:

E-SIGNED by Donald Eckert
on 29.24004-29 16:10:31 PDT
Donald Eckert
Approved as to Form - General Counsel:

By:

Printed Name/Title:

E-SIGNED by Patrick Enright
on 2024004-29 17:28:10 PDT
Patrick Enright
Chief Executive Officer
General Counsel

COLANTUONO, HIGHSMITH & WHATLEY, PC
By:

E-SIGNED by David Ruderman
on 2024-04-29 15:51 :45 PDT
Name: David Ruderman
Title: Attorney
*If Consultant is a corporation, this agreement must be signed by a corporate officer, either the President or Vice President, unless an authenticated corporate resolution is attached delegating authority to a single officer or other officers to bind the corporation.

Exhibits
A. Scope of Services
B. Payment for Services Rendered
C. Facilities, Equipment and Other Obligations of Pioneer D. Hold Harmless Agreement and Insurance Requirements
352038.2
General Counsel services include:

EXHIBIT A

SCOPE OF SERVICES
• Provide legal advice and opinions as requested by the Board of Directors, Chief Executive Officer, or staff.
• Interpret laws, legislation, rulings and regulations. • Represent and advise the Board of Directors as the governing body and all Agency Officers in all matters of law pertaining to their offices.
• Represent and work with Board of Directors and staff on negotiations. • Monitor current, new and pending state and federal legislation, and case law as applicable to Pioneer, and inform and provide direction to Board members and the Chief Executive Officer regarding compliance issues and/or impacts to Pioneer.
• Provide prompt responses and have availability for telephone consultation and to render written opinions on given issues related to Pioneer business in a timely manner. • Attend regular Board Meetings and other meetings as needed. • Advise the Board of Directors and staff on relevant laws and regulations including, but not limited to, the Brown Act, Public Records Act, parliamentary procedures for running meetings, and conflict of interest requirements for public officials.
• Provide Pioneer with education and in-service seminars as mutually agreed to maintain a level of education among the Board of Directors, staff and management, to the fullest extent possible, to increase the knowledge of Pioneer staff and Board Members. • Review and prepare Board and Committee agendas and reports as required. • Prepare or review all ordinances, resolutions, contracts, deeds, leases, agreements, easements, and all other legal documents as requested by the Chief Executive Officer or staff. • Provide guidance on applicability, requirements, implementation, and enforcement of Board resolutions and ordinances.

Special Counsel services include:
• Legal research and analysis, negotiation, bargaining and dispute resolution pertaining to labor, employment and personnel matters.
• Advice regarding revenue measures, local taxes, fees and assessments and other advice regarding the law of municipal finance.
• Environmental legal services other than normal, cursory review of negative declarations, environmental impact reports and project-level environmental documentation as needed. • Real estate and eminent domain services other than normal review of escrow documents, title reports and contracts of sale.
• Advice regarding application of state and federal electric utility regulations. • Insurance coverage services, such as advice and representation regarding disputes with Pioneer's risk pool or other insurance provider.
• Such other specialized services as may be required by Pioneer.

Litigation services include, but are not limited to:
• Enforce all ordinances and regulations through administrative and judicial actions as requested by the Board of Directors;
• Prepare personnel for deposition proceedings and provide guidance through the intricacies of the subpoena process;
352038.2
• Litigation services include advice and representation concerning actual or threatened litigation, administrative proceedings, and court proceedings;
• Such other litigation services as required.
352038.2

EXHIBITB

PAYMENT FOR SERVICES RENDERED
,Maximum Limit & Fee Schedule
The total amount for services rendered not to exceed $150,000.

For services rendered under this Agreement, Pioneer shall pay Consultant its standard rates capped at $325 per hour for General Counsel services. Pioneer shall pay Consultant its standard rates capped at $375 per hour for Special Counsel services. Pioneer shall pay Consultant its standard rates capped at $395 per hour for Litigation services. "General Counsel," "Special Counsel," and "Litigation" services are defined in Exhibit A. For all types of services, "standard rates capped" means Pioneer will not be charged more per hour, even if the attorney's standard rate is higher, and will be charged less if the attorney's standard rate is lower. While Consultant may adjust its standard rates from time to time, it may not adjust the cap without an amendment to this Agreement. A fee schedule of standard rates as of the date of this Agreement is below:

Standard Rate General Counsel Special Counsel Litigation Rate Rate Rate
Shareholders and Senior $450-$605 $325 $375 $395
Contract Attorneys
15th Year and more Senior $450-$605 $325 $375 $395
Associates
10th-14th Year Associates $425-$450 $325 $375 $395
9th Year Associates $420 $325 $375 $395
8th Year Associates $405 $325 $375 $395
7th Year Associates $365 $325 $365 $365
5th Year Associates $330 $325 $330 $330
5th Year Associates $315 $315 $315 $315
4th Year Associates $300 $300 $300 $300
3rd Year Associates $290 $290 $290 $290
2nd Year Associates $280 $280 $280 $280
1st Year Associates $235 $235 $235 $235
Law Clerks/Paralegals $225/$200 $225/$200 $225/$200 $225/$200 Legal Assistants $155-180 $155-180 $155-180 $155-180
352038.2
Invoices
Invoices shall include a list of work performed by billable hour including date, hours and services provided.

Work performe1 by Consultant will be subject to final acceptance by Pioneer.

Reimbursable Expenses
Administrative, overhead, secretarial time or overtime, word processing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses; provided however that in-house copies may be reimbursed at $0.20 per page and outgoing faxes at $1 per page. Travel expenses must be authorized in advance in writing by Pioneer. In the event travel is needed, Consu ltant will charge only one-half the discounted rate for travel to and from Pioneer's headquarters from our Grass Valley office for General Counsel services. Mileage is subject to reimbursement at the IRS rate.

Submit all invoices to:
352038.2
Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677

EXHIBIT C

FACILITIES, EQUIPMENT, AND OTHER

MATERIALS, AND OBLIGATIONS OF PIONEER
(Specify all equipment and facilities to be provided or made available by Pioneer, and any other Pioneer obligations.)

NOT APPLICABLE
352038.2
EXIIlBITD

HOLD HARMLESS AGREEMENT

AND INSURANCE REQUIREMENTS

1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT

2. The CONSULTANT hereby agrees to protect, defend, indemnify, and hold PIONEER free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses incurred by PIONEER arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of PIONEER) and without limitation by enumeration, all other claims or demands of every character occurring or in any way incident to, in connection with or arising directly or indirectly out of, CONSULTANT'S wrongful or negligent performance of the contract or agreement. CONSULTANT agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit at the sole expense of the CONSULT ANT. CONSULT ANT also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provision is not intended to create any cause of action in favor of any third party against CONSULT ANT or PIONEER or to enlarge in any way the CONSULT ANT'S liability but is intended solely to provide for indemnification of PIONEER from liability for damages or injuries to third persons or property arising from CONSULT ANT'S wrongful or negligent performance pursuant to this contract or agreement.

As used above, the tem1 PIONEER means Pioneer or its officers, agents, employees, and volunteers.

INSURANCE:

CONSULTANT shall file with PIONEER concurrently herewith a Certificate oflnsurance, in companies acceptable to PIONEER, with a Best's Rating ofno less than A-:VII showing.

3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

Worker's Compensation Insurance shall be provided as required by any applicable law or regulation.

Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.

If there is an exposure of iI~ury to CONSULTANT'S employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.

Each Worker's Compensation policy shall be endorsed with the following specific language:

Cancellation Notice - "This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy".

CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with Pioneer upon demand.

4. GENERAL LIABILITY INSURANCE:

A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONSULTANT, providing insurance for bodily injmy liability and property damage liability for the limits of liability indicated below and including coverage for:
(1) Contractual liability insuring the obligations assumed by CONSULTANT in this Agreement.

B. One of the following fon11s is required:
( 1) Comprehensive General Liability;
(2) Commercial General Liability (Occurrence); or
(3) Commercial General Liability (Claims Made).

C. If CONSULT ANT carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:

One million dollars ($1,000,000) each occurrence
Two million dollars ($2,000,000) aggregate
D. If CONSULTANT carries a Commercial General Liability (Occurrence) policy:
(I) The limits ofliability shall not be less than:

One million dollars ($1,000,000) each occurrence (combined single limit for bodily injmy and property damage)
One million dollars ($1,000,000) for Products-Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).

E. Special Claims Made Policy Fo1111 Provisions:

CONSUL TANT shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of PIONEER, which consent, if given, shall be subject to the following conditions:
(I) The limits of liability shall not be less than:

One million dollars ($1,000,000) each occurrence ( combined single limit for bodily injmy and property damage)
One million dollars ($1,000,000) aggregate for Products Completed Operations ➔ Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONSULT ANT shall contain language providing coverage up to one (1) year following the completion of the contract in order to provide insurance coverage for the hold han11less provisions herein if the policy is a claims-made policy.

Confonnity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by Pioneer as noted above. In no cases shall the types of policies be different.

5. ENDORSEMENTS:

6. Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:

A. "Pioneer Community Energy, its offic~rs, agents, employees, and volunteers are to be covered as insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement."
B. "The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss." C. "This policy shall not be changed without first giving thirty (30) days prior written notice and ten ( 10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy."
AUTOMOBILE LIABILITY INSURANCE:

Automobile Liability insurance covering bodily injury and property damage in an amount no less than one million dollars ($1,000,000) combined single limit for each occurrence.

Covered vehicles shall include non-owned, and hired automobiles/trucks.

7. PROFESSIONAL LIABILITY INSURANCE:

8. 9.

Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000.

PRIVACY AND CYBERSECURITY LIABILITY INSURANCE:

Privacy and cybersecurity liability (including costs arising from data destrnction, hacking or intentional breaches, crisis management activity related to data breaches, and legal claims for security breach, privacy violations, and notification costs of at least $1,000,000 US per occun-ence.

ADDITIONAL REQUIREMENTS:

Premium Payments - The insurance companies shall have no recourse against PIONEER and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.

Policy Deductibles - The CONSULT ANT shall be responsible for all deductibles in all of the CONSULTANT's insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.

CONSULTANT's Obligations - CONSULTANT's indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.

Verification of Coverage - CONSULTANT shall furnish Pioneer with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by Pioneer before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULT ANT's obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Material Breach - Failure of the CONSULT ANT to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire agreement.

Staff Report – Item 1i
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1i: Adopt Resolution Approving the Job Descriptions for the Customer Care Specialist and Community Outreach Specialist
Date: 6/19/2025

RECOMMENDATION
Staff recommends the Board adopt Resolution to approve the Job Descriptions for the Customer Care Specialist and Community Outreach Specialist.

BACKGROUND
The Board has historically approved Pioneer job descriptions and has authorized the Chief Executive Officer to modify as needed over time. As a small organization that is growing and adjusting to best meet the service needs of Pioneer’s customers, it is essential for Pioneer to respond with appropriate job descriptions that fulfill the service need.

ANALYSIS & DISCUSSION
Personnel
Fiscal Year 2025-26 recommended budget requests 26 full-time positions of which two need job description approval. This staff increase in the Customer Care and Communications Divisions has been requested to prepare Pioneer and its future customers for a successful launch in the expansion territory. A summary of the job descriptions for each position is below.

New Job Description Summaries:
• The Customer Care Specialist is the journey level class with the Customer Care series and will develop and implement strategies related to customer care, customer communications, and program support as it relates to Pioneer’s customers; to provide support to customers regarding billing analysis and other customer-related issues; and to support communications and marketing efforts in ways that are consistent with Pioneer’s Strategic Plan.
• The Community Outreach Specialist position includes a wide range of responsibilities for advancing Pioneer’s customer care services, expansion efforts and programs by supporting strategic community outreach and awareness of the agency overall.

STRATEGIC PLAN
The recommendation supports the strategic priority of Community Partner

FISCAL IMPACT
The approval of the job descriptions does not have a budgetary impact.

ATTACHMENTS

1. Resolution Approving the Job Descriptions for the Customer Care Specialist and Community Outreach Specialist.

Plf)NEER

COMMUNITY ENERGY
401329.1
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 June 19, 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, the Fiscal Year 2025-26 Recommended Budget has proposed new positions that need job descriptions; and
WHEREAS, the Fiscal Year 2025-26 Recommended Budget includes authorization of 26 full time positions; and
WHEREAS, the approval of new job descriptions does not increase the approved number of positions, which may be accomplished through budget approval; and WHEREAS, it is beneficial to establish career paths in career clusters: and WHEREAS, State laws, regulations and human resources best practices may modify job description requirements in the future; and
WHEREAS, position duties, tasks and responsibilities may transition over time.

In the matter of: RESOLUTION APPROVING THE

JOB DESCRIPTIONS FOR THE CUSTOMER CARE

SPECIALIST AND COMMUNITY OUTREACH
SPECIALIST.

Resolution No. ___
June 19, 2025
2 401329.1
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 the attached job descriptions for Customer Care Specialist and Community Outreach Specialist;

3. The Chief Executive Officer is authorized to modify job descriptions as needed to address state laws and regulations, human resources best practices and position duties, tasks and responsibilities changing over time.

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

Exhibits:

A: Job Description for Customer Care Specialist and
B: Job Description for Community Outreach Specialist
Employee’s Name:

Pioneer Community Energy
Job Description
Job Title: Customer Care Coordinator/Customer Care Specialist Department: Customer Service
Reports To: Customer Care Manager
FLSA Status: Non-Exempt
Prepared Date: 6/2025
Summary: To develop and implement strategies related to customer care, customer communications, and program support as it relates to Pioneer’s customers; to provide support to customers regarding billing analysis and other customer-related issues; and to support communications and marketing efforts in ways that are consistent with Pioneer’s Strategic Plan.

Distinguishing Characteristics
Customer Care Coordinator – This is the entry level class in the Customer Care series. This class is distinguished by the performance of the more routine tasks and duties assigned to positions within this series. Employees at this level are not expected to perform with the same independence of direction and judgment on matters allocated to the Customer Care Specialist level. Since this class is used as a training class, employees have only limited directly related work experience. Employees work under general supervision while learning job tasks.

Customer Care Specialist – This is the journey level class with the Customer Care series and is distinguished from the Customer Care Coordinator level by the assignment of the full range of duties.

Employees at this level receive only occasional instruction or assistance as new, unusual or unique situations arise and are fully aware of the operating procedures and policies within the work unit.

Positions in this class are flexibly staffed and are normally filled by advancement from the Customer Care Coordinator level.

Essential Duties and Responsibilities: include the following. Other duties may be assigned. • Receive, research, and respond to customer questions and concerns; review, research and respond to questions related to billing and programs available to customers. • Prepare and provide detailed solar analysis and educate customers regarding Net Energy Metering, Solar Billing Plan, and other related billing rates/plans. • Provide information to customers as it relates to energy efficiency. • Process and track customer opt outs, opt ups and re-enrollments. • Ensure customer contact center has updated and accurate talking points and information related to messaging and advertising campaigns.
• Attend and staff booth at community events, interacting and educating customers regarding Pioneer’s services and programs.
• Provide billing related support including the maintenance and security of customer data, coordinating with PG&E on a variety of matters including customer service, data provisions, outages, infrastructure issues, and usage reports. • Support call center by responding to escalated customer service matters and preparing/editing customer service scripts.

Plf)NEEA

COMMUNITY ENERGY
• Prepare and present a variety of reports and communications that include supporting statistical data; make presentations to member agencies, outside organizations and the public.
• Build and maintain positive working relationships with co-workers, Board of Directors, other Authority employees and the public using principles of good customer service. • Perform related duties as assigned.

Supervisory Responsibilities: This job has no supervisory duties Measures of Performance: The Customer Care Coordinator/Customer Care Specialist shall be considered to be performing in an acceptable manner when the following have been accomplished:

1. Customer Service – Manages difficult or emotional customer situations; Responds promptly to customer needs; Solicits customer feedback to improve service; Responds to requests for service and assistance; Meets commitments.

2. Oral Communication – Speaks clearly and persuasively in positive or negative situations; Listens and gets clarification; Tailors the content of speech to the level and experience of the audience; Uses appropriate grammar and choice of words in oral speech; Organizes ideas clearly in oral speech; Responds well to questions; Remains open to other’s ideas and tries new things; Participates in meetings.

3. Written Communication – Writes clearly and informatively; Edits work for spelling and grammar; Varies writing style to meet needs; Presents numerical data effectively; Able to read and interpret written information.

4. Teamwork – Balances team and individual responsibilities; Exhibits objectivity and openness to others' views; Gives and welcomes feedback; Contributes to building a positive team spirit; Puts success of team above own interests; Able to build morale and group commitments to goals and objectives; Supports everyone's efforts to succeed; Listens and responds constructively to other team members’ ideas; Offers support for others’ ideas and proposals; Is open with other team members about his/her concerns; Expresses disagreement constructively.

5. Professionalism – Approaches others in a tactful manner; Reacts well under pressure; Treats others with respect and consideration regardless of their status or position; Accepts responsibility for own actions; Follows through on commitments.

6. Quality – Demonstrates accuracy and thoroughness; Looks for ways to improve and promote quality; Applies feedback to improve performance; Monitors own work to ensure quality.

7. Quantity – Meets productivity standards; Completes work in timely manner; Strives to increase productivity; Works quickly.

Plf)NEEA

COMMUNITY ENERGY

8. Attendance/Punctuality – Is consistently at work and on time; Ensures work responsibilities are covered when absent; Arrives at meetings and appointments on time.

9. Dependability – Follows instructions, responds to management direction; Takes responsibility for own actions; Keeps commitments; Commits to long hours of work when necessary to reach goals. Completes tasks on time or notifies appropriate person with an alternate plan.

10. Customer Orientation – Quickly and effectively solves customer problems; Talks to customers to find out what they want and how satisfied they are with what they are getting; Lets customers know that he/she is willing to work with them to meet their needs; Finds ways to measure and track customer satisfaction.

Qualifications: To perform this job successfully, an individual must be able to perform each essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Education and/or Experience: Bachelor’s degree (B.A.) from four-year college or university; or one to two years related experience and/or training; or equivalent combination of education and experience. Major course work in Business Administration, Engineering, Communications, or a related field.

Four years of increasingly responsible customer-facing experience.

Language Skills: Ability to read and interpret documents such as safety rules, operating and maintenance instructions and procedure manuals. Ability to write routine reports, and correspondence. Ability to speak effectively before groups of customers or employees of the organization.

Reasoning Ability: Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists. Ability to interpret a variety of instructions furnished in written, oral, diagram, or schedule form.

Computer Skills: To perform this job successfully, an individual should have knowledge of Internet software and the Microsoft Office Suite of products.

Other Skills and Abilities:
• Develop and maintain effective business relationships with Pioneer’s customers as it relates to energy efficiency, conservation, and renewable energy.

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COMMUNITY ENERGY
• Supports Customer Care Manager on a continuous basis, know and understand all aspects of the job; intermittently analyzing work papers, reports, and special projects; identify and interpret technical and numerical information. • Analyze, organize, and summarize complex customer data. • Develop and maintain effective relationships with Pioneer customers. • Establish and maintain effective working relationships with those contacted in the course of work.

Other Desirable Qualifications:
• Utility billing structures, bill presentment, and program operations. • Principles and practices of electric utility energy transmission and distribution. • Electric energy efficiency, electric renewable generation, and electric conservation programs.
• Principles of effective customer management.
• Principles of program and project management.
• Best practices related to communications platforms and tools including digital and social media platforms and customer relationship management (CRM) system. • Advance Customer service and negotiation skills.
• Pertinent local, State, and Federal ordinances, rules, and regulations.

Work Environment: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Acknowledgements: I have reviewed and understand the above job description and believe it to be accurate and complete. I also understand that the company retains the right to change this job description at any time. I also understand that this job description is not a contract for work.

I certify that I possess all of the “Essential Requirements” of the job outlined herein, except as noted here (If none, so state):

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COMMUNITY ENERGY
I certify that I am fully capable (with or without a reasonable accommodation) of performing all of the essential functions documented herein, and I do not have a physical or mental disability that would jeopardize the health and or safety of my co-workers. □ I do not require an accommodation in order to perform the essential functions of this job as indicated in this job description.
□ I require an accommodation in order to perform the essential function of this job as indicated on this job description. The accommodation I require is:

I understand, and fully agree, that this job description does not constitute a written or implied contract for employment and that my employment relationship with the company is “at will,” for an unspecified duration, and may be terminated at any time by me or the company as specified by Section 2922 of the California Labor Code.

Employee’s Signature Date
Supervisor’s Signature Date
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COMMUNITY ENERGY
Pioneer Community Energy
Job Description
Employee’s Name:

Job Title: Community Outreach Specialist
Department: Marketing
Reports To: Community Outreach Manager
FLSA Status: Non-Exempt
Prepared By: HRtoGo
Prepared Date: 6/05/2025
Summary: The Community Outreach Specialist works under direction of the Community Outreach Manager. This position includes a wide range of responsibilities for advancing Pioneer’s customer care services, expansion efforts and programs by supporting strategic community outreach and awareness of the agency overall.

Essential Duties and Responsibilities: include the following. Other duties may be assigned. ● Support activities related to expansion and growth opportunities for Pioneer. ● Research opportunities to cultivate relationships with stakeholders in expansion communities, including potential member staff, elected officials, business and fraternal organizations, senior and income assistance groups, and influential customers that may take advantage of Pioneer’s many benefits, including competitive and stable rates, and programs.
● Participate in public events to distribute information about Pioneer and interact with key external stakeholders.
● Support all elements of the expansion process through completion for securing approval on behalf of new agencies to join Pioneer’s Joint Powers Authority, with emphasis on ensuring the timely and accurate completion of all administrative requirements.
● Support the Director of Communications and Community Outreach Manager, responding to inquiries, preparing, proofreading and delivering presentations to various community groups, participating in on-site visits, emailing, cold-calling, and providing information about Pioneer’s programs and services, including cost comparisons.
● Work with Pioneer’s Communications, Customer Care and Programs teams to support, organize and implement community outreach efforts to market Pioneer’s programs and services to the general public and other stakeholders. ● Participate in and support meetings with Pioneer staff and vendors to ensure all outreach activities align with strategic objectives.
● As assigned, assist with the implementation of Pioneer’s Strategic Plan.

Supervisory Responsibilities: This job has no supervisory duties.

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COMMUNITY ENERGY
Measures of Performance: The Community Outreach Specialist shall be considered to be performing in an acceptable manner when the following have been accomplished:

1. Analytical Thinking – Synthesizes complex or diverse information; Collects and researches data; Uses intuition and experience to complement data; Makes a systematic comparison of two or more alternatives; Notices discrepancies and inconsistencies in available information; Approaches a complex task or problem by breaking it down into its component parts and considering each part in detail.

2. Problem Solving – Identifies and elevates problems in a timely manner; Gathers and analyzes information skillfully; Develops alternative solutions; Works well in group problem solving situations; Uses reason even when dealing with emotional topics.

3. Interpersonal Skills – Focuses on solving conflict, not blaming; Maintains confidentiality; Listens to others without interrupting; Keeps emotions under control; Remains open to others' ideas and tries new things.

4. Oral Communication – Speaks clearly and persuasively in positive or negative situations; Listens and gets clarification; Tailors the content of speech to the level and experience of the audience; Uses appropriate grammar and choice of words in oral speech; Organizes ideas clearly in oral speech; Responds well to questions; Demonstrates group presentation skills; Participates in meetings.

5. Written Communication – Writes clearly and informatively; Edits work for spelling and grammar; Presents numerical data effectively; Able to read and interpret written information.

6. Teamwork – Balances team and individual responsibilities; Exhibits objectivity and openness to others' views; Gives and welcomes feedback; Contributes to building a positive team spirit; Puts success of team above own interests; Able to build morale and group commitments to goals and objectives; Supports everyone's efforts to succeed; Listens and responds constructively to other team members’ ideas; Offers support for others’ ideas and proposals; Is open with other team members about his/her concerns; Expresses disagreement constructively.

7. Professionalism – Approaches others in a tactful manner; Reacts well under pressure; Treats others with respect and consideration regardless of their status or position; Accepts responsibility for own actions; Follows through on commitments.

8. Quality – Demonstrates accuracy and thoroughness; Looks for ways to improve and promote quality; Applies feedback to improve performance; Monitors own work to ensure quality. Asks for assistance or clarifying information when needed.

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COMMUNITY ENERGY

9. Attendance/Punctuality – Is consistently at work and on time; Ensures work responsibilities are covered when absent; Arrives at meetings and appointments on time.

10. Dependability – Follows instructions, responds to management direction; Takes responsibility for own actions; Keeps commitments; Commits to long hours of work when necessary to reach goals. Completes tasks on time or notifies appropriate person with an alternate plan.

Qualifications: To perform this job successfully, an individual must be able to perform each essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodation may be made to enable individuals with disabilities to perform the essential functions.

Education and/or Experience: Bachelor’s degree (B.A.) from four-year college or university in communications, public administration, or a related field or four years of experience in community energy outreach, or equivalent experience. Experience working in a public utility and/or a Community Choice Aggregate program is desirable.

Language Skills: Ability to read and interpret documents. Ability to write routine reports, and correspondence. Ability to speak effectively before community groups, governing boards or employees of member and potential member organization.

Reasoning Ability: Ability to solve practical problems and deal with a variety of concrete variables in situations where only limited standardization exists. Ability to interpret a variety of instructions furnished in written, oral, diagram, or schedule form.

Computer Skills: To perform this job successfully, an individual should have knowledge of Internet software and the Microsoft Office Suite of products.

Other Skills and Abilities:
● Microsoft Office Suite including Excel, Word, PowerPoint and Adobe Acrobat ● Google Suite including Sheets, Docs, and Calendar
● Experience working with diverse cultures and communities such as communities of color, low income, English as a second language, various ages, and socio-economic spectrums
● Ability to engage and coordinate with diverse stakeholders in person, on the phone, and through email to promote and explain Pioneer’s services and programs ● Establish and maintain working relationships with stakeholders and potential partners ● Multitask on several projects while delivering a consistent, high-quality and timely work product
● Work independently to resolve issues quickly and effectively ● Work as part of a collaborative team
● Adapt to changing priorities in a fast paced, dynamic environment ● Demonstrate patience, tact, courtesy and flexibility
● Fully interpret and explain energy data and statistics to stakeholders in a simple and understandable manner
● Strong interpersonal communication skills
● Sound decision making and creative problem-solving skills ● Clear oral and written communication in various environments, potentially under pressure and while being recorded
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COMMUNITY ENERGY
● Professional and effective engagement with stakeholders and customers Work Environment: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Acknowledgements: I have reviewed and understand the above job description and believe it to be accurate and complete. I also understand that the company retains the right to change this job description at any time. I also understand that this job description is not a contract for work.

I certify that I possess all of the “Essential Requirements” of the job outlined herein, except as noted here (If none, so state):

I certify that I am fully capable (with or without a reasonable accommodation) of performing all of the essential functions documented herein, and I do not have a physical or mental disability that would jeopardize the health and or safety of my co-workers. □ I do not require an accommodation in order to perform the essential functions of this job as indicated in this job description.
□ I require an accommodation in order to perform the essential function of this job as indicated on this job description. The accommodation I require is:

I understand, and fully agree, that this job description does not constitute a written or implied contract for employment and that my employment relationship with the company is “at will,” for an unspecified duration, and may be terminated at any time by me or the company as specified by Section 2922 of the California Labor Code.

Employee’s Signature Date
Supervisor’s Signature Date
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COMMUNITY ENERGY

Staff Report – Item 2
To: The Governing Board
From: Donald Eckert Jr., Chief Executive Officer
Item 2: California Independent System Operator - Summer Readiness Date: 6/19/2025

RECOMMENDATION
Receive a presentation from the California Independent System Operator (“CAISO”) on Summer Readiness

BACKGROUND
CAISO is a non-profit agency that manages the wholesale electricity grid in California and a portion of Nevada. It oversees the operation of the state's bulk electric power system, transmission lines, and the electricity market, ensuring a reliable and cost-effective energy supply.

Here's a more detailed look at CAISO's role:

Key Functions:
• Grid Management - CAISO centrally dispatches generation and coordinates the movement of wholesale electricity across high-voltage transmission lines.
• Market Administration - It operates a competitive wholesale electricity market, including day-ahead and real-time markets, to ensure sufficient energy is procured and optimized for grid reliability. • Transmission Planning - CAISO identifies and approves investments in new transmission lines to address grid expansion needs.
• Western Energy Imbalance Market (“EIM”) - CAISO is a key participant in the EIM, which allows different balancing authority areas in the western US to coordinate and share electricity. • Collaboration and Innovation - CAISO works with various stakeholders, including state agencies, utilities, and other ISOs, to promote reliability, cost-effectiveness, and environmental sustainability.

Importance:
• CAISO plays a vital role in managing the flow of electricity across a significant portion of California and Nevada's grid, serving over 30 million people.
• It facilitates the integration of renewable energy sources into the grid, supporting California's energy goals.
• CAISO's work contributes to a more reliable and cost-effective electricity supply for California consumers.

ANALYSIS & DISCUSSION
Nathanial Brown, Senior Customer Readiness Trainer at the CAISO will be the presenter.

CAISO is committed to supporting successful resource management during tight system conditions and the presentation will provide a high-level overview of CAISO’s daily procedures to ensure the lights stay on during the hottest months. Other topics include:
• Review of the CAISO Emergency Playbook
• Walkthrough of Energy Emergency (“EA”) notification levels • How to (un)subscribe to EA notifications
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Agenda Item: 2 Agenda Date: 6/19/2025

STRATEGIC PLAN
The recommendation supports the Community Partnership goal.

FISCAL IMPACT
There is no fiscal impact to the recommendation.

ATTACHMENTS
There are no attachments to this recommendation.

Staff Report – Item 3
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 3: Approve Resolution Adopting the Recommended Fiscal Year 2025-26 Budget Date: 6/19/2025

RECOMMENDATION
Approve Resolution Adopting the Recommended Fiscal Year 2025-26 Budget.

AUDIT & FINANCE COMMITTEE AND BOARD REVIEW
The Audit & Finance Committee members received a staff presentation of the Proposed FY 2025-26 Budget at the May 12, 2025, meeting and provided feedback to staff.

BACKGROUND
The Board received a Budget presentation on May 15, 2025, that included an updated balanced Budget summary, which included modifications from the Budget Summary that the Audit & Finance Committee reviewed. The Board asked questions and discussed the proposed budget. The Recommended Budget before you today has no modifications from the Budget summary discussed by the Board on May 15. If approved, the FY 2025-26 Budget will be effective July 1, 2025.

ANALYSIS & DISCUSSION
The recommended FY 2025-26 Budget is balanced with a small contribution to Net Position. Pioneer remains in a healthy financial condition. There were two changes between the Budget summary reviewed by the Audit & Finance Committee and the Recommended Budget. The Power Expense of the Feed in Tariff of $1.5 million was removed, since it is unlikely that the developer incentive for a biomass, small hydro or battery storage development will be developed and ready to supply power during FY 2025-26. The second change was the removal of the CPUC-directed increase to the Financial Security Requirement. This change was made possible due to Pioneer receiving the Advice Letter with the new calculation immediately after the Audit & Finance Committee meeting and has since made the required increased posting in the current FY 2024-25. The FY 2025-26 Recommended Budget projects total revenues of $245.6 million and total expenses at $245.45 million.

The table below summarizes the recommended budget at a high level:

FY 2024-25 FY 2025-26 Variance
$ in Millions Amended Budget Recommended
Budget $ %
Revenues $245.69 $245.59 ($0.10) 0.0%
Power Supply $208.98 $221.15 $12.17 5.8%
Contribution Margin $36.71 $24.44 ($12.27) -33.4%
Operating Expenses $18.58 $21.90 $3.32 17.9%
Operating Margin $18.13 $2.54 ($15.59) -86.0%
Non-Operating Net Expenses $4.60 $2.40 ($2.20) -47.8%
Contribution To Net Position $13.53 $0.14 ($13.39) -99.0% Plf)NEER

COMMUNITY ENERGY
Agenda Item: 3 Agenda Date: 6/19/2025

Revenues
Pioneer receives most of its revenue through
rates ($231 million). Revenues reflect the
rate change effective March 2025. The
budget assumes no changes to rates. There
is a forecasted $10 million contribution from
Congestion Revenue Rights (“CRRs”) and the
Battery Optimization efforts. CRRs are
financial instruments issued to Pioneer from
CAISO are intended to offset/manage
variability in congestion costs. CRRs are
acquired primarily for offsetting integrated
forward market congestion costs that occur
in the day-ahead market and are charged to
Pioneer by CAISO. The Battery Optimization
effort optimizes battery charge and
discharge for the Yellow Pine Solar/Battery
project. Interest earnings are Pioneer’s third
revenue generator; while only reflective of
just under 2% of revenue, the $4.15 million
interest gains generated from Pioneer’s
increased cash position and higher interest
rates are still notable. Pioneer receives no
subsidies from our member agencies.

Expenses
Pioneer’s power supply costs represent the
most significant expense, reflecting 90% of
total expenses. Most remaining expenses
are operating expenses, including
compensation, consultant services and other
operating expenses (such as rent, lease,
utilities, insurance, CalCCA membership,
software and professional development),
which comprise a much smaller portion of the
budget.

Energy Sales
(Net)
94%
CRR's &
Battery
Optimization
4% Interest
Earnings
2%
Revenues: $245.60 million
Power Supply
90%
Operating
Expenses 9%
Debt Service
1%
Expenses: $245.45 million
Agenda Item: 3 Agenda Date: 6/19/2025

Notable Operating Expense Adjustments
Power Supply Costs
Power supply costs increased by about $12.2 million compared to the prior fiscal year budget, primarily due to the increase in energy prices. Consistent with prior fiscal years, an extreme weather event contingency of $10 million is also included in the power supply budget.

Projected Expansion Costs
Preparation for the planned expansion to 13 new communities during the Fall of 2027 has also affected the proposed budget.

1. Office Facility Expansion - Expanded facility capacity will be needed to serve both Board meeting needs and office space because the existing facility is at capacity. The number of Board members will soon increase by 13 members to a 24-member Board. Pioneer’s current Board room cannot accommodate this expanded Board membership. In addition, the current office space is inadequate to meet Pioneer’s staffing needs. The estimated cost of additional facility space (not including potential improvement costs) has been included in the budget.

2. New Personnel - The expansion will also increase Pioneer’s energy load, with customer accounts anticipating to more than double. This increased demand will require increased staffing capacity to secure and manage new energy/RA/REC contracts to serve the new customers. The significant increase in new customers will also require additional dedicated staff capacity (as well as increased marketing and communication resources) to introduce Pioneer to its existing and future customers and support their needs.

Personnel
Fiscal Year 2024-25 began with 20 full-time positions. Two additional positions were authorized throughout the year and Pioneer ended the fiscal year with 22 full-time positions and one part-time position. The Fiscal Year 2025-26 Budget proposes an addition of four full-time positions resulting in 26 full-time positions and one part-time position. The following are the four additional full-time positions included in the Recommended Budget:
a) Power Resource Manager (increasing from 1 to 2)
b) Customer Care Specialist
c) Community Outreach Specialist
d) Legislative and Regulatory Analyst (increasing from 1 to 2) This staff increase in the Power Procurement, Communications and Customer Care Divisions is requested to prepare Pioneer and its future customers for a successful launch. The additional Legislative & Regulatory position would primarily be focused on the regulatory aspects of microgrids, Public Safety Power Shutoffs, Enhanced Power Safety Settings, and potential related grants. The 4 positions recommended for FY 25-26 and the two positions that were added during FY 24-25 are the major driver of Compensation in aggregate increasing 32.5% year over year. Movement of staff up the salary schedule with satisfactory annual evaluations and the cost-of-living adjustment are additional contributing factors.

The organizational charts on the following page illustrate the changes in the Proposed Budget:

Agenda Item: 3 Agenda Date: 6/19/2025

, 26 Full-time Positions
, 4 New Positions
, 1 Part-time Position
, Kev Consultant Services
Agenda Item: 3 Agenda Date: 6/19/2025

*Data gathered
May 2025 3CE Pioneer
(Current) VCE Pioneer (Proposed) AVA SVCE PCE MCE SCP RCEA FTEs 56 22 9 26 98 62 61 106 49 39
TWh 5.1 1.8 0.7 1.8 6.6 3.9 3.4 5.6 2.2 0.6
Ratio 11.0 12.3 13.8 14.5 15.0 15.8 18.0 18.8 22.7 61.9

Programs
Proposed in the Budget is an increase in the program funding stream from 1% to 2% of energy revenues. This is actually a restoration of the 2% allocation that was initially in the FY 24-25 Budget, but reduced when the rate reduction in July 2024 was quickly implemented to remain competitive with PG&E. This increased allocation will allow existing programs to expand their reach and allow for new programs that will bring value to Pioneer customers in addition to customer rate savings. This follows the strategic plan priority of being a Community Partner by bringing additional value to customers.

Implemented and Ongoing Near-term Under Development
✓ LED Rebate Program
✓ Solar/Battery/HPWH/EV Charging Online Marketplace
✓ AC Tune-up Rebate Program
✓ PowerShift Rewards
✓ GridGen Solar/Battery Lease Program (Phase 1)
✓ Ice Energy Program
✓ Low Carbon Fuel Standard (LCFS)
□ Hourly Flex Pricing Pilot
□ GridGen Solar/Battery Lease Program
(Phase 2 - Expansion)
□ Heat Pump Water Heater Rebate Program
□ Electric Vehicle Incentive/Rebate Program
□ Energy Savings & Incentive Finder
Programs Outlook
70 60
50 40
30 20
10 0
# of Full-Time Employees per TWh of Load
Agenda Item: 3 Agenda Date: 6/19/2025

Power Division Software Enhancements
The Power Division includes costs for new software that will provide additional scenario analysis and should result in better forecasting of energy demand expected to result in energy procurement savings.

Aggregate Year to Year Comparisons
As mentioned in the Personnel section, the increase to 26 full-time positions (4 added in FY 25-26) is the primary increase in compensation costs. This year’s over-year increase is also affected by the 2 positions added during FY 24-25 that were primarily funded from vacancy savings. Consulting Services were more muted in its increase and is spread over many consultants, but increased energy broker costs and data management costs are contributors to the increase. The Operating Expense increase is largely driven by the increased allocation to Programs, but energy software enhancements and expansion-related communication efforts are contributing factors.

Financing Highlights
Term Loan
In May 2021, Pioneer entered a 15-year $10.5 million term loan with Umpqua Bank used to pay in full Pioneer’s loan obligation with Placer County which provided necessary start-up funding for Pioneer’s CCA operations.

While the annual debt service is $950 thousand, the loan allows Pioneer to pay up to $2.1 million annually in extra principal payments without being subject to a prepayment penalty. A $2.1 million extra principal payment was made in each of the past three fiscal years. A $700 thousand extra principal payment is proposed for FY 25-26 that will pay in full the term loan during the upcoming fiscal year.

Line of Credit
Pioneer has established with Umpqua Bank a Line of Credit to issue Letters of Credit to energy suppliers (including CAISO) when collateral is required. The Letters of Credit allow Pioneer to avoid using cash as collateral thereby improving Pioneer’s liquidity position. As Pioneer prepares for expansion, Letters of Credit may become a more valuable tool in providing any possible required collateral when Pioneer executes future energy contracts.

The budget has planned funding of $750 thousand for this purpose.

Power Prepay
On October 20, 2022, the Board authorized Pioneer to execute a 30-Year Energy Prepayment Transaction (“Prepay”), which enables tax-exempt entities like Pioneer to bundle certain long-term power agreements into a long-term financial transaction for a discount on the associated power costs. Since additional power agreements under the Prepay will be included in the upcoming year, the estimated savings will increase from almost $1.2 million in Fiscal Year 24-25 to $1.7 million in Fiscal Year 25-26. These savings are reflected in a reduction to Power Supply costs.

Reserves
During Fall 2021, the Board approved a revised Reserve Policy that established a minimum target of 160 days of cash liquidity and a timeline to achieve that minimum target in 3 to 5 years. That minimum target was reached during Fiscal Year 2024-25. Staff estimates, using Fiscal Year 25-26 proposed budget expenses to calculate the days of liquidity on hand, that Fiscal Year 24-25 will end at almost 240 days. The current projection for the end of Fiscal Year 25-26 (assuming existing rates and power expenses) is that Pioneer would still be around 240 days of liquidity by June 2026.

The following chart illustrates Pioneer’s expected days of liquidity compared to other credit rated Community Choice Aggregators:

Agenda Item: 3 Agenda Date: 6/19/2025

A healthy Reserve position allows Pioneer to weather small projected deficits without impacting customer rates or causing a deteriorating balance sheet.

Reserve Target
The existing Reserve Policy targets a minimum target of 160 days of liquidity. At the November 2024 Board meeting, the Board considered increasing the reserve target to 270 days with any amount exceeding the 270 days reserve to be returned to customers through a bill credit in the subsequent fiscal year, thereby establishing a ‘ceiling’ on any future reserve amount. The Board deliberated and decided that the best time for a change to the Reserve Policy would be with the consideration of the budget. That topic is programmed as the next discussion item after the Budget discussion.
mPOWER
Pioneer’s non-CCA mPOWER program was closed to new applications on August 31, 2021. The mPOWER program is funded by assessments on the property owners that received improvements and is legally distinct from the CCA energy operations funded by ratepayers. Ongoing assessment revenue, bond servicing costs and administration costs will continue until the last Bond is paid in full. The mPOWER budget is included in the Recommended Budget.

STRATEGIC PLAN
The recommendation supports the Fiscally Strong & Resilient goal.

FISCAL IMPACT
The Proposed FY 2025-26 Budget includes total revenues of $245.6 million and total expenses of $245.45 million resulting in a small contribution to Net Position of $140 thousand.

ATTACHMENTS

1. Resolution Adopting the Recommended Fiscal Year 2025-26 Budget 0 100
200
300
400
500
600
MCE Pioneer
(Projected
FY26)

PCE AVA SVCE SCP
CCA Reserves Comparison
(Days of Liquidity)

I I I I I
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 June 19, 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, the Chief Executive Officer has submitted the Fiscal Year 2025-26 Budget (“Budget”) to the Board for consideration and comment; and
WHEREAS, the 2024-2027 Strategic Plan informed the Budget development; and WHEREAS, the Budget has been considered by, and comments were received from, the Audit and Finance Committee on May 12, 2025; and
WHEREAS, the Budget has been considered by, and comments were received from, the Board at the May 15, 2025, and June 19, 2025, Board meetings; and WHEREAS, future power purchase costs and energy sales are uncertain, and weather-driven impacts, economic conditions, changes in wholesale energy market prices, and changes in customer usage patterns are difficult to forecast and will impact actual revenues and expenses; and
WHEREAS, the Board considers the Budget a ‘living’ document and will be informed by actual usage, the closing of open energy positions, and a mid-year Budget review; and WHEREAS, the Board is authorizing an increase of four new full-time employees for a total of 26 authorized full-time positions; and
In the matter of: RESOLUTION ADOPTING THE
RECOMMENDED FISCAL YEAR 2025-26 BUDGET
Resolution No. ___
June 19, 2025
2 WHEREAS, the Board has previously designated the Program Fund to be a Special Fund for internal tracking purposes that dedicates unexpended funds in one fiscal year to ‘roll’ to the next fiscal year for program purposes once the prior fiscal year has been audited.

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 Board hereby adopts the Pioneer Community Energy Recommended Fiscal Year 2025-26 Budget as presented in Exhibit A.

3. The Chief Executive Officer is authorized to move budget authority between divisions and accounts, but not to increase or exceed the Board authorized total Budget.

4. The Chief Executive Officer is authorized to have flexibility to hire positions not originally anticipated in the Budget as long as the authorized full-time positions of 26 is not exceeded (but may be temporarily exceeded for managing the critical knowledge transfer from a departing employee to a replacement employee) and salary and benefit actuals do not exceed the budgeted compensation.

5. The Program Fund shall be allocated 2% of the budgeted Energy Sales revenue dedicated to Program purposes, including the expense of compensation, consultant services and operating expenses, which if unspent will ‘roll’ over and be automatically appropriated to the subsequent Fiscal Year after the completion of the annual audit.

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

Exhibit A: Fiscal Year 2025-26 Budget
FISCAL YEAR 2025-2026

OPERATING BUDGET
JULY 1, 2025

T H I S P A G E I S

I N T E N T I O N A L L Y B L A N K

T A B L E O F C O N T E N T S
INTRODUCTION CEO Message
Board of Directors
Member Agencies
Board Committees
Strategic Priorities
Fiscal Year 2025-2026 Summary
Revenues
Expenses
1 3
4 5
Customer Statistics
mPOWER Program
How it Works
Customer Benefits

DIVISION
BUDGET

OVERVIEWS
Administration
Finance & Debt Management
Power Procurement
Customer Care
Communications
Regulatory & Legislative
Programs
6 8
9 Organization Chart
Position Listings
Financial Strength & Resilience
Projected Reserves
Five Year Forecast
11 13
15 19
21 23
25 BUDGET
ABOUT

PIONEER
27 29
30 31
33 35
37 40
41 42
June 19, 2025
I am pleased to present Pioneer Community Energy’s (“Pioneer”) Fiscal Year (“FY”) 2025-26 Recommended Budget. The FY 2025-26 Recommended Budget supports the Agency’s mission statement “Pioneer Community Energy is a locally owned provider of electricity - powering the communities we serve with competitive rates, reliable service, and a choice in energy options.” The foundation of the FY 2025-26 Recommended Budget is the FY 2025-2027 Strategic Plan.

The balanced budget features Pioneer’s eighth full year of operations, which includes providing reliable energy, maintaining competitive rates compared to Pacific Gas & Electric’s (“PG&E”) generation rates and funding initiatives that are important to our customers.

The FY 2025-26 Recommended Budget includes $245.6 million in revenues offset by $245.5 million in expenses. The budget was developed based on 169,000 customer accounts, 1.7 billion kilowatt hours of energy sales, and twenty-six full-time employees.

Major highlights of the budget include:

Rate stability and competitiveness. The budget assumes no changes to Pioneer’s rates which are currently discounted To PG&E’s generation rates by as much as 24%. Since 2018, Pioneer has produced more than $108 million of utility bill savings for our customers.

Maintaining reserves to support our A- investment grade credit rating which allows us to procure energy at better prices to maintain our competitive rates.

Enhancement of public outreach and awareness to strengthen our connection to the community.

Accelerated payment of our debt service with a target of Pioneer being debt free by June 2026.

Investment in biomass projects that create local jobs, mitigate wildfire risk, and provide a stable and local source of energy.
$4.6 million in energy efficiency programs funding to improve our customers’ lives.

Funding resources in preparation for Pioneer’s service territory expansion in Fall 2027 that will double our size in customers and electric load.

Continued funding for cybersecurity to protect our customers’ data.

C E O M E S S A G E
1 Sincerely,
Donald Eckert Jr.

Chief Executive Officer
Pioneer Community Energy
While Pioneer is currently in stable financial condition, there are risks and uncertainty with potential impacts including:

Power Supply – Electricity is one of the most volatile commodities in the world.

Although we counter that volatility with expertise and discipline, changes in energy needs and market prices can erode cash reserves quickly.

Regulatory – Uncertainty in regulatory decisions by the California Public Utilities Commission could adversely affect the cost customers pay for electricity.

Economy – We believe our service territory is resilient with a well-diversified economy, but a downturn would impact on our projections.

I am confident that Pioneer is well positioned as we continue to transition to our vision of being a community partner. Continued success will only be achieved through collaboration, creativity, and commitment.
2 C E O M E S S A G E
City of Nevada City
Gary Petersen Anthony DeMattei
Placer County
El Dorado County
Ryan Carter Lori Parlin
City of Placerville
Placer County
Suzanne Jones
City of Grass Valley
Tom Ivy
City of Lincoln
Richard Pearl
Town of Loomis
David Ring
Sean Lomen
City of Colfax
City of Placerville
David Yarbrough Brian Veerkamp
City of Rocklin El Dorado County
David Bass
Placer County
Bonnie Gore
City of Grass Valley
Jan Arbuckle
City of Auburn
Sandy Amara Lou Ceci
City of Colfax City of Nevada City
Kim Douglass
City of Lincoln
John Reedy
Town of Loomis
Danny Cartwright
Chairperson of the
Board/City of Auburn
Alice Dowdin Calvillo Greg Janda
Vice-Chairperson of the
Board/City of Rocklin

G O V E R N I N G B O A R D
Local representation can be seen throughout Pioneer’s Joint Powers Authority and Board of Directors.

With their leadership, Pioneer provides the communities we serve a choice in energy options.

A L T E R N A T E S
3 M E M B E R A G E N C I E S
Pioneer Community Energy is a community-owned, not-for-profit provider of electricity, powering the communities with competitive rates, reliable service, and a choice in energy options.

Pioneer was established in 2017, joining the other 25 California Community Choice Aggregators (CCAs) in providing energy to more than 14 million customers across the state.

In 2018, Pioneer first began providing electricity services to Auburn, Colfax, Lincoln, Loomis, Rocklin, and most of unincorporated Placer County. In 2022, we started providing the same stable and reliable electric generation service to most of unincorporated El Dorado County and the City of Placerville. In 2024, Pioneer began serving customers in the Cities of Grass Valley and Nevada City.

Our Governing Board consists of eleven locally elected representatives from the El Dorado County and Placer County Board of Supervisors and the City Councils of Auburn, Colfax, Grass Valley, Lincoln, Nevada City, Placerville, Rocklin, and the Town of Loomis.

Our primary objective is powering our community with competitive rates, not earning shareholder profits. Like most CCAs, Pioneer is nimble in our efforts to source and search for power in a manner that traditional Investor-Ownes-Utilities (IOUs) are not. 4 4
2 0 2 5 G O V E R N I N G

B O A R D C O M M I T T E E S

BOARD MEMBER EXPANSION PROCUREMENT

AUDIT &

FINANCE GOVERNANCE
Alice Dowdin Calvillo
Auburn City Council x x x
Ryan Carter
Placerville City Council x
Tom Ivy
Grass Valley City Council x
Greg Janda
Rocklin City Council x x x
Suzanne Jones
Placer County Board of
Supervisors
x
Sean Lomen
Colfax City Council x
Gary Petersen
Nevada City City Council x x x
Lori Parlin
El Dorado County Board of
Supervisors
x
Richard Pearl
Lincoln City Council x
David Ring
Loomis Town Council x x
6 Pioneer Community Energy was created to serve the needs of our region. As a steward of Placer and El Dorado Counties, and the cities of Grass Valley and Nevada City resources, Pioneer strives to excel in each of its strategic priorities. These strategic priorities are actionable and demonstrated throughout our work and organizational goals and objectives.

Community
Partner
Fiscally
Strong and
Resilient
Operational
Optimization
Exceptional
Customer
Experience
Great
Place to
Work
Community Partner
Strengthen market share and brand
awareness through engagement
Engage CAC to advance our priorities
Prioritize local procurement &
supporting community reinvestment
Develop strategic partnerships with
regional agencies & local businesses
Be an advocate for our customers in
legislative & regulatory issues
Exceptional Customer Service
Stable and competitive rates
Respond to customers in a timely,
accurate, and professional
manner
Invest in resources to improve the
customer experience
Implement programs
Empower stakeholders to be our
ambassadors
Great Place to Work
Competitive compensation
and benefits
Annual employee survey
Culture of high-performing
workforce
Operational Optimization
Emphasis on small-hydro and
biomass projects in our region
No information technology
breaches
Enterprise risk management
Find revenues/controlling cost
opportunities
Compliance with all regulatory
and legislative requirements
Fiscally Strong and Resilient
Pursue expansion with like-minded
communities resulting in a stronger JPA
Adopt budgets that support credit rating
Adopt rates that create ratepayer value
and support Pioneer’s long-term health
Financial audits with no significant
deficiencies or material weaknesses
Prioritize community reinvestment that is
strategic and responsible

S T R A T E G I C P R I O R I T I E S
7 T H I S P A G E I S

I N T E N T I O N A L L Y B L A N K
8 F I S C A L Y E A R 2 0 2 5 - 2 0 2 6

B U D G E T S U M M A R Y

R E V E N U E S
Total Revenues: $245.6 Million
9 R E V E N U E S H I G H L I G H T S
10 Congestion Revenue Rights (CRR) and the Battery
Optimization revenues are projected to be $10
Projected Revenue million or 4% of the revenue budget.

Rights & Battery
Optimization Revenues
$10 Million
Total Revenues of $245.6 million with over $231
million generated from Energy Sales. The electric
rates include the two recent rate reductions of 3%
in July 2024 and the 1% rate reduction in March
2025.

No other electric rate adjustment increases or
decreases have been assumed in FY 25-26.

Total Revenues
$245.6 Million
Generated from
Energy Sales
$231 Million
Interest earnings are projected to be about 2% of
revenues at about $4.15 million. This revenue
category has benefited from Pioneer’s increased
cash position and the higher interest rate
environment.

Interest Earnings
$4.15 Million

E X P E N S E S
Total Expenses: $245.5 Million
11 E X P E N S E S H I G H L I G H T S
12 Power Supply Costs
Power Supply expenses represent 90% of total expenses
or over $221 million. Power Supply costs have increased by $12 million over the prior fiscal year primarily driven by the increased contracted costs of Resource
Adequacy and Renewable Energy.

Funding of Programs
Restoration of a 2% allocation of electric sales
revenue to programs which provide benefits and
value to Pioneer customers beyond rate savings.

Staffing
Expansion of Pioneer’s service territory is targeted for Fall 2027. In preparation for a successful launch into
the new territories, staffing increase of 4 full-time
positions has been recommended. These positions
include: a Power Resource Manager to support the
increased energy procurement needs; Customer Care
Specialist and Community Outreach Specialist to
support customer engagement and outreach efforts
for the doubling of Pioneer’s customers and electric
load; a Legislative/Regulatory Analyst to focus on the
Pioneer Board priorities of microgrids, public safety
power shutoffs and enhanced power safety settings.

New Full-Time
Positions
Total full-time
positions
Allocated to programs
+4
26 2%
Power Supply Cost
increase due to
Resource Adequacy
and Renewable Energy
$12 Million
Key responsibilities of the Administration Division include: efficient day-to-day operations throughout the organization, ensuring Board direction and policies are followed, including the 2025-2027 Strategic Plan, appointing and supervising all Pioneer personnel, accurately recording and preserving Pioneer’s legislative history and safeguarding vital, and permanent records.

Facilitate coordination with developers, feedstock providers, financing agencies, public agencies, and other organizations related primarily to the development of biomass facilities.

K E Y R E S P O N S I B I L I T I E S
The Administration division funds janitorial services, general legal services, and some additional Board room Audio/Visual Communications.

C O N S U L T A N T S E R V I C E S
The Administration Division funds office rent, alarm system, utilities, insurance costs for liability, workers compensation and property, and Board member expenses. Memberships, trainings, conferences, employee appreciation, organization culture development, and business-related travel are also budgeted for Administration personnel.

O P E R A T I N G E X P E N S E S

A D M I N I S T R A T I O N

D I V I S I O N
13 There are 3 positions assigned to the Administration Division:

Chief Executive Officer

P E R S O N N E L
Project Development Manager

R E C O M M E N D E D

B U D G E T
Board Clerk/Executive Assistant
New Committee
Established the Governance
Committee for discussion of
future JPA issues, including
expansion of members.

Strategic Plan
Adoption of the FY 2025-2027
Strategic Plan that cements
direction of agency for the next 3
years.
14 ADMINISTRATION

DIVISION
The Administration
division in FY 24/25
facilitated a
significant increase in
board engagement
including a Biomass
tour, tour of the
California
Independent System
Operator (“CAISO”)
facility, and guest
speakers at Board
meetings.

CAISO Staff and Board Tour | Folsom
F Y 2 4 / 2 5 A C C O M P L I S H M E N T S
JPA Governance
Achieved clarity & efficiency in
the governance of Pioneer’s Joint
Exercise of Powers Agreement
(“JPA”).

Board Relationships
Developed relationships and
introduced Pioneer with several
new Board Members, both
primary and alternate.

B O A R D

E N G A G E M E N T
Key responsibilities of the Finance Division include budget development and administration, accounts receivable/payable, financial reporting, procurement, human resources, benefit management, worker’s compensation, liability insurance, claim management, office management, information technology, facility management, contract administration, counterparty and operational risk management, payroll oversight, and front desk reception.

K E Y R E S P O N S I B I L I T I E S
The Finance Division funds various essential service contracts that encompass areas such as accounting, financial reporting and auditing, financial advisor, payroll services, human resources, recruitment services, labor counsel, information technology support and security audits.

C O N S U L T A N T S E R V I C E S
The Finance Division provides all personnel with the necessary technology and software to carry out the daily functions of the organization, including telephone and internet services, print/copy machines, laptops and peripherals, and Board meeting broadcasting software. New hire background check fees, recruitment job postings, and benefit administration fees are also facilitated and funded by the Finance Division. Memberships, CCCFA administrative costs (prepay bond administration), trainings, conferences, and business-related travel are also budgeted for Finance personnel.

O P E R A T I N G E X P E N S E S
There are 5 positions assigned to the Finance Division:

Director of Finance & Administration

P E R S O N N E L
Financial & Adminitrative Analyst I Senior Financial Analyst (2) Information Technology Analyst

F I N A N C E

D I V I S I O N

R E C O M M E N D E D

B U D G E T
15 The Debt Management Division provides budget for existing and potential debt obligations including the Term Loan, Line of Credit/Letter of Credit costs.

K E Y R E S P O N S I B I L I T I E S
Pioneer has an existing Term Loan with Umpqua Bank. The proceeds of that loan were used during Fiscal Year 2020-21 to pay in full the start-up funding provided by the Placer County Treasurer-Tax Collector. The annual debt service is almost $925,000, the 15-year term was to be paid in full May 2036 with an interest rate of 3.85%. Early principal payments were made in 2023, 2024 and 2025, which will allow Pioneer to pay in full the Term Loan in full during FY 2025-26 with an early principal payment of $700,000.

D E B T S E R V I C E
The Budget programs an additional principal payment of $700,000 to the Term Loan with Umpqua Bank, which, with this extra payment and the prior year’s extra payments, will result in the term loan being fully paid during FY 2025-26 and will have saved overall $2,200,000 in interest costs.

A Line of Credit and Letter(s) of Credit cost of $750,000 are also budgeted. By providing a Letter of Credit collateral to energy suppliers, Pioneer avoids using cash as collateral, generates interest earnings on the cash held by Pioneer and may also generate more bids to Pioneer’s energy solicitations from power suppliers.

O T H E R D E B T A N D R E L A T E D E X P E N S E S
There are no additional positions assigned to this Debt Management Division. The Division is managed by the Finance Division.

P E R S O N N E L

D E B T M A N A G E M E N T

D I V I S I O N
16 R E C O M M E N D E D

B U D G E T
17 T H I S P A G E I S

I N T E N T I O N A L L Y B L A N K
~$1.2 Million
Realized in Power Supply savings during
FY 24-25 because of the Prepay Bond
Exceeded Timeline
Exceeded the Reserve Policy timeline for
achieving minimum reserve target of 160
days.
+5
Successfully on-boarded new
full-time employees
Attract & Retain
Successfully improved Pioneer’s health
& wellness package that allows Pioneer
to stay competitive and supports the
strategic goal of “Attract and Retain.”
$31.8 Million
Projected additional savings for Pioneer’s
ratepayers through 2025 as a result of
reduced rates by 3% in Summer of ’24 and
reduced rates by an additional 1% in
January ’25.

FINANCE &
DEBT

MANAGEMENT

DIVISIONS
18 IT Cybersecurity Audit
and the Tri-Annual AMI
Audit were completed,
and Pioneer was rated
as Broadly Satisfactory.

Pioneer received a
‘clean’ audit of
Pioneer’s FY 23-24
Financial Statements.

A U D I T

R A T I N G S
F Y 2 4 / 2 5 A C C O M P L I S H M E N T S
Pioneer maintained an A-credit rating from
Standard & Poor’s with a
stable long-term outlook.

Additional principal payment
of $2.1 million paid towards
the Term Loan, saving an
estimated $300 thousand in
interest and reduced the term
by over 30 months.

D E B T M A N A G E M E N T
South Fork American River
El Dorado Irrigation District | Staff Tour
Key responsibilities of the Power Procurement Division include overall management of Pioneer’s energy supply portfolio: power supply planning, energy load and resource management, energy procurement (system power, renewable energy, carbon-free energy), issue Requests for Proposals (RFP) for energy procurement, valuation of offers, and follow up contract negotiations for all power types and for long-term Renewable Portfolio Standards (RPS) , Power Purchase Agreements (PPA), and California Public Utilities Commission (CPUC) reliability requirements, integrated resource planning, development of biomass projects, development of structured products including grid resiliency, etc.

K E Y R E S P O N S I B I L I T I E S
The Power Procurement Division funds various essential service contracts that encompass areas such as deal capture, position and risk reporting, expansion impact assessments and implementation plans, regulatory filings related to energy procurement, scheduling coordinator services, congestion revenue rights optimization, broker fees, and commercial legal support related to contract negotiations.

C O N S U L T A N T S E R V I C E S
The Power Procurement Division has budgeted funds for memberships, trainings, conferences, energy market analytical tools/data services, and business-related travel.

O P E R A T I N G E X P E N S E S
There are 5 positions assigned to the Power Procurement Division:

Chief Operating Officer

P E R S O N N E L
Manager, Quantitative Analysis & Modeling
Power Resources Manager (2) Power Supply Contracts Manager

P O W E R P R O C U R E M E N T

D I V I S I O N
19 R E C O M M E N D E D

B U D G E T
20 F Y 2 4 / 2 5 A C C O M P L I S H M E N T S
Power Supply is 90% of the
operating budget. Procuring
least cost/best fit solutions in
power procurement keeps the
rates stable and competitive.

POWER

PROCUREMENT
Yellow Pine Energy Center II
NextEra Energy Resources

P R O C U R E M E N T

P R O G R A M S
Pioneer supports local development
of energy sources by offering
developers incentives to build
biomass and small hydro projects in
Pioneer service territory.

This year, LocalFIT encouraged local
projects by expanding Pioneer’s
Feed-in Tariff program to include
biomass, small hydro, and storage-only technology.

LocalFIT
Pioneer supports the
development of biomass facilities
through long-term biomass
electricity contracts for eligible
generators, which allows Pioneer
to engage in community-sized
biomass plants with minimal
impact to our rates.

This year, Pioneer placed
biomass as a priority and
identified four biomass project
opportunities that fall under the
BioMAT program and are actively
in negotiations for two sites.

BioMAT
Full Compliance
Market manipulation by various regulatory
agencies has created immense challenges
to remain compliant with our commitments
for Renewable Energy and Resource
Adequacy (i.e., capacity) but Pioneer ends
the fiscal year in full compliance.

Utilized technology to improve our load
forecasting, resulting in more precise
procurement of power that saves our
customers money.

Load Forecasting
Created revenue opportunity by
collaborating with the project developer of
a large solar + storage facility using
technology to time the storage charge and
disbursement to the grid.

Revenue Opportunity
Began preparing for expansion to ensure
enough energy, renewable energy and
capacity is available when our new
members begin service in 2027.

Expansion Preparation
The Customer Care Division provides the tools for staff to work directly with customers, including contact management software; costs associated with compliance, including the printing and mailing of required regulatory mailings; mileage; customer education efforts like webinars and on-site Field Days; and fees for various meetings. Memberships, trainings, conferences, and business-related travel are also budgeted for division personnel.

O P E R A T I N G E X P E N S E S
Key responsibilities of the Customer Care Division include serving, in most cases, as the first point of contact for Pioneer with our customers; addressing and resolving issues related to billing, energy usage, energy options, program understanding, and benefits of Pioneer. Customer support through on-site Field Days. Relationship-building and problem-solving with customers and other stakeholders. Educating customers on a variety of topics like bills, solar, electric vehicles, batteries, and Pioneer programs.

K E Y R E S P O N S I B I L I T I E S
The Customer Care Division funds PG&E’s service fee costs for billing, data, reporting, and other related items. This division also funds the contract for call center operations, billing, and database management services; processing and reporting on all customer service and billing related items.

C O N S U L T A N T S E R V I C E S
There are 5 positions assigned to the Customer Care Division:

Director of Communications

P E R S O N N E L
Customer Care Specialist
Customer Care Manager Customer Care Coordinator (2)

C U S T O M E R C A R E

D I V I S I O N
21 R E C O M M E N D E D

B U D G E T
50% Reduction in Opt-Outs
Updated call scripts ask additional questions
for residential customers who call to opt-out,
resulting in a 50 percent reduction in opt-outs
year-over-year during the past six months.
22 Solar Success
More than 9,000 customers received more
than $1.2 million in NEM cash-outs, and
another 2,600 customers with less than $25
received a bill credit.

Customer Education
We educate our customers on issues that are
important to them with webinars on topics,
and rotate monthly field days to ensure a
presence in every member’s community.

CUSTOMER CARE

DIVISION
F Y 2 4 / 2 5 A C C O M P L I S H M E N T S
We pride ourselves in
providing excellent customer
service. This year, the team:

Answered 5,623 customer
inquiries
Responded with an average
wait time of 22 seconds
Earned an average
customer satisfaction
rating of 94.6 out of 100.
1) Who is Pioneer?
2) How to Read Your Bill
3) How to Read Your NEM
Bill
4) Understanding Solar
Billing Plan
5) What is Net Surplus
Compensation?
6) Community Benefits
Grant Program
7) Learn More About Our
Money-Saving Programs

W E B I N A R S
Customer Satisfaction
Leveraging technology to improve customer
experience, including our chatbot that created
536 live interactions, 184 ticket resolutions,
and an average customer satisfaction rating
of 4.5 out of 5. Use of chatbot provides
customers with immediate answers, tracks
emerging customer issues, and provides
customer assistance 24 hours a day.

Energy Field Day | Auburn Senior Center
Planning, implementing and managing all communications activities, including all aspects of external communications and outreach activities. Specific activities include message development; paid and earned media; media relations; social media; printing and distribution (electronic and hard copy) of marketing materials and required regulatory notifications; expansion support; website refinements and management; , and vendor management. Ensuring a strong, positive, and accurate flow of information to customer contact center. Identifying and managing new visibility opportunities through sponsorship and community outreach.

K E Y R E S P O N S I B I L I T I E S
The Communications Division funds communications and marketing consultant services, and management of direct mail activities. This includes strategic support; collateral development; graphics support; website and social media content development, management and analysis; and paid media campaigns supporting programs, expansion, and general awareness.

C O N S U L T A N T S E R V I C E S
The Communications Division funds a multitude of activities related to marketing, public relations, public affairs, stakeholder education, and outreach, including development, printing and mailing of required regulatory notifications and marketing materials; dues and memberships that support strategic partnerships and visibility opportunities; graphics development; paid advertising and campaign management; sponsorships; securing lists for targeted marketing; image-building promotional materials; event participation, and miscellaneous outreach. Memberships, trainings, conferences, and business-related travel are also budgeted for division personnel.

O P E R A T I N G E X P E N S E S
There are 5 full-time positions assigned to the Communications Division:

Director of Communications

P E R S O N N E L
Community Outreach Specialist
Community Outreach Manager Communications Coordinator (2) Intern
(Part-Time)

C O M M U N I C A T I O N S

D I V I S I O N
23 R E C O M M E N D E D

B U D G E T
Placer County Plug-In Day
Outreach Efforts
Robust and successful outreach efforts
designed to promote community
partnership, heighten visibility, enhance
Pioneer’s reputation and branding
throughout our service territory.
100+ Community Events
Extensive outreach efforts, resulting in
participation in more than 100 community
events/meetings.
24 COMMUNICATIONS

DIVISION
F Y 2 4 / 2 5 A C C O M P L I S H M E N T S

C O M M U N I T Y

E N G A G E M E N T
Paid Media Campaigns
Launch and execution of paid media
campaigns supporting programs, along
with an identity-building general
awareness campaign.

The Communications
team facilitates active
membership and
participation in every
local Chamber of
Commerce to support
member agencies,
including monthly
presentations and active
participation in
Government Relations
Committees.

The team also plans and
executes Strategic
sponsorships in every
member territory that
elevate awareness of
Pioneer.

The Communications Division
developed and formalized a
comprehensive
communications plan that is
consistent with Pioneer’s
2025-2027 Strategic Plan.
2x Social Media Following
Significant growth in following and
engagement across all social media
platforms, including with community
leaders and influencers.

Key responsibilities of the Regulatory & Legislative Division include tracking legislation and regulations through multiple amendments and preparing drafts of legislative and regulatory updates on policy issues and programs; performing research projects on legislative and regulatory policy issue areas - preparing and presenting findings and recommendations of Pioneer positions; representing Pioneer in regulatory proceedings through preparation of data requests, written responses, position papers, analytical models, testimony, and exhibits; reviewing and drafting comments and briefs, providing high level technical and/or analytic input on regulatory and legislative matters; overseeing the preparation of data requests, testimony, and hearing exhibits and participate in administrative hearings; tracking, reviewing, analyzing and summarizing filings prepared by utilities and other entities that could impact Pioneer and its customers; coordinating and working closely with technical experts and external regulatory counsel to develop effective and persuasive communications before the CPUC, CA Energy Commission, CA Legislature and any other legal or regulatory body as needed.

K E Y R E S P O N S I B I L I T I E S
The Regulatory and Legislative Division funds various essential service contracts that encompass areas such as legal support for key filings and detailed analyses on regulatory proceedings and legislative bills, legal support specifically for challenging PG&E’s Energy Resource Recovery Account and General Rate Case filings that directly impact Pioneer’s bottom line, and legislative consulting for key lobbying efforts.

C O N S U L T A N T S E R V I C E S
The Regulatory and Legislative Division has budgeted funds for memberships, trainings, conferences, and business-related travel.

O P E R A T I N G E X P E N S E S
There are 4 positions assigned to the Regulatory and Legislative Division:

Chief Operating Officer

P E R S O N N E L
Legislative & Regulatory Analyst I (2)
Legislative & Regulatory Manager

R E G U L A T O R Y &

L E G I S L A T I V E D I V I S I O N
25 R E C O M M E N D E D

B U D G E T
26 To help provide grid
resiliency solutions for
Pioneer’s customers, the
Legislative & Regulatory
team identified a potential
funding opportunity for
new microgrid projects
through PG&E’s Microgrid
Incentive Program and
engaged with PG&E to
identify initial proposed
sites for projects.

The team is actively
working with PG&E in
support of local
community microgrids in
areas of our territory that
are the most impacted by
shut-off events.

M I C R O G R I D
F Y 2 4 / 2 5 A C C O M P L I S H M E N T S
Pioneer continued to support
biomass, which cleans up our
forests and provides local jobs
through education of our
legislators with the hosting of a
biomass plant tour at the Sierra
Pacific sawmill in the City of
Lincoln. Have collaborated with other key
stakeholders in the submittal of AB 704
which will provide a long-term solution to
funding for biomass projects.

Hosted a Lobby Day at the Capitol in
Spring 2025 to continue relationships
with our Legislators while planting the
seed of support for our biomass bill.

Collaborated with other CCAs through our
trade association to protect our customers
from unfavorable decisions in either the
Legislature or from the California Public
Utilities Commission.

Commissioned a strong Lobbyist Firm to
assist us with information on events at
the capitol and strategic support on
solutions to threats impacting Pioneer’s
customers.

REGULATORY &

LEGISLATIVE

DIVISION
Biomass Facility Tour
Sierra Pacific Industries | Lincoln
Customer Protection
AB 704
Lobbyist Firm
Lobby Day
Key responsibilities of the Programs Division include researching, developing, and implementing residential and commercial programs in alignment with Pioneer’s 2025-27 Strategic Plan.

Additionally, the Programs Division evaluates proposals and opportunities in other areas of interest that focus on saving ratepayers money and providing support for demand response and load management programs to advance regulatory compliance.

K E Y R E S P O N S I B I L I T I E S
The Programs Division funds all efforts related to program development for residential and commercial customers, including developing the scope of work with program partners, contract review, marketing and outreach, quantifying specific measurements of success, identifying needed program modifications and reporting of any technical information to the executive team and Board of Directors.

C O N S U L T A N T S E R V I C E S
The Programs Division identifies the tools necessary to fulfill the program requirements and ensures that all staff have the resources needed for successful program implementation and evaluation. Specific operating expenses include services/partnerships for effective implementation and management; memberships that allow for idea sharing, program engagement and tracking; professional development.

O P E R A T I N G E X P E N S E S

P R O G R A M S D I V I S I O N
27 There are 2 positions assigned to the Programs Division:

Director of Communications

P E R S O N N E L
Programs Manager

R E C O M M E N D E D

B U D G E T

PROGRAMS

DIVISION
LED Discount Products program provides
energy efficient lighting at below market
prices and is currently offered in 26 store
locations. Nearly 60,000 units of inventory
have been distributed during the past year.
60,000 Units Distributed
Air Conditioning Tune-Up Rebate program
has resulted in nearly 1,300 rebates issued.
1,300 Rebates
PowerShift Rewards demand side
management program enrolled 1,100
participants.
1,100 Participants
GridGen program that supports grid
reliability and long-term affordability has
generated 235 leads and nearly two
dozen residential customers have signed
contracts.
235 Leads
ICE Energy program shifts demand during
the peak summer hours to save money for
large commercial customers was launched
and nearly 200 site visits have occurred.
200 Site Visits
28 F Y 2 4 / 2 5 A C C O M P L I S H M E N T S
In FY 24/25, the Programs Division
launched programs for the first time
in Pioneer’s history. The team
launched 7 programs in one year.

Volunteer committee of Pioneer
customers that works with Pioneer
staff to help inform Pioneer's
programs. Pioneer hosted and
facilitated six meetings in 2024 to
discuss program priorities, evaluate
program options, and outline
program implementation.

C O M M U N I T Y

A D V I S O R Y

C O M M I T T E E
Clean Fleet Revenue program allows
member agencies to aggregate and
monetize credits for the statewide Low
Carbon Fuels Standard program.

Hourly Flex Pricing Pilot Program to support
our agricultural customers is now available.

GridGen Customer Home | Lincoln
“I chose the GridGen program over
others because there were no upfront
costs, no waiting eight years to break
even, and it was extremely easy.

I pushed a couple of buttons and two
months later I had solar. ”
Don B. | GridGen Customer
Lincoln, CA

O R G A N I Z A T I O N C H A R T
General Counsel Chief Executive Officer Financial
Auditor
Legislative &
Regulatory
Manager
Scheduling
Coordinator
CRR Broker
Power
Resources
Manager
Power
Resources
Manager
Legislative &
Regulatory
Analyst
Legislative &
Regulatory
Analyst I
Manager,
Quant. Analysis
& Modeling
Power Supply
Contracts
Manager
Power
Procurement
Consulting
Power
Procurement
Legal Counsel
CalCCA
(Advocacy
Series)
Legislative/
Regulatory
Legal Counsel
Battery
Optimization
Service
State Lobbyist
Community
Outreach
Manager
Community
Outreach
Specialist
Senior Financial
Analyst (2)
Controller
Financial &
Administrative
Analyst I
Human
Resources
(Recruitment)
Human
Resources
(Employee
Relations)
Information
Technology
Analyst
Information
Technology
Services
Financial
Advisor
IT Auditor
Custodial
Services
Programs
Manager
Customer Care
Manager
Customer Care
Specialist
Customer Care
Coordinator
Customer Care
Coordinator
Communications
Coordinator (2)
Customer Call
Center
Intern
(Part-Time)
Customer
Billing (PG&E)
Marketing
Services
Data
Management
Services
Various
Program
Contractors
Director of Finance &
Administration Chief Operating Officer Director of Communications 26 Full-Time Positions 1 Part-Time Position 4 New Positions Key Consultant Services

L E G E N D
Governing Board
Project Development
Manager
Board Clerk/
Executive Assistant
29 P O S I T I O N L I S T I N G
30 F I S C A L S T R E N G T H

A N D R E S I L I E N C Y
In order to provide its customers with competitive and stable rates and to provide value to the communities in its territory, Pioneer needs to achieve and maintain financial health. The most critical target for Pioneer to achieve is the appropriate level of cash reserves.

An organization’s financial reserves are a discreet subset of its liquid net assets. They are a distinct pool of assets that an organization can access either to mitigate the impact of unbudgeted, undesirable financial events, such as the risks in the energy business that include inflationary pressures, recession risk, power cost volatility, extreme climate events, open energy positions, opt-out risk, and regulatory and legislative changes.

Effective and appropriate financial policies provide a clear path to reaching long-term sustainability. The policies offer critical guidance to the Board in rate-setting decisions to achieve the cash reserve target over the next few years.

B U I L D I N G F I S C A L S T R E N G T H & R E S I L I E N C Y W H A T A R E R E S E R V E S ?

K E Y F I N A N C I A L P O L I C I E S
31 1
3 5
2 4
A financial projection is a tool used to determine Pioneer’s current financial standing over a forecast period. A financial projection incorporating revenues and expenses should be updated every year as part of the budget process. The projection should also include the analysis of key financial targets of cash reserves, debt coverage ratio and rate competitiveness. The rate competitiveness component should also be updated when Pacific Gas & Electric (PG&E) issues a rate change.

Debt coverage ratio is a measurement of debt affordability. Pioneer has a 15-year term loan with Umpqua Bank. Rate setting must account for Pioneer’s annual debt service. The Board of Directors commits to maintaining proper debt coverage ratios in order to sufficiently fund debt with cash flow from operations.

The purpose of this policy is to give the Board an option to consider annual inflationary increases to allow Pioneer to keep up with changes in operation costs.

The annual inflationary adjustment would correlate to the consumers price index.

When evaluating an inflationary adjustment, rate competitiveness to PG&E will also be considered.

The best measurement of the financial health of the utility is its ability to achieve and maintain the appropriate cash reserve. Cash reserves are the most important tool Pioneer has to provide stable and competitve rates. It is extremely important the Board set rates to sufficiently fund operations and build cash reserves. The policy recommends a minimum cash reserve target of 160 days of cash on hand. The minimum cash reserve target was achieved during FY 2024-2025, which was within the policy’s recommended timeline.

Like a traditional utility, Pioneer has a defined service territory. However, unlike a traditional utility, Pioneer does not have a captive customer base. Rate competitiveness is as equally important as meeting financial targets. Rate setting must strive for balance between ratepayer savings compared to PG&E and the financial health of the utility. The policy stresses the importance of setting rates that achieve balance. However, if maintaining a rate differential to PG&E causes Pioneer’s cash balance to fall below 90 days of cash on hand, it will trigger a reevaluation of rates until target cash balances are restored.

Frequency of Financial Projections Policy
Debt Coverage Ratio Policy
Annual Inflationary Increases
Cash Reserves Policy
Meeting a Rate Threshold Policy

K E Y F I N A N C I A L

P O L I C I E S
32 P R O J E C T E D R E S E R V E S
33 2 4 0 D A Y S 2 4 0 D A Y S
2 8 2 D A Y S
1 6 0 D A Y S
( M I N I M U M

T H R E S H O L D )
F Y 2 5
( P R O J E C T E D )
F Y 2 6
( P R O J E C T E D )
F Y 2 7
( P R O J E C T E D )
$200,000
$120,000
$80,000
$40,000
$0
$160,000
$ I N T H O U S A N D S

R E S E R V E S
*The impact of Pioneer’s Fall 2027 expansion will be reflected in FY 2028 34 Pioneer’s minimum Reserve target is 160 days of liquidity. This minimum Reserve target was achieved during the beginning of FY 24-

25. Current projections show FY 24-25 ending with 240 days of liquidity.

FY 25-26 is projected to end with a small contribution to Reserves while maintaining 240 days of liquidity.

Pioneer has an A- credit rating from Standard & Poor’s (S&P) with the Strategic Plan goal to achieve an A credit rating. The cash reserve days of liquidity is a key consideration when S&P evaluates a CCA. A CCA with a “Very Strong” or “Extremely Strong” cash position is more likely to have received an A credit rating. Pioneer’s financial advisor has advised that S&P appears to consider 270 days of liquidity as the threshold for considering a CCA’s to be in an “Extremely Strong” cash position.

The Five Year Forecast assumes no change in rates, using current power supply costs, and does not include the impacts of the expansion territories that will join Pioneer’s service territory the Fall of 2027; current forecasts indicate that Pioneer could achieve the 270-days of liquidity target in FY 26-27.

P R O J E C T E D R E S E R V E S

F I V E Y E A R F O R E C A S T
35 F I V E Y E A R F O R E C A S T
36 The five-year forecast is only reflective of Pioneer’s existing service territories.

CPUC approval of the expansion was recently received and servicing the expansion territories is planned to begin the fall of 2027. The impact both to revenues and expenses will be significant, since the expectation is that the expansion will increase Pioneer’s electric load by over 100%. Those impacts will be better known once the customer historic usage patterns and rate plans have been incorporated into Pioneer’s financial pro-forma which will be at a later date.

The revenue projection assumes the existing rates and customer rate choices are unchanged over the five-year forecast. Historically, customer usage does increase over time and therefore Pioneer’s overall electric load is also forecasted to grow incrementally over time. Since the value of CRR’s can vary and the growth of battery usage statewide may have a softening effect on the Battery Optimization program, revenue is conservatively forecasted to decline over the forecast period.

The extremely high cost of Resource Adequacy and Renewable Energy that has been experienced over the last few years has started to normalize closer to the 2022 prices. This normalization is the primary driver for the Power Supply costs forecasted to decrease in Fiscal Year 2026-27 and drop further in Fiscal Year 27-28 before a forecasted small increase in Fiscal Year 29-30. The decreases demonstrate the markets projection that these energy costs will stabilize after Fiscal Year 2025-26.

Increased compensation costs are primarily driven from a growing number of full-time staff that is anticipated through Fiscal Year 2027-28. The staffing increases would be to both prepare and then service the territory expansion that will double Pioneer’s energy load and customer accounts. Thereafter, compensation costs are expected to moderate. Small annual increases are assumed for Consultant Services and Operating Expenses.

Actual energy costs, rates, and competitiveness to PG&E will be the considerations when the Board considers any future rate adjustments and assumptions in the five-year forecast will not direct any Board actions on rates or full time equivalent increases.

C U S T O M E R S T A T I S T I C S
169k Customer Accounts
Projected Monthly Average
37 C U S T O M E R S T A T I S T I C S

1.7 Billion kWh’s
Projected Energy Sales
38 39

T H I S P A G E I S

I N T E N T I O N A L L Y B L A N K
40 m P O W E R P R O G R A M
The mPOWER program accepted its last application in August 2021 and mPOWER activity is now limited to the administering the outstanding mPOWER Bonds. The Placer County Treasurer-Tax Collector administers this program on behalf of Pioneer Community Energy. Current outstanding mPOWER bonds are $4.4 million.

H O W I T W O R K S
Community Choice Aggregators act just like traditional power companies: they pool power loads among participants to create buying power for this essential resource – energy. In the case of Pioneer, the combined energy needs of the businesses and residents in our service areas are used to purchase reliable power at competitive rates, leveraged to maximize benefits to the customers and the community
Pioneer Energy Options
With Pioneer, residents and businesses can choose from the following energy options:

Pioneer Standard
Automatic enrollment
Savings range from 4%-24% compared to PG&E’s generation rates *Based on E1 residential rate
Pioneer Green100
Optional service upgrade at any time
100% renewable energy
Net Energy Metering/Solar Billing Plan
More than 42,000 solar customers
Net surplus generation paid at ½ cent premium over PG&E Net Surplus Compensation Rate
Electricity Delivery Customer
Pioneer procures
customers’ electricity
from various suppliers.

Investor-owned utility
delivers electricity,
maintains lines and poles,
and sends out bills to
customers.

Customers get a choice in
their power - competitive
and stable rates, energy
options, and exceptional
local service.
41 C U S T O M E R B E N E F I T S
Your Power. Your Choice.

Why Choose Pioneer Community Energy?
42 2510 Warren Drive
Rocklin, CA 95677
(916) 758-8969 pioneercommunityenergy.org [email protected] 379324.1 Page 1 of 4
Staff Report – Item 4
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 4: Adopt Resolution to Increase the Days of Liquidity Target and update the Cash Reserves Policy
Date: 6/19/2025

RECOMMENDATION
Adopt resolution to increase the days of liquidity target and update the Cash Reserves Policy.

BACKGROUND
Pioneer’s cash reserves serve as the primary ‘umbrella’ that helps Pioneer withstand and navigate the many risks in the energy business, such as inflationary pressures, recession risk, power cost volatility, extreme climate events, open energy positions, opt-out risk, and regulatory and legislative changes. An example of the impact that can result from one of these risks is when the extreme weather event of September 2022 caused a decrease of 65 days of liquidity within a 7-day period, primarily driven by large collateral calls and extreme energy prices.

In recognition of these inherent energy risks, the Board adopted a series of financial policies in October 2021, including a Cash Reserves Policy that established a minimum target of 160 days of liquidity to be achieved within a 3-to-5-year timeframe. Pioneer has since achieved the minimum target and further estimates that the days of liquidity will reach 240 by June 30, 2025. At the beginning of 2024, Pioneer also received a credit rating of A- from S&P. Pioneer’s progress towards reaching the minimum reserves target was a significant factor (along with other factors) in S&P’s credit analysis.

At the September 2024 Board meeting, the Board asked that a discussion should take place regarding increasing the 160 days of liquidity minimum cash reserves target to better position Pioneer for an improved credit rating.

This is also in alignment with the 2025-2027 Strategic Plan that includes an objective to ‘build the case for an “A” rating in the future.’
At the November 2024 Board meeting, the Board considered a revised Cash Reserves Policy that would have increased the cash reserves target and provide a bill credit to customers when actual cash reserves exceeded the cash reserves target. The Board directed that a more appropriate time to deliberate a change to the Cash Reserves Policy was when the FY 2025-26 Budget was being considered.

ANALYSIS & DISCUSSION
A credit rating can be an important factor in ensuring the quantity and competitiveness of supplier responses to Pioneer’s energy solicitations and can also drive the amount of collateral that the supplier may demand from Pioneer. Energy suppliers also consider an entity’s credit rating as a strong indicator of the financial strength and resilience of a potential business partner, such as Pioneer. Another consideration is Pioneer’s credit rating strength compared to peers. While Pioneer received an A- credit rating from S&P at the beginning of 2024, many of Pioneer’s peers have received a stronger credit rating of A. That difference in credit ratings could cause an energy supplier to prefer a higher rated entity when a contract is being negotiated.

S&P has many data points it uses when it considers assigning a credit rating to an entity and doesn’t publicly disclose at what point all those data points and ratios move the needle between credit rating iterations.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 6/19/2025
379324.1 Page 2 of 4
However, two data points are known to be significant factors in the credit rating development: (1) days of liquidity (cash on hand), and (2) the Fixed Charge Coverage.

Days of Liquidity
Pioneer’s financial advisors, PFM, have advised that CCAs that have, in S&P’s perspective, “Very Strong” or “Extremely Strong” cash positions are more likely to have received an A credit rating. “Very Strong” has a range of 150-270 days of liquidity, while “Extremely Strong” has over 270 days of liquidity. In addition to the days of liquidity, the amount of liquidity (cash) and the size of the organization are also important factors that S&P considers.

The table below offers one perspective of the cash balance by measuring the accumulated cash by the days of liquidity ratio for A rated CCA along with each the respective CCA’s reserve target compared to Pioneer.

CCA Credit
Rating
Days of
Liquidity
Reserve
Target
MCE A 236 240
Pioneer
(June 30, 2025) A- 240 160
PCE A 291 180
AVA A 342 180
SVCE A 386 350
SCP A 522 365
When comparing A rated CCA total cash balances, as can be seen in the table below, Pioneer’s current and projected 270 days of liquidity (new target cash position) would still fall below the level of cash that other S&P A rated CCAs have achieved. Liquidity (cash) of the other CCAs ranges from $300 million to over $500 million, with the load size of the CCAs also serving a major role in the accumulated cash balances.

A-Target

A A A A A
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Pioneer
(June 30, 2025)
Pioneer Target
(270 Days)

SCP PCE MCE SVCE AVA
$ In Thousands
CCA Cash Comparison
(Cash & Investments)
I I I
Agenda Item: 4 Agenda Date: 6/19/2025
379324.1 Page 3 of 4
These comparisons indicate that if Pioneer also realized increased Cash Reserves, a credit rating improvement could be possible. Achieving a revised Cash Reserves Target would result in an increased amount of liquidity (cash) and will generate increased interest earnings compared to a lower cash position.

Fixed Charge Coverage Ratio
Another ratio that S&P considers is the Fixed Charge Coverage (FCC) ratio. This ratio treats a portion of power purchases as fixed to reflect the provider’s pass-through of its fixed costs. Other components include debt service and the operating margin. FCC Ratios between 1.2 to 1.4 is considered “Strong,” while “Very Strong” has a ratio range of 1.4 to 1.6. At the time of Pioneer’s credit evaluation, Pioneer had an FCC ratio of over 1.2.

However, using the recommended FY 2025-26 Budget and the Five-Year Forecast, FY 2025-26 shows a ratio of

1.0 with FY 2026-27 recovering back to “strong” at a 1.2 ratio. An FCC ratio of below 1.0 is viewed by S&P as “Highly Vulnerable.”
Future rate adjustments that provide a positive margin and contribute to an increase in days of liquidity would also improve the FCC ratio and strengthen Pioneer’s future credit rating evaluation.

Cash Reserves Policy Updates
Modifying the current Cash Reserves Target to 270 days of liquidity (“Extremely Strong”) within a 3-to-5-year period will position Pioneer well for a credit rating improvement.

An additional modification to the Reserves Policy that the Board may choose to consider is if/when Pioneer’s days of liquidity exceed 270 days of liquidity, that the amount over the 270 days may be returned to customers as a future bill credit. The criteria could be at the completion of the prior fiscal year audit, and the days of liquidity would be calculated using the current fiscal year budgeted expenses with the bill credit timed to be credited to customer accounts before June 30th of the current fiscal year.

Generally, S&P rarely conducts a credit rating upgrade within 2 years of its last rating evaluation, although downgrades may happen more frequently. During the initial rating evaluation conducted by S&P, the analyst had numerous questions regarding expansion and potential risk impacts related to expansion. It is staff’s impression that S&P views expansion as a risk factor that could preclude a credit rating upgrade at least until service is underway in any new expansion territory. However, if service to the expansion territories is during the Fall of 2027, it provides a timeline for Pioneer to move towards achieving the “Extremely Strong” category for days of liquidity which would help offset any potential credit risk posed by expansion.

STRATEGIC PLAN
One of Pioneer’s strategic goals is to be “Fiscally Strong and Resilient” with the Objective to maintain an investment grade credit rating. In addition, the Strategic Plan specifies an outcome of this goal would be to ‘build the case for an “A” rating in the future.’

FISCAL IMPACT
Approving a revised Reserves Policy by increasing the days of liquidity target will strengthen Pioneer’s position and improve Pioneer’s ability to navigate the many risks in the energy business. Those risks include inflationary pressures, recession risk, power cost volatility, extreme climate events, open energy positions, opt-out risk, regulatory and legislative changes. An increased amount of liquidity (cash) will also result in increased interest Agenda Item: 4 Agenda Date: 6/19/2025
379324.1 Page 4 of 4
earnings compared to a lower cash position. Achieving a higher credit rating may also result in more competitive energy bids/proposals from suppliers. Further, providing customers a bill credit for a reserve balance that exceeds 270 days of liquidity will decrease Pioneer’s cash position but will support Pioneer’s value to provide customer savings as a competitive choice compared to the investor-owned utility.

ATTACHMENTS

1. Resolution to Increase the Days of Liquidity Target and Update the Cash Reserves Policy 401129.1 Page 1 of 2
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 June 19, 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 maintains funds in unrestricted and restricted accounts for such purposes as operating expenses, collateral for power supply, debt service, cash flow restrictions, and emergency situations; and
WHEREAS, the prudent management of Pioneer requires that reserve funds be established and maintained to fund scheduled and unscheduled expenses, and to provide periodic review of the reserve funding levels to ensure such levels are and will be adequate to meet the projected needs of the Pioneer; and
WHEREAS, the 2025-2027 Strategic Plan contains a strategic goal for Pioneer to be fiscally strong and resilient; and
WHEREAS, the energy business has significant risks, such as inflationary pressures, risk of recession, change in customer usage patterns, volatile power costs, open energy positions, climate events, customer participation rate and legislative and regulatory risks and the Reserve provides resiliency to withstand risks; and
WHEREAS, Pioneer has received an A- credit rating from S & P and desires to maintain and improve the credit rating in the future; and
In the matter of: A RESOLUTION TO INCREASE

THE DAYS OF LIQUIDITY TARGET AND UPDATE

THE CASH RESERVES POLICY
401129.1 Page 2 of 2
WHEREAS, Pioneer’s cash position and days of liquidity calculation are critical factors that a credit rating agency considers when evaluating and analyzing Pioneer’s financial position; and WHEREAS, the Board has determined that it is in the best interest of Pioneer to implement financial policies that provide guidance in the rate setting process; and WHEREAS, the Board has previously approved a Cash Reserves Policy and desires to increase the Days of Liquidity Target
WHEREAS, Days of Liquidity more than 270 days may be provided to Pioneer customers as a bill credit unless waived by the Governing Board to ensure the sound financial position of Pioneer.

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

1. The above recitals are true and correct.

2. The Cash Reserve Policy (Financial Policy Two) adopted by Resolution 2021-40 is rescinded and replaced with the attached updated Cash Reserve Policy.

3. Resolution 2021-40 Financial Policies One, Three, Four and Five remain unchanged

4. The Resolution shall take effect immediately upon its adoption.

Exhibit A: Cash Reserve Policy
Resolution 2025-__
June 19, 2025
Exhibit A
Category: Finance
Page | 1
401127.1
CASH RESERVE POLICY (Financial Policy Two)

PURPOSE
Pioneer maintains financial reserves to maintain good standing with rating agencies, provide liquidity to navigate the variety of risks in the energy business, and protect customers from sudden large changes in rates. This policy governs how financial reserves are built and maintained.

RESERVE BALANCE – DAYS OF LIQUIDITY
Pioneer’s Reserve target is approved to increase from the prior Policy target of 160 days of liquidity (adopted October 21, 2021) to a target of 270 days of liquidity. The denominator for this calculation will be the Board-approved fiscal year budgeted expenses. Pioneer shall set rates to reach the Target Reserve balance while also considering Pioneer’s rate competitiveness and customer savings. The expected timeline to reach the increased target is 3 to 5 years from approval of this Policy.

DAYS OF LIQUIDITY RESERVES IN EXCESS OF 270 DAYS
When Pioneer’s financials have been finalized and audited for a fiscal year and Pioneer has realized an excess of 270 days of liquidity, using the current fiscal year budgeted expenses as the denominator, Pioneer may provide customers with a bill credit for the days of liquidity in excess of the target. If not waived, the bill credit will be applied to customers’ accounts before June 30 of the current fiscal year.

In any year, the Board, in its sole discretion ,may waive the application of customer bill credits for the excess days of liquidity if, after the completion of the audited financial statements, Pioneer’s current days of liquidity have fallen below the 270 days of liquidity target or the Board otherwise finds waiver of the credit is necessary to ensure the sound financial position of Pioneer.

Plf)NEER

COMMUNITY ENERGY

Staff Report – Item 5
To: The Governing Board
From: Gina Stassi-Vanacore, Director of Communications
Item 5: Adopt a Resolution Authorizing the Chief Executive Officer to Execute an Agreement with API-Marketing for Printing and Mail Services for an Amount Not to Exceed $500,000 for a One-Year Term with an Option to Extend up to Two Additional One-Year Terms Date: 6/19/2025

RECOMMENDATION
Adopt a resolution authorizing the Chief Executive Officer to execute an agreement with API-Marketing for printing and mail house services for an amount not to exceed $500,000 for a one-year term with an option to extend up to two additional one-year terms.

BACKGROUND
The California Public Utilities Commission (“CPUC”) and California Energy Commission (“CEC”) require that Pioneer Community Energy (“Pioneer”) create and mail to all customers a series of required regulatory mailings each year. These mailings include the Joint Rate Comparison Mailer, Power Content Disclosure Statement, and pre- and post-enrollment notices for new Pioneer customers in Pioneer’s service area. Pioneer also uses printing and mail services for a variety of other projects, including for administrative support (business cards, folders, and other items to support operational needs) and marketing, particularly to support expansion efforts.

In the past, Pioneer has issued separate Requests for Proposals for each print or mailing project, for which we incur list processing fees and costs associated by project. During the past two years, we have increased the use of direct mail over and above required regulatory notices to support brand awareness, expansion, and programs.

Issuing separate RFPs for each project has created some duplication of efforts and costs, particularly related to mailing list development and list processing. We estimate that Pioneer will send more than 800,000 pieces of mail during FY 2024-25.

As Pioneer’s needs evolve and we plan for a significant and ongoing mail campaign to educate and inform new customers in our 13 new expansion areas, staff expect the use of direct mail to increase even further. Rather than issuing multiple RFPs and likely pay duplicate fees for list processing by using different vendors, staff hope to have a single printing and mail services vendor that: maintains and updates our master mailing list; provides the support needed on processing the required twice monthly pre-and post- enrollment notices; sorts the list as needed; and is familiar with our graphic and brand standards.

In May 2025, Pioneer issued a Request for Proposals for Printing and Mail House Services to 65 businesses, ensuring that vendors in each of our member territories were included. The goal of having a single vendor is streamlining the process and eliminating redundancies. A total of five responses were received and evaluated based on cost, experience, and ability to meet tight deadlines. API-Marketing, located in Auburn, was selected by a staff review panel as the preferred vendor of choice.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 5 Agenda Date: 6/19/2025

ANALYSIS & DISCUSSION
The proposed contract with API-Marketing will allow staff to fulfill Pioneer’s growing printing and mailing needs as we prepare for the expansion of Pioneer’s service area. This term of this contract is for one year, with the possibility of two one-year extensions.

The Scope of Work for the API-Marketing contract includes printing and mailing services:

1. Data processing in accordance with USPS standards, including use of the Coding Accuracy Support System (CASS) and National Change of Address (NCOA) for address data verification and de-duplication.

2. Weekly receipt of customer mailing lists, via secure file transfer.

3. Maintain, manage and update address lists, as necessary.

4. Preparation of print-ready artwork for a variety of mailers, including but not limited to the annual Joint Rate Mailer, Power Content Label, weekly pre- and post-enrollment notices, and monthly marketing mailers.

5. Print, process, trim, and fold all mailers, as specified.

6. Deliver all mail to the West Sacramento Post Office.

STRATEGIC PLAN
The API-Marketing contract supports the strategic priority to “Achieve Operational Optimization” by creating greater efficiency and the “Be A Strong Community Partner” goal by supporting a local business in our service area.

FISCAL IMPACT
The financial impact of approving the API-Marketing contract is $500,000 and is included in the FY 2025-26 Communications division budget.

ATTACHMENTS

1. Resolution authorizing the Chief Executive Officer to execute an agreement with API-Marketing for printing and mail house services for an amount not to exceed $500,000 for a one-year term with an option to extend up to two additional one-year terms.

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 June 19, 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”) is required by the California Public Utilities Commission and the California Energy Commission to distribute hard copy regulatory mailers to all Pioneer customers; and
WHEREAS, these regulatory mailings include the annual Joint Rate Comparison Mailer, annual Power Content Disclosure Statement, and bi-monthly pre- and post- enrollment for new Pioneer customers and new residents in our service territory; and WHEREAS, work associated with these mailings requires printing and list processing in accordance with United States Postal Service requirements and cannot be performed by Pioneer staff; and
WHEREAS, direct mail correspondence to customers has proven effective in past communications, marketing, and outreach efforts; and
WHEREAS, the planned expansion of Pioneer’s service area requires proactive communications and outreach plans, which include the need for customer mailing list management and a comprehensive direct mail campaign; and
WHEREAS, Pioneer staff seeks greater efficiency in the list processing and mail management services; and
In the matter of: RESOLUTION AUTHORIZING THE

CHIEF EXECUTIVE OFFICER TO EXECUTE AN

AGREEMENT WITH SIERRA OFFICE SYSTEMS AND

PRODUCTS, INC DBA API-MARKETING FOR AN
AMOUNT NOT TO EXCEED $500,000 FOR A ONE-YEAR TERM WITH AN OPTION TO EXTEND UP TO TWO ADDITIONAL ONE-YEAR TERMS.

Resolution No. ___
June 19, 2025
2 WHEREAS, Pioneer issued a Request for Proposals (“RFP”) for printing and mailing services on May 6, 2025;
WHEREAS, Sierra Office Systems and Products, Inc dba APi-Marketing has demonstrated past success on several similar types of marketing efforts that can help advance expansion efforts and communication needs and was ranked as the preferred vendor of choice by the Pioneer staff RFP panel; and
WHEREAS, Pioneer and Sierra Office Systems and Products, Inc dba APi-Marketing desire to execute an agreement with the goal of effective and efficient direct mail and list management, processing and reporting to ensure regulatory compliance and increasing public awareness about Pioneer throughout Pioneer’s entire service area, including Pioneer’s expanded service area; and WHEREAS, Pioneer’s Fiscal Year 2025-26 budget includes sufficient resources to accommodate the proposed agreement with Sierra Office Systems and Products, Inc dba APi-Marketing and no budgetary adjustment is required.

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 authorized to execute an agreement with Sierra Office Systems and Products, Inc dba APi-marketing for printing and mail house services, in substantially the form attached, for a one-year term effective on July 1, 2025 with the option to extend up to two additional one-year terms, for an amount not-to-exceed $500,000 with any minor clerical or clarifying changes proposed by the Chief Executive Officer and approved by General Counsel.

3. This resolution shall take effect immediately.

Exhibit A: Consultant Services Agreement with Sierra Office Systems and Products, Inc dba API-Marketing.
- 1 -
Approved for use: 1/1/2025
369617.2
Administering Agency: Pioneer Community Energy
Contract No. _____________
Contract Description: Printing and Mailing Services

CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Rocklin, California, as of July 1, 2025 (the “Effective Date”), by and between Pioneer Community Energy, (““Pioneer”“), and Sierra Office Systems and Products, Inc. dba APi-marketing (“Consultant”), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A. Pioneer shall have the right to request, in writing, changes in the scope of services. Any such changes mutually agreed upon by the parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. Consultant shall not be reimbursed for any expenses incurred for work performed outside the scope of services in Exhibit A unless prior written approval is given by Pioneer through a fully executed written amendment.

2. Payment. Pioneer shall pay Consultant for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payment specified in Exhibit B shall be the only payment made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to Pioneer in the manner specified therein, or, if no manner be specified, then according to the usual and customary procedures which Consultant uses for billing clients similar to Pioneer. Pioneer shall not withhold applicable taxes or other payroll deductions from payments made to Consultant except as otherwise required by law. Consultant shall be solely responsible for calculating, withholding, and paying all taxes. Notwithstanding any other terms of this Agreement, no payments shall be made to Consultant until Pioneer is satisfied that the services are satisfactory. The amount of the contract shall not exceed Five Hundred Thousand Dollars ($500,000.00).

3. Facilities, Equipment and Other Materials, and Obligations of Pioneer. Unless otherwise specified in Exhibit C, Consultant shall, at its sole cost and expense, furnish all facilities, equipment, and other materials which may be required for furnishing services pursuant to this Agreement.

4. Consultant’s Representations. Consultant represents that it is fully qualified to perform the services described in Exhibit A by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions in this Agreement. Consultant shall perform in accordance with generally accepted professional practices and standards as well as the requirements of applicable federal, state and local laws, it being understood that acceptance of Consultant’s work by Pioneer shall not operate as a waiver or release.

Consultant shall indemnify and hold harmless Pioneer, its officers, agents, employees and volunteers from and against any and all claims or expenses caused or occasioned directly or indirectly by Consultant’s failure to so perform.
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5. Exhibits. All exhibits referred to herein will be attached hereto and by this reference incorporated herein. In the event of any material discrepancy between the provisions of this Agreement and its exhibits, the provisions of this Agreement shall prevail.

6. Time for Performance. Time is of the essence. Failure of Consultant to perform any services within the time limits set forth in Exhibit A shall constitute material breach of this contract.

7. ’Licenses, Permits, Etc. Consultant represents and warrants to Pioneer that it has all licenses, permits, qualifications, and approvals of whatsoever nature, which are legally required for Consultant to practice its profession. Consultant represents and warrants to Pioneer that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, and approvals which are legally required for Consultant to practice its profession at the time the services are performed.

8. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Consultant’s obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.

9. Hold Harmless and Indemnification Agreement. At all times during the performance of this agreement, Consultant agrees to protect, defend, and indemnify Pioneer in accordance with the provisions contained in Exhibit D.

10. Insurance. Consultant shall file with Pioneer concurrently herewith a Certificate of Insurance, in companies acceptable to Pioneer, with a Best’s Rating of no less than A-:VII, for the coverage shown in Exhibit D. All costs of complying with these insurance requirements shall be included in Consultant’s fee(s). These costs shall not be a “reimbursable” expense under any circumstances.

11. Relationship of Parties.

A. Consultant is, and shall at all times remain as to Pioneer, a wholly independent contractor.

Pioneer shall have the right to control Consultant only insofar as the results of Consultant’s services rendered pursuant to this Agreement. Pioneer shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement.

B. Except as Pioneer may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of Pioneer in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied pursuant to this Agreement to incur any debt, obligation, or liability on behalf of Pioneer or to otherwise bind Pioneer to any obligation whatsoever.

Consultant, its officers, employees and agents shall not represent to any person or party that it or they are acting as agents of Pioneer or that it or they have the power to bind or commit Pioneer.

C. Neither Pioneer nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not represent that it is, or that any of its agents or employees are, in any manner employees of Pioneer.

12. Assignment Prohibited. Consultant may assign its rights and obligations under this Agreement only upon the prior written approval of Pioneer, said approval to be in the sole discretion of Pioneer. Except as otherwise provided herein, Consultant shall not subcontract any services to be performed without amending this Agreement. Consultant shall be responsible to Pioneer for all services to be performed under this Agreement.
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13. Personnel.

A. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that Pioneer, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, including those members of the Project Team as explained below, Consultant shall remove any such person immediately upon receiving notice from Pioneer of the desire of Pioneer for removal of such person or persons.

B. Notwithstanding the foregoing, if specific persons are designated as the “Project Team” in Exhibit A, Consultant agrees to perform the work under this Agreement with those individuals identified. Reassignment or substitution of individuals or subcontractors named in the Project Team by Consultant without the prior written consent of Pioneer shall be grounds for termination of the Agreement by Pioneer, and payment shall be made pursuant to Section 17 (Termination) of this Agreement only for that work performed by Project Team members.

C. Pioneer shall pay Consultant for work performed by its subconsultants, if any, only as set forth in Exhibit B. Consultant shall be liable and accountable for any and all payments, compensation, and federal and state taxes to all subconsultants performing services under this Agreement. Pioneer shall not be liable for any payment, compensation, or federal and state taxes for any subconsultants.

14. Notification of Organizational Changes. Consultant shall notify Pioneer, in writing, of any change in name, ownership or control of Consultant’s firm or of any subconsultant. Change of ownership or control of Consultant’s firm may require an amendment to this Agreement.

15. Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. All products of whatsoever nature which Consultant delivers to Pioneer pursuant to this Agreement shall be prepared in a substantial first class and workmanlike manner and conform to the standards or quality normally observed by a person practicing in Consultant’s profession. Consultant shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules, and regulations in any manner affecting the performance of this Agreement, including all Cal/OSHA requirements, the conflict-of-interest provisions of California Government Code section 1090, and the Political Reform Act (Government Code § 81000 et seq.).

16. Prevailing Wages. Consultant is aware of the requirements of California Labor Code section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects including, but not limited to, the design and preconstruction phases of a covered public works project. This Agreement is subject to the Prevailing Wage Laws for all work performed under this Agreement for which the payment of prevailing wages is required under state law. In particular, Consultant acknowledges that prevailing wage determinations are available for work performed under this Agreement. Consultant shall defend, indemnify, and hold Pioneer, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure of Consultant to comply with the Prevailing Wage Laws.

17. Termination.
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A. Pioneer shall have the right to terminate this Agreement at any time by giving notice in writing of such termination to Consultant. In the event Pioneer shall give notice of termination, Consultant shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement. In the event Pioneer shall terminate this Agreement:
1) Consultant shall deliver copies of all writings prepared by it pursuant to this Agreement. The term “writings” shall be construed to mean and include: handwriting, typewriting, printing, Photostatting, photographing, digital original and copies, and every other means of recording upon any tangible thing any form of communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof.
2) Pioneer shall have full ownership and control of all such writings delivered by Consultant pursuant to this Agreement.
3) Pioneer shall pay Consultant the reasonable value of services rendered by Consultant to the date of termination pursuant to this Agreement not to exceed the amount documented by Consultant and approved by Pioneer as work accomplished to date; provided, however, that in no event shall any payment hereunder exceed the amount of the Agreement specified in Exhibit B, and further provided, however, Pioneer shall not in any manner be liable for lost profits which might have been made by Consultant had Consultant completed the services required by this Agreement. In this regard, Consultant shall furnish to Pioneer such financial information as in the judgment of Pioneer is necessary to determine the reasonable value of the services rendered by Consultant. Pioneer shall have the benefit of such work as may have been completed up to the time of such termination. The foregoing is cumulative and does not affect any right or remedy, which Pioneer may have in law or equity. 4) Notwithstanding the foregoing, should Consultant fail to perform any of its obligations hereunder within the time and in the manner provided or otherwise violate any of the terms of this Agreement, Consultant shall be compensated as above, provided there shall be deducted from such amount the amount of damage if any, sustained by Pioneer by virtue of Consultant’s breach of this Agreement.

B. Consultant may terminate its services under this Agreement upon thirty (30) working days’ advance written notice to Pioneer. In the event of such termination, Consultant shall deliver copies of all writings to Pioneer and shall be entitled to compensation as set forth above.

Pioneer shall have the benefit of such work as may have been completed up to the time of such termination

18. Contract Term. This Agreement shall terminate on June 30, 2026, with options to renew for two additional one (1) year terms, or until terminated pursuant to Section 17 of this Agreement.

19. Non-Discrimination. Consultant shall not discriminate against any employee or applicant for employment because of race, sex (including pregnancy, childbirth, or related medical condition), creed, national origin, color, disability as defined by law, disabled veteran status, Vietnam veteran status, religion, age (40 and above), medical condition (cancer-related), marital status, ancestry, sexual orientation, or any other unlawful basis. Employment actions to which this provision applies shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; or in terms, conditions or privileges of employment, and selection for training.

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20. Records. Consultant shall maintain, at all times, complete detailed records with regard to work performed under this Agreement in a form acceptable to Pioneer for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement, and Pioneer shall have the right to inspect such records at any reasonable time.

Notwithstanding any other terms of this agreement, no payments shall be made to Consultant until Pioneer is satisfied that work of such value has been rendered pursuant to this agreement. However, Pioneer shall not unreasonably withhold payment and, if a dispute exists, the withheld payment shall be proportional only to the item in dispute. In addition, pursuant to Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds ten thousand dollars, all such documents and this Agreement shall be subject to the examination and audit of the State Auditor, at the request of Pioneer or as part of any audit of Pioneer, for a period of three (3) years after final payment under this Agreement.

21. Ownership of Information. All professional and technical information developed under this Agreement and all work sheets, reports, and related data shall become the property of Pioneer, and Consultant agrees to deliver reproducible copies of such documents to Pioneer on completion of the services hereunder. No such written products shall be the subject of a copyright application by Consultant.

22. Waiver. No provision, covenant, or condition of this Agreement shall be deemed to have been waived by Pioneer or Consultant unless in writing signed by one authorized to bind the party asserted to have consented to the waiver. One or more waivers by one party of any major or minor breach or default of any provision, term, condition, or covenant of this Agreement shall not operate as a waiver of any subsequent breach or default by the other party.

23. Conflict of Interest. Consultant represents that it has no known relationships with third parties, Pioneer Board members, or employees of Pioneer which would (1) present a conflict of interest with the rendering of services under this Agreement under California Government Code section 1090, the Political Reform Act (Government Code section 81000 et seq.), or other applicable law, (2) prevent Consultant from performing the terms of this Agreement, or (3) present a significant opportunity for the disclosure of confidential information. Consultant certifies that no official or employee of Pioneer, nor any business entity in which an official of Pioneer has an interest, has been employed or retained to solicit or aid in the procuring of this Agreement. In addition, Consultant agrees that no such person will be employed in the performance of this Agreement without immediately notifying Pioneer.

24. Campaign Contributions. This Agreement is subject to Government Code section 84308, as amended by Senate Bill 1439 (2022), Senate Bill 1181 (2024), and Senate Bill 1243 (2024).

Consultant shall disclose any contribution to an elected or appointed Pioneer official’s campaign or committee in an amount of more than five hundred dollars ($500) made within 12 months preceding the Commencement Date, by Consultant, its, her, or his agent, or another party affiliated with Consultant. Consultant shall provide a signed copy of the attached Campaign Contribution Disclosure Form, Exhibit E, to Pioneer prior to, or concurrent with, Consultant's execution of this Agreement and no later than the Commencement Date.

25. Entirety of Agreement. This Agreement contains the entire agreement of Pioneer and Consultant with respect to the subject matter hereof, and no other agreement, statement, or promise made by any party, or to any employee, officer or agent of any party, which is not contained in this Agreement, shall be binding or valid.

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32. Confidentiality. All data, documents, discussion, or other information developed or received by Consultant for performance of this Agreement are deemed confidential and Consultant shall not disclose it without prior written consent by Pioneer. Pioneer shall grant such consent if disclosure is legally required. All Pioneer data shall be returned to Pioneer upon the termination or expiration of this Agreement.

33. Successors & Third-Party Beneficiaries. This Agreement shall be binding on the successors and assigns of the parties. Except as expressly stated herein, there is no intended third-party beneficiary of any right or obligation assumed by the parties.

34. Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to the extent necessary to, cure such invalidity or unenforceability, and shall be enforceable in its amended form. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

35. No Presumption Against Drafter. Each party had an opportunity to consult with an attorney in reviewing and drafting this agreement. Any uncertainty or ambiguity shall not be construed for or against any party based on attribution of drafting.

36. Counterparts; Electronic Signatures. This Agreement may be signed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument. The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed or emailed versions of an original signature, electronically scanned and transmitted versions (e.g., via pdf) of an original signature, or a digital signature.

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EXHIBIT A

SCOPE OF SERVICES
Printing and Mailing Services may include, but are not limited to:

1. General Requirements:
a. Provide line item bid for printing cost per card with total and mail services total charge for delivering to West Sacramento Post Office, 3775 Industrial Blvd. b. Mails on customer’s USPS permit. Data processing, CASS, NCOA, Presort Bulk Class postage using Pioneer postal mailing permit and indicia. Those mailings without a mailing list to have “or current resident" for residential and "or current occupant" for Commercial. Drop as single mailing. Label/presort so mailing is distributed at same time c. Mailing list, if provided, comes de-duped.
d. Artwork: High Resolution PDF
e. Paper: White, USPS approved postcard, machinable stock, tabbed, mail weight paper, tabbed, and address sorted, if applicable
f. Full color, 2-sided
g. Ink: 4/4
h. Bleeds: None
i. Fold: None
j. Trim: To final size
k. Proof: Electronic approval

2. Annual Power Content Label:
a. PCL artwork, 6”w x 4”h- printer ready file provided
b. Quantity: 172k addresses
c. Produced and mailed mid-December

3. Weekly Pre and Post Enrollment Notices:
a. Printer ready file provided.
b. Data Processing, CASS, NCOA, Presort Bulk Class postage using Pioneer postal mailing permit. Do not Dedupe, add "current resident" or "current occupant" to address label c. Electronic proof provided
d. Quantity: Est. 500/week. Size: 8.5 by 11, full color, print, cut, address/deliver to West Sacramento Post Office weekly. Mails flat. Paper: Matte or Satin 100# Cover stock or other paper APPROVED BY USPS as machinable. Please note paper selection on bid e. Pioneer’s distribution list will be provided in a SFTP file for print vendor to download every Tuesday or Wednesday at the latest.
f. While the artwork will be static for the most part, we do have occasions where an update is provided. This could be as frequently as once per quarter. g. Mailing is done under Pioneer’s Standard Rate Permit and should be presorted. h. To maximize the postage rate, the preference is to mail a minimum of 500 postcards each time.
i. NO LIST MAY BE HELD LONGER THAN TWO WEEKS.
j. If we cannot get to the quantity of 500 by the second week, then the postcards must be mailed, even if at higher postage rate.

4. Marketing mailers - monthly
a. Printer ready file provided; mailing lists to be provided.

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b. Produce a monthly mailer
c. Quantity: 145,000
d. Printing size to be determined
e. Full color, trim, folding

5. Annual Joint Rate Mailer (JRM):
a. Printer ready artwork provided for each mailing for a total of 8 different post cards b. Separate mailing lists, up to 8 different lists, provided for each postcard:

Placer County customers
El Dorado/Nevada City/Grass Valley customers
c. Quantity - approximately 163,000 addresses
d. Artwork likely will be 11”w x 6”h but may vary
e. Final draft of JRM to be completed by end of May
f. JRM must be printed and mailed by July 1, 2026 unless otherwise directed by Pioneer

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EXHIBIT B

PAYMENT FOR SERVICES RENDERED
Maximum Limit & Fee Schedule
The total amount for services rendered shall not exceed $500,000.

Invoices
Invoices shall include a list of work performed including date and services provided. Work performed by Consultant will be subject to final acceptance by Pioneer.

Reimbursable Expenses
Administrative, overhead, secretarial time or overtime, word processing, photocopying, in house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. Travel expenses must be authorized in advance in writing by Pioneer.

Submit all invoices to: Pioneer Community Energy
Attn: Eric Acedo
[email protected]
2510 Warren Drive, Suite B
Rocklin, CA 95677

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EXHIBIT C

FACILITIES, EQUIPMENT, AND OTHER

MATERIALS, AND OBLIGATIONS OF PIONEER
(Specify all equipment and facilities to be provided or made available by Pioneer, and any other Pioneer obligations.)

NOT APPLICABLE

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EXHIBIT D

HOLD HARMLESS AGREEMENT

AND INSURANCE REQUIREMENTS

1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
A. To the fullest extent permitted by law, CONSULTANT hereby agrees to protect, defend, indemnify, and hold PIONEER free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, reasonable attorneys’ fees for counsel of Pioneer’s choice, expert fees, and all other expenses incurred by PIONEER arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to any real or personal property (including employees or property of PIONEER) and without limitation by enumeration, all other claims or demands of every character occurring or in any way incident to, in connection with or arising directly or indirectly out of, the Agreement, CONSULTANT’s performance under this Agreement, or CONSULTANT’S failure to comply with any provision in this Agreement. CONSULTANT agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit at the sole expense of the CONSULTANT. CONSULTANT also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provision is not intended to create any cause of action in favor of any third party against CONSULTANT or PIONEER or to enlarge in any way the CONSULTANT’s liability but is intended solely to provide for indemnification of PIONEER from liability for damages or injuries to third persons or property arising from CONSULTANT’s performance pursuant to this Agreement. PIONEER’s right to indemnity under this Agreement shall arise immediately upon the occurrence of the event giving rise to the indemnified liability.

PIONEER shall be entitled to a defense under this Agreement immediately upon the institution of a claim or action that is covered by this indemnity, even though liability for said claim or action has not yet been determined at the time the duty to defend the PIONEER hereunder has arisen. CONSULTANT shall not be entitled to any refund of attorneys’ fees, defense costs or expenses in the event that it is adjudicated to have been non-negligent. CONSULTANT shall not be required to indemnify PIONEER for such loss or damage as is caused by the active negligence, sole negligence, or willful misconduct of PIONEER.

B. As used in this section, the term PIONEER means Pioneer or its officers, agents, employees, and volunteers.The term CONSULTANT means Consultant, its officers, employees, servants, agents, or subconsultants, or anyone directly or indirectly employed by either Consultant or its subconsultants, in the performance of this Agreement.

C. The obligations of CONSULTANT set forth herein are not limited by the provisions of any workers’ compensation or similar statute. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to PIONEER.

D. PIONEER does not waive any indemnity rights by accepting any insurance policy or certificate required pursuant to this Agreement. CONSULTANT’s indemnification obligations apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

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E. PIONEER may request a deposit for defense costs from CONSULTANT with respect to a claim. If PIONEER requests a defense deposit, CONSULTANT shall provide it within 15 days of the request.

F. CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth here from each and every subconsultant or any other person or entity involved in the performance of this Agreement on CONSULTANT’s behalf.

2. INSURANCE:

CONSULTANT shall file with PIONEER concurrently herewith a Certificate of Insurance, in companies acceptable to PIONEER, with a Best’s Rating of no less than A-:VII showing, and complete, certified copies of all required insurance policies, including endorsements affecting the coverage for all policies required by this Agreement. CONSULTANT shall require all of its subcontractors, subconsultants, and other agents to do the same. Approval of the insurance by PIONEER shall not relieve or decrease any liability of CONSULTANT.

3. WORKER’S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

Worker’s Compensation Insurance shall be provided as required by any applicable law or regulation.

Employer’s liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.

If there is an exposure of injury to CONSULTANT’s employees under the U.S. Longshoremen’s and Harbor Worker’s Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.

Each Worker’s Compensation policy shall be endorsed with the following specific language:
 Cancellation Notice - “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy”.
 Waiver of Subrogation - The workers’ compensation policy shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against Pioneer, its officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.
 CONSULTANT shall require all SUBCONTRACTORS to maintain adequate Workers’ Compensation insurance. Certificates of Workers’ Compensation shall be filed forthwith with Pioneer upon demand.

4. GENERAL LIABILITY INSURANCE:

A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONSULTANT, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:

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(1) Contractual liability insuring the obligations assumed by CONSULTANT in this Agreement.

B. Commercial General Liability Insurance shall be no less broad than ISO form CG 00 01.

Coverage must be on a standard Occurrence form. One of the following forms is required:
(1) Comprehensive General Liability; or
(2) Commercial General Liability (Occurrence).

C. If CONSULTANT carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
 Two million dollars ($2,000,000) each occurrence
 Four million dollars ($4,000,000) aggregate
D. If CONSULTANT carries a Commercial General Liability (Occurrence) policy:
(1) The limits of liability shall not be less than:
Two million dollars ($2,000,000) each occurrence (combined single limit for bodily injury and property damage)
Two million dollars ($2,000,000) for Products-Completed Operations Four million dollars ($4,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).

E. Special Claims Made Policy Form Provisions:

Coverage must be on a standard Occurrence form. Claims-Made, modified, limited or restricted Occurrence forms are not acceptable. If any of the required policies provide coverage on a claims-made basis the Retroactive Date must be shown and must be before the Effective Date of the Agreement or the beginning of work. Claims-Made Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, CONSULTANT must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work Conformity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. In no cases shall the types of polices be different.

5. ENDORSEMENTS:

Each policy required herein, other than Professional Errors and Omissions and Worker’s Compensation, shall be endorsed with the following specific language:

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A. “Pioneer Community Energy, its officers, agents, employees, and volunteers are to be covered as insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.”
B. “The insurance provided by the Consultant, including any excess liability or umbrella form coverage, is primary coverage to Pioneer Community Energy with respect to any insurance or self-insurance programs maintained by Pioneer Community Energy and no insurance held or owned by Pioneer Community Energy shall be called upon to contribute to a loss.” C. “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to Pioneer Community Energy.”
All endorsements shall be signed by a person authorized by the insurer to bind coverage on its behalf.

6. AUTOMOBILE LIABILITY INSURANCE:

Automobile Liability insurance covering bodily injury and property damage in an amount no less than two million dollars ($2,000,000) combined single limit for each occurrence.

Covered vehicles shall include owned, non-owned, and hired automobiles/trucks using ISO Business Auto Coverage form CA 00 01 (or equivalent).

7. PROFESSIONAL LIABILITY INSURANCE:

Professional liability insurance which includes coverage for the professional acts, errors and omissions of Consultant in the amount of at least $1,000,000 per occurrence and $2,000,000 aggregate.

The deductible or self-insured retention may not exceed $50,000. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the Effective Date of the Agreement or commencement of the work. Coverage shall be continued for two years after the completion of the work by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the work under this Agreement. In the event CONSULTANT’s policy is a “claims made” policy only covering those claims made during the policy period, then CONSULTANT agrees to maintain the professional liability insurance required hereunder and with respect to this project in effect for at least three (3) years after acceptance of the work.

8. PRIVACY AND CYBERSECURITY LIABILITY INSURANCE:

Privacy and cybersecurity liability (including costs arising from data destruction, hacking or intentional breaches, crisis management activity related to data breaches, and legal claims for security breach, privacy violations, and notification costs of at least $5,000,000 US per occurrence.

9. ADDITIONAL REQUIREMENTS:

Premium Payments - The insurance companies shall have no recourse against PIONEER and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.

to Consultant Services Agreement
369617.3
Policy Deductibles - The CONSULTANT shall be responsible for all deductibles in all of the CONSULTANT’s insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.

CONSULTANT’s Obligations - CONSULTANT’s indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this Agreement.

Verification of Coverage - CONSULTANT shall furnish Pioneer with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by Pioneer before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. Pioneer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Material Breach - Failure of the CONSULTANT to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire Agreement. In the event any policy is canceled prior to the completion of the Agreement and CONSULTANT does not furnish a new certificate of insurance prior to cancellation, PIONEER has the right, but not the duty, to obtain the required insurance and deduct the premium(s) from any amounts due CONSULTANT under this Agreement.

Subrogation – CONSULTANT hereby waives all rights of subrogation against PIONEER.

CONSULTANT shall additionally waive such rights either by endorsement to each policy or provide proof of such waiver in the policy itself.

Report of Claims – CONSULTANT shall report to PIONEER, in addition to CONSULTANT’s insurer, any and all insurance claims submitted to CONSULTANT’s insurer in connection with the services under this Agreement.

Premium Payments and Deductibles - CONSULTANT must disclose all deductibles and self-insured retention amounts to PIONEER. PIONEER may require Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within retention amounts. Ultimately, PIONEER must approve all such amounts prior to execution of this Agreement.

PIONEER has no obligation to pay any premiums, assessments, or deductibles under any policy required in this Agreement. CONSULTANT shall be responsible for all premiums and deductibles in all of CONSULTANT’s insurance policies. The amount of deductibles for insurance coverage required herein are subject to PIONEER’s approval.

Duty to Defend and Indemnify – CONSULTANT’s duties to defend and indemnify PIONEER under this Agreement shall not be limited by the foregoing insurance requirements and shall survive the expiration or termination of this Agreement.

369617.3
corporation is a party to a proceeding, the majority
shareholder is subject to these provisions.

Date Phone

Staff Report – Item 6
To: The Governing Board
From: Lee Ewing, Legislative and Regulatory Affairs Manager Item 6: Overview of the Microgrid Incentive Program
Date: 6/19/2025

RECOMMENDATION
Receive an overview of Pacific Gas & Electric’s (PG&E’s) Microgrid Incentive Program (MIP) and an update on Pioneer Community Energy’s (Pioneer’s) participation in that program.

BACKGROUND
Pursuant to its vision of fostering a strong partnership with the community it serves, Pioneer regularly seeks opportunities to leverage its industry expertise to identify and pursue solutions to its customers’ energy needs.

This includes opportunities to bring resiliency solutions to communities that are particularly vulnerable to interruptions of their electric service from PG&E. Pioneer’s service territory encompasses many areas that are exposed to PG&E’s power safety power shut off events, and more recently, highly sensitive enhanced powerline safety settings (EPSS) that automatically turn off power on distribution lines within a fraction of a second. In order to assist its member agencies to
minimize the impact of EPSS events,
Pioneer is working together with them in
pursuing microgrid opportunities.

A microgrid is an interconnected, self-sufficient energy system within a clearly defined electrical boundary that can act as
a single, controllable entity. It can connect
to, disconnect from, or run in parallel with
larger portions of the electric grid, and can
be managed and isolated to withstand
larger disturbances and maintain electrical
supply to connected critical infrastructure.

Microgrids provide energy resilience by
disconnecting from the larger electric grid
during outages and providing power to
customers within the boundary of the
microgrid, utilizing local energy-generating
resources, such as solar panels, batteries,
and biomass generation.

Senate Bill 1339 (enacted in 2018)
directed the California Public Utilities
Commission (CPUC), in consultation with
the California Energy Commission (CEC)
and California Independent System Operator (CAISO), to develop policies related to microgrids throughout California. In April 2023, the CPUC approved plans for a $200 million MIP to support the development of clean Community Microgrids in disadvantaged and vulnerable communities (DVCs), including $87.2 million for PG&E.

Q
1t

ISOLATION DEVICE
These devices allow
PG&E to safely isolate
the area inside of the
microgrid from the
larger grid

EXAMPLE MICROGRID SERVICE AREA

BOUNDARY OF WHAT IS

SERVED BY MICROGRID
- ELECTRICAL LINES INSIDE OF THE MICROGRIO

ELECTRICAL LINES OUTSIDE

OF THE MICROGRID

ISOLATION DEVICE
GENERATION SITE:

I
I
I
I
I
I
I
Plf)NEER

COMMUNITY ENERGY
Space for generation
and/or battery
Agenda Item: 6 Agenda Date: 6/19/2025

The program is funded by ratepayers of the three IOUs. Local and Tribal governments, community-based organizations (CBOs), and other entities that are eligible for the MIP have the opportunity to request funding to support the critical energy needs of vulnerable populations most likely to be impacted by grid outages.

Projects in communities that are both susceptible to frequent outages and considered disadvantaged and vulnerable are eligible to receive up to $18 million in funding for engineering and development costs. This $18 million includes up to $14 million for the Application Incentive Request (AIR) to cover projects engineering and development costs, up to $3 million for utility equipment and services that otherwise would be the cost responsibility of the Application, and up to $1 million for interconnection studies and equipment. The deadline for the Initial Consultation Request for the current tranche of MIP funding was May 30, 2025, and the application deadline inclusive of technical project details will be in late Q4 of 2025. The complete estimated timeline for developing and operating a project under MIP is provided below.

PG&E will score proposed projects based on Customer and Community Benefits (50 points max), Resilience Benefits (30 points max), and Environmental Benefits (20 points max). The total points from those three buckets will then be divided by the dollars of incentive funding requested to arrive at the project score. For more details on the MIP application and development process, including the specific application scoring criteria, please refer to the MIP Handbook attached to this Staff Report.

ANALYSIS & DISCUSSION
While offering promising resiliency benefits through microgrids within Pioneer’s service territory, the MIP application and development process is highly technical and competitive and that process will require significant coordination with community and project development partners. In the first tranche of MIP funding, PG&E received 50 initial inquiries, which turned into 22 project applications, resulting in nine selected projects that were awarded up to $43 million, including $34 million dedicated to front of the meter generating resources (such as solar) and batteries, engineering and project management costs, and property purchase or lease costs.

The tranche one awardees will receive approximately $1-6 million each, based on requested incentive amounts and following the results of PG&E's project application scoring. Each awarded project will also be allocated up to an additional $1 million to cover interconnection costs for the distributed energy resources that will power microgrids.

The microgrids selected in the first wave of MIP funding are located throughout PG&E's North Bay and North Coast region and comprise four projects in Humboldt County, three projects in Lake County, and two projects in Marin County. Four of the nine projects will serve tribal communities. The microgrids will serve as new energy resilience solutions in the event of broader electric grid outages for a total of nearly 9,000 customers including approximately 3,600 customers with Access and Functional Needs (including people with disabilities, older adults, children, limited English proficiency, and transportation disadvantaged). Generation resource types for selected MIP projects include a variety of clean energy solutions such as solar, battery energy storage, pumped hydroelectric storage, small hydroelectric, and biomass.

Stage 1
Consultation
Approx. 6 Months
Initial Resilience
Consultation
Technical
Consultation
Application
Prep
..

Stage 2
Application
2-3 Months
Application
Submittal
Eligibility
Screen,
Score and
Award Decision
Grant
Agreement
..

Stage 3
Studies
12-18 Months
Interconnection
Study (Rule 21
orWDTI
Microgrid
Island Study
..

Stage 4
Development
18-36 Months
Stage 5
Operation
10+ Years
Agenda Item: 6 Agenda Date: 6/19/2025

For the current tranche of MIP, Pioneer submitted initial consultation requests for potential microgrids at four locations within its service territory – Georgetown, Foresthill, and two in Grass Valley. PG&E scheduled the initial consultation for June 25th, during which we will discuss the microgrid communities’ specific goals and energy needs and the potential resilience solutions. Over the next six months leading up to the application deadline, Pioneer will work with PG&E, as well as community and technical partners, to develop the details of potential projects to propose for MIP funding.

STRATEGIC PLAN
The recommendation supports the Community Partner goal.

FISCAL IMPACT
There is no fiscal impact with this recommendation.

ATTACHMENTS

1. PG&E Microgrid Incentive Program (MIP) Handbook, V1.2 (May 2025). 1 May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

Microgrid Incentive
Program (MIP)
Handbook
A guide for developing a multi-customer
Community Microgrid
To get the full interactive
aspects of this PDF, we
recommend viewing this on
Adobe’s PDF Reader.

You can download it
for free here.

Before You Open
This PDF

TABLE OF
Table of Contents CONTENTS
Click on a section below to learn more.
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 2 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2

OVERVIEW
The California Investor-Owned Utilities (IOUs) are committed to delivering electric energy to customers safely and reliably. These utilities include Pacific Gas and Electric Company (PG&E), San Diego Gas and Electric Company (SDG&E), and Southern California Edison (SCE).

Innovative solutions like microgrids can increase local energy resilience and reliability, and reduce emissions. Microgrids allow the three California IOUs to continue delivering electricity when customers would otherwise be de-energized as a result of severe weather, wildfires or other grid conditions. PG&E, SDG&E and SCE are working together to support the development of microgrids in disadvantaged and vulnerable communities (DVCs) most impacted by climate change.

Overview
Background
Senate Bill 1339 (enacted in 2018) directed the
California Public Utilities Commission (CPUC),
in consultation with the California Energy
Commission (CEC) and California Independent
System Operator (CAISO), to develop policies
related to microgrids throughout California.

In April 2023, the CPUC approved plans for
a $200 million Microgrid Incentive Program
(MIP) to support the development of clean
Community Microgrids in DVCs. The program
is funded by ratepayers of the three IOUs.

Local and Tribal governments, community-based organizations (CBOs), and other entities that are eligible for the MIP have the
opportunity to request funding to support the
critical energy needs of vulnerable populations
most likely to be impacted by grid outages.

UTILITY TOTAL BUDGET*
PG&E $87.2M
SCE $91.34M
SDG&E $21.46M
TOTAL $200M
*
Includes utility program and administrative costs
Program Funding by IOU
Increase electric reliability and resiliency in
disadvantaged and vulnerable communities
Distribute the benefits of clean, reliable energy
equitably across the IOU service areas
Advance energy resilience technology and inform
regulatory action around future clean energy initiatives Microgrid Incentive Program Goals:

May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved. 3 MICROGRIDS:

THE BASICS
Microgrids: The Basics
Click on a section below to learn more.
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May 2025 | V1.2
4 May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

MICROGRIDS:

THE BASICS
What is a Microgrid?
A microgrid is an interconnected, self-sufficient energy system within a clearly defined electrical boundary that can act as a single, controllable entity. It can connect to, disconnect from, or run in parallel with larger portions of the electric grid, and can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.

Microgrids provide energy resilience by disconnecting from the larger electric grid during outages and providing power to customers within the boundary of the microgrid, utilizing local energy-generating resources such as solar panels, batteries, generators, etc.

The MIP provides funding specifically for Community Microgrids. These are distinguished by a few key features:
■ They serve multiple customers connected by utility distribution infrastructure. ■ They utilize grid-forming generation resources and/or batteries located on the utility-controlled side of the electric meters (often referred to as located “in front of the meter”).

These resources may be owned by the community or its partners. ■ They involve a partnership between the 3rd party owner of one or more Distributed Energy Resources (DERs), a Community Microgrid Aggregator (CMG Aggregator), as the operator of the grid-forming resources, and the utility, as the grid owner and operator. Together, we partner in the development and operation of the microgrid.

How Does a Microgrid Work?
When necessary, microgrids can become isolated energy sources and independently provide electricity when an outage of the larger grid occurs. Outages can be planned or unplanned and happen for a variety of reasons including severe weather, wildfires, a Public Safety Power Shutoff (PSPS), or for other safety or reliability reasons. When a microgrid disconnects from the larger grid during an outage, it is designed to remain energized.1 This is called Island
Mode. However, most of the time, microgrids operate in Blue Sky Mode. This is when the larger electric grid is functioning under normal conditions, and resources within the microgrid boundary may, if they have authorization to interconnect to the grid during Blue Sky conditions, generate and store energy in parallel to the grid, and participate in regional energy markets.

Sample
Microgrid
Layout
POLICE

STATION
FIRE

STATION
GAS

STATION

EXAMPLE MICROGRID

SERVICE AREA

ELECTRICAL LINES INSIDE

OF THE MICROGRID

ELECTRICAL LINES OUTSIDE

OF THE MICROGRID

ISOLATION DEVICE

GENERATION SITE

ISOLATION DEVICE
These devices allow
PG&E to safely isolate
the area inside of the
microgrid from the
larger grid.

GENERATION SITE
Space for generation
and/or battery
MARKET
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 5 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
MICROGRIDS:

THE BASICS
Common Microgrid Misconceptions
Will the community still be a part of PG&E’s electric grid? Yes, the community microgrid will be seamlessly connected to the broader grid most of the time. The community microgrid will go into island mode and operate independently only when the utility grid is unavailable. For the safety and stability of the grid, PG&E retains operational control over the islanding status of the microgrid.

What types of outages will the community microgrid provide back-up support for? It depends on the specific design of the microgrid. Generally, microgrids can be designed to address a wide range of potential causes of outages such as PSPS events, earthquakes, grid maintenance work and grid failures. Your technical partner and PG&E can help advise on vulnerabilities in your area and microgrid design options to help mitigate the potential for outages.

Will the Project Resources sell energy directly to the customers within the microgrid? The Community Microgrid Aggregator may not directly sell power to customers within the microgrid. However, front of the meter resources can participate in the CAISO wholesale markets for energy and related services during Blue Sky and Island Modes.

The revenue generated from those sales will accrue to the community or their designated partner.

Do energy rates change with a microgrid?
The existence of a microgrid, by itself, will not modify customer energy rates for those customers within the microgrid boundary compared to similarly situated customers outside of the boundary. Customers within the microgrid still receive service from PG&E, or a Community Choice Aggregator (CCA), or a Direct Access (DA) provider.

Customers will be metered and billed according to their selected rate plan, whether the microgrid is operating in Blue Sky Mode or Island Mode.

Community Microgrid Benefits
As California’s climate evolves, communities may experience power outages for many reasons. Microgrids can serve as a vital layer of protection in ensuring that communities can continue to have access to safe, reliable power. Benefits include:
■ Increase in electric reliability and resiliency in communities with higher risk of electrical outages
■ Back-up energy source for critical services and infrastructure such as fire stations, hospitals and water treatment facilities that might otherwise lose power during an outage
■ Fewer impacts from power outages and fewer disruptions for:
ƒ Disadvantaged and vulnerable communities
ƒ Low-income households
ƒ Individuals who rely on power for medical needs
ƒ People with other Access and Functional Needs (AFN)
■ Reduced greenhouse gas (GHG) emissions through deployment of clean generation technologies that are added as part of the microgrid development “PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 6 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
MICROGRIDS:

THE BASICS
What Are the Components of a MIP-funded Community Microgrid? Project Resource2: In-front-of-the-meter (IFOM)
electric generation and/or storage technology
that is used to form a utility-operated microgrid.

At least one Project Resource must have
sufficient grid-forming capability to maintain
acceptable frequency and voltage during
Island Mode operation. A Project Resource is
controlled by the CMG Aggregator but may be
owned by another party.

Balance of System: Assets, facilities and
equipment, other than the Project Resources,
owned or controlled by the CMG Aggregator
necessary to meet the requirements of the
project and any applicable tariff or agreements.

Interconnection Upgrades & Facilities:

Distribution Upgrades and Interconnection
Facilities necessary to enable the
interconnection of a DER; Distribution Upgrades
are utility-owned; Interconnection Facilities may
be owned by DER owner (producer) or utility.*
Microgrid Special Facilities: Utility-owned
and operated equipment that enables the safe
islanding and operation of the microgrid (e.g.
microgrid controller that communicates with
Project Resources’ controllers, isolation and
fault protection devices).

Project
Resources
Interconnection
Upgrades &
Facilities*
Balance of
System
Microgrid
Special
Facilities
Grant up to $14M

COMMUNITY MICROGRID
Allowance up to $1M
*Interconnection Facilities may be owned by either DER owner (producer) or by Utility.

Allowance up to $3M
Owned by CMG Aggregator
or 3rd party
Owned by PG&E
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 7 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2

FUNDING
Funding
Click on a section below to learn more.
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May 2025 | V1.2
8 May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

FUNDING
What Does the MIP Pay For?
The MIP pays for the costs to design and develop a Community Microgrid. The funding falls in several categories as described below.

MIP Funding
Application Incentive Request (AIR)
For eligible project engineering and development
costs, such as:
■ IFOM batteries and generation resources
■ Third-party engineering and project
management including costs to support with the
MIS and interconnection of Project Resources
■ Property purchase or lease costs
Also includes the Application Development Grant of
up to $25,000.

Microgrid Special Facilities Allowance MIP Interconnection Allowance Up to
$14M
per project
Up to
$3M
per project
Up to
$1M
per project
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 9 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
For utility equipment and services that would otherwise be the cost responsibility of the Applicant, to enable the safe islanding of a Community Microgrid, such as:
■ Microgrid Island Study (MIS)*
■ Equipment to enable safe transition and operation in
Island Mode, which may include:
ƒ Isolation devices
ƒ Fault protection devices
ƒ Utility microgrid controller
ƒ System hardening
For eligible Interconnection Studies and equipment
that would otherwise be the cost responsibility of the
Applicant, such as:
■ Interconnection Study costs for eligible
IFOM Project Resources only*
■ Interconnection Facilities and Distribution
Upgrades identified in the Interconnection Study
*Please note that any applicant’s engineering and/or development costs for work on the Microgrid Island Study or interconnection of Project Resources are not included and must be factored into the AIR.

FUNDING
■ The costs for purchasing IFOM Project Resources and their grid-forming and grid-following inverters
• To be eligible, none of these resources can be part of an Interconnection Agreement with PG&E executed before the close of the Application Window used for your Microgrid Application.3 ■ The costs for purchasing IFOM Project Resource’s controller, protection and communications equipment
■ Permitting and licensing expenses incurred for IFOM Project Resource(s) and Balance of System prior to a microgrid’s Islanding Operation Date
■ Expenses related to reconfiguring behind-the-meter (BTM) electric service equipment so specific customer or facility loads can be isolated and served when the microgrid is in Island Mode ■ Project management costs, including costs related to engineering, studies, system integration and construction activities for IFOM Project Resource and Balance of System. Includes site preparation, civil, electrical and mechanical work
■ Expenses associated with purchasing or leasing property for the IFOM Project Resources and Balance of Systems
• Leasing property expenses should reflect the present value of the lease for the property needed for the IFOM Project Resources and Balance of System.
■ Costs related to community outreach activities conducted for the microgrid ■ Costs associated with developing a microgrid proposal and MIP Application, to the extent not covered in the optional MIP Application Development Grant ■ Related legal costs
■ Taxes to the extent applicable on any of the above
■ Engineering and/or development costs for work on the MIS and Interconnection of Project Resources
The financial costs to be covered under the Interconnection Allowance and Microgrid Special Facilities Allowance will not be estimated until the Interconnection Studies and
Microgrid Islanding Studies are completed in Stage 3.

When these studies are complete, PG&E will identify the required facilities and upgrades needed for the project. This information, along with the estimated costs, will be documented in the Generator Interconnection Agreement and in the Microgrid Special Facilities Agreement.

Owners of IFOM Project Resources will only be required to pay for costs of Interconnection Facilities and Distribution Upgrades that exceed the $1 million allowance cap. Likewise, MIP Awardees will only be required to pay for costs of Microgrid Special Facilities that exceed the $3 million allowance cap.

Application Incentive Request (AIR)
Costs eligible for the AIR include:
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 10 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2

FUNDING
Application Development Grant
PG&E recognizes that it can be costly to develop a technical application required for the MIP. For this reason, the MIP will reimburse the costs incurred in development of an eligible MIP application, up to a cap of $25,000, whether the Applicant is awarded a MIP incentive grant or not. This one-time Application Development Grant, if requested, will be paid to the requesting eligible Applicant following confirmation of program eligibility, as described on the next page.

Applicants must detail the technical support costs associated with the grant request, along with an explanation of how the funds were used. “PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 11 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2

ELIGIBILITY
To be eligible for MIP, a proposed project must:
■ Meet at least one requirement in section A
■ Meet at least one requirement in section B
■ Meet all technical requirements in section C
Eligible communities are encouraged to apply either on their own or through a designated representative. The MIP application process is competitive and eligibility does not guarantee funding.

B
Technical Eligibility
Project must:
■ Meet the eligibility requirements of the Community Microgrid Enablement Tariff (CMET) ■ Be able to serve a minimum of 24 consecutive hours of energy in Island Mode as determined by a typical load profile within the Microgrid Boundary Project Resources must:
■ Interconnect on a distribution line that is at 50kV or below ■ Comply with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation ■ Have aggregate emissions, along with Non-Project Resources*, no greater than equivalent grid power when operating in Island Mode
ƒ Energy storage that is charged with grid power will be deemed to have the emissions equivalent of the average system emissions for the Utility.

A C
Vulnerable to Outages
Project must be located in one
of the following areas:
■ Tier 2 or 3 High
Fire-Threat District
■ Area that experienced prior
PSPS outage(s)
■ Elevated earthquake risk
zone
■ Locations with lower
historical reliability
Local or Tribal government
leadership may be able to justify
other forms of vulnerability.

Speak to a PG&E Resilience Coordinator at [email protected] for assistance in determining if your community meets these criteria. * PG&E will only evaluate Non-Project Resources if projects fail to meet the emissions requirement or if PG&E has reason to believe the inclusion of Non-Project Resources would materially change the outcome.

Disadvantaged and Vulnerable
Community
Project must be located in a DVC (one of
four criteria below), or power a critical
community facility that primarily serves
a DVC.
■ Census tracts with median
household incomes less than 60%
of state median
■ California Native American Tribal
Community
■ Community with highest risk per
CalEnviroScreen
■ A rural area4
May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved. 12 Eligibility

MIP PROJECT

LIFECYCLE STAGES
Approx. 6 Months
The 5-Stage MIP Project Lifecycle
2-3 Months 12-18 Months 18-36 Months 10+ Years
Click on a section below to learn more.

May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2024 Pacific Gas and Electric Company. All rights reserved.

May 2024 | V1.1 October 2023
13 May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

NOTE: Each project is unique and will follow different timeframes. These estimates are provided as guidelines only.

The creation of a multi-customer Community Microgrid is a complex endeavor involving the community, its technical partner, and PG&E as the distribution system owner and operator. PG&E advises that communities seek a technical partner early in the process, as a technical partner will be needed in order to submit a MIP application.

MIP projects will progress through a five-stage process.

STAGE 1:

CONSULTATION
Goals:

Identify resiliency needs
within the community
Discuss potential
projects/energy solutions to
meet community’s need
Review the eligibility
requirements for MIP funding
Discuss with Applicant’s engineering partner
any design challenges, and coordinate on solutions
in preparation for application
Community Interest Notification
To begin the consultation process, your community should notify PG&E of its interest by sending an email to [email protected]. PG&E will promptly respond and provide information on next steps. An initial resilience consultation will then be scheduled. You will be provided with a consultation request form that must be completed prior to the consultation. Please read through the form and familiarize yourself with information required to provide to PG&E before continuing with the handbook.

Stage 1: Consultation
May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 14 ©2024 Pacific Gas and Electric Company. All rights reserved.

May 2024 | V1.1 May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

STAGE 1:

CONSULTATION
Initial Resilience Consultation
The initial resilience consultation and the subsequent technical consultation are important steps toward the submittal of a MIP application. The initial consultation is the first opportunity to share your community’s specific goals and energy needs with PG&E, and to discuss potential resilience solutions. The consultation will take place by phone or video call.

During the initial resilience consultation, PG&E will work with you to evaluate whether a MIP-eligible Community Microgrid is the best option to meet the community’s resilience objectives.

Options to be explored may include:

A MIP-eligible, Community Microgrid involving5:
• IFOM resources
• A combination of both IFOM and BTM resources
Other resiliency options that are ineligible for MIP funding may include:
• Single-customer microgrids using BTM solutions
• Modification of existing utility facilities such as undergrounding overhead distribution facilities, pursuant to a Special Facilities Agreement
During this consultation, PG&E will also ensure you understand the criteria for MIP eligibility (please refer to the Eligibility section of this handbook). Tribal government applicants should be sure to discuss the issues pertaining to contract enforceability, and the likely need for a limited waiver of sovereign immunity.

The initial resilience consultation may also cover the following:
■ Incentive application and scoring procedures
■ Overview of microgrid study and development process,
including relevant agreements
■ Overview of utility transmission and distribution system characteristics in the identified Community Microgrid area ■ Known technical issues related to the interconnection of new resources and/or microgrid configuration
■ Information about the capacity of the proposed distribution facilities within the boundary of the microgrid
■ Relevant information about PG&E’s past and planned PSPS mitigation activities
■ Community Microgrid information, including potential grid isolation points that could establish the boundary of the microgrid (i.e., the Microgrid Islanding Point(s))
If the proposed microgrid is likely eligible6 and you wish to pursue incentive funding, you may proceed to the Microgrid Technical Consultation. From this point in the MIP process onwards, PG&E requires you to partner with an engineering firm with the qualifications to design the technical elements of the microgrid. As part of the initial resilience consultation, PG&E can help you identify characteristics of a competent technical partner. “PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 15 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
STAGE 1:

CONSULTATION
Microgrid Technical Consultation
The microgrid technical consultation will support you and your technical partner(s) in planning and designing a multi-customer Community Microgrid and in preparing a complete MIP Application. Relevant technical aspects of the proposed MIP project, including electrical conditions of the distribution system within the proposed microgrid boundary, will be shared and reviewed with you and your technical/ engineering partner(s). Your technical/engineering partner(s) should familiarize themselves with PG&E’s Community Microgrid Technical Best Practices Guide.

The technical consultation may take place in-person or virtually, as mutually agreed by you and PG&E. You and your technical partner(s) will complete a Request for Microgrid Technical Consultation, which allows PG&E to evaluate project-specific information. All parties that participate in these technical conversations must review, agree to and submit a PG&E confidentiality and non-disclosure agreement (NDA).7 During this step, PG&E will provide relevant information necessary to prepare a complete MIP Application, such as aggregated customer load profiles including forecasted growth over the 10- year operating term, subject to all applicable customer and data privacy regulations. The load data is important to help your technical engineering partner design the microgrid to meet the required 24-hour minimum service requirement.

PG&E will also review the MIP application requirements with you and your technical partner.

Once the microgrid technical consultation is complete, PG&E will refer you to the following templates and information to begin reviewing contractual conditions and processes:
■ MIP Grant Agreement
■ Information on the generator interconnection process
■ Microgrid Island Study Agreement
■ Microgrid Special Facilities Agreement
■ Microgrid Operating Agreement (MOA)8
And
The Microgrid Technical Consultation helps your
technical partner determine that the proposed
Community Microgrid is feasible from an
engineering perspective.

Then
The Applicant may submit a complete MIP
Application, including a detailed Community
Microgrid proposal, during an open Application
Intake Window.

If
The initial resilience consultation determines
that a multi-premise Community Microgrid is the
appropriate solution to meet your community’s
resilience needs and the project is expected to
meet eligibility requirements.
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 16 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
STAGE 1:

CONSULTATION
Request for Microgrid Technical Consultation
Once you have completed the Initial Consultation, you must complete the online Technical Consultation Request Form to indicate your intent to advance into Technical Consultations. The link to the online form will be provided by your PG&E Resilience Coordinator. The required information for this stage includes:
■ Proposed Single Line Diagram (30% design)
■ Proposed Site Map, including:
• Planned Project Resources including dimensions for solar • Proposed Microgrid Electrical Boundary
• Proposed Point of Interconnection for planned and existing Project Resources • Proposed Microgrid Islanding Point, if known
• Location of controls and networking rack, if known
■ Proposed new generation type and size (i.e. Battery Energy Storage System – 1 MW/2MWh) and manufacturer, if known
■ When in Island Mode, the desired minimum number of consecutive hours of service ■ Technical Engineering Partner(s) must provide:
• Engagement Letter
• Experience Attestation
• If other project consultants are involved, please provide their Engagement Letter and Experience Attestation
■ Community Support
• If requester is not a Local or Tribal government, please include a letter of support from the authority having jurisdiction over the area where the microgrid is contemplated.

Note: You will not be held to these designs or technical information in your eventual MIP Application. “PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 17 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
STAGE 2:

APPLICATION
Goals:

Develop and gather information
for your MIP Application
Complete and submit the MIP
Application to PG&E during a
MIP Application Window
Complete the Grant Agreement
Now that the Consultation Stage is complete, the Applicant and their technical partner(s) can begin to prepare and submit a MIP Application during an open application window. See www.pge.com/mip for application window timing. Please familiarize yourself with the application requirements before proceeding with the handbook.

Below is a summary of information needed to complete each of the four sections included in the MIP Application. Note, a MIP Application can only be submitted during an open MIP Application Window.

Applicant Information
■ The name and contact information of the Applicant.
■ The name(s) and contact information for the technical design/engineering partner(s) for the project. ■ A description of each of the technical design/engineering partners and their role on the project; engagement letter(s) from each partner on their company letterhead; evidence of each partners’ relevant professional qualifications.
■ Tribal government Applicants may be required to sign a limited waiver of sovereign immunity to ensure contract enforceability and oversight jurisdiction by the CPUC.

Note: If the Applicant is not a Local or Tribal Government, one or more support letters from a Local or Tribal authority having jurisdiction over the area where the project is located is required. Such letter(s) must be included in the Attachments section of the application.

Preparing Your Application
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
18 May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

Stage 2: Application
STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 19 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Project Description
■ Executive Summary describing the project, the resilience need it serves, its location, microgrid boundary and islanding point(s)
■ Confirmation that project meets eligiblity requirements “A” (Vulnerable to Outages) and “B” (Disadvantaged and Vulnerable Community), and “C” (Technical Eligibility) ■ Locations of all Project Resources (both existing and planned), and any known non-project resources ■ Additional information necessary to score the project:9 • The number of California Alternate Rates for Energy Program (CARE) and/ or Family Electric Rate Assistance Program (FERA) or otherwise vulnerable customers, including an attestation from Local or Tribal authority having jurisdiction for vulnerable customer data
• The number and description of Critical Facilities and Community Resilience Service facilities located within the microgrid project’s boundary ■ Summary project cost estimate and Application Incentive Request, with details to be provided in Attachment section:
• Actual costs incurred [or expected to be incurred] to develop the MIP Application (Application Development Grant request, capped at $25k) • Total estimated project cost that the community anticipates incurring and that is eligible for reimbursement
• Amounts that will be funded by your organization, other organizations or grants, and the MIP (Application Incentive Request)
• Calculations showing how the Applicant accounted for actual and estimated costs eligible for funding under the MIP and actual and estimated non-MIP revenue sources, to arrive at the amount of its MIP incentive request Participating Loads and Project Resources
■ Hourly aggregate load profiles of the customers within the microgrid boundary, including a forecast of how these metered load profiles will grow over the lifetime of the microgrid project (10 years). This information will be provided by PG&E during the Technical Consultation.
• The number and types of planned and existing IFOM and BTM Project Resources (solar, wind, battery-based energy storage, etc.) and, if known, planned and existing IFOM and BTM non-Project Resources • Each Project Resource’s manufacturer, technical data and operating parameters
• If these Project Resources currently exist or if they will be new and need to submit an interconnection request to the utility
• A brief showing how these Project Resources will support the load of the customers and facilities connected to the microgrid (detailed engineering analysis to be provided in Attachments)
■ An estimate of the greenhouse gas emissions per kilowatt/hour (kWh)10 of electricity generated by Project Resources* and Non-Project Resources* when the Microgrid Project is in Island Mode.

Preparing Your Application (Continued)
* PG&E will only evaluate Non-Project Resources if projects fail to meet the emissions requirement or if PG&E has reason to believe the inclusion of Non-Project Resources would materially change the outcome.

STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 20 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Attachments
■ AIR Request,11 including the following information:
ƒ Detailed estimate of costs to be incurred for those activities and facilities that are eligible for reimbursement under the MIP.
ƒ Detailed accounting of actual application development costs incurred, subject to reimbursement up to $25k through the Application Development Grant. ƒ Breakout of costs to be funded by:
ƒ Self (community or CMG Aggregator) funding
ƒ Other grants or other sources
ƒ MIP
■ Attestations/letters of support from Local and Tribal governments; if applicable ■ Microgrid Proposal detailing MIP technical eligibility, including:
ƒ A 30% single-line diagram of the proposed microgrid that describes the microgrid’s:
ƒ Microgrid Islanding Point(s)
ƒ Boundary, e.g., geographic polygon indicating boundary ƒ Project Resources and Balance of System to extent known • Project site(s) details:
ƒ Location(s)
ƒ The status of control your organization will have over the project site(s) ƒ Customers to be energized
ƒ Permits you will need to secure to deploy and operate your microgrid’s Project Resources
• Microgrid development plan
• An engineering analysis demonstrating how the proposed microgrid’s Project Resources will support the projected loads for a minimum of 24 consecutive hours in Island Mode.12
• Copies of any relevant Interconnection Study applications for Project Resources (as applicable)
Preparing Your Application (Continued)
STAGE 2:

APPLICATION

“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 21 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
STAGE 2:

APPLICATION
Applicants that have gone through the
initial stage of consultation will be informed
on how to submit the application via a
secure online portal.
■ All applications received within the
application window will be acknowledged
and reviewed for completeness. PG&E
will treat the information and attachments
included in the MIP Application as
confidential, pursuant to non-disclosure
provisions of an executed NDA.
■ No preference or priority will be given to
applications received earlier or later within
the MIP application window.
■ If an application is incomplete, PG&E will
inform the Applicant which aspects need to
be completed or updated before it can be
accepted. Once Applicant has been notified
of the necessary changes/information,
they have a 10-business day cure period to
resolve the deficiency.
■ If the Applicant is unable to resolve the
deficiency before the end of the cure
period, the revised application can
be resubmitted during the next open
Application Window, if one is available.
■ Applicants may not submit multiple
applications for substantially similar projects
in the same area. Proposed projects may not
have overlapping boundaries.

After submission of a complete application,
PG&E will conduct a review to confirm the
application’s eligibility for the MIP.
■ Applicants will be informed whether
their application is deemed eligible
or ineligible. Eligible applications will
proceed to the scoring stage.
■ Ineligible applications may be corrected
and resubmitted in subsequent
application windows, if available.

However, the $25,000 Application
Development Grant is one-time only,
unless the subsequent application is
substantially different.

STEP 1: Submitting Your Application STEP 2: Eligibility Confirmation Once the Consultation Stage is complete, you can prepare and submit a MIP Application during an open application window.

Application Process Overview
STEP 4: Feasibility Confirmation
■ After the MIP Application Window closes
and PG&E has accepted or rejected all
applications as complete and eligible,
PG&E will calculate a Project Score for all
complete and eligible MIP Applications.
■ The MIP Application and related
information will be used to generate a
benefit score, which along with the AIR,
will be used to calculate the Project Score.
■ The formula and calculations PG&E uses
to develop Project Scores are designed
to minimize subjectivity and prioritize
those microgrids that will deliver the
most customer, community, resilience
and environmental benefits per AIR
dollar requested.
■ Top scoring projects will go through a
final internal feasibility review prior to
PG&E making a MIP award offer. This
feasibility review will seek to identify
project and operational risks or any fatal
flaws that would prevent the project
from moving forward. Technical experts
from across PG&E will participate in this
final in-depth internal review.
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 22 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
STEP 3: Application Scoring
STAGE 2:

APPLICATION
Application Scoring
Benefits
+
+
(Divided by)
Benefits
Score
(points)
50 Points Max
Customer and
Community Benefits
30 Points Max
Resilience
Benefits
20 Points Max
Environmental
Benefits
Scoring
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
23 Benefit Score
PG&E will calculate the Benefit Score, which is equal to the sum of the MIP Application’s customer and community benefits points, resilience benefits points and environmental benefit points.

Each category receives the following:
■ Customer and Community Benefits: 50 points max
■ Resilience Benefits: 30 points max
■ Environment Benefits: 20 points max
Total Possible Points: 100
May 2025 | V1.2
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2025 Pacific Gas and Electric Company. All rights reserved.

Project
Score
STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 24 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Customer and Community Benefits (50 Points Max)
Customer and Community Benefits points are based on the benefits a microgrid will deliver to PG&E Distribution Customers within eligible DVCs, as well as facilities that serve DVCs. They are determined by:
■ Number of low-income customers that would be served by the microgrid • Low-income customers are the number of California Alternate Rates for Energy Program (CARE) and/or Family Electric Rate Assistance Program (FERA)13 customers located within the microgrid’s boundary, according to PG&E’s records.
■ Number of vulnerable customers within the proposed microgrid’s boundary • Vulnerable customers are the number of Access and Functional Needs (AFN), Medical Baseline (MBL) or Life Support customers14. This number is determined by PG&E’s customer service records.
■ Number of critical facilities serving DVC residents within the proposed microgrid’s boundary
• Fire stations, hospitals and other critical facilities are defined by the CPUC15, and will be identified by PG&E based on its records. ■ Number of Community Resilience Services facilities for DVC residents within the proposed microgrid’s boundary
• This number is determined by how many Community Resilience Services facilities are listed within the Microgrid’s Boundary in the Local government or Tribal attestations included in the MIP application.

Resilience Benefits (30 Points Max)
Resilience Benefits Points are based on the outage risk of the utility distribution facilities within the microgrid boundary, plus the continuous length of time the proposed microgrid can provide electricity when operating in Island Mode. They are determined by:
■ Whether the microgrid will be located on an electric circuit that passes through a CPUC Level 2 or 3 High Fire-Threat District (HFTD)
■ Whether the microgrid location:
• Will be on a circuit that has been identified over the past two years as one of PG&E’s 1% Worst Performing Circuits, in terms of duration or frequency, in PG&E’s Annual Electric Reliability Reports.
• Has been impacted by a past PSPS event.
• Is in an area that PG&E has excluded from all reasonably anticipated potential future outage events due to other resilience mitigation activities. If the proposed microgrid is in such an area, it will not be awarded points in this category, even if it has been impacted by past PSPS events.
■ The number of six-hour periods that the microgrid can operate in Island Mode beyond the 24-hour minimum requirement
• This number of six-hour periods of subsequent operation is determined by the typical load profile of the customers and facilities served by the microgrid and the expected electricity capacity of the microgrid’s Project Resources and non-Project Resources within the Microgrid Boundary.16
STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 25 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Environmental Benefits (20 Points Max)
Environmental benefits are based on the microgrid’s use of clean energy, and the extent to which the microgrid will be able to help customers or facilities avoid using emergency or backup generation powered by fossil fuels.

They are determined by: ■ Whether the aggregate nameplate generating capacity of the microgrid’s clean energy IFOM Project Resources is equal to or greater than 80% of the aggregate nameplate generating capacity of all IFOM Project Resources located within the microgrid’s boundary.
• Interconnection capacity for existing IFOM Project Resources as set forth in the generator Interconnection Agreement. Interconnection capacity for planned IFOM Project Resources is the amount of interconnection capacity that will be requested in the generator interconnection request application. For IFOM Project Resources that are, or plan to be, interconnected as hybrid resources, the interconnection capacity will be allocated to each individual hybrid resource in proportion to each resource’s installed capacity.
• The nameplate capacity for Project Resources that use inverters will be based on their Alternative Current (AC) output capability.
• Any Project Resources within the Microgrid Boundary that will not operate during Island Mode are excluded from this calculation.
■ Whether, from the time the microgrid begins commercial operation, at least one critical facility will rely on the microgrid as its primary source for backup power instead of relying on an existing emergency/standby generator powered by fossil fuels.
• To earn this point, the MIP application should include an attestation from the critical facility confirming the microgrid will replace its existing emergency/standby generator as its primary source for backup power.

Note: The critical facility does not have to remove its existing emergency/standby generators for the microgrid to earn points for displacing these generators.

Once a proposed microgrid’s Customer and Community Points, Resilience Points and Environmental Points are calculated, they are added together to determine a total Benefit Score.

STAGE 2:

APPLICATION
Benefit Scoring
Category Subcategory Scoring Parameter / Criteria Validation Points Points Cap Max
Points
Customer &
Community
Benefits
Low Income Customers Number of CARE/FERA customers within MIP Project Utility Records 0.1 8 50 Vulnerable Customers Number of AFN/Medical Baseline/Life Support customers within MIP Project excluding CARE and FERA customers Utility Records 0.2 10 Critical Facilities
Number of Critical Facilities within MIP Project Boundary CPUC Definition 5 30 Number of Critical Facilities within MIP Project Boundary Serving DVC CPUC Definition 10 Community Services Community Resilience Service facilities within MIP Project (min. of 1) Attestation from authority with jurisdiction 2 2 Resilience
Benefits
Location Outage Risk
HFTD 2 CPUC HFTD Map 3
6 30
HFTD 3 CPUC HFTD Map 6
Prior PSPS Events* - 2 points per historical PSPS event (any year) that has not been substantially mitigated at the time of MIP application Utility Records 2 14 1% Worst Performing Circuits (past 2 years) Appears in either of prior 2 years of Utility Annual Electric Reliability Report 4 4 Island Duration Duration of Islanded Operation provided by MIP Project Beyond 24hr minimum requirements
Each subsequent 6-hour period of operation beyond 24 hours determined by typical load profile of the microgrid electrical boundary 0.5 6 Environmental
Benefits
Clean Energy
100%
% of installed IFOM clean energy Project Resource capacity in relation to the total installed IFOM resource capacity within MIP Project. Points given for MIP Projects where % percentage exceed 80%. Installed capacity for resources using inverters will be based on the Alternating Current (AC) output capability. 17 17
20 95-99% 12
90-94% 7
80-89% 2
<79% 0
Fossil Fuel Displacement Fossil Fuel Emergency/Backup Gen Displacement as primary back-up (min. of 1) Application Attestation 3 3
Points Breakdown
*It is currently PG&E’s policy that circuits in HFTD which are not undergrounded may not be energized during PSPS. If the microgrid design is such that it cannot be energized during PSPS according to PG&E policy, resilience points for PSPS events will not be awarded. “PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 26 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 27 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Application Incentive Request (AIR)
The AIR is the Incentive Award funding requested in the MIP Application. The AIR should reflect all eligible MIP project costs the Applicant included in the application, minus any anticipated federal, state or local grants, or other sources of funding for the microgrid project. These other sources of funding should be included in the AIR attachment submitted with the application.

Note that the optional Application Development Grant request of up to $25,000 will not be included in the calculation of the AIR for purposes of determining a Project Score.

For other potential energy resilience grant funding sources, see:
■ California Grants Portal
■ Governor’s Office of Planning and Research – Federal Grant Info Project Score
PG&E will calculate the Project Score of each eligible application by dividing its Benefit Score by its AIR. Thus, ancillary funds from outside the MIP that reduce the AIR will improve the Project Score.

Incentive Award Notifications
Each Applicant will be notified of a decision once all Applications have been processed and scored.

The funding of MIP Applications is prioritized through a process in which the Application with the highest Project Score receives their requested amount of AIR funding. This process repeats, with the next highest scoring Application receiving its requested AIR funding until either:

1. There are no eligible applications who have not received funding; Or

2. There are insufficient MIP funds to fully meet an eligible application’s AIR funding request.

If insufficient funds are available to support a full award, the Applicant may be offered a partial Incentive Award. The Applicant can elect whether to move forward. If the Applicant elects not to move forward with the partial Incentive Award, the funds may be offered to the Applicant receiving the next highest Project Score. Any unused funds will be carried over into the next Application Window, or returned to ratepayers in the event there are no remaining Application Windows.

Applicants who submit eligible MIP Applications that do not receive an award may re-submit the application in a subsequent application window, if available. Note, however, that the optional Application Development Grant of up to $25k is one-time only, unless the subsequent application is substantially different.

Nothing precludes an Applicant that does not receive an award from pursuing the development of a Community Microgrid outside of the MIP, utilizing PG&E’s Community Microgrid Enablement Tariff. PG&E, as program administrator, retains discretion regarding Incentive Awards and allowances considering ratepayer interests. For dispute resolution procedure, please see here.

STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 28 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Grant Agreement
Applicants who have been notified of selection for the MIP award will be offered a MIP Grant Agreement. The MIP Grant Agreement sets forth the terms and conditions governing the disbursal and use of approved MIP incentive funding and allowances, including the:
■ Application Incentive Request (AIR) of up to $14M
■ Interconnection Allowance of up to $1M
■ Microgrid Special Facilities Allowance of up to $3M
The entity that executes the MIP Grant Agreement is the entity that will receive the AIR funds.

The signing of the Grant Agreement marks the conclusion of Stage 2 (Application) and triggers the beginning of Stage 3 (Studies). The terms of the Grant Agreement will be linked to the MOA performance requirements, default provision and key development milestones.

Grant Agreement Term
The term of the Grant Agreement will be from the date of execution until the conclusion of Stage 4: Development. The MOA has an initial term of 10 years with automatic 1-year renewals unless otherwise agreed by the parties. However, it is recognized that the MOA will not be executed until after the conclusion of the study phase (Stage 3), which may be 1-2 years after the execution of the Grant Agreement. If a MOA is not successfully executed in accordance with the provisions of the CMET, then the executed Grant Agreement will be terminated.

Dispute Resolution Pertaining to
MIP Award Decisions
PG&E and any potential or actual MIP Applicant shall attempt in good faith to resolve any dispute arising out of, or relating to, the development of MIP applications and the related MIP award decisions made by PG&E promptly by negotiations between PG&E or its designated representative and the MIP Applicant or its designee.

The aggrieved party must give the other party written notice of any dispute; if such notice is to PG&E it should be by email to [email protected].

Within thirty calendar days after delivery of the notice, the parties shall meet, and attempt to resolve the dispute. If the matter has not been resolved within thirty calendar days of the first meeting, any party may pursue other remedies including mediation. All negotiations and any mediation conducted pursuant to this dispute resolution provision are confidential and shall be treated as compromise and settlement negotiations, to which Section 1152.5 of the California Evidence Code shall apply; provided, that either party may disclose information related to these negotiations to the extent required by law.

Notwithstanding the foregoing provisions, a party may seek a preliminary injunction or other provisional judicial remedy if in its judgment such action is necessary to avoid irreparable damage or to preserve the status quo. In the event of any conflict between the provisions of this dispute resolution provision, any applicable dispute resolution terms in a related tariff, and any applicable dispute resolution terms in any bilateral agreement in effect between the parties, the tariffed dispute resolution terms shall govern first, and contractual dispute resolution terms shall be applied second.

STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 29 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Disbursement of Incentive Funds
PG&E will disburse to the Awardee the grant amount
approved through a milestone incentive payment schedule that is tied to the Applicant’s planned project expenditures and progress milestones in development of the Community Microgrid. As such, the specific milestone incentive
payment schedule will be based on the proposed project
development plan in the MIP Application, that will be
finalized by the Awardee and PG&E in the Grant Agreement.

This will include one or more preliminary incentive
payments to cover specific initial development costs (e.g., environmental studies, obtaining a project site, etc.) prior to the MOA. Incentive payment milestones are complementary to the development requirements and milestones in the
MOA. That is, while incentive payments are based on an
Awardee’s expenditure needs, they are also linked to
development and operational obligations in the MOA. In the event the parties are unable to reach an agreement on a milestone incentive payment schedule, PG&E retains the
right to establish an incentive payment schedule at its sole discretion, aligned with the proposed development plan
in the Application and ratepayers’ interest in successful project completion and operation. An illustrative example of a milestone incentive payment schedule is shown here.

All MIP incentive funds disbursed to the Awardee must be used for eligible project costs. Failure to meet development milestones and/or performance requirements may result
in project suspension, and if not corrected, may lead to termination, change of control, and/or economic damages.

Item Critical Milestone Minimum Required
Documentation Incentive Payment
1 Grant Agreement executed Grant Agreement
Amount based on AIR request
associated with pre-Grant Agreement
signing
2 Microgrid Islanding Study
completed
Microgrid Island Study Report
complete
10% of Remaining Grant after
Preliminary Payment
3 Interconnection Study completed Interconnection Study Report complete 10% of Remaining Grant after Preliminary Payment
4 Microgrid Operating Agreement
executed Microgrid Operating Agreement 10% of Remaining Grant after Preliminary Payment
5 Microgrid Engineering Design
finalized by all parties
IFC (Issued for Construction) - final set
of drawings and specifications for a
project
20% of Remaining Grant after
Preliminary Payment
6 Land Rights are obtained by all
parties
Easement documents, land deeds,
land leases
10% of Remaining Grant after
Preliminary Payment
7 Permission to operate assets Permission to Operate attachment to Interconnection Agreement completed
25% of Remaining Grant after
Preliminary Payment
8 Declaration of Operation Microgrid Operating Agreement Appendix XI-B signed
15% of Remaining Grant after
Preliminary Payment
Illustrative Example of Milestone Incentive Payment Schedule 1 Initial incentive payments prior to the MOA may be separated into multiple milestone payments based on the planned expenditures.

STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 30 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Interconnection Allowance
The MIP provides up to a $1 million Interconnection Allowance for the cost of Interconnection Studies and fees, and Interconnection Facilities and Distribution Upgrades necessary for the Awardee to interconnect new IFOM generation within the boundary of the microgrid for the purpose of supporting microgrid operations in Island Mode. Only new IFOM generation identified within, and developed by the Awardee pursuant to, the Application’s proposed project development plan, and the Microgrid Operating Agreement (MOA)’s Project Implementation Plan (PIP) is eligible for this Interconnection Allowance. The PIP is provided in Appendix III-B of the MOA.

Any new generation interconnecting outside the boundaries of the Community Microgrid, or any new BTM generation is not eligible for the Interconnection Allowance. Only those generator Interconnection Study costs and fees, and the actual costs of generator interconnection-related Interconnection Facilities and Distribution Upgrades identified by PG&E prior to the Islanding Operation date of the CMG, are eligible for the Allowance.17 The costs that may be included in the Interconnection Allowance include:
■ Utility’s Interconnection Study costs and fees for eligible IFOM Project Resources ■ Utility’s Interconnection Facilities (e.g., switches and wires needed to connect the generating facility to the grid) identified in the Interconnection Study ■ Distribution System Upgrades (e.g., substation transformer, required reconductoring, etc.) identified in the Interconnection Study
■ Cost of Ownership for above items, as applicable
Transmission Network Reliability Upgrades and third-party engineering and project management costs related to interconnecting project resources are NOT eligible under the Interconnection Allowance.

PG&E will provide the Awardee with the applicable Interconnection Allowance by reducing the Awardee’s otherwise billable costs related to the items listed above, determined in accordance with PG&E WDT or Rule 21 (see Stage 3: Studies). The Awardee will be responsible for the Interconnection-related costs that exceed $1 million. The Awardee may not include an estimate of any amounts above the caps in its AIR.

Note: The Awardee may submit a generator Interconnection Request to PG&E at any time, including prior to when the Awardee receives an incentive offer from PG&E. However, only those Awardees who have executed the MIP Grant Agreement are eligible for the Interconnection Allowance. The Interconnection Allowance will only be applied to those eligible interconnection-related costs that have not yet been billed; i.e., the Interconnection Allowance will not be retroactively applied to interconnection-related costs that have already been billed to the Awardee.

STAGE 2:

APPLICATION
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 31 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Microgrid Special Facilities Allowance
MIP Awardees will be provided up to a $3 million MGSF Allowance for the cost of utility-owned special facilities and services18 that:
■ Are determined by PG&E to be necessary to operationalize the Community Microgrid ■ Would otherwise be the cost responsibility of the Awardee, as identified in the MIS This may include the cost of the Microgrid Island Study (MIS), and equipment to enable the safe transition and operation in Island Mode.

At the conclusion of the MIS, PG&E and the Awardee will enter into a Microgrid Special Facilities Agreement that identifies the required upgrades and estimated costs (including cost of ownership), and obligates the Awardee to reimburse PG&E for the actual costs of such Special Facilities to the extent the costs exceed the MGSF Allowance.

Required upgrades may include, for example, devices necessary to isolate the Community Microgrid from the larger distribution system, a microgrid controller that PG&E will use to dispatch the Awardee’s DER controller(s) in order to maintain acceptable frequency and voltage during Island Mode operation, or the undergrounding of Distribution Facilities within the microgrid boundary that are determined to be necessary for safe and reliable Island Mode operation.

Only those costs of Special Facilities identified by PG&E prior to the Islanding Operation Date of the microgrid are eligible for the MGSF Allowance.19 PG&E will provide the Awardee with the applicable MGSF Allowance by reducing the Awardee’s otherwise billable MIS and special facility costs. The Awardee will only be responsible for the actual costs of the MIS and special facilities that exceed $3 million.

Third-party engineering and development costs for work on the Microgrid Island Study are NOT eligible under the Microgrid Special Facilities Allowance.

Reporting Requirements
PG&E is required to report the following information to the CPUC on a quarterly basis after a MIP grant is awarded. Awardee must support PG&E in compiling reporting information as requested.
■ Status of project
■ Number of customers served/to be served by the Community Microgrid ■ Number of DVCs served/to be served by the Community Microgrid ■ Number of Critical Facilities served/to be served by the Community Microgrid STAGE 3:

STUDIES
Once a MIP Awardee executes a Grant Agreement with PG&E, the Awardee’s project will move on to the Technical Evaluation Studies Stage, in accordance with the terms and conditions of the Grant Agreement.

This includes two separate studies – an Interconnection Study (IS) and a Microgrid Islanding Study (MIS).

These studies are important because they identify equipment and estimated costs necessary to safety interconnect Project Resources to PG&E’s grid (IS), and to island the microgrid from the larger grid in the event of an outage (MIS). Ultimately, these studies will be used by PG&E to develop the Project Resource’s Interconnection Agreement and project’s Microgrid Special Facilities Agreement.

Once these Agreements are executed, the project will proceed to the Development Stage, in which the MOA will be executed.

Goals:

Complete the studies required for the Technical
Evaluation: Interconnection Study (IS) and
Microgrid Islanding Study (MIS)
Execute the Interconnection and
Microgrid Special Facilities agreements
Determine whether to move forward with
developing the MIP Community Microgrid
Technical Evaluation Studies
Click on a section below to learn more.

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Stage 3: Studies
Studies:

STAGE 3:

STUDIES
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To develop an Interconnection Study (IS) for the Awardee’s Microgrid Project, Awardees must first submit an Interconnection Application to PG&E for each Project Resource(s).

To initiate this study, Awardees must determine whether it is preferred for the Project Resource(s) to participate in the CAISO’s wholesale market. If the Project Resources are to participate in the CAISO’s wholesale market, Awardees are to follow the PG&E’s Wholesale Distribution Tariff (WDT) generator interconnection process.20 If not, Awardees are to follow the PG&E’s Electric Rule 21 generator interconnection request process. See PG&E’s Getting Started Guide for Electric Generator Interconnections, and contact the PG&E Resilience Coordinator or liaison identified in Stage 1 for further guidance. The IS determines what Distribution Upgrades, transmission network reliability upgrades and Interconnection Facilities are needed to interconnect the Project Resources safely and reliably to PG&E’s distribution system.

Applicants do not have to wait until their project receives an Incentive Award to submit an Interconnection Application; Applicants may submit an Interconnection Application at any time, including during the Technical Consultation Stage or Application Stage of the MIP.

However, only those Awardees who have executed the MIP Grant Agreement are eligible for the Interconnection Allowance. The Interconnection Allowance will only apply to eligible interconnection-related costs for Project Resources that have not already entered into a generator Interconnection Agreement at the time the Applicant submits its incentive request.

After the generator Interconnection Application is submitted, PG&E will review and confirm it is complete. PG&E will conduct the IS in accordance with the study procedures and timelines specified in PG&E’s WDAT or Rule 21.

As part of the IS, PG&E will prepare an estimated construction timeline and cost estimate for the Distribution Upgrades and Interconnection Facilities required for the proposed microgrid project. This timeline and cost estimate will be reflected in the Interconnection Agreement that will be delivered to the entity submitting the interconnection request when the IS is complete. This Interconnection Agreement will need to be executed before the MOA.

The Interconnection Allowance may be applied to eligible Interconnection Application and Study costs, as well as the costs of Distribution Upgrades and Interconnection Facilities described in an eligible Interconnection Agreement. To be eligible, the Interconnection Agreement for each IFOM Project Resource must be executed after the submission of the Applicant’s AIR and prior to, or at the same time as, execution of the MOA. These Distribution Upgrades and Interconnection Facilities costs may include:
■ Switches, wires and other equipment needed for the Project Resource’s Interconnection Facilities
■ Substation transformer upgrades, line refurbishments and other distribution system upgrades
Transmission Network Reliability upgrades are not covered by the Interconnection Allowance. Cost responsibility for these upgrades is specified in the WDT and Rule 21.

The procedure by which the Interconnection Allowance is granted to entities requesting interconnection of Project Resources is set forth in the Grant Agreement.

Interconnection Study
The Interconnection Application process proceeds on a separate timeline from the MIP process.

STAGE 3:

STUDIES
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The MIS is a set of evaluations that assess the safety and performance requirements of Community Microgrid Project Resources. The MIS focuses only on Island Mode operation of the microgrid system and transition to and from Island Mode. The MIS will be performed in parallel with the IS to the extent possible.

To begin the MIS, the Awardee must complete and execute a MIS Agreement. After PG&E reviews the application and determines that the necessary information has been provided, PG&E and the Awardee will work together to conduct the MIS.

This MIS will build on the Microgrid Technical Consultation previously conducted for the proposed microgrid project. The MIS will cover topics such as power flow and voltage analysis, protection settings, power quality, transitional operation and transient stability studies. The cost for the MIS is eligible to be paid through the Microgrid Special Facilities Allowance.

Once the Microgrid Islanding Study is complete, PG&E will have a Final Report Meeting with the Awardee to:

1. Review the results of the study

2. Discuss potential mitigating solutions for any adverse results

3. Identify the Microgrid Special Facilities which will be required for the safe operation of the microgrid
At the end of this Final Report Meeting, both PG&E and Awardee should have a common understanding of the requirements which were met/unmet and agree on the next steps forward.

The MIS will establish a list of equipment that will be required to enable Island Mode.

This list of equipment and the associated cost estimates will inform the Microgrid Special Facilities Agreement.

Ultimately, the project must pass the MIS to proceed to Stage 4 “Contracting and Development,” and for the CMG Aggregator to be eligible to sign the MOA.

The CMG Aggregator is eligible to receive a Microgrid Special Facilities Allowance capped at $3 million to offset eligible Microgrid Special Facilities and MIS costs. Eligible costs that can be offset by this allowance include:
■ PG&E’s MIS study fees
■ Microgrid Special Facilities equipment upgrades, such as:
ƒ Fault interrupting Supervisory Control and Data Acquisition (SCADA) switches, reclosers, line hardening, undergrounding and other equipment upgrades required to support the microgrid’s islanding function
ƒ New or upgraded switches, relays, and other communication/infrastructure to connect SCADA switches and microgrid controllers to PG&E’s control center ƒ Upgrades to PG&E’s:
• Electric service equipment, including routers, security gateways, firewalls or other networking equipment
• Towers, fiber optics, leases or other communications infrastructure • Network project management and equipment Installation expenses ■ Upgrades and testing of PG&E’s Microgrid Controller hardware and software ■ Cost of ownership of items above, as applicable
Microgrid Islanding Study (MIS) and
Microgrid Special Facilities Agreement
STAGE 3:

STUDIES
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Final Estimated Project Scope and Cost
The results of the IS and MIS (including the Special Facilities identified by the MIS) will provide the following information and allow the Awardee to evaluate whether to proceed with the proposed microgrid project:
■ Project Resource(s) and other microgrid costs that the Awardee will be obligated to pay and the extent these costs will be covered by the Incentive Award ■ Distribution upgrade and Interconnection Facility costs and the extent these costs can be offset by the Interconnection Allowance
■ Microgrid Special Facilities costs and the extent these costs can be offset by the Microgrid Special Facilities Allowance
If the Awardee decides to move forward with their proposed microgrid, they will execute the Microgrid Special Facilities Agreement with PG&E and begin the Contracting and Development Stage. Similarly, the Interconnection Agreement must be signed prior to the project progressing to the Contracting and Development Stage.

If after this evaluation an Awardee decides not to move forward with the proposed microgrid, the Awardee will notify PG&E of this decision, and any further grant obligations will be terminated in accordance with the terms of the MIP Grant Agreement.

The remaining Incentive Award and allowances will be returned to PG&E’s MIP funds and made available to other MIP Applicants in accordance with the process described in the Incentive Award Notifications Section.

STAGE 4:

CONTRACTING &

DEVELOPMENT
Goals:

Prepare and execute a MOA between Awardee and
PG&E detailing how the microgrid project will be
developed, commissioned and operated.

Developer/CMG Aggregator develops the Project
PG&E installs any necessary Distribution Upgrades,
Interconnection Facilities and Microgrid Special
Facilities
Click on a section below to learn more.
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Stage 4: Contracting and Development
STAGE 4:

CONTRACTING &

DEVELOPMENT
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May 2025 | V1.2
A MOA describes the roles and responsibilities of both PG&E and the Community Microgrid Aggregator (CMG Aggregator) during the development, commissioning and operation of the microgrid project. This includes contractual terms and conditions governing:
■ Project development, including milestones and associated payments of the accepted Incentive Award; and
■ Microgrid operation
MIP contracts such as the MOA must be enforceable by and subject to the oversight jurisdiction of the CPUC. As such, if the Applicant is a tribal government, executing contracts, including the MOA, may require a limited waiver of sovereign immunity.

Microgrid Operating Agreement (MOA) MOA Terms and Conditions The MOA defines the contractual terms and conditions of the microgrid. As an umbrella agreement, it incorporates, by reference and addendum, other microgrid-related contracts and agreements, including:
■ Interconnection Agreements for Project Resources
■ Microgrid Special Facilities Agreement
■ Mutual Non-Disclosure Agreement
■ Other related Agreements (e.g., Grant Agreement)
Importantly, the MOA defines:
■ Project Development Term: The 24-month period during which the Applicant and PG&E will construct, test and commission the microgrid. This term begins on the MOA’s effective start date and is complete on the MIP Project Islanding Operation Date (IOD).

Upon mutual agreement between the Applicant and PG&E, this 24-month term can be extended up to a maximum of 36 months, per CPUC guidelines. ■ Project Operation Term: The period during which the CMG Aggregator and PG&E will operate the microgrid. The initial 10-year Operating Term commences on the project’s IOD. At the end of 10 years, this Operating Term is automatically renewed annually for one-year terms until the MOA is terminated.

The MOA also defines the terms and conditions for suspension and/or termination.

STAGE 4:

CONTRACTING &

DEVELOPMENT

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May 2025 | V1.2
STAGE 4:

CONTRACTING &

DEVELOPMENT
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May 2025 | V1.2
The MOA Project Implementation Plan
The CMG Aggregator and PG&E will collaborate on the completion of a Project Implementation Plan (PIP). The PIP details how the microgrid will be safely developed and operated, with a focus on the Project Resources and Balance of System components of the microgrid. This plan will include the parties’ best estimate of task, schedule and dependencies for design, construction and development for the project.

The implementation plan may include, but not be limited to, the following:

Component Plan Development: Items such as operational review and commissioning test plan, operating performance requirements and communication and safety plans.

Development and Testing Schedule: For Project Resources, Balance of System, Microgrid Special Facilities and Project Resource Interconnection Project Management: PMO approach and plan, progress meetings and reports, risk management and dependencies
The PIP may incorporate by reference any implementation plan(s) associated with CMET Project Resource Interconnection(s) and Microgrid Special Facilities for purposes of presenting an overall view of the CMET Project development. However, the MOA does not govern those interconnection and associated special facilities schedules, development milestone dates or commitments.

STAGE 4:

CONTRACTING &

DEVELOPMENT
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May 2025 | V1.2
Project Commissioning
For the microgrid project to be commissioned, PG&E must verify that it can safely deliver the islanding performance outlined in the MOA. This is referred to as a MIP Project Commissioning Test.

Before the Project Commissioning Test can take place, all the microgrid’s construction and subsystem testing must be complete. In addition, PG&E needs to have granted all the microgrid’s IFOM and BTM Project Resources Permission to Operate (PTO). PTO is governed by the relevant tariff for these Project Resources (Rule 21 or WDT).

To begin, the Awardee and PG&E will create a plan, as described in the MOA, to test the microgrid’s operation and performance. This plan should include: ■ Criteria used in the test (developed by PG&E) ■ Procedures by which to test whether the microgrid meets these criteria When the MIP Project Commissioning Test Plan is complete and approved by PG&E, it will be appended to the MOA. Approval of the MIP Project Commissioning Test Plan is a required development milestone and should occur at least 60 business days before the project’s scheduled Permission to Island (PTI) date.

After the MIP Project Commissioning Test plan has been approved, the Awardee and PG&E will work together to perform the plan’s MIP Project Commissioning Test. During the test PG&E employees can be present at any of the locations where the microgrid’s Project Resources are located.

STAGE 4:

CONTRACTING &

DEVELOPMENT
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May 2025 | V1.2
Islanding Operation Date (IOD)
After the MIP Project Commissioning Test is complete and approved, the Awardee is responsible for preparing a Commissioning Test Report that documents test results.

PG&E will review the report and, if acceptable, issue a Permission to Island (PTI). After a PTI is received, the CMG Aggregator will submit a MIP Project IOD confirmation notice to PG&E. The MIP Project PTI notice signifies PG&E has reviewed and approved the MIP Commissioning Test results. It also confirms that the project meets all MOA development terms and conditions and prompts the final Incentive Award payment.

The microgrid is considered fully operational after the submission of the MIP IOD confirmation notice to PG&E. Note that “fully operational” means that the microgrid is available to be operated in Island Mode, not that the microgrid is actually isolated from the larger system and being operated in Island Mode. Most of the time, the microgrid will be in Blue Sky Mode where it is connected to and operated as part of the larger electric system.

STAGE 5:

OPERATIONS
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At this stage the Community Microgrid Aggregator will have:
■ Completed development of the microgrid pursuant to the MOA ■ Received confirmation that the microgrid can operate safely and reliably while in Island Mode
■ Established procedures and protocols that the CMG Aggregator and PG&E will use to coordinate the operation of the microgrid
Once the microgrid is approved to safely operate, the 10-year Operational Term begins.

Stage 5: Operations
Goals:

Safely operate and maintain the microgrid through
the end of its Operating Term
Provide an extra layer of energy
resilience to DVCs
Click on a section below to learn more.

STAGE 5:

OPERATIONS
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May 2025 | V1.2
Operational Coordination
During the Operational Term of the MOA,
■ PG&E is responsible for:
• Providing Distribution Service to the microgrid’s customers • Operating and maintaining the microgrid’s Distribution System, including all PG&E-owned Distribution upgrades, Interconnection Facilities and Microgrid Special Facilities ■ The CMG aggregator is responsible for:
• Operating the microgrid’s Project Resources and demand-side management resources, following the provisions of Electric Rule 2, the WDT, Electric Rule 21 and any other applicable rules and standards • Costs related to System Changes (including Microgrid Islanding Study), ownership, operation, scheduling and microgrid’s Project Resources and Balance of System to ensure the microgrid continues to be safe to island
• Biennial Project Test
In addition to the responsibilities described in the Operational Coordination section, during the microgrid Operational Term, PG&E and the Community Microgrid Aggregator will conduct a performance test of the microgrid at least once every two years to demonstrate the Community Microgrid can meet operating and performance requirements and can safely operate in Island Mode. Other tests might need to be scheduled at PG&E discretion.

After a test is conducted, the Community Microgrid Aggregator will need to deliver PG&E a test report. This report should demonstrate the microgrid complies with the operating performance requirements found in the MOA.

If the microgrid fails the test, PG&E may require the CMG aggregator to develop a plan to address the issues that caused failure. Once improvements have been implemented, PG&E will retest the microgrid to determine compliance with the MOA’s operating performance requirements.

If the microgrid continues to be out of compliance with the operating performance terms found in the MOA, the MOA may be suspended or terminated.

System Change
During the microgrid project’s Operational Term,
the Community Microgrid Aggregator is required to
notify PG&E if the Community Microgrid Aggregator
becomes aware of a System Change. After this
notification, PG&E will review the System Change
and determine how it might impact the operation
of the microgrid. If PG&E determines that the
system change has the potential to adversely affect
Island Mode operation, PG&E may perform a MIS to
determine whether additional Special Facilities are
required to maintain safe and reliable operations.

Please consult the MOA for cost responsibility for the
MIS and microgrid upgrade costs.

STAGE 5:

OPERATIONS
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May 2025 | V1.2
Project Termination
The length of the microgrid’s initial Operating Term is 10 years from the date of the Microgrid’s IOD. After this 10-year term ends, the Operating Term is automatically renewed annually for one-year terms until the MOA is terminated.

The Operating Term can be terminated if the Community
Microgrid Aggregator and PG&E mutually agree to terminate. It can also be terminated if one of the following occurs: ■ A new Microgrid Islanding Study determines that a System Change requires upgrades to the microgrid project in order to continue operating safely and the necessary upgrades are not completed
■ The microgrid project no longer meets the eligibility requirements of the CMET
■ The CPUC or other Regulatory Authority requires the MOA to be terminated
■ The Interconnection Agreement for one or more Project Resources is terminated such that, in PG&E’s judgement, the ability to safely and reliably operate the microgrid in Island Mode is jeopardized
■ If the microgrid project fails to satisfy any of the operating performance requirements in its MOA

GLOSSARY
Glossary
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May 2025 | V1.2
Affected System: An electric system other than the Distribution Provider’s Distribution System or Transmission System that may be affected by a System Change.

Application: The Application is the formal documentation package submitted to the PG&E under the MIP, including an Application Development Grant, an Application Incentive Request and a Microgrid proposal along with other required information.

Application Incentive Request (AIR): The amount of reimbursement, excluding the MIP Application Development Grant, requested by the MIP Applicant.

Application Intake Window: A time period with a specific starting date and ending date in which potential MIP Applicants may apply for the MIP. PG&E will determine the number of Application Intake Windows needed, the timing and the allocation of the MIP funds for each Application Intake Window.

Balance of System: All of the microgrid components owned or controlled by the MIP Awardee, other than the Project Resources and Non-Project Resources, necessary to meet the requirements of the Community Microgrid as identified in the Microgrid Islanding Study.

Behind the Meter (BTM): Electrical infrastructure, including resources, on the end-use customer side of the customer’s utility billing meter. A Generating Facility may be connected BTM.

Blue Sky Mode: The mode of operation when the Community Microgrid is connected to and operating in parallel with the Distribution System.

California Independent System Operator Corporation (CAISO): The entity that provides open access to the majority of the state’s bulk electric power system through short-term wholesale energy and ancillary service market mechanisms.

California Public Utilities Commission (CPUC): A regulatory agency that oversees privately owned electric, natural gas, telecommunications, water, railroad, rail transit and passenger transportation companies.

Commissioning Criteria: Requirements outlined in MOA that must be satisfied by the MIP Awardee prior to Islanding Operation Date.

Commissioning Test: A test that demonstrates the Community Microgrid can meet the Commissioning Criteria.

Community-Based Organization (CBO): A public or private non-profit organization having demonstrated efficacy that is representative of a community or significant segments of a community; and engaged in meeting that community’s needs in the areas of social, human or health services.

Community Microgrid: A microgrid with Distribution System-connected Project Resources that supply energy to at least two customers or two customer premises connected by PG&E Distribution System within a Microgrid Boundary capable of Island Mode operation.

Community Microgrid Proposal: A detailed description of the proposed Microgrid submitted as part of the application. The proposal identifies the proposed Microgrid Boundary, Project Resources, and known Balance of System elements, supporting engineering analysis and cost estimates as well as a proposed implementation schedule and status of all required permits.

Community Microgrid Technical Evaluation: Set of studies comprised of the Interconnection Study and the Microgrid Islanding Study; used to develop Project Resource Interconnection Agreements and the Microgrid Special Facilities Agreement.

Community Resiliency Service(s): Services, in addition to those provided by a Critical Facility, which strengthen a community’s ability to prepare for anticipated hazards, adapt to changing conditions, withstand and recover rapidly from disruptions, or otherwise maintain social continuity.

Consulting Engineer: A licensed engineering firm, EPC Contractor or other consulting organization with microgrid-related engineering and economic qualifications that is contracted by the MIP Applicant.

Critical Facility: A facility that provides critical services to the surrounding community pursuant to the CPUC’s current definition of Critical Facilities in Rulemaking R.18-12-005.*
*OIR to examine electric utility de-energization of powerlines in dangerous conditions.

GLOSSARY
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May 2025 | V1.2
Development Term: The period commencing on the Effective Date of the Microgrid Operating Agreement (MOA) and ending upon the Community Microgrid Island Operation Date (IOD). Community Microgrid IOD will occur no later than 24 months from the effective date, unless extended by mutual agreement with a total term not to exceed 36 months from the MOA effective date.

Distribution Customer: An end-use customer taking Distribution Service from a Distribution Provider.

Distribution Provider: A Utility, which owns, controls and operates the facilities and systems that provide Distribution Service to the end-use customers within and outside the Microgrid Boundary.

Distribution Service: The transporting of electric power over and through various facilities owned by the Distribution Provider for delivery to a Distribution Customer. Distribution Service includes all of the associated systems necessary to effect such delivery including meter reading, billing and customer service.

Distribution System: A Distribution Provider’s system broadly consisting of the stepdown substations, the primary distribution circuits and the secondary distribution system. The secondary distribution system consists of the line transformers that step the primary voltage down to a secondary voltage, and the secondary conductors including service drops and meters.

Distribution System Operator: Distribution Provider acting in its role as distribution owner and operator to fulfill responsibilities associated with Distribution Service under both Blue Sky and Island Modes.

Distribution Upgrades: The additions, modifications and upgrades to Distribution Provider’s Distribution System at or beyond the Point of Interconnection to facilitate interconnection of the Generating Facility and render the Distribution Service. Distribution Upgrades do not include Interconnection Facilities.

Effective Date: The date specified in the Microgrid Operating Agreement (MOA) upon which both parties have agreed the provisions of the MOA are in effect.

Electric Rule 21: Electric Rule 21 is a tariff that describes the interconnection, operating and metering requirements for generation facilities to be connected to a Utility’s Distribution system. The tariff provides customers wishing to install generating or storage facilities on their premises with access to the electric grid while protecting the safety and reliability of the distribution and transmission systems at the local and system levels.

Engineering, Procurement and Construction (EPC) Contractor: Contractor or such person providing engineering services, purchasing equipment and installing equipment during the Development Phase of the Microgrid Proposal.

Generating Facility: All generators, electrical wires, equipment and other facilities, excluding Interconnection Facilities owned or provided by the Producer for the purpose of producing electric power, including storage.

High Fire-Threat District (HFTD): An area where there is an elevated risk of powerline-induced fires with the potential to spread rapidly. HFTDs are identified by the California Public Utilities Commission (CPUC). (See the CPUC’s Fire-Threat Map, Tiers 2 and 3, as may be amended.)
Incentive Award: The portion of a MIP Applicant’s Application Incentive Request (AIR) that is authorized for payment to the MIP Applicant and which the MIP Applicant agrees to accept in the MIP Grant Agreement or Microgrid Operating Agreement (MOA) “Rider,” as applicable.

In Front of the Meter (IFOM): Generating resources that are directly connected to the Distribution System, and associated electrical infrastructure that is on the generating resource owner’s side of the utility revenue meter. A Generating Facility may be connected IFOM.

Interconnection Agreement: The agreement and associated documents or any successor agreement and associated documentation governing the terms and conditions of the interconnection of the Project Resource(s) with PG&E’s grid under the Wholesale Distribution Access Tariff (WDAT or WDT) or Rule 21 for applicable Project Resources, including any description of the plan for interconnecting the Project Resource(s) to the grid.

GLOSSARY
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May 2025 | V1.2
Interconnection Allowance: An amount funded by utility ratepayers in addition to the MIP Incentive Award, the MIP Application Development Grant and the Microgrid Special Facilities Allowance, that covers all or a portion of the costs of Interconnection Studies, Interconnection Facility Upgrades and Distribution Upgrades identified per the applicable interconnection tariff for eligible Project Resources.

Interconnection Facilities: The required electrical wires, switches and related equipment, in addition to the facilities required to provide electric Distribution Service to a customer that allow interconnection of a Generating Facility. Interconnection Facilities may be located on either side of the Microgrid Islanding Point as appropriate to their purpose and design. Interconnection Facilities may be owned by either Producer or Distribution Provider.

Interconnection Facility Upgrades: Interconnection Facilities owned by the Distribution Provider.

Interconnection Study: A study to establish the requirements for interconnection of a Generating Facility to Distribution Provider’s Distribution System or Transmission System, pursuant to WDAT or Rule 21, as applicable.

Island Mode: Operation of the microgrid by the Distribution Provider when the microgrid that normally operates in Blue Sky Mode is disconnected from the remainder of the Distribution System at the Microgrid Islanding Point(s). The Distribution Provider will operate the microgrid in Island Mode by:
■ Direct dispatch of Project Resources within the Microgrid Boundary and/or ■ By directing Project Resources to operate within parameters specified by the Distribution Provider for voltage, frequency and power quality.

Islanding Operation Date (IOD): The date upon which the Community Microgrid has successfully demonstrated through the testing and commissioning process that it can successfully transition from Blue Sky Mode to Island Mode, safely operate in Island Mode, and successfully transition from Island Mode to Blue Sky mode pursuant to the MOA’s Operational Requirements.

Load Management Technology: All equipment and other facilities used for the purpose of controlling the consumption of electric power, including storage.

Local Government: Any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity, where “special district” shall explicitly include an agency of the State, formed pursuant to general law or a special act, for the local performance of governmental or proprietary functions with limited geographic boundaries including, but not limited to, school districts and redevelopment agencies.

Matching Funds: One-time funds authorized by the CPUC to offset some portion of the utility infrastructure upgrade costs associated with implementing the islanding function of the microgrid (e.g., CMEP). These Matching Funds are the funding source for the Microgrid Special Facilities Allowance and are in addition to the total MIP budget for eligible costs.

Microgrid: As defined in Public Utilities Code (PUC) Section 8370 (d), a microgrid is an interconnected system of loads and energy resources, including, but not limited to, distributed energy resources, energy storage, demand response tools, or other management, forecasting and analytical tools, appropriately sized to meet customer needs, within a clearly defined electrical boundary that can act as a single, controllable entity, and can connect to, disconnect from, or run in parallel with, larger portions of the electrical grid, or can be managed and isolated to withstand larger disturbances and maintain electrical supply to connected critical infrastructure.

Microgrid Boundary: An electrically contiguous area which can be separated from the larger Distribution System at the Microgrid Islanding Point that defines a microgrid as a single, controllable entity.

Microgrid Controller: The Distribution Provider’s system that monitors and controls the Distribution System and Project Resources within the Microgrid Boundary when islanded, and which may coordinate with Non-Project Resources that support the microgrid.

Microgrid Incentive Program (MIP): A program to enable community-proposed Microgrids that provide enhanced resilience for vulnerable customer groups and/or critical facilities pursuant to the CPUC’s Decisions D.21-01-018 and D.23-04-034.

GLOSSARY
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 48 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Microgrid Islanding Point: The point(s) on a Distribution System that allows the microgrid to separate from and reconnect to the rest of the Distribution System.

Microgrid Islanding Study (MIS): An engineering study conducted by the Distribution Provider or its agents to determine the required modifications to and specifications for the Distribution Provider’s Distribution Facilities to support Island Mode operation, including the cost and scheduled completion date for such modifications.

Microgrid Islanding Study Agreement (MIS Agreement): A contractual agreement between PG&E and the MIP Awardee to conduct a Microgrid Islanding Study (MIS).

Microgrid Operating Agreement (MOA): An agreement between the Distribution Provider and the MIP Awardee that governs the Community Microgrid development and testing, and commercial operations to ensure safety and service quality in compliance with applicable Distribution Provider rules.

Microgrid Special Facilities: Modifications to the Distribution Provider’s Distribution Facilities required to operationalize the Microgrid Boundary and Island Mode such that the microgrid can maintain voltage, frequency and power quality in accordance with the Distribution Provider’s requirements and Rule 2.

Microgrid Special Facilities Agreement (Microgrid SFA): The agreement that describes the upgrades on the Distribution System to be installed under the terms and conditions regarding Special Facilities (or Added Facilities) on file with the California Public Utilities Commission (CPUC), pursuant to Electric Rule 2, and incorporated in the Microgrid Operating Agreement (MOA).

Microgrid Special Facilities Allowance: An amount funded by utility ratepayers in addition to the MIP Incentive Award, the MIP Application Development Grant and the Interconnection Allowance to cover all or a portion of the costs of the Microgrid Special Facilities and the MIS.

Milestones: Key development activities and the agreed upon completion dates required for the development and operation of the Community Microgrid as set forth in the MOA.

MIP Applicant: The person or entity who submits an Application to PG&E for the MIP. Upon receiving a MIP Incentive Award, the MIP Applicant will be referred to as a MIP Awardee.

MIP Application Development Grant: Reimbursement up to $25,000 for the costs incurred in the development of an eligible MIP application; available subsequent to acceptance of Applicant’s AIR whether an Applicant is awarded a MIP incentive grant or not.

MIP Awardee: An Applicant to whom a partial or full MIP incentive award is offered.

MOA “Rider”: The agreement, executed by the MIP Awardee upon its acceptance of a partial or full MIP incentive award, which provides the terms and conditions governing the Interconnection Allowance, the Special Facilities Allowance and MIP incentive payments to the extent such payments occur prior to execution of the MOA.

Performance Test: A biennial (every other year) test to demonstrate that the Community Microgrid and project personnel can successfully meet the operating performance requirements set forth in the MOA.

Operating Term: The 10-year initial period commencing on the Community Microgrid IOD as set forth in MOA; automatically renewed annually for one-year terms until termination of the MOA or expiration of a Project Resource Interconnection Agreement.

Permission to Island: Distribution Provider’s express written permission before a Community Microgrid may operate in Island Mode.

Permission to Operate: Distribution Provider’s express written permission required before a Project Resource or Non-Project Resource may parallel with the Distribution System, pursuant to applicable tariffs (Rule 21 or WDAT).

Producer: The entity that executes a Generator Interconnection Agreement with Distribution Provider per Rule 21. Producer may or may not own or operate the Generating Facility, but is responsible for the rights and obligations related to the Generator Interconnection Agreement.

Project Implementation Plan: Document mutually agreed upon by utility and applicant that details how the Community Microgrid will be safely developed and operated. Includes detailed description of milestones including tasks, schedule and dependencies for design, construction and testing for the Community Microgrid.

GLOSSARY
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 49 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Project Resource: A Generating Facility, storage technology or load management technology that the Community Microgrid Aggregator has control over and are used to support a Community Microgrid. At least one Project Resource must have a plant controller and grid-forming capability sufficient to allow acceptable frequency and voltage during Island Mode operation.

Project Resources are interconnected to the Distribution System within the Microgrid Boundary either directly as IFOM Project Resources or indirectly as BTM Project Resources pursuant to the <WDAT/WDT> or Electric Rule 21. Project Resources may or may not be owned by the MIP Awardee but are subject to the operating provisions specified in the MOA.

Resource Controller (also known as a Plant Controller): A system, distinct from the utility’s Microgrid Controller, that controls the operation of the Project Resources.

Rural Area: Locations defined by U.S. Health and Human Services Administration as Rural.

System Change: A change in Project Resources, Non-Project Resources or customer loads within the Microgrid Boundary that was not anticipated at the time the MIS was performed, or other Affected Systems outside the Microgrid Boundary and which PG&E determines may have a material impact on the ability of a Community Microgrid to safely and reliably function in Island Mode.

Tribal Government: Federally or non-federally recognized California Native American Tribes, as defined in Public Resources Code (PRC) Section 21073. PRC Section 21073 defines a California Native American Tribe as a Native American Tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004.

Wholesale Distribution Access Tariff (WDAT): The terms under which the utility provides open access to its Distribution System to wholesale customers seeking to:
■ Interconnect generation facilities to the utility’s Distribution System and deliver energy and capacity services to the California Independent System Operator (CAISO) controlled grid (using the utility’s Distribution System), or
■ Deliver energy or capacity services from the CAISO controlled grid (using the utility’s Distribution System) to their customers.

AC Alternative Current
AFN Access and Functional Needs
AIR Application Incentive Request
BTM Behind-the-Meter
CAISO California Independent System
Operator
CARE California Alternative Rates for
Energy Program
CBO Community-Based Organization
DSO Distribution System Operator
IOD Islanding Operation Date
IOU Investor Owned Utility
IS Interconnection Study
CPUC California Public Utilities
Commission
CMEP Community Microgrid Enablement
Program (PG&E)
DA Direct Access
DER Distributed Energy Resource
DVC Disadvantaged Vulnerable
Community
FERA Family Electric Rate Assistance
Program
GHG Greenhouse Gas
HFTD High Fire-Threat District
IFOM In Front-of-the-Meter
IOD Islanding Operation Date
MBL Medical Baseline
MIP Microgrid Incentive Program
MIPIP Microgrid Incentive Program
Implementation Plan
MIS Microgrid Islanding Study
MOA Microgrid Operating Agreement
NDA Non-Disclosure Agreement
PIP Project Implementation Plan
PTI Permission to Island
SCADA Supervisory Control and Data
Acquisition
SFA Rule 2 Special Facilities Agreement
PSPS Public Safety Power Shutoff
R21 Rule 21
WDAT or WDT Wholesale Distribution
Access Tariff or Wholesale Distribution
Tariff

ENDNOTES
Endnotes

1. Under certain design configurations, a brief break in service may be experienced. BACK

2. Any new MIP-funded project resource must comply with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements of Section 94203 of Title 17 of the California Code of Regulations, or any successor regulation, consistent with the requirements for community microgrids in SB 1339.16 Non-compliant emergency/standby generation are not allowed to be used as Project Resources. BACK

3. Existing DERs can be included in the microgrid; however, they are not eligible for the MIP subsidy.

BACK

4. As identified by the U.S. Health and Human Services Administration Federal Office of Rural Health Policy (FORHP) Data Files | HRSA. BACK

5. Incentive funds may not be used to pay for BTM resources. Incentive funds may be used to pay for the cost of In-Front-of-the-Meter (IFOM) resources and reconfiguring certain BTM facilities. BACK

6. A final determination on eligibility will be made during the application phase. BACK

7. Note that a standard non-disclosure agreement (NDA) and customer consent is required at this step to protect private customer information and ensure security of the energy system. BACK

8. See PG&E’s MIP website www.pge.com/mip for pro forma MOA. BACK

9. Ensure compliance with customer privacy protection and aggregation restrictions regarding the disclosure of information related to customers and/or facilities. BACK

10. “When operating in Island Mode, the aggregate emissions from Project Resources and non-Project Resources must be no greater than equivalent grid power. Energy storage that is charged with grid power will be deemed to have the emissions equivalent of the average system emissions for the Utility.” Commission-approved Joint IOU Microgrid Incentive Program Implementation Plan, p. 20. BACK

11. Do not include interconnection facilities and distribution upgrade costs with the MIP eligible costs in the AIR. PG&E will provide an interconnection allowance of up to $1 million for eligible Interconnection Studies, distribution upgrades, interconnection facilities costs, and a microgrid Special Facilities allowance of up to $3 million for an eligible Microgrid Islanding Study and other islanding costs. Note, the total amount of the AIR cannot exceed the incentive award cap ($14 million). BACK

12. If possible, also include information on whether the Applicant’s microgrid can provide distribution service while in Island Mode beyond 24 hours. MIP application will receive additional resilience benefit points for every six hours it can provide distribution service beyond 24 hours. During the Technical Consultation, PG&E will assist Applicant in identifying the expected impact of non-Project Resources on the ability to provide continuous operation of the microgrid during Island Mode operation. BACK

13. Individual customers eligible for both programs are counted only once. BACK

14. Customers available for multiple programs are only counted once. BACK

15. See the CWSP Critical Facility Customer Fact Sheet. BACK

16. The Commission-approved Microgrid Incentive Program Implementation Plan (MIPIP) caps the Island Duration Resilience Benefit points at four consecutive days. MIPIP, p. 31. BACK

17. The MIP is intended to support the community’s development of a microgrid, not to support the community’s ongoing costs of maintaining microgrid capability once the microgrid has entered islanding operation. However, PG&E may in its sole discretion, and to the extent funds are available, allow the use of any unused Interconnection Allowance funds up to the $1M cap after IOD. BACK

18. This allowance is provided through PG&E’s Community Microgrid Enablement Program. BACK

19. The MIP is intended to support the community’s development of a microgrid, not to support the community’s ongoing costs of maintaining microgrid capability once the microgrid has entered islanding operation. However, PG&E may in its sole discretion, and to the extent funds are available, allow the use of any unused Microgrid Special Facilities Allowance funds up to the $3M cap after IOD. BACK

20. Possible exception exists for projects which sell to PG&E under PURPA, which can interconnect under Electric Rule 21. BACK
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 50 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2
Endnotes are listed in the order they appear in the document

VERSION

HISTORY
Version History
VERSION 1.1 (2024)

PAGE DESCRIPTION OF CHANGE
Every Page Update month at bottom of every page from "October 2023" to "May 2024"; create new tab on right “Version History.”
Side Tabs and Page 2
and 50 Update "Footnotes" to "Endnotes."
3 Add “other entities that are eligible”
16 Fix broken link: Community Microgrid Technical Best Practices Guide. 17 Simplify Request for Technical Consultation (remove "List of customers to be served by microgrid, including Account IDs if known"). 18 Change “CMG Aggregator” to “Applicant”; Remove “Local or Tribal Government or CBO”
20 Preparing your application: modify 60% design to 30% design. 21 Removed “non-coincident” from load profile.
22 Clarify "same area" in last bullet to "Proposed projects may not have overlapping boundaries."
24 Fix broken link: PG&E's Annual Electric Reliability Reports; modify the language under number of vulnerable customers and define scoring parameter/criteria and validation method for AFN/MBL/Life Support customers within MIP Project.
26 Add asterisk for "Prior PSPS Events."
28 Remove “Local or Tribal Government or CBO”
33 Fix broken link: PG&E's Getting Started Guide for Electric Generator Interconnections.
45 Fix broken link: Fix broken link: Rulemaking R.18-12-005 (Under Critical Facility definition) and update link for CPUC’s current definition of Critical Facility.
49 Remove Track 2 Decision definition; add definition for Tribal Government. 50 Fix broken link: Item #15: CWSP Critical Facility Customer Fact Sheet and update link for CPUC’s current definition of Critical Facility. 51 Create new page for "Version History."
VERSION 1.2 (2025)

PAGE DESCRIPTION OF CHANGE
7 Improved clarity around interconnection upgrades & facilities 9 Emphasis added to what is eligible under the three funding buckets 10 Added third-party engineering and development costs as an eligible AIR cost to ensure it's more clear 12 & 19 Added clarification of when Non-Project Resource data is necessary for the emission analysis 16 Fixed broken link: Community Microgrid Technical Best Practices Guide 17 Clarified language around the technical consultation process 17 Added more detail of what is needed for the project resource attachment 17 Clarified expectations and what documents are needed from technical partners 19 Grammatical error
19 Eliminated need for Applicant to demonstrate how they meet requirements since PG&E will confirm 22 Process improvement to project evaluations
22 Clarified language around how the application materials are submitted 22 Clarified the NDA is already executed
27 Corrected language for expectations for re-applying to MIP 27 Removed a grant program that is no longer applicable 29 Updated table with more representative milestones
30 Added clarity that third-party engineering and project management costs are not eligible under the Interconnection Allowance
30 Added clarity that third-party engineering and project management costs are not eligible under the Microgrid Special Facilities Allowance
33 Added link to PG&E's tariffs page
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 51 ©2025 Pacific Gas and Electric Company. All rights reserved.

May 2025 | V1.2