Agenda — Pioneer Community Energy Board of Directors, October 16, 2025 (part 1 of 2)

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

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

Nevada City - City Hall, Wetherall Conference Room
317 Broad Street, Nevada City, CA 95959
This special meeting will convene in person at the address printed above, be accessible on the Zoom platform at the following link:
https://us06web.zoom.us/j/89020017279;
and live streamed for viewing on the Pioneer website:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

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

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

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

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

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

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

1. Dial 1 (699) 900-6833

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

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

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

Plf)NEER

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

1. Roll Call
B. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE

JURISDICTION OF THE BOARD
Persons may address the Board on items not on the agenda and within the jurisdiction of the Board.

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

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

All Consent items will be approved by a single vote. Anyone may ask to address Consent items prior to the Board acting, and the item may be moved for discussion. a) ADMINISTRATION
Approve the minutes of the f September 18, 2025 special and regular meetings. (ECKERT) b) FINANCE & ADMINISTRATION
Receive Fiscal Year 2025-26 Draft Monthly Financial Reports through July 2025. (KOEHN) c) FINANCE & ADMINISTRATION
Receive Fiscal Year 2025-26 Draft Monthly Financial Reports through August 2025. (KOEHN) d) FINANCE & ADMINISTRATION
Adopt Resolution to Approve a 3% Cost-of-Living Increase and Salary Schedule Adjustments, Approve an Employer Contributions Increase to Employee Retirement accounts, and Approve an Adjusted Salary Schedule reflective of the Triennial Compensation Study Recommendations. (KOEHN) e) FINANCE & ADMINISTRATION
Adopt Resolution approving four Information Technology Policies and Procedures. (KOEHN) III. REGULAR AGENDA
2) LEGISLATIVE & REGULATORY
Overview of Assembly Bill 825 - the Regional Electricity Market Bill (DISCUSSION-KANG) Recommendation: Receive an overview of Assembly Bill (AB) 825 or the Regional Electricity Market Bill, which authorizes a West-wide regional electricity market aiming to reduce wholesale electricity prices and enhance grid reliability.
3) ADMINISTRATION
Update on Expansion and Approval of a 30-Day Notice to Amend the Joint Exercise of Powers Agreement (ACTION-ECKERT)
Recommendation: Receive an update on expansion efforts and approve the 30-day notice for a vote of the Board of Directors regarding Amendment No. 8 for Membership to the Joint Exercise of Powers Agreement for Pioneer Community Energy.
4) FINANCE & ADMINISTRATION
Receive Draft Fiscal Year 2024-25 Year-End Financial Reports (DISCUSSION-KOEHN) Recommendation: Receive draft Fiscal Year 2024-25 year-end financial reports through June 30, 2025. 5) FINANCE & ADMINISTRATION
Adopt Resolution Approving Artificial Intelligence Acceptable Use Policy (ACTION-KOEHN) Recommendation: Adopt Resolution approving the Artificial Intelligence Acceptable Use Policy. 6) FINANCE & ADMINISTRATION
Adopt Resolution Authorizing the Chief Executive Officer to Execute a Lease Agreement with 2540 Warren LLC and to Approve Tenant Improvement Costs up to $625,969 (Contingency of 10% over preliminary cost estimate (ACTION-KOEHN)
Recommendation: Adopt a resolution authorizing the Chief Executive Officer to execute a lease agreement with 2540 Warren LLC and approve tenant improvement costs up to $625,969 (contingency of 10% over preliminary cost estimate).

IV. GENERAL ADMINISTRATIVE FUNCTION – PART 2
A. BOARD MEMBER COMMUNICATIONS

1. Expansion ad hoc Committee Report, Committee Chair Dowdin Calvillo

2. Board Member Communications
B. CHIEF EXECUTIVE OFFICER COMMUNICATIONS
C. ITEMS FOR INFORMATION

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

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

Affidavit of Posting
I, Teresa Willock, Board Secretary, declare under penalty of perjury that the foregoing agenda for the October 16, 2025 regular meeting of the Pioneer Community Energy Governing Board was posted and available for public review on October 10, 2025 at the offices of Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, CA 95677; at remote location Nevada City – City Hall, Wetherall Conference Room, 317 Broad Street, Nevada City, CA 95959; and, was on the Pioneer website at: https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

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

PIONEER COMMUNITY ENERGY

GOVERNING BOARD

SPECIAL MEETING
September 18, 2025

MINUTES
Entry No. 1
Heard General Administrative Functions – Part I
Call to Order
Pioneer Community Energy Governing Board met in open session at 2:16 PM on September 18, 2025. The Members convened in person and the meeting was accessible to the public at Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, California 95677; and, the meeting was accessible for viewer participation on the Zoom platform at the following link: https://us06web.zoom.us/j/89020017279; and, was live streamed for viewing on the Pioneer website:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Roll Call

Present: City of Auburn (Dowdin Calvillo), City of Colfax (Lomen), County of El Dorado (Parlin), City of Grass Valley (Ivy), City of Lincoln (Pearl), Town of Loomis (Ring), Nevada City (Petersen), City of Placerville (Carter), City of Rocklin (Bass).

Absent: County of Placer (DeMattei), County of Placer (Jones).

Director Parlin acknowledged that she was participating remotely for “Just Cause” due to traveling on official business for her public agency, County of El Dorado; that no persons age 18 or older were in the room with her and that she would declare if anyone does enter the room during this meeting.

Chair Dowdin Calvillo presided over the meeting.

Public Comment
There were no comments from members of the public.

Closed Session
Adjourned to Closed Session at 2:18 PM with expected time of 3:00 PM to convene the Regular Meeting. 1) Conference with Labor Negotiators (GC §54957.6)
Agency Negotiators: Don Eckert, Chief Executive Officer; Brad Koehn, Director of Finance & Administration.

Unrepresented Employee: All Employees
2) Conference with Legal Counsel – Existing Litigation (GC §54956.9(d)(1)) The Governing Board finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the local agency in the litigation.

Name of Case: Kolpitcke v. Pioneer Community Energy.

Names of Parties: Plaintiff Kirstin Kolpitcke; Defendant Pioneer Community Energy.

Case No. S-CV-0054062 (Placer County Superior Court).

Public Report of Closed Session
The Public Report of Closed Session was heard when the regular meeting convened at 3:00 PM.

DRAFT - ITEM 1a

PIONEER COMMUNITY ENERGY

GOVERNING BOARD

REGULAR MEETING
September 18, 2025

MINUTES
Entry No. 1
Heard General Administrative Functions – Part I
Call to Order
Pioneer Community Energy Governing Board met in open session at 3:00 PM on September 18, 2025. The Members convened in person and the meeting was accessible to the public at Pioneer Community Energy, 2510 Warren Drive, Suite B, Rocklin, California 95677; and, the meeting was accessible for viewer participation on the Zoom platform at the following link: https://us06web.zoom.us/j/89020017279; and, was live streamed for viewing on the Pioneer website:
https://pioneercommunityenergy.org/about-us/meetings-and-agendas/.

Director Jones arrived immediately preceding the Regular Meeting.

Roll Call

Present: City of Auburn (Dowdin Calvillo), City of Colfax (Lomen), County of El Dorado (Parlin), City of Grass Valley (Ivy), City of Lincoln (Pearl), Town of Loomis (Ring), Nevada City (Petersen), County of Placer (Jones), City of Placerville (Carter), City of Rocklin (Bass).

Absent: County of Placer (DeMattei).

Chair Dowdin Calvillo presided over the meeting.

Public Report of Closed Session
1) Conference with Labor Negotiators (GC §54957.6)
Agency Negotiators: Don Eckert, Chief Executive Officer; Brad Koehn, Director of Finance & Administration.

Name of Case: Kolpitcke v. Pioneer Community Energy.

Names of Parties: Plaintiff Kirstin Kolpitcke; Defendant Pioneer Community Energy.

Case No. S-CV-0054062 (Placer County Superior Court).

No reportable action was taken in the matters of (1) Conference with Labor Negotiators (Government Code §54957.6); or, (2) Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1)).

Agenda Review
Reviewed and made no revision to the meeting agenda for September 18, 2025.

DRAFT - ITEM 1a
DRAFT – September 18, 2025 – page 2
Entry No. 2
Acted on the Consent Agenda as follows:

Approved the minutes of the July 10, 2025 special meeting.

Adopted Resolution 2025-31 approving an attestation regarding the veracity of information reflected in Pioneer Community Energy’s 2024 Power Source Disclosure Report for Pioneer Standard (“Base Service”) and for Pioneer Green 100.

Adopted Resolution 2025-32 authorizing the Chief Executive Officer to extend access to Cost-Neutral Programs to new Member Agencies prior to October 2027 Service Expansion.

Adopted Resolution 2025-33 approving and authorizing the Pioneer Community Energy Revised Load Management Standards Compliance Plan and Submission to the California Energy Commission.

Adopted Resolution 2025-34 authorizing the Chief Executive Officer to execute an amendment to the agreement with Braun Blaising & Wynne, P.C. to amend hourly rates.

MOTION: Pearl/Jones. Vote: 10:0:1
ROLL CALL: Bass, Carter, Dowdin Calvillo, Ivy, Jones, Lomen, Parlin, Pearl, Petersen, Ring.

No/Abstain: None.

Absent: DeMattei.

Entry No. 3
Review of the Power Charge Indifference Adjustment
Received an overview of the current state of the PCIA, or Power Charge Indifference Adjustment, including an overview of its purpose and calculation, anticipated changes to PCIA rates in 2026, and Pioneer advocacy efforts.

Chief Executive Officer Eckert introduced guest presenter, Brian Dickman of NewGen Strategies & Solutions; and, informed staff that this presentation had been prepared to better understand the Power Charge Indifference Adjustment (“PCIA”) and how the PCIA will be a factor for consideration in setting rates for 2026 while we strive to have a continued discount to PG&E.

Board Chair Dowdin Calvillo expressed appreciation to the presenters; acknowledged that this is difficult to understand, explain to our customers, and that the PCIA does not just go away; proceeded to comment that rates are projected to increase significantly in 2026 due to conditions in the market, and to consider what that will mean for Pioneer; and, for the Board to be aware and consider this moving forward so we are not caught off guard when considering rates
Directors continued discussion regarding Pioneer’s ability to maintain a minimum three-percent discount for 2026; confirmed it is too soon to know what PG&E’s rates will be; the benefit of battery storage brings value but not lower rates; and, the historical cost to value compared to today’s cost.

Entry No. 4
Adopt Resolution to Allow for the Chief Executive Officer to Initiate the Expansion Process to Allow for the Addition of Unincorporated Madera County and the Cities of Colusa, Madera, and Chowchilla
Directors discussed the importance of getting ahead of future expansion efforts with organizational resources, market conditions, governance, and continued diluted vote for current members.

DRAFT – September 18, 2025 – page 3
Board Chair Dowdin Calvillo moved to proceed with the Impact Assessment Studies for these four jurisdictions with the understanding that it is one member/one vote.

Adopted Resolution 2025-35 allowing for the Chief Executive Officer to initiate the expansion process to allow for the addition of Unincorporated Madera County and the Cities of Colusa, Madera, and Chowchilla as MOTION: Dowdin Calvillo/Lomen. Vote: 9:1:1
ROLL CALL: Carter, Dowdin Calvillo, Ivy, Jones, Lomen, Parlin, Pearl, Petersen, Ring.

No/Abstain: Bass.

Absent: DeMattei.

Entry No. 5
Due to time constraints, Item 6, Adopt Resolution Approving the Artificial Intelligence Acceptable Use Policy, was pulled from the agenda by Board consensus, for presentation and consideration at the October 16, 2025 meeting.

Entry No. 6
Adopt Resolution Approving an Update to the Net Energy Metering (NEM) Service Policy Adopted Resolution 2025-36 approving an update to the Net Energy Metering (NEM) Service Policy.

MOTION: Petersen/Ring. Vote: 10:0:1
ROLL CALL: Bass, Carter, Dowdin Calvillo, Ivy, Jones, Lomen, Parlin, Pearl, Petersen, Ring.

No/Abstain: None.

Absent: DeMattei.

Director Jones excused herself following the vote for this item.

Entry No. 7
Adopt Resolution to Authorize the Chief Executive Officer to Execute an Agreement with PaulosAnalysis to Provide an Online Incentive Finder Tool for Customers, for an Amount Not to Exceed $75,000 for a One-Year Term with the Option of Two One-Year Extensions Adopted Resolution 2025-37 as amended to authorize the Chief Executive Officer to execute an Agreement with PaulosAnalysis to provide an online Incentive Finder Tool for customers, for an amount not to exceed $75,000 for a one-year term with the option of two one-year extensions.

MOTION: Pearl/Lomen. Vote: 9:0:2
ROLL CALL: Bass, Carter, Dowdin Calvillo, Ivy, Lomen, Parlin, Pearl, Petersen, Ring.

No/Abstain: None.

Absent: DeMattei, Jones.

Entry No. 8
Heard General Administrative Function – Part II
Board Member Communications
Committee Chair Ring reported that as the Audit & Finance Committee Chair, he met with the independent Auditor on September 9, 2025, regarding the audit kick-off. Due to the nature of the conversation, the meeting remained private without staff or the public in attendance. A meeting of the Audit & Finance Committee will be scheduled to discuss the Financial Audit.

Committee Chair Dowdin Calvillo reported that the Governance Committee met on September 11, 2025, adjourned to Closed Session regarding labor negotiations, then reconvened open session, provided the DRAFT – September 18, 2025 – page 4
public report of the Closed Session, and approved the meeting minutes of the April 15, 2025 Committee meeting.

Chief Executive Officer Communications
CEO Eckert informed the Board that Pioneer is hosting a tour of the Calpine Geysers on Friday, November 7, from 10:00 – 3:00. Located north of San Francisco in the Mayacamas Mountains, the Geysers are the nation’s largest renewable geothermal power producer. This will be a fascinating tour and a very informative day, as we will have a chance to see how a geothermal power plant operates. Please RSVP to Gina or Teresa if you would like to attend or want additional information.

CEO Eckert also provided an update on the Microgrid Incentive Program. On July 25, Pioneer issued a Request for Proposal to interested engineering firms for services related to completing the Pacific Gas & Electric technical applications under the Microgrid Incentive Program for four potential microgrid projects sites; two located in Grass Valley, another in Foresthill and the fourth located in Georgetown. Several interested firms reached out to Pioneer and ultimately three submitted RFP proposals-Wisewood & PAE, Arup, and Mavericks Renewables. After consideration, Pioneer staff awarded the RFP to Arup for both Grass Valley sites and Wisewood & PAE for the Foresthill and Georgetown sites.

Items for Information
Received the Glossary of Terms.

Adjournment
The meeting adjourned at 4:55 PM.

Page 1 of 1 ends

Staff Report – Item 1b
To: The Governing Board
From: Eric Acedo, Sr. Financial Analyst
Item 1b: Receive Fiscal Year 2025-26 Draft Monthly Financial Reports Through July 2025 Date: 10/16/2025

RECOMMENDATION
Receive Fiscal Year 2025-26 Draft Monthly Financial Reports through July 2025.

BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. The mPOWER program accepted its last application August 2021 and mPOWER activity is now limited to administering the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year-end reports. For July 2025, the financial reporting package includes the following reports for the CCA Fund only:
• Statement of Net Position (Balance Sheet) – Accounting of Assets, Liabilities and Net Position as of the reporting period end date for the CCA program. • Statement of Revenues, Expenses, and Changes in Net Position (P&L) – Accounting of all revenues, expenses, and changes in net position on a YTD basis through the reporting period end date for the CCA program.
• Budgetary Comparison Schedule (Budget to Actuals) – Comparison of budget to actuals on a YTD basis through the reporting period end date for the CCA program.

STRATEGIC PLAN
Strategic Priority: Be Fiscally Strong and Resilient

FISCAL IMPACT
The YTD change in net position through one month of the fiscal year is ($0.5) million.

ATTACHMENTS

1. Financial Reports through July 31, 2025
Plf)NEER

COMMUNITY ENERGY
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Fund of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of July 31, 2025, and the related statement of revenues, expenses, and changes in net position for the month then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

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

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

Maher Accountancy
San Rafael, CA
September 26, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
CCA Program
ASSETS
Current assets
Cash and cash equivalents 42,730,514$
Investments 124,360,831
Accounts receivable, net of allowance 25,619,522
Accrued revenue 12,214,672
Other receivables 4,960,018
Interest receivable 270,000
Prepaid expenses 4,599,647
Deposits 1,303,196
Total current assets 216,058,400
Noncurrent assets
Capital assets, net of depreciation and amortization 1,083,407 Deposits 793,221
Total noncurrent assets 1,876,628
Total assets 217,935,028

LIABILITIES
Current liabilities
Accrued cost of electricity 30,502,371
Accounts payable 649,617
Other accrued liabilities 625,744
Lease liability 126,219
Note payable 879,833
Interest payable 5,007
Deposits 582,000
Total current liabilities 33,370,791
Noncurrent liabilities
Lease liability 757,405
Note payable 630,530
Supplier security deposits 600,000
Total noncurrent liabilities 1,987,935
Total liabilities 35,358,726

NET POSITION
Net investment in capital assets 199,783
Unrestricted net position 182,376,519
Total net position 182,576,302$

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of July 31, 2025

CCA PROGRAM
See accountants' compilation report. 2
CCA Program

OPERATING REVENUES
Electricity sales, net 24,508,665$
Total operating revenues 24,508,665

OPERATING EXPENSES
Cost of electricity 24,276,874
Contract services 523,794
Staff compensation 339,796
Other operating expenses 260,660
Depreciation and amortization 15,725
Total operating expenses 25,416,849
Operating income (loss) (908,184)

NONOPERATING REVENUES (EXPENSES)
Investment income 392,973
Interest and financing expense (7,875)
Nonoperating revenues (expenses), net 385,098

NET POSITION
Change in net position (523,086)
Net position at beginning of period 183,099,388
Net position at end of period 182,576,302$
One Month Ended July 31, 2025

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CCA PROGRAM

PIONEER COMMUNITY ENERGY
See accountants' compilation report. 3
Participation Rates – July 2025
Participation Rate July 2025 July 2024 AUBURN INC 85.67% 85.40% COLFAX INC 88.18% 88.21% GRASS VALLEY INC 96.64% 97.50% LINCOLN INC 82.82% 82.82% LOOMIS INC 87.20% 87.18% NEVADA CITY INC 98.09% 98.43% PLACERVILLE INC 85.83% 85.46% ROCKLIN INC 90.30% 90.43% UNINC EL DORADO CO 79.84% 79.71% UNINC PLACER CO 84.76% 84.64% Grand Total 84.38% 84.35%

COMMUNITY ENERGY
Total Pioneer Customers(# of Accounts)
200,000
180,000 170,104 175,389
160,000 140,000 120,000 100,000
80,000
60,000
40,000
20,000
0 July2024 July2025
1 ACCOUNTANTS’ COMPILATION REPORT

Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule for the CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the month ended July 31, 2025, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

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

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

Maher Accountancy
San Rafael, CA
September 26, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
2025/26 YTD
Budget
2025/26 YTD
Actual
2025/26 YTD
Variance
(Under) Over
2025/26
YTD
Actual/
Budget % 2025/26 Budget
2025/26 Budget
Remaining

ENERGY REVENUES
Energy Sales $ 29,498,773 $ 24,838,199 $ (4,660,574) 84% $ 234,389,000 $ 209,550,801 Green100 Sales 18,083 5,858 (12,225) 32% 217,000 211,142 Congestion Revenue Rights and Battery Optimization 840,200 434,574 (405,626) 52% 10,000,000 9,565,426 Less Uncollectible Accounts (398,478) (335,395) 63,083 84% (3,167,181) (2,831,786) Total Operating Revenues 29,958,579 24,943,236 (5,015,342) 241,438,819 216,495,583

ENERGY EXPENSES
Power Supply 27,522,224 24,711,449 (2,810,776) 90% 221,145,000 196,433,551 OPERATING MARGIN 2,436,355 231,788 (2,204,567) 20,293,819 20,062,031

OPERATING EXPENSES
Administration
Compensation 83,517 63,273 (20,243) 76% 1,002,200 938,927 Contract services 25,967 12,316 (13,651) 47% 492,800 480,484 Operating expenses 165,179 66,194 (98,985) 40% 971,750 905,556 Total Administration expenses 274,663 141,783 (132,879) 52% 2,466,750 2,324,967 Finance
Compensation 99,229 70,136 (29,093) 71% 1,190,745 1,120,609 Contract services 47,400 26,991 (20,409) 57% 641,550 614,559 Operating expenses 19,356 20,497 1,141 106% 357,675 337,178 Total Finance expenses 165,985 117,624 (48,361) 71% 2,189,970 2,072,346 Power Procurement
Compensation 104,133 64,820 (39,313) 62% 1,249,593 1,184,773 Contract services 219,259 92,114 (127,145) 42% 3,349,187 3,257,073 Operating expenses 230,958 18,865 (212,094) 8% 447,500 428,635 Total Power Procurement expenses 554,350 175,799 (378,551) 32% 5,046,280 4,870,481 Customer Care
Compensation 67,223 39,912 (27,311) 59% 806,672 766,760 Contract services 239,167 246,007 6,840 103% 2,870,000 2,623,993 Operating expenses 4,879 2,149 (2,730) 44% 129,050 126,901 Total Customer Care expenses 311,269 288,068 (23,201) 93% 3,805,722 3,517,654 Marketing & Communications
Compensation 79,383 42,172 (37,211) 53% 952,599 910,427 Contract services 41,667 14,544 (27,123) 35% 500,000 485,456 Operating expenses 81,867 62,063 (19,804) 76% 1,002,400 940,337 Total Marketing & Communications expenses 202,917 118,779 (84,138) 59% 2,454,999 2,336,220 Legislative & Regulatory
Compensation 78,508 45,122 (33,386) 57% 942,100 896,978 Contract services 33,785 15,460 (18,325) 46% 337,807 322,347 Operating expenses 2,217 1,164 (1,053) 52% 30,600 29,436 Total Legislative and Regulatory expenses 114,510 61,746 (52,764) 54% 1,310,507 1,248,761 Programs
Compensation 38,464 14,360 (24,104) 37% 461,568 447,208 Contract services 105,000 - (105,000) 0% 1,460,000 1,460,000 Operating expenses 110,167 204,031 93,863 185% 2,707,208 2,503,177 Total Programs expenses 253,631 218,390 (35,241) 86% 4,628,776 4,410,386 Total Operating Expenses 1,877,324 1,122,189 (755,135) 60% 21,903,004 20,780,815

NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 166,834 392,972 226,138 236% 4,150,000 3,757,028 Term Loan Debt Service (80,000) (76,804) 3,196 96% (950,000) (873,196) Additional Term Loan Principal - - - 0% (700,000) (700,000) Line/Letter of Credit Fees - (18,750) (18,750) 0% (750,000) (731,250) Nonoperating revenues (expenses), net 86,834 297,418 210,584 1,750,000 1,452,582 Total Expenses and Non-Operating Activity 29,312,715 25,536,219 (3,776,496) 241,298,004 215,761,785 Contribution to/(from) Reserves 645,864$ (592,982)$ (1,238,847)$ 140,815$ 733,797$

BUDGETARY COMPARISON SCHEDULE
One Month Ended July 31, 2025

PIONEER COMMUNITY ENERGY

CCA PROGRAM

Page 1 of 1 ends

Staff Report – Item 1c
To: The Governing Board
From: Linda Praseudsuk, Sr. Financial Analyst
Item 1c: Receive Fiscal Year 2025-26 Draft Monthly Financial Reports Through August 2025 Date: 10/16/2025

RECOMMENDATION
Receive Fiscal Year 2025-26 Draft Monthly Financial Reports through August 2025.

BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. The mPOWER program accepted its last application August 2021 and mPOWER activity is now limited to administering the outstanding mPOWER Bonds. Financials for the mPOWER program will be included in the audited year-end reports. For August 2025, the financial reporting package includes the following reports for the CCA Fund only:
• Statement of Net Position (Balance Sheet) – Accounting of Assets, Liabilities and Net Position as of the reporting period end date for the CCA program. • Statement of Revenues, Expenses, and Changes in Net Position (P&L) – Accounting of all revenues, expenses, and changes in net position on a YTD basis through the reporting period end date for the CCA program.
• Budgetary Comparison Schedule (Budget to Actuals) – Comparison of budget to actuals on a YTD basis through the reporting period end date for the CCA program.

STRATEGIC PLAN
Strategic Priority: Be Fiscally Strong and Resilient

FISCAL IMPACT
The YTD change in net position through two months of the fiscal year is $(1.2) million.

ATTACHMENTS

1. Financial Reports through August 31, 2025
Plf)NEER

COMMUNITY ENERGY
1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Fund of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of Augst 31, 2025, and the related statement of revenues, expenses, and changes in net position for the two months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

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

Maher Accountancy
San Rafael, CA
October 3, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
CCA Program
ASSETS
Current assets
Cash and cash equivalents 40,196,155$
Investments 128,731,575
Accounts receivable, net of allowance 26,355,065
Accrued revenue 14,688,764
Other receivables 1,597,846
Interest receivable 540,000
Prepaid expenses 2,486,249
Deposits 1,779,132
Total current assets 216,374,786
Noncurrent assets
Capital assets, net of depreciation and amortization 1,067,682 Deposits 793,775
Total noncurrent assets 1,861,457
Total assets 218,236,243

LIABILITIES
Current liabilities
Accrued cost of electricity 31,956,758
Accounts payable 597,990
Other accrued liabilities 543,171
Lease liability 126,979
Note payable 882,649
Interest payable 4,769
Deposits 282,000
Total current liabilities 34,394,316
Noncurrent liabilities
Lease liability 746,369
Note payable 555,841
Supplier security deposits 600,000
Total noncurrent liabilities 1,902,210
Total liabilities 36,296,526

NET POSITION
Net investment in capital assets 194,334
Unrestricted net position 181,745,383
Total net position 181,939,717$

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of August 31, 2025

CCA PROGRAM
See accountants' compilation report. 2
CCA Program

OPERATING REVENUES
Electricity sales, net 50,514,909$
Total operating revenues 50,514,909

OPERATING EXPENSES
Cost of electricity 50,498,119
Contract services 1,041,128
Staff compensation 819,592
Other operating expenses 400,155
Depreciation and amortization 31,449
Total operating expenses 52,790,443
Operating income (loss) (2,275,534)

NONOPERATING REVENUES (EXPENSES)
Investment income 1,131,342
Interest and financing expense (15,479)
Nonoperating revenues (expenses), net 1,115,863

NET POSITION
Change in net position (1,159,671)
Net position at beginning of period 183,099,388
Net position at end of period 181,939,717$
Two Months Ended August 31, 2025

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CCA PROGRAM

PIONEER COMMUNITY ENERGY
See accountants' compilation report. 3
Participation Rates – August 2025
Participation Rate August 2025 August 2024 AUBURN INC 85.51% 85.14% COLFAX INC 88.14% 87.84% GRASS VALLEY INC 96.39% 97.18% LINCOLN INC 82.82% 82.53% LOOMIS INC 87.08% 87.10% NEVADA CITY INC 97.75% 97.96% PLACERVILLE INC 85.66% 85.16% ROCKLIN INC 90.21% 90.25% UNINC EL DORADO CO 79.80% 79.62% UNINC PLACER CO 84.76% 84.54% Grand Total 84.33% 84.19%

COMMUNITY ENERGY
Total Pioneer Customers(# of Accounts)
200,000
180,000 110,n1 175,489
160,000 140,000 120,000 100,000
80,000
60,000
40,000
20,000
0 August2024 August 2025
1 ACCOUNTANTS’ COMPILATION REPORT

Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule for the CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the two months ended August 31, 2025, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

Maher Accountancy
San Rafael, CA
October 3, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
2025/26 YTD
Budget
2025/26 YTD
Actual
2025/26 YTD
Variance
(Under) Over
2025/26
YTD
Actual/
Budget % 2025/26 Budget
2025/26 Budget
Remaining

ENERGY REVENUES
Energy Sales $ 56,973,290 $ 51,193,285 $ (5,780,005) 90% $ 234,389,000 $ 183,195,715 Green100 Sales 36,167 12,905 (23,261) 36% 217,000 204,095 Congestion Revenue Rights and Battery Optimization 1,319,873 1,044,776 (275,098) 79% 10,000,000 8,955,224 Less Uncollectible Accounts (769,628) (691,284) 78,344 90% (3,167,181) (2,475,897) Total Operating Revenues 57,559,702 51,559,682 (6,000,021) 241,438,819 189,879,137

ENERGY EXPENSES
Power Supply 55,412,494 51,542,894 (3,869,600) 93% 221,145,000 169,602,106 OPERATING MARGIN 2,147,208 16,787 (2,130,421) 20,293,819 20,277,032

OPERATING EXPENSES
Administration
Compensation 167,033 135,731 (31,302) 81% 1,002,200 866,469 Contract services 53,133 9,307 (43,826) 18% 492,800 483,493 Operating expenses 193,058 125,492 (67,566) 65% 971,750 846,258 Total Administration expenses 413,225 270,531 (142,694) 65% 2,466,750 2,196,219 Finance
Compensation 198,458 163,222 (35,235) 82% 1,190,745 1,027,523 Contract services 94,800 44,971 (49,829) 47% 641,550 596,579 Operating expenses 37,963 48,932 10,970 129% 357,675 308,743 Total Finance expenses 331,220 257,126 (74,094) 78% 2,189,970 1,932,844 Power Procurement
Compensation 208,266 182,775 (25,490) 88% 1,249,593 1,066,818 Contract services 496,267 195,732 (300,534) 39% 3,349,187 3,153,455 Operating expenses 361,917 37,604 (324,313) 10% 447,500 409,896 Total Power Procurement expenses 1,066,449 416,112 (650,337) 39% 5,046,280 4,630,168 Customer Care
Compensation 134,445 97,361 (37,084) 72% 806,672 709,311 Contract services 478,333 493,026 14,692 103% 2,870,000 2,376,974 Operating expenses 43,508 83,262 39,754 191% 129,050 45,788 Total Customer Care expenses 656,287 673,649 17,362 103% 3,805,722 3,132,073 Marketing & Communications
Compensation 158,767 99,507 (59,259) 63% 952,599 853,092 Contract services 83,333 25,500 (57,833) 31% 500,000 474,500 Operating expenses 163,733 99,417 (64,316) 61% 1,002,400 902,983 Total Marketing & Communications expenses 405,833 224,425 (181,408) 55% 2,454,999 2,230,574 Legislative & Regulatory
Compensation 157,017 107,524 (49,493) 68% 942,100 834,576 Contract services 59,118 38,820 (20,298) 66% 337,807 298,987 Operating expenses 4,433 1,176 (3,258) 27% 30,600 29,424 Total Legislative and Regulatory expenses 220,568 147,519 (73,049) 67% 1,310,507 1,162,988 Programs
Compensation 76,928 33,472 (43,456) 44% 461,568 428,096 Contract services 210,000 - (210,000) 0% 1,460,000 1,460,000 Operating expenses 220,335 233,924 13,590 106% 2,707,208 2,473,284 Total Programs expenses 507,263 267,396 (239,866) 53% 4,628,776 4,361,380 Total Operating Expenses 3,600,845 2,256,757 (1,344,088) 63% 21,903,004 19,646,247 OPERATING INCOME (LOSS) (1,453,637) (2,239,970) (786,333) (1,609,185) 630,785

NON-OPERATING REVENUES (EXPENDITURES)
Investment gains (losses) 333,668 1,131,342 797,674 339% 4,150,000 3,018,658 Term Loan Debt Service (160,000) (153,446) 6,554 96% (950,000) (796,554) Additional Term Loan Principal - - - 0% (700,000) (700,000) Line/Letter of Credit Fees - (37,500) (37,500) 0% (750,000) (712,500) Nonoperating revenues (expenditures), net 173,668 940,396 766,728 1,750,000 809,604 Contribution to/(from) Reserves (1,279,969)$ (1,299,574)$ (19,605)$ 140,815$ 1,440,389$

BUDGETARY COMPARISON SCHEDULE
Two Months Ended August 31, 2025

PIONEER COMMUNITY ENERGY

CCA PROGRAM

Page 1 of 2 ends

Staff Report – Item 1d
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 1d: Adopt Resolution to Approve a 3% Cost-of-Living Increase and Salary Schedule Adjustments, Approve Employer Contributions Increase to Employee Retirement accounts, and Approve an Adjusted Salary Schedule reflective of the Triennial Compensation Study Recommendations
Date: 10/16/2025

RECOMMENDATION
Staff recommends the Board Adopt Resolution to Approve a 3% Cost-of-Living Increase and Salary Schedule Adjustments, Approve an Employer Contributions Increase to Employee Retirement accounts, and Approve an Adjusted Salary Schedule reflective of the Triennial Compensation Study Recommendations.

BACKGROUND
Pioneer employees are not represented by a union or an employee association but instead are unrepresented and historically the Board considered cost of living adjustments and benefit modifications annually.

One of the strategic goals of Pioneer’s approved Strategic Plan is for Pioneer to be a Great Place to Work with the objective of Employer of Choice. Two tasks are assigned to that objective: 1) have a committee of Board members review Cost-of-Living-Adjustments (COLA) evaluate benefit enhancements and 2) conduct a triennial compensation study that targets positions to be at a 75th percentile. The review of employee health and benefit package supports the strategic goal by positioning Pioneer to attract qualified candidates, retain Pioneer’s high performing workforce and salary and benefit adjustments helps Pioneer avoid falling behind in the job market that could require sweeping changes in the future.

COLA and Benefits: The Governance Committee reviewed and provided input for a 3% COLA and salary schedule increase and to enhance Pioneer’s contribution to employee retirement accounts. The Board at the September 2025 closed session meeting received the Governance Committee’s recommendation and reviewed and provided feedback regarding the modifications. The salary and benefit feedback and recommendations are presented today for Board approval.

Triennial Compensation Study: The Compensation Study (Study) collects salary and benefit information from comparable entities and provides recommendations for salary range adjustments to reflect current employment market conditions. The prior Study was compiled in 2022 and the Study completed in 2025 fulfills the three-year cycle. The Governance Committee met April 2025 with Bryce Consulting (researched and prepared the Study) and modified and approved the entities to be used for the Study. The Governance Committee met in September to review the results and recommendations of the Study. The Governance Committee provided their recommendations to the full Board at the September closed session meeting and the Committee and Board’s recommendations and feedback are presented today for Board approval.

ANALYSIS & DISCUSSION
Salary Schedule: Pioneer’s salary schedule is structured as a salary range rather than a salary step system.

This means that even when the salary schedule is adjusted upward an employee will only advance in the range contingent on the employee receiving a satisfactory annual evaluation. A survey of Pioneer’s member agencies found that cost of living adjustments ranged from 1.8% to 5% and that the Consumer Price Index (Feb 24 -Feb Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1d Agenda Date: 10/16/2025

Page 2 of 2 ends

25) was 2.7%. The recommended increase of 3% to the salary schedule has been included in the revised salary schedule.

Cost-of-Living Adjustment: A 3% Cost of Living increase for all employees is also recommended and would be effective October 20, 2025 (FY 25-26 cost is $91,000). This change does not adjust the Salary Schedule adjustment discussed in the prior paragraph.

Retirement Benefits Enhancement: Unlike many California governments, Pioneer does not offer a defined retirement benefit plan, such as CalPERS or SCERS. However, Pioneer does provide a 401a compensation plan that has two components, a ‘fixed amount’ and a percentage of salary contribution. The current ‘fixed amount’ contribution for non-management (non-exempt) staff is $14,570 or 62% of the IRS contribution limits for a 457b plan. The recommendation is to increase that contribution to 75% (FY 25-26 cost is $17,000) for non-management.

In addition to this ‘fixed amount’ contribution, Pioneer also provides a contribution based on a percentage of salary, currently 4%. This retirement benefit enhancement would increase the percentage by 1%, going from 4% to 5% of salary. The increased contribution would be a FY 25-26 cost of $21,000.

The effective date for both retirement enhancements would be January 2025.

Triennial Compensation Study: Bryce Consulting (human resource consulting firm) collected and analyzed base salary and benefit data that included the above recommended changes and analyzed that data to 10 approved comparable entities. The surveyed classes included both filled, vacant, and potential future job classifications.

Pioneer has 22 currently filled positions, with 11 receiving a recommendation of no change to the salary range and 11 employees below market and the Study recommends an adjusted salary range increase. An adjusted salary range does not modify an employee’s salary, but rather an employee will only advance in the range contingent on the employee receiving future satisfactory annual evaluations. Positions that are considered at or above market and are currently occupied, no downward adjustment is recommended but the employee’s maximum is capped until the next Study, but cost of living adjustments would still apply. The recommended cost-of-living adjustment of 3% and the retirement enhancements were assumed in the Compensation Study, and the 3% adjustment is also incorporated in the recommended salary schedule. For positions that are not occupied, a downward salary adjustment is applied to that position’s salary range.

Summary: The overall goal of these changes is to maintain Pioneer’s competitiveness to recruit and attract qualified job candidates and retain high performing employees. With the recommended cost of living adjustment and retirement enhancement, labor costs will account for approximately 2.8% of the overall expense budget.

STRATEGIC PLAN
The recommended salary schedule and benefit changes support the 2025-2027 Strategic Plan which is to be a Great Place to Work.

FISCAL IMPACT
The Fiscal Year 2025-26 cost of providing the cost-of-living adjustment and retirement benefit enhancements is estimated to be $129,000 or 2% as a percentage of payroll. Overall staff compensations costs are approximately

2.8% of the overall budget and the anticipated costs were included in the budget. Since the changes have only a partial fiscal year impact because of the October and January effective dates, the estimated full year impact for FY 26-27 is $216,000.

ATTACHMENTS

1. Resolution to Approve a 3% Cost-of-Living Increase and Salary Schedule Adjustments, Approve an Employer Contributions Increase to Employee Retirement accounts, and Approve an Adjusted Salary Schedule reflective of the Triennial Compensation Study Recommendations 417919.1
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 October 16, 2025, by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, the Governing Board of Pioneer Community Energy (“Pioneer”) adopted the 2025- 2027 Strategic Plan with a Strategic Goal for Pioneer to Be a Great Place to Work and an Objective to be an Employer of Choice; and
WHEREAS, the Governance Committee, consisting of Pioneer Board members, reviewed and provided input on employee cost of living adjustments, retirement benefit enhancements, and the Compensation Study; and
WHEREAS, the Governing Board reviewed and provided input on employee cost of living adjustments, retirement benefit enhancements, and the Compensation Study; and WHEREAS, employees only move up on the salary schedule with a satisfactory annual evaluation unless the Board directs a future Cost-of-Living Adjustment; and In the matter of: ADOPT RESOLUTION TO
APPROVE A 3% COST-OF-LIVING INCREASE AND

SALARY SCHEDULE ADJUSTMENTS, APPROVE

AN INCREASE TO EMPLOYER CONTRIBUTIONS

TO EMPLOYEE RETIREMENT ACCOUNTS, AND

APPROVE AN ADJUSTED SALARY SCHEDULE

REFLECTIVE OF THE TRIENNIAL COMPENSATION
STUDY RECOMMENDATIONS.

Resolution 2025- ___
October 16, 2025
2 417919.1
WHEREAS, the United States Bureau of Labor Statistics consumer price index for all items in San Francisco-Oakland-Hayward for the period of February 2024 to February 2025 is 2.7%; and WHEREAS, Pioneer’s member agencies have provided Cost-of-Living salary adjustments in a range of 1.8% to 5%; and
WHEREAS, the Governance Committees recommends a 3% Cost-of-Living increase to the minimum and maximum range in the salary schedule; and
WHEREAS, the Governance Committee recommends a Cost-of-Living salary adjustment that will directly increase employee current salaries by 3%; and WHEREAS, the Governance Committee recommends that the ‘percentage amount’ employer contribution increase from 4% to a 5% to each employee’s 401a retirement account as a retirement benefit enhancement; and
WHEREAS, the Governance Committee also recommends that the ‘fixed amount’ employer contribution for non-management (non-exempt) employees be increased from 62% to 75% of the IRS contribution limit for a 457b plan; and
WHEREAS, the 2025-2027 Strategic Plan directed a triennial Compensation Study (“Study”) and to target compensation for all Pioneer positions to be at the 75th percentile of comparable agencies; and
WHEREAS, the Study was completed by Bryce Consulting, a human resources consulting firm that specializes in classification and compensation analysis and that provided findings and recommendations; and
WHEREAS, the Study analyzed salary and benefit data of 10 approved comparable entities of filled, vacant and potential future job classifications; and WHEREAS, the Study included in its analysis the 3% cost of living adjustment and the retirement enhancements and incorporated that adjustment in the recommended salary schedule; and
WHEREAS, the Study recommended no downward salary range adjustment for positions that are considered at or above market and are currently occupied; and WHEREAS, the Study recommended downward adjustments to salary ranges for positions that are not occupied but are above market; and
WHEREAS, the Study recommended upward adjustments to salary ranges for positions that are below market.

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. Approve the Compensation Study recommended salary range adjustments that include 3% salary schedule adjustment for filled positions effective October 20th, 2025, as presented in Attachment A.

Resolution 2025- ___
October 16, 2025
3 417919.1

3. All non-contract employees (i.e., all employees other than the Chief Executive Officer) will receive a Cost-of-Living Salary adjustment of 3% of their salary effective October 20, 2025, the beginning of a pay period.

4. Beginning the first pay date in January 2026, the employer contribution ‘fixed contribution’ for non-management employees to a defined retirement plan shall be 75% of the IRS contribution limits for a 457b plan (excluding any IRS approved catch up provisions).

5. Approve a retirement benefit enhancement for all employees by providing an employer contribution of 5% of employees’ base salary (excludes stipends such as auto allowances, health in lieu etc.) paid bi-weekly to each employee’s 401a retirement account, effective with the first pay date in January 2026.

Exhibit A: Salary Schedule
Class/Position Title Minimum Maximum Minimum Maximum
Administrative Assistant ^ $54,741 $81,838 $51,090 $76,380 Account Representative I ^ $83,277 $124,500 $78,637 $117,564 Account Representative II ^ $91,605 $136,949 $86,505 $129,324 Board Clerk/Executive Assistant * $79,900 $119,450 $82,297 $123,034 Chief Executive Officer + $253,673 $379,239 $319,972 $478,356 Chief Operating Officer + $217,916 $325,785 $274,218 $409,956 Commercial Coordinator ^ $94,492 $141,263 $73,470 $109,836 Communications Coordinator * $76,832 $114,863 $79,137 $118,309 Community Outreach Manager * $128,166 $191,606 $132,011 $197,354 Community Outreach Specialist & $107,061 $160,056
Customer Care Coordinator * $94,492 $141,263 $97,326 $145,501 Customer Care Manager + $115,800 $173,120 $123,532 $184,680 Customer Care Specialist & $104,621 $156,408
Director of Communications + $175,034 $261,663 $205,671 $307,464 Director of Finance and Administration + $175,034 $261,663 $228,524 $341,628 Financial and Administrative Analyst I * $76,832 $114,863 $79,137 $118,309 Financial and Administrative Analyst II * $84,515 $126,349 $87,050 $130,139 Financial and Administrative Manager & $132,715 $198,408 Information Technology Administrator ^ $122,890 $183,721 $100,053 $149,580 Information Technology Analyst I + $76,832 $114,863 $88,311 $132,024 Internal Operations Coordinator ^ $108,666 $162,453 $93,850 $140,304 Key Accounts Manager + $115,800 $173,120 $126,028 $188,412 Legislative and Regulatory Analyst I * $97,146 $145,235 $100,060 $149,592 Legislative and Regulatory Analyst II * $106,861 $159,758 $110,067 $164,551 Legislative and Regulatory Manager + $128,165 $191,606 $132,683 $198,360 Management Analyst ^ $97,146 $145,235 $85,315 $127,548
Manager, Quantitative Analysis and Modeling + $122,890 $183,721 $138,421 $206,940 Power Resources Manager + $122,890 $183,721 $141,270 $211,200 Power Resources Analyst I + $96,579 $144,385 $101,772 $152,148 Power Resources Analyst II & $117,039 $174,972
Power Supply Contract Manager + $122,890 $183,721 $135,612 $202,740 Program Manager + $108,666 $162,453 $128,679 $192,372
Program Specialist I ^ $98,786 $147,686 $90,878 $135,864 Project Development Manager * $122,890 $183,721 $126,577 $189,233 Residential Coordinator ^ $94,492 $141,263 $83,335 $124,584 Senior Commercial Coordinator ^ $108,666 $162,453 $84,491 $126,312 Senior Financial Analyst * $107,378 $160,524 $110,599 $165,340 Senior Information Technology Analyst & $111,709 $167,004 Senior Manager, Quantitative Analysis and Modeling + $135,179 $202,093 $152,267 $227,640 Senior Manager, Power Resources & $155,399 $232,320
Senior Residential Coordinator ^ $108,666 $162,453 $95,833 $143,268 * 3% Cost of Living Adjustment only-No recommended Compensation Study adjustment + Positions set to Market - Compensation Study recommendation ^ Positions adjusted downward - Compensation Study recommendation-all are vacant positions & Potential future position set to Market - Compensation Study recommendation Attachment A

SALARY SCHEDULE
Compensation Study Recommendations
July 2024 Board Approved October 16, 2025 (Effective October 20, 2025

Page 1 of 2 ends

Staff Report – Item 1e
To: The Governing Board
From: Eric Ponce, Information Technology Analyst
Item 1e: Adopt a Resolution Approving Four Information Technology Policies and Procedures Date: 10/16/2025

RECOMMENDATION
Adopt a resolution approving four (4) Information Technology (IT) Policies and Procedures.

BACKGROUND
Pioneer Community Energy (Pioneer) increasingly depends on information systems to support day-to-day operations and strategic objectives. These systems enhance Pioneer’s ability to collect and analyze data, communicate effectively with external parties, and deliver responsive customer service. As these tools become more integral to staff workflows and external engagement, it is critical that staff follow established IT protocols to ensure the security and integrity of Pioneer’s digital infrastructure and information resources.

ANALYSIS & DISCUSSION
In March of 2024, Pioneer hired MGT Impact Solutions, LLC to perform an independent assessment of the organization’s cybersecurity maturity, focusing on the IT and security environment for the 2023 calendar year.

The assessment was conducted using the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF, V2.0).

The purpose of the assessment was to help IT staff understand Pioneer’s current cybersecurity maturity level and identify opportunities for improvement. The findings indicated that Pioneer would benefit from updates to existing IT policies and procedures, as well as the development of new ones, to strengthen overall cybersecurity posture and align more closely with best practices outlined in the NIST CSF.

Following the assessment, the results and recommendations were shared with Pioneer’s managed IT service provider, Capital Network Solutions, Inc. (CNS). Pioneer and CNS collaborated to update existing policies and develop a comprehensive set of new IT policies and procedures aimed at improving cybersecurity controls, operational consistency, and compliance with industry standards.

The following four IT Policies and Procedures were prepared:

Password Policy
The purpose of this policy is to protect Information Systems by establishing requirements for password creation, password changes, Multi-Factor Authentication (MFA), and Single Sign-On (SSO) to ensure secure access control.

Vulnerability Management Policy
The purpose of this policy is to define a consistent process for identifying, assessing, and addressing vulnerabilities in Pioneer’s information systems to reduce risk and maintain a strong security posture.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 1e Agenda Date: 10/16/2025

Page 2 of 2 ends

Backup Policy
The purpose of this policy is to define guidelines for backing up and storing electronic data to ensure its integrity, availability, and recoverability in case of data loss or system failure.

IT Risk Management Policy
The purpose of this policy is to establish a proactive approach for identifying, assessing, mitigating, and monitoring IT risks to minimize their impact on Pioneer’s operations and objectives.

STRATEGIC PLAN
This development of IT Policies and Procedures supports the Achieving Operational Optimization goal.

FISCAL IMPACT
There is no fiscal impact with the recommendation.

ATTACHMENTS
1) Resolution Establishing Information Technology Policies and Procedures:
a. Password Policy
b. Vulnerability Management Policy
c. Backup Policy
d. IT Risk Management Policy
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 October 16, 2025, by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, Pioneer Community Energy (“Pioneer”) increasingly relies on Information Technology (IT) systems to support daily operations and strategic initiatives, including customer service, data management, and external communications.

WHEREAS, in March 2024, Pioneer hired MGT Impact Solutions, LLC to conduct an independent cybersecurity assessment using the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF, V2.0) to evaluate Pioneer’s IT and cybersecurity maturity for the calendar year 2023.

WHEREAS, the assessment findings recommended strengthening Pioneer’s cybersecurity posture through updates to existing IT policies and development of new policies and procedures aligned with industry best practices.

WHEREAS, Pioneer and managed IT service provider, Capital Network Solutions, Inc. (“CNS”), collaborated to update and develop a comprehensive set of IT Policies and Procedures designed to improve cybersecurity controls, operational consistency, and compliance with the NIST CSF.

WHEREAS, Pioneer desires to adopt these four IT Policies and Procedures as part of its ongoing commitment to operational optimization, cybersecurity resilience, and best practices.

In the matter of: A RESOLUTION APPROVING

FOUR INFORMATION TECHNOLOGY POLICIES

AND PROCEDURES
Resolution 2025- ___
October 16, 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 adaptation of the four Information Technology Policies and Procedures developed in collaboration with CNS in response to the 2024 cybersecurity assessment.

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

Exhibit A: IT2 - Password Policy
Exhibit B: IT9 - Vulnerability Management Policy
Exhibit C: IT10 - Backup Policy
Exhibit D: IT11 - IT Risk Management Policy
IT2
Category: Information Technology
Page | 1 Proposed: October 16, 2025

PASSWORD POLICY
I. PURPOSE
Identification and authentication access controls play an important role in helping to protect Information Systems. The purpose of this policy is to protect Information Systems by defining requirements for new passwords, changes to passwords, Multi-Factor
Authentication (MFA), and Single Sign-on.

II. Background
Computer accounts are used to grant access to Pioneer’s Information Systems. The process of creating, controlling, and monitoring computer accounts is extremely important to the overall security program.

III. Scope
This policy applies to all Pioneer Staff that have access to the organization’s Information Resources.

IV. POLICY
Pioneer’s IT support shall ensure:
• Policies and procedures manage the process of creating, changing, and safeguarding passwords/phrases and Multi-Factor Authentication. • Policies to prevent staff from sharing passwords/phrases with unauthorized persons.
• Procedures advise staff to commit their passwords/phrases to memory rather than having them written down.
• Policies and procedures govern the password/phrase change frequency.
• Policies and procedures dictate when passwords/phrases must be supplemented with additional access controls.

IT2
Category: Information Technology
Page | 2 Proposed: October 16, 2025
This Policy applies to all Pioneer related authentication activities including, but not limited to, the following:
• Administrative accounts
• User accounts
• Network infrastructure devices (e.g. firewalls, routers, wireless access points, etc.)
• Third party service providers
• Web applications
• Workstations, Laptops, Servers
• Mobile devices
New User Accounts
When granting access for a new user/account:
• System administrators will establish a unique ID and unique password/phrase.
• The user password will be conveyed to the user in a secure manner.
• When the user logs on for the first time, the user will be required to change their initial password/phrase to something that meets the requirements of this policy.

Selecting Passwords/Phrases
When selecting a new password/phase, system administrators and users should select passwords/phrases that are long, strong, and complex. Where possible, Staff shall choose passwords/phrases that meet the following requirements:
• Contain both upper- and lower-case characters (e.g., a-z, A-Z). • Include both numbers (0-9) and special characters (e.g. @, #, $, *).
• Have a minimum of at least 12 characters and preferably 16 characters long.
• Where possible, use different passwords/phrases for general office activities (e.g. e-mail, file access) vs. systems that store sensitive or confidential data.

IT2
Category: Information Technology
Page | 3 Proposed: October 16, 2025
Staff should not choose passwords/phrases that:
• Include single common words (e.g., “password”, “secure”) • Common or predictable phrases
• Are the same as passwords/phrases used on Staff personal accounts (e.g. personal e-mail, on-line banking, or social media).
• Contain personal information such as a spouse or pet’s name, social security number, driver's license number, street address, phone number, etc.
• Contain sequences or repeated characters. For example, 1234, 3333, etc.

Staff with special system privileges, assigned by a transaction, program, process, or group membership, should select a unique password/phrase from other accounts held by that individual.

Password/Phrase Guidelines
Staff shall follow security guidelines to ensure passwords/phrases are not compromised. Security training and awareness programs shall ensure Staff is:
• Educated on security related risks.
• Reminded of security requirements when selecting and
protecting passwords/phrases.
• Reminded to be careful when using social media so the password/phrase are not compromised.

Passwords/phrases should be kept secure. To help with that:
• Avoid sharing with any unauthorized persons.
• Try not to store/write down in plaintext.
• Avoid transmitting in clear (unencrypted) text.
• Avoid inserting into unencrypted e-mail messages or other forms of electronic communications.

IT2
Category: Information Technology
Page | 4 Proposed: October 16, 2025
Passwords shall only be stored in a manner approved by Pioneer’s IT support:
• Service Accounts and Shared Administrative accounts shall be recorded in the organization’s information management
system
• Corporate, personal logins (email, etc.) shall be stored in the organization’s private Password Manager software when
implemented.

If a Staff member believes that their password/phrase has been compromised or made available to others, the Staff member must immediately change their password and reach out to IT support.

If Pioneer staff demands a password to be shared, refer them to this policy or have them contact IT support.

It’s good practice to update passwords/phrases regularly. As a general guideline:
• Try to change user passwords or phrases at least every 90 days, unless the application or service you’re using
recommends a different schedule.

When selecting a new password/phrase, Staff should not repeat any of their prior passwords/phrases.

Software Applications
IT support should ensure programs contain the following security precautions:
• Applications should require each user to have their own unique ID (e.g. not shared, no user groups) unless there’s a clear operational need or it’s more practical to use a shared account for specific use cases.
• Passwords/phrases and Sensitive Information must be
protected using strong encryption.
• Passwords/phrases and Sensitive Information must not be transmitted or stored in clear text.

IT2
Category: Information Technology
Page | 5 Proposed: October 16, 2025
• Ensure applications timeout and require the user to enter a password/phrase after a period of inactivity.
• Where possible, single sign-on (SSO) should be configured to the organization’s IdP to ensure all data access is secure and managed.

V. ENFORCEMENT
Any staff member found to have violated this policy may be subject to disciplinary action, up to and including termination.

VI. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.

VII. Policy Revisions
The Chief Executive Officer is authorized to make minor modifications, clarifications, or administrative updates to this policy, provided that such changes do not alter the policy’s intent, scope, or underlying principles.

VIII. HISTORY
Version Date Description Approved By
2021.1 7/15/2021 Initial policy release
2025.1 10/16/2025 Policy Update
IT9
Category: Information Technology
Page | 1 Proposed: October 16, 2025

VULNERABILITY MANAGEMENT POLICY
I. PURPOSE
The purpose of this policy is to establish a structured approach for identifying and addressing vulnerabilities in the computer systems and applications used by Pioneer Community Energy. When vulnerabilities are identified, Pioneer’s IT support shall mitigate or implement compensating controls for the vulnerabilities in a timely manner.

Risk Assessments analyze an organization’s systems, networks, security and organizational procedures to identify potential risks to an organization. This document details the frequency and reason for Pioneer to perform internal Risk Assessments.

II. Background
Vulnerability scanning helps Pioneer secure itself against known vulnerabilities in its systems and equipment. Scanning shall be done on a frequent and reoccurring basis to maintain a strong security posture.

III. Scope
This policy applies to all Pioneer Staff that have access to the organization’s Information Resources.

IV. POLICY
Vulnerability Scanning Schedule
Pioneer shall perform Vulnerability Scanning against all of its information systems on a frequent and reoccurring basis. All systems that store any organization information shall be scanned.

This includes:
• Internal Networks
• External Networks
• Cloud Hosted Systems
IT9
Category: Information Technology
Page | 2 Proposed: October 16, 2025
Pioneer should perform vulnerability scanning on an annual basis or any time a major change is made to its systems, network, or Line of Business (LoB) software. Major changes are defined as:
• Deployment of new equipment
• After the upgrade/downgrade of equipment
• Deployment of new LoB software
• After the upgrade of LoB software
• Upon the setup of new networks/offices
• Major configuration changes
Remediating Vulnerabilities
Pioneer’s IT support is responsible for mitigating any issues detected by the vulnerability scans. Where possible any updates or configuration changes that can be made to resolve a detected vulnerability should be made.

In the case that the vendor of a system has not yet released a fix for a known vulnerability, it is up to Pioneer’s IT support to implement compensating controls to reduce the risk posed by the vulnerability.

Remediation of issues shall be performed in a timely manner after the detection of vulnerabilities. Detected vulnerabilities will have the following classifications which are based on their NIST CVSS 3.0 scores.
• Critical – CVSS 9.0 - 10.0
• High – CVSS 7.0 – 8.9
• Medium – CVSS 4.0 – 6.9
• Low – CVSS 0.1 – 3.9
Vulnerabilities classified as Critical or High are serious threats and are to be resolved as quickly as possible either by implementing a fix for the vulnerability or by implementing a compensating control.

IT9
Category: Information Technology
Page | 3 Proposed: October 16, 2025
Pioneer’s Director of Finance and Administration and/or Chief Executive Officer shall be made aware of any High or Critical vulnerabilities that are detected and kept up to date with remediation steps. If there are delays in the remediation of a vulnerability, Pioneer’s Director of Finance and Administration and/or Chief Executive Officer shall be informed to ensure the issue is handled appropriately.

V. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.

VI. Policy Revisions
The Chief Executive Officer is authorized to make minor modifications, clarifications, or administrative updates to this policy, provided that such changes do not alter the policy’s intent, scope, or underlying principles.

VII. HISTORY
Version Date Description Approved By
2025.1 10/16/2025 Initial policy release
IT10
Category: Information Technology
Page | 1 Proposed: October 16, 2025
Backup Policy
I. PURPOSE
The purpose of this policy is to establish guidelines for backing up and storing Pioneer’s electronic information to ensure data integrity, availability, and recoverability.

II. BACKGROUND
Electronic backups are required to enable the recovery of data and applications in the case of natural disasters, system disk drive failures, espionage, data entry errors, viruses, or system operations errors.

III. SCOPE
This policy applies to all Staff that are responsible for the installation and support of IT, individuals charged with IT Security, and data owners.

IV. POLICY
Backups are used to provide corrective action against various types of threats including:
• Human error - accidental deletion of files
• Malicious software – viruses delete or corrupt systems and data • Intentional actions – a hacker deletes files
• Hardware failure – a hard drive fails, and files must be restored • Application processing errors – database(s) must be restored • Facility issues – a fire, water damage, or electrical surge damages equipment
Backups are an essential component of ensuring the availability and continuity of Pioneer’s Information Systems and are critical to supporting business operations. IT support, in collaboration with the Director of Finance and Administration, determines the risks related to Information Systems and will evaluate the following areas IT10
Category: Information Technology
Page | 2 Proposed: October 16, 2025
to determine the appropriate recovery time objectives (how much downtime is acceptable), recovery point objectives (how much data loss is acceptable), and costs:
• Data backup and replication - systems are backed up and data is replicated to an off-site storage facility. Manual processes are needed to continue business operations.
• Transaction integrity - software applications are used to ensure transactions are fully complete with integrity. This ensures consistency of data between production and recovery systems.
• Data Security – All backup data is encrypted in transit and at rest.

The frequency and extent of backups is in accordance with the importance of the information and the acceptable risk of the organization. Pioneer utilizes two different forms of backup, based upon the type of media. Data will be retained in accordance with Pioneer’s Records Retention Policy, which governs the duration of stored information to ensure compliance with legal, regulatory, and operational requirements.

1. Cloud Platform Virtual Machine Backups
a. Targets: Virtual Machines
b. Frequency: 4x per day
c. Retention:
i. Daily Backups for 30 days

2. Cloud Platform Storage Files
a. Targets: Files
b. Frequency: 1x per day

3. Cloud-to-Cloud Backups
a. Targets:
i. Microsoft 365 SharePoint
ii. Microsoft 365 Exchange Mailboxes
iii. Microsoft 365 OneDrive
b. Frequency: 3x per day
IT10
Category: Information Technology
Page | 3 Proposed: October 16, 2025
The backup and recovery process for each system is documented and periodically reviewed.

Physical access controls implemented at off-site backup storage and recovery locations meet or exceed the physical access controls of the source systems. Backups are protected in accordance with the highest sensitivity level of information stored.

All backups are electronically validated.

Backups shall be tested by IT support at least annually to simulate recovery procedures and ensure they are recoverable.

Procedures between Pioneer and the off-site backup storage and disaster recovery vendor(s) are reviewed at least annually.

Backups must have at a minimum the following identifying criteria that can be readily identified:
• System name
• Creation date
• Classification
Pioneer’s 3rd party hosted services should, where possible, be backed up to a different 3rd party solution for maximum recoverability.

All accounts with access to the backup systems shall be protected with multi-factor authentication (MFA). All backup accounts shall be audited by IT support on at least an annual basis to ensure any stale accounts access is revoked.

V. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.

IT10
Category: Information Technology
Page | 4 Proposed: October 16, 2025
VI. Policy Revisions
The Chief Executive Officer is authorized to make minor modifications, clarifications, or administrative updates to this policy, provided that such changes do not alter the policy’s intent, scope, or underlying principles.

VII. HISTORY
Version Date Description Approved By
2025.1 10/16/2025 Initial policy release
IT11
Category: Information Technology
Page | 1 Proposed: October 16, 2025

IT RISK MANAGEMENT POLICY
I. PURPOSE
The purpose of this policy is to outline the principles and responsibilities for managing IT risks within Pioneer Community Energy. This policy aims to promote a proactive approach to identifying, assessing, mitigating, and monitoring risks to minimize their impact on the organization’s objectives and operations.

II. Background
IT Risk Management helps Pioneer in the process of identifying, prioritizing, and mitigating risks that could negatively affect the organization. Modern day organizations face many different types of risk. Having documented IT Risk Management policies and procedures will help in the identification and remediation of risks.

III. Scope
This policy applies to all Pioneer Staff that have access to the organization’s Information Resources.

IV. POLICY
Risk Management Process
Pioneer shall perform IT Risk Management procedures for all organization departments and data resources. The goal of the organization Risk Management program is to identify, assess, mitigate, and monitor current and future risks to the organization.

The IT Risk Management Process:
• Identification – Identify and document potential risks that may impact the organization’s objectives.
• Assessment – Evaluate the likelihood and potential impact of identified risks.
• Mitigation – Develop and implement strategies to mitigate or eliminate identified risks.

IT11
Category: Information Technology
Page | 2 Proposed: October 16, 2025
• Monitoring – Continuously monitor and review identified risks and mitigation measures.
• Reporting – Regularly report on the status of risks,
mitigation efforts, and any emerging threats.

Identification
When a potential risk has been identified by an employee, Pioneer IT support is to be notified and provided with all available information. Risks can stem from many different sources such as internal processes, external factors, strategic decisions, or regulatory changes. Refer to Pioneer’s Vulnerability Management Policy for additional information.

Assessment
Once the risk has been identified and IT support notified, the potential risk needs to be assessed to understand and evaluate its validity, scope, and any potential impacts to the organization.

Qualitative and Quantitative methods may be used to assess risks allowing for a better understanding of their severity and priority.

Mitigation
After the assessment of the risk, the next step is to develop and implement strategies to mitigate or transfer the risk. Risk mitigation strategies aim to minimize the likelihood of impacts of risks, thereby reducing their potential negative consequences.

Monitoring
Risk management is an ongoing process that requires continuous monitoring and review. The organizations departments should regularly track the effectiveness of implemented risk mitigation measures as well as identify any new, emerging risks or changes in the risk landscape. Monitoring allows for timely adjustments to risk management strategies and ensures that risks remain within acceptable tolerances.

IT11
Category: Information Technology
Page | 3 Proposed: October 16, 2025
Reporting
Effective communication is essential for ensuring that the Chief Executive Officer is informed about significant risks and mitigation efforts.

Roles and Responsibilities
The roles below are responsible for managing and maintaining the Company’s Risk Management plan.
• CEO and Director of Finance and Administration –
Provide oversight and strategic direction for the organization’s IT risk management activities.
• IT support- Identify, assess, and manage specifics risks within their areas of responsibility.
• All Employees - Actively participate in risk identification, assessment, and mitigation efforts within their respective roles.

Risk Assessment Schedule
Pioneer shall perform a Risk Assessment to review its IT and organizational status on a frequent and reoccurring basis. Risk Assessments should be performed annually or when a major change is made to one of the following organizational systems. • Changes in Legislation related to data protection,
cybersecurity, or IT operations
• Significant Changes in Organization IT security
procedures/solutions
• Incidents or Near-Misses Occur
New vulnerabilities are discovered every day. It is important for Pioneer to continually evaluate its IT risk levels and act upon them.

The organization’s IT support monitors changes to the attack landscape and will evaluate the need to perform a new Risk Assessment should a major change be detected.

IT11
Category: Information Technology
Page | 4 Proposed: October 16, 2025
V. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.

VII. HISTORY
Version Date Description Approved By
2025.1 10/16/2025 Initial policy release

Page 1 of 3 ends

Staff Report – Item 2
To: The Governing Board
From: Lee Ewing, Legislative and Regulatory Affairs Manager Item 2: Overview of Assembly Bill 825 - the Regional Electricity Market Bill Date: 10/16/2025

RECOMMENDATION
Receive an overview of Assembly Bill (AB) 825 or the Regional Electricity Market Bill,1 which authorizes a West-wide regional electricity market aiming to reduce wholesale electricity prices and enhance grid reliability.

BACKGROUND
WHAT IS AB 825?
The California Independent System Operator (CAISO) manages the flow of electricity across high-voltage, long-distance power lines, which includes operating a competitive wholesale energy market and overseeing transmission planning. Unlike similar market operators across the country,2 CAISO focuses on serving the load of almost exclusively one state – California. CAISO is generally governed by California policymakers, with Board members appointed by the Governor of California and confirmed by its Senate. Although CAISO has several market structures that are available in other states, including the Western Energy Imbalance Market and the Extended Day Ahead Market, California’s exclusive oversight over the CAISO market can be off-putting to other states with different policy priorities, limiting interest in those market structures.

The Regional Electricity Market Bill authorizes CAISO and participating utilities to join an “independent regional organization” (RO) that would administer a West-wide electricity market. By removing California oversight, the goal is to increase both the market footprint and number of participants. However, under the Regional Electricity Market Bill, the California Public Utilities Commission (CPUC) maintains the authority to direct California utilities to withdraw from the RO market and requires CAISO to provide a market for utilities not participating in the wider Western market.

ANALYSIS & DISCUSSION

BENEFITS OF A BROADER WEST-WIDE ELECTRICITY MARKET
A larger electricity market spread throughout the West region carries interrelated benefits for both affordability and reliability. In one sense, an aspect of the affordability benefits is a product of basic economics – increasing the supply of energy with access to the California market will drive down prices. However, the real affordability potential of an expanded market is more nuanced and driven by the unique characteristics of the energy commodity and the energy consumer.

On the supply side, the grid is becoming increasingly dominated by variable, weather-dependent resources. A grid with a significant penetration of solar resources, for example, will have a glut of energy supply when the 1 AB 825 is also commonly referred to as the Pathways Initiative, but that name only has meaning for those familiar with the history of the western regionalization effort. Therefore, to be more intuitively descriptive, we refer to AB 825 as the Regional Electricity Market Bill. 2 Other multi-state market operators include ISO New England Inc., PJM Interconnection, Midcontinent Independent System Operator, Inc., and Southwest Power Pool. The Electric Reliability Council of Texas (ERCOT) is unique among market operators in the United States in that it operates a market that is generally not interconnected to other states, a fact that is partially blamed for recent mass power disruptions in Texas.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 2 Agenda Date: 10/16/2025

Page 2 of 3 ends

sun is at its peak. Similarly, consumption is inconsistent and driven by a variety of factors, including weather, load type, and macro behavioral trends (e.g., residential customers returning home in the early evening and turning on their appliances).

This variability of demand and supply can drive both high energy prices when supply is tight and uneconomic curtailment of generation when the supply exceeds demands. By expanding the market footprint and diversifying both supply and demand, the market operator will have more resources available to supply areas where demand is high and more demand centers to supply with excess energy that might otherwise be curtailed. For example, an analysis by consulting firm the Brattle Group found that an expanded day ahead market with widespread western participation could result in over $500 million per year in market benefits to California customers.3 The benefits to reliability are driven by substantially similar factors as those that are forecasted to reduce prices.

By increasing access to resources across the West, the market operator can use resources that are not serving load in one region to help relieve an energy shortage in another region.

PIONEER’S ADVOCACY ON THE REGIONAL ELECTRICITY MARKET BILL Given the potential benefits it offers, Pioneer actively supported a workable West-wide electricity market throughout the legislative process. At the beginning of the 2025 legislative session, Pioneer submitted a formal letter of support for Senate Bill (SB) 540, the original vehicle for the Regional Electricity Market Bill. As SB 540 moved through the legislative process, harmful amendments were added, most notably the creation of a Regional Energy Markets Oversight Council that would have given outsized authority to the Council to mandate expedited mass withdrawal of all California entities from the RO.

This amendment, among others, presented significant roadblocks to enabling the creation of a robust regional energy market which requires trust among the Western partners in the stability of California’s participation in the RO. In response, Pioneer sent letters to our constituent legislators expressing our updated “oppose unless amended” position on SB 540 and signed onto two coalition letters urging the Legislature to pass a workable version of SB 540.

In the final days of the legislative session, the language in SB 540 was moved to a new vehicle, AB 825, which as a result of extensive advocacy and legislative negotiations, did not contain the harmful provisions that Pioneer had previously opposed in SB 540. To support the bill in its new form, Pioneer joined a broad coalition of supporters including the California Community Choice Association (CalCCA) and several other CCAs in signing onto a support letter for AB 825. AB 825 was officially chaptered into statute by the Governor in a special signing event for a package of energy and climate affordability bills on September 19, 2025.

IMPLEMENTATION TIMELINE
There are still many procedural hurdles before a regional market can be fully implemented, hurdles that will take time to overcome. Some of these are mandated by the Regional Electricity Market Bill, including a CPUC approval process, a CAISO Board resolution process, and a CAISO study on job impacts. Under the law, the earliest that CAISO can implement the changes necessary to effectuate the West-wide market is January 1, 2028. Below is the estimated time for implementation created by CalCCA:
3 Tsoukalis, J., et al., Preliminary Day-Ahead Market Impacts Study, The Brattle Group, at 4 (Jan. 24, 2025), available at:
https://efiling.energy.ca.gov/GetDocument.aspx?tn=263571 Agenda Item: 2 Agenda Date: 10/16/2025

Page 3 of 3 ends

STRATEGIC PLAN
The recommendation supports the Be a Community Partner goal.

FISCAL IMPACT
There is no fiscal impact with the recommendation.

ATTACHMENTS
There is no attachment to this report.

Pathways Implementation Timeline
Finalize
Governance
Documents
Seat RO Board CAISO & CPUC Leg
Compliance Review
File FERC Tariff
Package
Develop CAISO Agreement---------+
Develop RO Tariff------------
RO Launch

Page 1 of 2 ends

Staff Report – Item 3
To: The Governing Board
From: Donald Eckert Jr., Chief Executive Officer
Item 3: Update on Expansion and Approval of a 30-Day Notice to Amend the Joint Exercise of Powers Agreement
Date: 10/16/2025

RECOMMENDATION
Receive an update on expansion efforts and approve the 30-day notice for a vote of the Board of Directors (“Board”) regarding Amendment No. 8 for Membership to the Joint Exercise of Powers Agreement (“JPA”) for Pioneer Community Energy (“Pioneer”).

EXPANSION COMMITTEE RECOMMENDATION
The Expansion Committee will convene on October 14th to receive a presentation from Pacific Energy Advisors on the results of the Impact Assessment Study (“IAS”). Comments and feedback from the committee will be incorporated into the presentation to the Board on October 18th.

BACKGROUND
At the September 18, 2025, Board meeting, the Board received a presentation by staff related to the multiple requests for information by communities interested in joining Pioneer. The Board approved a resolution authorizing the initiation of an IAS for four (4) new territories:
• Madera County
• City of Chowchilla
• County of Colusa
• City of Colusa
These communities were selected based on their strong alignment with Pioneer’s priorities (like mindedness) and readiness to act. Staff followed up with each of these expansion communities to get the authorization needed for PG&E to release data needed for the Impact Assessment Study.

ANALYSIS & DISCUSSION
Potential New Member Updates
Subtraction: The City of Madera was a part of the original four territories approved by the Board. However, the City of Madera City Manager determined that the city could not meet the timeline and stated he would like to conduct additional research on CCAs and develop an RFP.

Additions:

1. The County of Colusa – The County of Colusa had expressed interest to join and with the deferral of the City of Madera, discussions restarted resulting in a formal presentation to the Board of Supervisors voting unanimously to commission an IAS. This is a natural fit since the City of Colusa had already commissioned the IAS.

2. The City of Williams - Discussions with the City of Williams had stalled due to turnover at the administrative level. However, at the presentation to the County of Colusa, County staff reached out to the city staff, and Pioneer staff received approval from the city to participate in the IAS. The city has a population of approximately 6,000 and would require no incremental resources to serve.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: X Agenda Date: 12/19/2024
384030.1 Page 2 of 2
As of the date of this report’s submittal, the results of the IAS are not known. As a reminder, the IAS is a key decision point that forecasts future power supply procurement for expansion compared to current rates to determine if the expansion results in current ratepayer subsidization. If the IAS results in ratepayer subsidization, then expansion efforts cease. If it is positive, then the expansion process proceeds to the next step which is issuing a 30-day notice to current members to amend the JPA.

Timeline
There is urgency to close the submittal process with the California Public Utilities Commission (“CPUC”) by December 31, 2025, to be included in the 2027 service launch cycle.

The following is the proposed timeline for the addition of five (5) communities:

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

FISCAL IMPACT
The maximum fiscal impact to commissioning the IAS would be $30,000 to Pioneer with an equal contribution from the potential new members. Based on prior performance, staff expect the fiscal impact to be much less.

ATTACHMENTS
There are no attachments to the report.

Oct-25 Nov-25 Dec-25 Mar-26 May-26 Oct-27
Board approves moving forward with expansion
process and issue 30-day notice to existing members
of intention to amend the JPA to allow new members
=====
New Members Applicants adopt Ordinances and
Resolution with intent to join Pioneer =====
Pioneer Board adopts Amendment No. 8 to the JPA =====
Pioneer Board adopts Addendum No. 4 to the
Implementation Plan and Statement of Intent =====
Staff files application to the CPUC =====
CPUC responds with decision =====
Staff confirms commitment from new members before
procuring power =====
New Members begin service =====
3 10/16/2025

Page 1 of 3 ends

Staff Report – Item 4
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 4: Receive Draft Fiscal Year 2024-25 Year-End Financial Reports Date: 10/16/2025

ACTION REQUESTED
Receive draft Fiscal Year 2024-25 year-end financial reports through June 30, 2025.

BACKGROUND
The Year-To-Date (YTD) financial reports are produced by Maher Accountancy for Board member and management review. Although these reports are unaudited, they provide the most up-to-date financial data for Pioneer Community Energy. Pioneer’s independent auditors, Sorren, will perform an audit on the Fiscal Year 2024-25 financial activity which is expected to be completed before the end of the calendar year. Placer County Treasurer’s Office is recording any activity for the mPOWER program in the County financial system and that information will be merged with Pioneer’s CCA program and included in the audited financial statements. For June 2025, the financial reporting package includes the following reports for the CCA Fund only:
• Statement of Net Position (Balance Sheet) – Accounting of Assets, Liabilities and Net Position as of the reporting period end date for the CCA program. • Statement of Revenues, Expenses, and Changes in Net Position (P&L) – Accounting of all revenues, expenses, and changes in net position on a YTD basis through the reporting period end date for the CCA program.
• Budgetary Comparison Schedule (Budget to Actuals) – Comparison of budget to actuals on a YTD basis through the reporting period end date for the CCA program.

ANALYSIS & DISCUSSION
The table below shows the year-to-date budget-to-actuals summary through the fourth quarter of FY 2024-25 ending June 2025.

FY 2024-25 FY 2024-25 Variance
$ in Thousands YTD Budget YTD Actuals (Under)/Over
Energy Revenue $242,815 $242,465 $(350)
Power Supply $208,976 $188,041 $(20,935)
Operating Margin $33,839 $54,424 $20,585
Operating Expense $18,580 $12,579 $6,001
Debt Service & Non-Op Rev ($1,729) $3,174 $4,903
Contribution To/(From) Net Position $13,530 $45,018 $31,488 Plf)NEER

COMMUNITY ENERGY
Agenda Item: 4 Agenda Date: 10/16/2025

Page 2 of 3 ends

Energy Revenues
The amended budget includes the two rate adjustments that decreased rates 3% effective July 2024 and an additional 1% effective March 2025. Revenues met expectations and finished the year at 99.9% of budget protections or $350 thousand less than the $243 million revenue projection.

Power Supply
Power Supply costs ended the year under budget projections by 10% or $20.9 million. Since the dramatic impact to the budget and cash on hand realized from the September 2022 extreme heat wave, subsequent budgets have included an extreme weather event contingency of $10 million. Because no extreme weather events materialized during the fiscal year, the unused contingency led to favorable results in Pioneer’s bottom line by $10 million in savings. In addition, there are two other drivers contributing to the lower-than-budgeted costs:
(1) Reduced Non-Energy CAISO Costs: Favorable market changes in non-energy costs and other CAISO-related charges resulted in savings of $4.7 million compared to budget expectations. When the budget was developed, CAISO fees were estimated using a 13-month rolling average of about $4.60/MWh based on the actual costs at that time. The actual rolling average through June 2025 decreased to approximately $1.50/MWh.
(2) Reduced Resource Adequacy Costs: Favorable market conditions also positively impacted Resource Adequacy (RA) resulting in savings of $5.6 million compared to budget expectations. This variance is due to the net effect of RA purchases and sales, which resulted in lower overall expenditures.

Operating Expenses
Controllable expenses across all departments show total savings of $6 million, or 32%, compared to budget projections:
(1) Program Division: $2.6 million of savings is attributed to the Program Division (compensation, consultant services, and operating expenses). Program development and utilization is below expectations but is gaining momentum. According to Resolution 2023-23, any unspent budget allocated to the Program Division will ‘roll over’ as additional funding to the subsequent fiscal year once the fiscal year audit has been completed. The audit is expected to be completed in December 2025, which would result in roughly $2.6 million in added budget to the Fiscal Year 2025-26 Program budget at that time. (2) Compensation: Compensation costs were lower than anticipated ($560 thousand) due to delays in filling vacant positions. Pioneer did end the fiscal year with all authorized positions filled. (3) Consultant Services: Savings were also made in this category across most Divisions ($2 million).

Brokerage fees, battery optimization costs, regulatory and legal counsel, IT Tri-annual audit, and software costs are examples of where savings were realized. Additional savings were achieved by transitioning certain consultant-led work to in-house staff, such as website maintenance, graphic design, and public affairs work.
(4) Other Operating Expenses: There were three main drivers of savings ($760 thousand) in this category.

A planned membership in a CCA-created JPA, intended to achieve power supply cost savings by aggregating many CCAs power supply needs, was not realized since the JPA was not prepared to expand its membership. Two other drivers were savings in paid advertising and direct mailing costs, resulting from shifting the composition of media channels used which allowed for greater customer reach and more often at a lower cost.

Debt Service and Other
Debt service was in line with budget expectations. An increase to the CPUC-mandated financial security requirement (FSR) was required and paid during the fiscal year. Investment gains were also recorded in this Agenda Item: 4 Agenda Date: 10/16/2025

Page 3 of 3 ends

category and interest earnings far exceeded budget projections by $3.5 million.

Reserves and Net Position
The fiscal year ended with a net position of $183 million, a significant increase of $48 million over the course of the fiscal year. While this is a positive, Pioneer’s reserve policy is based on cash liquidity and does not include non-liquid assets, such as collateral deposits held by others, accounts receivables, or accounts payables, which are significant components in calculating the net position. Pioneer’s cash position did dramatically improve, increasing by almost $63 million compared to the prior fiscal year. Considering the Fiscal Year 2025-26 Budget, Pioneer’s days of liquidity as of June 30th are measured to be 238 days. This is an increase of 84 days when compared to the prior fiscal year and moving towards the Board-adopted (June 2025) reserves target of 270 days of liquidity. A fully funded reserve positions Pioneer to better navigate the volatility of the energy markets while building the case for a credit rating improvement.

STRATEGIC PLAN
Strategic Priority: Be Fiscally Strong and Resilient

FISCAL IMPACT
The YTD change in net position through the end of the fiscal year is $47.9 million.

ATTACHMENTS

1. Fiscal Year 2024-25 Year-End Financial Reports through June 30, 2025. 1 ACCOUNTANTS’ COMPILATION REPORT
Management
Pioneer Community Energy
Management is responsible for the accompanying financial statements of the CCA Fund of Pioneer Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of June 30, 2025, and the related statement of revenues, expenses, and changes in net position for the year then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

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

Maher Accountancy
San Rafael, CA
September 8, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
CCA Program
ASSETS
Current assets
Cash and cash equivalents 36,826,161$
Investments 123,524,408
Accounts receivable, net of allowance 21,411,037
Accrued revenue 12,045,119
Other receivables 3,862,613
Interest receivable 812,657
Contractual assessments receivable -
Prepaid expenses 5,972,913
Deposits 986,832
Total current assets 205,441,740
Noncurrent assets
Capital assets, net of depreciation and amortization 1,099,131 Deposits 792,686
Contractual assessments receivable -
Total noncurrent assets 1,891,817
Total assets 207,333,557

LIABILITIES
Current liabilities
Accrued cost of electricity 18,663,398
Accounts payable 672,422
Other accrued liabilities 665,238
Lease liability 125,460
Note payable 878,035
Interest payable 5,084
Deposits 1,152,000
Bond payable -
Total current liabilities 22,161,637
Noncurrent liabilities
Lease liability 768,407
Note payable 704,125
Bond payable -
Supplier security deposits 600,000
Total noncurrent liabilities 2,072,532
Total liabilities 24,234,169

NET POSITION
Net investment in capital assets 205,264
Unrestricted net position 182,894,124
Total net position 183,099,388$

PIONEER COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of June 30, 2025

CCA PROGRAM
See accountants' compilation report. 2
CCA Program

OPERATING REVENUES
Electricity sales, net 231,393,037 $
Other income 33,894
Total operating revenues 231,426,931

OPERATING EXPENSES
Cost of electricity 176,969,472
Contract services 6,309,954
Staff compensation 4,341,197
Other operating expenses 2,050,156
Depreciation and amortization 187,973
Total operating expenses 189,858,752
Operating income (loss) 41,568,179

NONOPERATING REVENUES (EXPENSES)
Investment income 6,434,052
Interest and financing expense (120,562)
Nonoperating revenues (expenses), net 6,313,490

NET POSITION
Change in net position 47,881,669
Net position at beginning of period 135,217,719
Net position at end of period 183,099,388 $
Year Ended June 30, 2025

AND CHANGES IN NET POSITION

STATEMENT OF REVENUES, EXPENSES

CCA PROGRAM

PIONEER COMMUNITY ENERGY
See accountants' compilation report. 3
Participation Rates – June 2025
Participation Rate April 2025 May 2025 June 2025 June 2024 AUBURN INC 85.52% 85.61% 85.56% 85.42% COLFAX INC 87.86% 87.96% 87.85% 88.44% GRASS VALLEY INC 96.52% 96.59% 96.61% 96.84% LINCOLN INC 82.65% 82.73% 82.72% 82.77% LOOMIS INC 87.03% 87.13% 87.05% 87.27% NEVADA CITY INC 97.87% 97.75% 97.96% 97.66% PLACERVILLE INC 85.61% 85.47% 85.46% 85.40% ROCKLIN INC 90.26% 90.15% 90.22% 90.52% UNINC EL DORADO CO 79.68% 79.74% 79.77% 79.75% UNINC PLACER CO 84.67% 84.74% 84.75% 84.70% Grand Total 84.25% 84.29% 84.31% 84.56%

COMMUNITY ENERGY
Total Pioneer Customers(# of Accounts)
176,000
175,000 174,486 174,693
173,961
174,000 173,000 172,000 171,000 170,000 169,240 169,000 I 168,000 167,000 166,000 June2024 April2025 May2025 June2025
1 ACCOUNTANTS’ COMPILATION REPORT

Board of Directors
Pioneer Community Energy
Management is responsible for the accompanying special purpose budgetary comparison schedule for the CCA Program of Pioneer Community Energy, a California Joint Powers Authority, for the year ended June 30, 2025, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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

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

Maher Accountancy
San Rafael, CA
September 8, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com MAHER

ACCOUNTANCY
2024/25 YTD
Amended
Budget
2024/25 YTD
Actual
2024/25 YTD
Variance
(Under) Over
2024/25
YTD
Actual/
Budget %
2024/25
Amended Budget
2024/25
Amended
Budget
Remaining

ENERGY REVENUES
Energy Sales $ 235,801,000 $ 234,761,861 $ (1,039,139) 100% $ 235,801,000 $ 1,039,139 Green100 Sales 200,000 68,174 (131,826) 34% 200,000 131,826 Congestion Revenue Rights and Battery Optimization 10,000,000 11,071,605 1,071,605 111% 10,000,000 (1,071,605) Less Uncollectible Accounts (3,186,000) (3,436,997) (250,997) 108% (3,186,000) 250,997 Total Operating Revenues 242,815,000 242,464,642 (350,358) 242,815,000 350,358

ENERGY EXPENSES
Power Supply 208,976,000 188,041,077 (20,934,924) 90% 208,976,000 20,934,924 OPERATING MARGIN 54,423,566 33,839,000 20,584,566 33,839,000 (20,584,566)

OPERATING EXPENSES
Administration
Compensation 816,385 772,996 (43,389) 95% 816,385 43,389 Contract services 318,325 136,758 (181,567) 43% 318,325 181,567 Operating expenses 941,796 748,105 (193,691) 79% 941,796 193,691 Total Administration expenses 2,076,506 1,657,858 (418,648) 80% 2,076,506 418,648 Finance
Compensation 1,061,050 993,144 (67,906) 94% 1,061,050 67,906 Contract services 591,000 341,138 (249,862) 58% 591,000 249,862 Operating expenses 357,700 279,558 (78,142) 78% 357,700 78,142 Total Finance expenses 2,009,750 1,613,841 (395,909) 80% 2,009,750 395,909 Power Procurement
Compensation 1,027,592 772,791 (254,801) 75% 1,027,592 254,801 Contract services 3,143,538 1,975,334 (1,168,204) 63% 3,143,538 1,168,204 Operating expenses 291,500 304,829 13,329 105% 291,500 (13,329) Total Power Procurement expenses 4,462,630 3,052,954 (1,409,676) 68% 4,462,630 1,409,676 Customer Care
Compensation 489,002 499,062 10,060 102% 489,002 (10,060) Contract services 2,920,000 2,905,861 (14,139) 100% 2,920,000 14,139 Operating expenses 214,750 144,809 (69,941) 67% 214,750 69,941 Total Customer Care expenses 3,623,752 3,549,733 (74,019) 98% 3,623,752 74,019 Marketing & Communications
Compensation 741,946 599,438 (142,508) 81% 741,946 142,508 Contract services 420,000 97,187 (322,813) 23% 420,000 322,813 Operating expenses 646,350 209,028 (437,322) 32% 646,350 437,322 Total Marketing expenses 1,808,296 905,652 (902,644) 50% 1,808,296 902,644 Legislative & Regulatory
Compensation 553,670 494,169 (59,501) 89% 553,670 59,501 Contract services 377,807 249,577 (128,230) 66% 377,807 128,230 Operating expenses 8,300 10,774 2,474 130% 8,300 (2,474) Total Legislative expenses 939,777 754,520 (185,257) 80% 939,777 185,257 Programs
Compensation 293,345 209,598 (83,747) 71% 293,345 83,747 Contract services 1,456,341 - (1,456,341) 0% 1,456,341 1,456,341 Operating expenses 1,909,805 835,110 (1,074,695) 44% 1,909,805 1,074,695 Total Programs expenses 3,659,491 1,044,708 (2,614,783) 29% 3,659,491 2,614,783 Total Operating Expenses 18,580,202 12,579,267 (6,000,935) 68% 18,580,202 6,000,935

NON-OPERATING REVENUES (EXPENSES)
Investment gains (losses) 2,871,000 6,434,052 3,563,052 2,871,000 (3,563,052) Miscellaneous income - 33,894 33,894 - (33,894)
Term Loan Debt Service (950,000) (913,278) 36,722 96% (950,000) (36,722) Additional Term Loan Principal (2,100,000) (2,100,000) - (2,100,000) - Line/Letter of Credit Fees (750,000) (280,959) 469,041 37% (750,000) (469,041) Financial Security Requirement (800,000) - 800,000 0% (800,000) (800,000) Nonoperating revenues (expenses), net (1,729,000) 3,173,710 4,902,710 (1,729,000) (4,902,710) Total Expenses and Non-Operating Activity 229,285,202 197,446,634 (31,838,569) 229,285,202 31,838,569 Contribution to/(from) Reserves 13,529,798 $ 45,018,009 $ 31,488,211 $ 13,529,798 $ (31,488,211) $

BUDGETARY COMPARISON SCHEDULE
Year Ended June 30, 2025

PIONEER COMMUNITY ENERGY

CCA PROGRAM
410921.1 Page 1 of 1
Staff Report – Item 5
To: The Governing Board
From: Eric Ponce, Information Technology Analyst
Item 5: Adopt a Resolution Approving Artificial Intelligence (AI) Acceptable Use Policy Date: 10/16/2025

RECOMMENDATION
Adopt a resolution approving Artificial Intelligence (AI) Acceptable Use Policy.

BACKGROUND / ANALYSIS & DISCUSSION
Pioneer Community Energy (Pioneer) recognizes the growing role of Artificial Intelligence (AI) in enhancing workplace efficiency, creativity, and innovation. AI tools such as large language models, automation systems, and chatbots offer significant opportunities to streamline workflows, support data analysis, generate content, and automate repetitive tasks.

The integration of AI into day-to-day operations also introduces new challenges, particularly in safeguarding sensitive information, maintaining data accuracy, and ensuring compliance with cybersecurity best practices.

Without clear usage standards, there is a heightened risk of unintentionally disclosing confidential or personally identifiable information through cloud-based AI tools or relying on AI-generated content without proper human oversight.

To ensure that AI is used responsibly and effectively across the organization, Pioneer has developed an AI Acceptable Use policy. This policy establishes clear guidance for staff on the secure and appropriate use of AI tools, in alignment with Pioneer’s existing Information Systems Acceptable Use policy and broader cybersecurity practices. By adopting this policy, Pioneer aims to empower staff to leverage AI for productivity and innovation while protecting organization data, maintaining public trust, and minimizing operational risk.

STRATEGIC PLAN
This development of the Artificial Intelligence (AI) Acceptable Use policy supports the Strategic Goal of Achieving Operational Optimization.

FISCAL IMPACT
The approval and implementation of the Artificial Intelligence (AI) Acceptable Use policy does not have a fiscal impact.

ATTACHMENTS
1) Resolution Establishing Artificial Intelligence (AI) Acceptable Use Policy Plf)NEER

COMMUNITY ENERGY
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 October 16, 2025, by the following vote on roll call:

Ayes:

Noes:

Absent:

WHEREAS, Pioneer recognizes the growing role of Artificial Intelligence (AI) in enhancing workplace efficiency, creativity, and innovation.

WHEREAS, the integration of AI into day-to-day operations introduces new challenges, particularly in safeguarding sensitive information, maintaining data accuracy, and ensuring compliance with cybersecurity best practices.

WHEREAS, IT staff identified the need to develop an AI Acceptable Use policy to provide staff with guidance on the secure and appropriate use of AI tools, while encouraging productivity and innovation.

WHEREAS, Pioneer desires to adopt the Artificial Intelligence (AI) Acceptable Use Policy as part of its ongoing commitment to operational optimization, cybersecurity resilience, and best practices.

In the matter of: A RESOLUTION APPROVING

ARTIFICIAL INTELLIGENCE (AI) ACCEPTABLE

USE POLICY
Resolution 2025- ___
October 16, 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 adoption of the Artificial Intelligence (AI) Acceptable Use Policy “Exhibit A” in response to the growing role of AI in supporting workplace efficiency.

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

Exhibit A: IT8 - Artificial Intelligence (AI) Acceptable Use Policy IT8
Category: Information Technology
Page | 1 Proposed: Octner 16, 2025
410940.2

ARTIFICIAL INTELLIGENCE (AI)

ACCEPTABLE USE POLICY
I. PURPOSE
The purpose of this policy is to establish clear guidelines for the secure use of Artificial Intelligence (AI) tools at Pioneer Community Energy. While Pioneer encourages the use of AI to enhance productivity, creativity, and innovation, staff are expected to respect privacy, protect confidential information, and follow organizational cybersecurity standards.

II. BACKGROUND
AI tools, including large language models (LLMs), code assistants, automation tools and chatbots, offer powerful capabilities to enhance work processes. These tools can support research, content generation, customer service, and operational efficiencies.

However, they also introduce risks related to data privacy, accuracy, and unauthorized disclosure of sensitive information.

This policy provides staff with guidance for the safe and secure use of existing and future AI tools, especially where sensitive company or customer information is involved. All use of AI tools must align with Pioneer’s Information Systems Acceptable Use Policy and broader cybersecurity practices.

III. SCOPE
This policy applies to all Pioneer Staff that have access to the organization’s Information Resources.

IV. POLICY
Pioneer staff may use Artificial Intelligence (AI) tools in support of business productivity, innovation, and operational efficiency, under the following conditions:

IT8
Category: Information Technology
Page | 2 Proposed: Octner 16, 2025
410940.2
A. Permitted Use
All outputs produced by AI tools must be reviewed and validated for accuracy, tone, bias, and context by Pioneer staff before distribution or use in official business decisions. AI tools may produce erroneous or nonsensical information or results that are not real, do not match any data the algorithm has been trained on, or follow no other discernible pattern. In addition, the results may reflect biased or incomplete data sets on which the AI tool was trained. AI tools must not be used blindly for decision making and/or the creation of content and must never be solely relied upon for important inquiries.

Staff must label all text-based content and audio and visual media they created using AI as having been generated using AI regardless of modifications. Labels must be clearly visible to members of the public reviewing the content.

Example label:
“This document may have been drafted with support from AI-based tools, consistent with Pioneer’s policy on the use of artificial intelligence. All information represented in this document has been reviewed by Pioneer staff.”
Informal correspondence between Pioneer staff, such as emails, does not need to be labeled as having been created using AI.

Pioneer staff may only use Pioneer email addresses, phone numbers, or other Pioneer credentials, and not personal credentials, to create an account with AI services for use in their Pioneer work.

Pioneer staff may use AI tools to support business functions that include:
• Drafting content such as reports, presentations, and emails • Summarizing large public datasets or public documents • Assisting in generating code, formulas, or templates
IT8
Category: Information Technology
Page | 3 Proposed: Octner 16, 2025
410940.2
• Automating repetitive tasks
• Translating text or improving grammar, tone, or clarity B. Restricted and Prohibited Use
Any information provided to a public AI tool is equivalent to making that information broadly available to the public.

The following activities are strictly prohibited:
• Submitting personally identifiable information (PII) or confidential data, including customer and employee data, into AI tools, particularly cloud-based or public platforms that can retain data.
• Uploading internal Pioneer documents, proprietary
business data, or system credentials into AI platforms, unless the tool has been formally approved by IT Support. • Using AI to fabricate data, impersonate individuals, or misrepresent facts.
• Relying on AI tools as the sole basis for regulatory
compliance, public communications, legal determinations, or final decision making.
• Using AI tools to generate offensive/discriminatory
content.
• Using AI tools to discriminate against an applicant or employee based on a characteristic protected by state or federal law, for the purposes of hiring or making other personnel decisions. AI tools may be used for the purposes of hiring or making other personnel decisions only upon anti-bias testing of the AI tool, or other similar proactive efforts to avoid unlawful discrimination.
• A “deepfake” is an image, video, or audio record that has been digitally altered to replace one person’s likeness with another person, or a computer-generated image or video
of a person doing or saying something the person was not actually recorded or photographed as having done or said.

Creation of “deepfake” images, video, or audio for Pioneer work or on Pioneer resources or equipment is strictly
IT8
Category: Information Technology
Page | 4 Proposed: Octner 16, 2025
410940.2
prohibited. Use of “deepfake” images, video, or audio for Pioneer work or on Pioneer resources or equipment, other than using it as evidence in or as part of an administrative investigation, is strictly prohibited.

C. Security and Approval
• AI services that access or process Pioneer data must be evaluated and approved by IT Support prior to use.
• Staff must not bypass security protocols, store sensitive data in unapproved AI applications, or disable protections (e.g., firewalls, malware detection).
• If Pioneer staff become aware of an instance where an AI system has caused harm or poses a risk of causing harm, such as compromising data security, violating privacy,
producing discriminatory or biased outcomes, or otherwise disrupting business operations, they must promptly report the issue to their supervisor and IT Support.
• All staff AI searches must be in “incognito” mode or “opt out” or other similar mode to prevent the AI tool from
retaining or using the information provided for the tool or service’s use in any manner, including to train or improve the AI tool or service, or to share the information with any third party.

D. Monitoring and Oversight
• All AI activity using Pioneer Information Resources may be subject to audit or monitoring to ensure compliance with this policy.
• Pioneer reserves the right to suspend or revoke AI access privileges in cases of suspected misuse or risk.
• IT Support may be granted broader access to AI tools to support infrastructure, security, or system administration tasks, and are subject to oversight by the Director of
Finance and Administration.

IT8
Category: Information Technology
Page | 5 Proposed: Octner 16, 2025
410940.2
V. DISTRIBUTION
Any staff member found to have violated this policy may be subject to disciplinary action, up to and including termination.

VI. DISTRIBUTION
This policy is to be distributed to all Pioneer staff who use Information Resources.

VIII. HISTORY
Version Date Description Approved By
2025.1 10/16/25 Initial policy release

Page 1 of 2 ends

Staff Report – Item 6
To: The Governing Board
From: Brad Koehn, Director of Finance and Administration Item 6: Adopt a Resolution Authorizing the Chief Executive Officer to Execute a Lease Agreement with 2540 Warren LLC and to Approve Tenant Improvement Costs up to $625,969 (contingency of 10% over preliminary cost estimate).

Date: 10/16/2025

RECOMMENDATION
Adopt a resolution authorizing the Chief Executive Officer to execute a lease agreement with 2540 Warren LLC and approve tenant improvement costs up to $625,969 (contingency of 10% over preliminary cost estimate).

BACKGROUND
Pioneer’s expanding service territory is driving the need for additional Board meeting space and professional functional office space for Pioneer’s growing staff.

Board Meeting Space: The current Board room can accommodate 11 Board members, but the CPUC approval for Pioneer’s service territory expansion planned for Fall 2027 will expand the Board to 24 members with a potential of 4 additional expansion members currently in the discovery phase which may be approved by the CPUC in the future. The existing facility is unable to accommodate such a large Board meeting, and a solution will be needed.

Growing Workforce: Pioneer has a current staff size of 22 full-time positions with Board approval to expand to 26 positions. Pioneer began converting small meeting rooms into offices to accommodate workspace needs; however, even with such accommodations, employees recently experienced the need to share workspaces for the first time to be able to accommodate a summer intern. The conversion of small meeting spaces to workspaces has also impacted the ability to conduct private internal staff meetings/calls, resulting in sensitive business calls and virtual meetings to be conducted in an open environment, reducing privacy and increasing noise level for other staff. As Pioneer moves closer to serving the expansion territory, pressure for additional staffing is expected to rise to be able to service the needs of the expanded customer base. This anticipated staffing growth underlines that the current workspace need won’t diminish but will increase over time.

The Audit and Finance Committee met on May 12, 2025, and received a presentation regarding Pioneer’s needed facility expansion to accommodate both Board meeting space and professional workspace needed for staff. The Committee directed staff to initiate lease term discovery and potential tenant improvement costs for the facility located at 2540 Warren Drive, Suite C, Rocklin, CA (“2540 Warren Drive”), conveniently positioned across the parking lot from Pioneer’s existing facility at 2510 Warren Drive which would provide employees easy access to each facility (less than a 90-second walk).

The Board met in closed session on July 10, 2025, discussed preliminary lease terms, and provided feedback and direction to staff to continue negotiations for leasing 2540 Warren Drive and structuring the lease to include tenant improvement costs.

ANALYSIS & DISCUSSION
Lease negotiations over the major terms for acquiring the office space at 2540 Warren Drive have now concluded and a lease is now before the Board for approval.

Monthly rent for the approximately 7,335 square foot space will begin at $13,423.05 (or $1.83/square foot), which is less than the $1.97/square foot currently leased at Pioneer’s existing space at 2510 Warren Drive. The lease also has a similar rent structure as the current lease at 2510 Warren Drive that incorporates the common area maintenance costs into the monthly rent and also includes a 3% annual rent increase over the lease term.

Plf)NEER

COMMUNITY ENERGY
Agenda Item: 6 Agenda Date: 10/16/2025

Page 2 of 2 ends

The initial term of the lease is aligned to the existing lease term for 2510 Warren Drive which ends on May 2031 and includes two optional successive term extensions of 5 years each.

Tenant improvements (TI) for 2540 Warren Drive will also be necessary to construct the Boardroom, new workspaces, accessibility accommodation improvements, and a breakroom update, but also needs related to audio/visual (AV) infrastructure, insulation, interior doors and windows, HVAC work, plumbing, fire sprinklers, and electrical. The current preliminary estimate of probable TI costs is $569,063. The increase from the July preliminary estimate is primarily resulting from the addition of two items: (1) the installation of insulation which will make the space more energy efficient, and (2) the installation of low voltage wiring which is necessary for information technology (IT) connectivity for all of the workspaces. Once the lease is executed, the landlord will complete a permit-ready set of TI documents and receive subcontractor bids/prices. Pioneer will be responsible for the TI costs and will make progress payments to the landlord. Once a Certificate of Occupancy has been issued by the City, Pioneer will be able to use the facility and monthly rent will become payable. Because TI costs are only estimates and are not finalized, the resolution will also authorize additional funding for final TI costs and any change orders.

STRATEGIC PLAN
Providing facility space that can accommodate the expanded Board and provide professional workspace for staff contributes to the strategic priority to Achieve Operational Optimization.

FISCAL IMPACT
The budget anticipated 9 months of rent and operating costs for 2540 Warren Drive. The completion of the tenant improvements is now expected to only allow for 3 months of operating and rental costs. In addition to those budget savings, the IT/AV budget for the new Board room, delayed to FY 26-27, and known staff vacancy savings all can be reprogrammed to fund the tenant improvement by an internal transfer with no increased budget appropriations.

ATTACHMENTS

1. Resolution Authorizing the Chief Executive Officer to Execute a Lease Agreement with 2540 Warren LLC to Approve Tenant Improvement Costs up to $625,969 (contingency of 10% over preliminary cost estimate).

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 October 16, 2025, by the following vote on roll call:

Ayes:

Noes:

Absent:

Signed and approved by me after its passage.
______________________________
Chair of the Governing Board
Attest:
_______________________
Secretary
WHEREAS, it is in the interest of Pioneer Community Energy (“Pioneer”) to develop a functional and professional workspace for its employees and meeting space for its Board of Directors; and WHEREAS, Pioneer’s functional workspace is currently at capacity with current staff size of 22 filled full-time positions, authorized in the Fiscal Year 2025-26 Budget to increase to 26 full-time positions to prepare for Pioneer’s service territory expansion that will double the number of customers and electric load; and
WHEREAS, serving the added load and customers is expected to require additional staffing beyond 26 full-time positions; and
WHEREAS, Pioneer’s service territory expansion will also increase the Board size from 11 members up to a potential 28 members; and
WHEREAS, leasing additional office space would provide space to accommodate the growing Board and staff needs; and
WHEREAS, 2540 Warren Drive, Suite C, Rocklin, CA (“2540 Warren Drive”) is conveniently located less than 500 feet across the parking lot from Pioneer’s existing facility and is less than a 2-minute walk away; and
WHEREAS, the Audit and Finance Committee and the Board have reviewed and provided feedback on the lease; and
In the matter of: RESOLUTION AUTHORIZING THE

CHIEF EXECUTIVE OFFICER TO EXECUTE A LEASE
AGREEMENT WITH 2540 WARREN LLC. AND TO

APPROVE TENANT IMPROVEMENT COSTS UP TO
$625,969 (CONTINGENCY OF 10% OVER
PRELIMINARY COST ESTIMATE).

Resolution 2025-___
October 16, 2025
2 WHEREAS, the landlord, 2540 Warren LLC, will ensure tenant improvements are completed to meet Pioneer’s needs with a preliminary cost estimate of $569,063; and WHEREAS, once the lease is executed, the landlord will complete a permit-ready set of tenant improvement documents and receive subcontractor bids/prices that may vary from the preliminary cost estimate; and
WHEREAS, it is prudent to authorize funding that exceeds the preliminary estimate based on actual subcontractor bids/prices and or change orders; and WHEREAS, the tenant improvements can be funded within existing budget authorization with internal transfers and a 10% contingency would be authorized over the preliminary estimate of $569,063.

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 authorizes the Chief Executive Officer to execute a lease agreement for 2540 Warren Drive with 2540 Warren LLC.

3. The Governing Board hereby authorizes the Chief Executive Officer to approve up to $625,969 in tenant improvement costs.

Exhibit A: 2540 Warren Drive Lease
408002.4 1
Agreement No:

Administering Agency: Pioneer Community Energy
Agreement Description: Lease Agreement
2540 Warren Drive, Suite C, Rocklin, CA
This Lease Agreement (hereinafter "Lease") is made and entered into by and between Pioneer Community Energy, a joint powers agency formed under and existing under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq. ("PIONEER"), and 2540 Warren, LLC a California limited liability company ("LANDLORD").

LANDLORD and PIONEER are sometimes hereinafter each singularly referred to as "PARTY" and collectively referred to as the "PARTIES." PARTIES hereby acknowledge that this Lease shall supersede and replace all prior agreements, promises and understandings between Pioneer and Landlord with respect to the Premises (as defined herein).

1. USE:
(a) LANDLORD hereby leases to PIONEER and PIONEER hereby leases from LANDLORD the Premises as defined in Section 3 below, which shall be used for uses consistent with existing zoning and/or for any lawful uses in furtherance of governmental purposes. PIONEER or any successor thereof shall use the Premises as professional office space or for similar use. (b) Should PIONEER change the uses on the Premises from those currently permitted, PIONEER may, at its sole cost and expense, obtain such licenses or governmental approvals as may be necessary or desirable to operate lawful uses on the Premises, or any other uses as desired by PIONEER, provided that such uses are in compliance with the governing CC&Rs (defined below). Any modifications to the Premises necessary for any such uses shall be made at PIONEER's sole cost and expense unless otherwise agreed to by the PARTIES.

Subject to Section 1(a) above, LANDLORD shall not prejudice or interfere with any current or future licenses or governmental approvals desired by PIONEER and LANDLORD agrees to cooperate with PIONEER in obtaining such future licenses or governmental approvals. LANDLORD shall otherwise have no obligation to maintain licenses or governmental approvals associated PIONEER's uses.

2. RESERVED

3. PREMISES:

The Premises are comprised of one suite (Suite C), consisting of approximately 7,335 rentable square feet of office space (the "Premises") in a building located at 2540 Warren Drive, Rocklin, CA (APN: 045-021-026-000) Building"). PIONEER, at its expense, shall have the right to verify rentable square feet and re-measure the initial and future Premises according to SOMA standards, as calculated under the American National Standard Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C with
("
408002.4 2
Method for Measuring Floor Area in Office Buildings (ANSI/BOMA Z65.1- 2017), adopted by Building Owners and Managers Association International ("BOMA"). Said Premises are depicted in Exhibit A, attached hereto and made a part hereof by reference.

PIONEER shall also have the same rights to the non-exclusive use and enjoyment of Common Areas, Entryways, and Traffic Areas, all as defined in that certain Declaration of Covenants, Conditions and Restrictions for Granite Drive Business Park, recorded in the Official Records of the County of Placer as Document No. DOC-2000-0031001 (the "CC&R's"), as LANDLORD under the CC&R's.

4. INITIAL TERM:

The initial term shall be through May 2031 ("Initial Term") and shall begin on the Commencement Date (as defined below). For purposes of this Lease, "Lease Year" means a period of twelve (12) consecutive calendar months commencing on the first day of the calendar month immediately after the Commencement Date defined in Section 5(a).

5. COMMENCEMENT DATE:
(a) The "Commencement Date" shall be the first day of the month following the City of LANDLORD in connection with
the Tenant Improvements (defined below at Section 9).
(b) Upon commencement of the Initial Term, the PARTIES shall execute a Commencement Memorandum, in a form reasonably acceptable to both PARTIES, confirming the Commencement Date.

6. OPTION TO EXTEND TERM:

Provided PIONEER shall have fully and faithfully performed all of the material provisions contained in this Lease such that no default notices remain uncured beyond applicable cure periods during the Initial Term set forth above, the LANDLORD agrees that PIONEER shall be given the option to extend the Initial Term for up to two (2) successive terms of five (5) years each, for a total of ten (10) years (each an "Option Term", and collectively the "Option Terms"). The Rent during any such Option Term shall be due in accordance with Section 7(d) below, including annual adjustments. PIONEER shall be required to provide LANDLORD written notice of PIONEER's exercise of its option at least one hundred twenty (120) days before the expiration of the Initial Term or the first Option Term, as applicable ("Notice of Exercise of Option").

7. INITIAL RENT, RENT, AND CONSTRUCTION FINANCING TABLE:
(a) Monthly Rent: Upon the Commencement Date of this Lease, PIONEER shall pay Thirteen Thousand Four Hundred Twenty-Three dollars and Five cents ($13,423.05) in rent for the first month (Month 1) the Initial Term. Following Month 1, PIONEER shall pay rent (the "Rent") to LANDLORD in advance by the first day of each calendar month in the amounts set forth in the table in subsection (d) below. All payments shall be made to LANDLORD at/to the address designated in Section 40.

Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C Rocklin's issuance of a certificate of occupancy to
of
408002.4 3
(b) RESERVED
(c) RESERVED
(d) Annual Rent Adjustment. The Rent shall be increased by three percent (3.0%) per year effective on the first anniversary of the Commencement Date (each an "Anniversary Date"). Any such adjustment during the Initial Term and any Option Term pursuant to Sections 4, 5, and 6 of this Lease shall take effect no earlier than the Anniversary Date of the respective Lease Year. For the avoidance of doubt, the three percent (3.0%) increase is to be applied to only the Rent. The following schedule reflects the Rent amounts over the course of the Initial Term, factoring in the annual rent adjustment:

Initial Lease Term
Period Rent
Month 1 to 12 $13,423.05
Month 13 to 24 $13,742.12
Month 25 to 36 $14,070.77
Month 37 to 48 $14,409.27
Month 49 to End of May 2031 $14,757.93
Optional Extension #1
Period Rent
June 2031 to 72 $15,117.05
Month 73 to 84 $15,486.94
Month 85 to 96 $15,867.93
Month 97 to 108 $16,260.35
Month 109 to End of May 2036 $16,664.54
Optional Extension #2
Period Rent
June 2036 to 132 $17,080.86
Month 133 to 144 $17,509.67
Month 145 to 156 $17,951.34
Month 157 to 168 $18,406.26
Month 169 to End of May 2041 $18,874.83
Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 4

8. SECURITY DEPOSIT:

PIONEER shall pay LANDLORD a security deposit equal to the amount of one months' rent on or before the Commencement Date as security for PIONEER's faithful performance of its obligations under this Lease (the "Security Deposit"). LANDLORD may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due LANDLORD from PIONEER and/or to reimburse or compensate LANDLORD for any liability, expense, loss, or damage which LANDLORD may suffer or incur by reason of such nonperformance under this Lease
written notice from LANDLORD about same. If LANDLORD uses or applies all or any portion of the Security Deposit pursuant to the terms of this Section, PIONEER shall, within ten (10) days following LANDLORD's written request, deposit monies with LANDLORD sufficient to restore said Security Deposit to the full amount required by this Lease. Within sixty (60) days after the expiration or termination of this Lease, LANDLORD shall return to PIONEER that portion of the Security Deposit not used or applied by LANDLORD.

LANDLORD shall, upon PIONEER's written request, provide PIONEER with an accounting showing how that portion of the Security Deposit that was not returned was used or applied. No part of the Security Deposit shall be considered to be held in trust, to bear interest, or to be prepayment for any monies to be paid by PIONEER under this Lease.

THE SECURITY DEPOSIT SHALL NOT BE USED BY PIONEER IN LIEU OF PAYMENT OF THE LAST MONTH'S RENT.
expiration or earlier termination.

9. LANDLORD's CAPITAL IMPROVEMENT WORK:

LANDLORD shall perform Tenant Improvements (as defined in Exhibit B hereto) within the Premises, as specified in Exhibit B. The estimated cost of the Tenant Improvements is Five Hundred Sixty-Nine Thousand Sixty-Three Dollars ($569,063). PIONEER shall pay the Five Hundred Sixty-Nine Thousand Sixty-Three Dollars ($569,063) through progress payments as described in Exhibit B. 10. MANDATED IMPROVEMENTS:

PIONEER shall, at its sole cost and expense, be responsible for any alterations or improvements to the Premises necessitated as a result of the requirement of any municipal, state, or federal authority when such alterations or improvements are a direct result of the unique nature and conduct of the PIONEER's use within the Premises.

11. MINOR ALTERATIONS:

Subject to the following procedures and conditions, LANDLORD may perform minor alterations ("Alterations") to the Premises on PIONEER's behalf as follows, either before or after the Commencement Date:
(a) Such alterations are of a minor nature and are considered within the scope of PIONEER's responsibility, where such alterations would not be construed as Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C within thirty (30) days after PIONEER's receipt of
The provisions of this section shall survive this Lease's 408002.4 5
Capital Improvements.
(b) The scope of work for any single minor alteration project does not exceed nine thousand five hundred dollars and no cents ($9,500.00). (c) In no event shall the services for any single minor alteration project to be performed by the LANDLORD be artificially divided so as to cost less than nine thousand five hundred dollars and no cents ($9,500.00). (d) PIONEER shall submit to LANDLORD a written request describing the scope of services required and requesting an estimate of cost from LANDLORD and the LANDLORD shall have the option to deny said request.
(e) Reserved
(f) Minor Alterations shall be subject to Section 23 - "Compliance with (g) PIONEER may require LANDLORD to provide substantiation reasonably acceptable to PIONEER that the quoted price is competitive. (h) LANDLORD shall not proceed with any work until such time that PIONEER, through its Chief Executive Officer, has authorized said alteration by issuing a written Notice to Proceed that describes the scope of work and specifies the "not to exceed" price.
(i) Following completion and acceptance of the work by PIONEER, LANDLORD shall invoice PIONEER. PIONEER shall pay LANDLORD directly within thirty (30) days of receipt of any such invoice.

12. MAINTENANCE, UTILITIES, AND CUSTODIAL:

12.1. Maintenance, Utilities and Custodial. This Lease includes LANDLORD's obligation to provide, during the Initial Term and any exercised Option Term(s), at its sole cost and expense, all building and liability insurance, real property taxes, ice removal, water, sewer, grounds costs (including landscaping), exterior trash/disposal services, exterior pest control/extermination, replacement of light fixtures, heating, ventilation and air conditioning (HVAC) filters, and all maintenance and repair services to the Premises, Building, and Common Area, except as otherwise set forth in Section 12.3 below. LANDLORD shall maintain, during the Initial Term and any exercised Option Term(s), at its sole cost and expense, the exterior and interior of the Premises and its systems, together with appurtenances, rights, privileges and easements belonging or appertaining thereto, in good order and condition, and in compliance with all current governmental regulatory standards. Unless otherwise noticed of a repair request as herein below stated, throughout the Initial and Option Term(s) of the Lease, LANDLORD, at its sole cost and expense, shall inspect the Premises semiannually and maintain and repair, or cause to be maintained and repaired, in good working order repair, and condition all Premises, Building, and Common Area systems, improvements and installations which shall include but not be limited to the Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C Laws"
408002.4 6
following:
(a) Systems and Equipment of the Building and Common Area, HVAC, mechanical ·and electrical systems, fire safety systems, plumbing; and
(b) Foundation, paint, interior and exterior lighting, windows, exterior doors, interior and exterior walls, structural components, and roof of the Building.

12.2 LANDLORD's Maintenance Obligations. LANDLORD's ongoing maintenance obligations include:
(a) LANDLORD shall maintain the interior of the Premises and its systems in good order, condition and repair, including but not limited to structural, plumbing, electrical systems and light fixtures, doors and door hardware, paint and trim finishes, HVAC systems and related components including, but not limited to: air quality, thermal comfort, periodic and scheduled preventative maintenance, filter changes, balancing and repairs. (b) LANDLORD shall maintain the exterior of the Premises and its systems in good order, condition and repair, including but not limited to the foundation, walls, structural components, roofing systems, glazing, landscaping, tree maintenance, weed abatement, fencing, irrigation, walkways, parking lot paving and striping, and exterior pest and rodent control. Repairs or replacement of any parts or equipment that fails or malfunctions shall be expedited and completed in a timely manner. LANDLORD shall clean and water spot remove all exterior windows every spring.
(c) LANDLORD shall make all repairs and replacement of the Premis core building systems. Within five (5) days of notification by PIONEER of the need for such repairs, LANDLORD shall provide PIONEER notice of intended repair, which shall be in writing and shall specify the date and time of intended access. Upon notice from PIONEER, should LANDLORD fail to commence repairs within ten (10) business days from date of PIONEER's notification (or other mutually agreeable date), PIONEER may give notice to LANDLORD stating PIONEER intends to undertake such repairs and deduct the cost from the Rent in effect at the time. PIONEER shall submit a claim for said repairs within ninety (90) days of completion of the repairs.

Any such deduction shall be accompanied by a detailed invoice showing all deducted costs, including PIONEER's administrative costs.

Notwithstanding the foregoing, however, PIONEER shall be responsible for any damage to the Premises caused by PIONEER and its officers, agents, employees and invitees.
(d) LANDLORD shall expedite all building-related repairs including repairs or replacement of HVAC equipment that impact or displace PIONEER staff, visitors, etc. Any repairs to the Building or Premises that will displace more Docusign Envelope ID: 5BA7 A 141-3C84-4A96-9C94-4285C82D852C es'
408002.4 7
than three (3) PIONEER staff require immediate response time and repairs completed within forty-eight (48) hours, provided, however, if the nature of the repair or replacement is such that the repair or replacement cannot reasonably be completed within said forty-eight (48) hour period, LANDLORD shall not be deemed to be in default if LANDLORD commences such repair or replacement within the forty-eight (48) hour period and thereafter diligently prosecutes the same to completion, which completion shall not take more than thirty (30) days after the initial written notice. However, if LANDLORD is unable to complete repairs or replacement in forty-eight (48) hours or, in the event of the repair or replacement is such that the repair or replacement cannot reasonably be completed within said forty-eight (48) hour period, fails to commence such repair or replacement within the forty-eight (48) hour period and thereafter diligently prosecute the same to completion, and more than three (3) PIONEER staff are displaced, PIONEER shall have the option, without being under any obligation to do so, to contract with a Building Contractor to complete the repair at LANDLORD's sole cost and expense, provided the repair or replacement can be completed before the proposed repair or replacement presented by the LANDLORD for a commercially reasonable amount. If more than three (3) PIONEER staff are displaced for more than ten (10) calendar days, PIONEER's monthly rent will be reduced to compensate for the displacement. Adjustment will be determined by dividing the then current rent by the number of days in the calendar month in which the displacement occurs to establish a daily value; this daily value will then be multiplied by the number of days displaced beyond ten (10) calendar days, not to exceed thirty (30) calendar days. If the repair or replacement is reasonably calculated to take more than thirty (30) days, PIONEER shall have the right to terminate this Lease by giving written notice to LANDLORD of PIONEER's election to terminate the Lease on a date not less than thirty (30) days following the giving of such notice with no additional obligation to pay Rent to LANDLORD following such termination. LANDLORD shall pay any and all taxes, assessments, and insurance, including but not limited to real property taxes imposed upon the Premises. PIONEER shall be liable for its insurance on PIONEER's Personal Property.
(e) LANDLORD shall pay for all inspection and service charges for all fire suppression systems and their related components, including but not limited to alarm and smoke detector inspections, and fire alarm monitoring fees.
(f) LANDLORD and Premises shall comply with any and all applicable trade and governmental regulatory standards, including but not limited to the building code, health code, fire code, Title 24 Building Energy Efficiency Standards ("Title 24"), and the provisions of the Americans with Disabilities Act ("ADA"), unless any such noncompliance arises from, or is a result of:
(i) PIONEER's use or operations on or about the Premises; (ii) any Alterations performed by PIONEER; or (iii) any other tenant improvements completed by PIONEER other than those set forth in Exhibit B.

Docusign Envelope ID: 5BA7 A 141-3C84-4A96-9C94-4285C82D852C 408002.4 8
(g) LANDLORD shall directly pay for sanitary sewer, garbage, and water serving the Premises.
(h) LANDLORD shall be responsible for replacement and disposal of light bulbs on the outside of the Premises.
(i) LANDLORD shall be responsible for ice removal.
(j) LANDLORD shall be responsible for annual cleaning/water spot removal of all exterior windows in the Spring.
(k) LANDLORD shall be responsible for the payment of any assessments, dues, fees, or other costs due under the CC&Rs or otherwise imposed by Granite Drive Business Park Owne Association or any similar successor association.
(l) LANDLORD shall accept and respond to requests for routine maintenance or repairs of the Premises, Building, or Common Area from PIONEER, as long as there is no fee or charge associated with said maintenance or repairs (in which case PIONEER approval is necessary).

12.3 PIONEER's Maintenance Obligations. PIONEER's maintenance obligations include:
(a) PIONEER, at its sole discretion and cost, has the option to provide security personnel for the Premises. It is expressly acknowledged that LANDLORD has no obligation to provide security of any sort. (b) PIONEER-installed data and communication equipment and infrastructure shall be the sole responsibility of PIONEER. PIONEER shall be responsible for security systems, projectors and projector screens, coffee equipment, refrigerators/ice makers, drinking water purification systems, break room appliances, and any PIONEER-installed trade fixtures. Should a specialized fire suppression system, or HVAC system for computer server rooms be required, the maintenance obligation for such shall remain with PIONEER.
(c) PIONEER shall be responsible for repairs to the Premises for damage caused by the negligence or willful misconduct of PIONEER's employees, agents and/or clients, excluding normal wear and tear, settling, and deterioration from age or ordinary use. Excepting any unfinished Tenant Improvements, by entering into and occupying the Premises, PIONEER shall be deemed to have accepted the Premises as being in good condition and repair as to the visible physical condition of the Premises. PIONEER will not be responsible for latent physical condition or defects of the Premises. PIONEER agrees on the last day of said term or sooner termination of this Agreement to surrender the Premises with appurtenances in substantially the same condition as when received, reasonable use and wear thereof excepted.

Docusign Envelope ID: 5BA7 A 141-3C84-4A96-9C94-4285C82D852C rs'
408002.4 9

13. BUILDING SERVICES, UTILITIES, TAXES AND ASSESSMENTS:
(a) PIONEER shall have full control and operation of the HVAC system in the Premises without limitation as to hours or use.
(b) PIONEER shall be responsible for separately metered electricity, natural gas (if any), telephone, internet access, and security.
(c) Unless caused by the negligence or willful misconduct of PIONEER or its employees, agents, and independent contractors or an occurrence of force majeure in accordance with section 41, PIONEER's obligation to pay rent shall abate proportionately during any period in which PIONEER's access to, or use of, all or any portion of the Premises for their intended purpose is so impaired that PIONEER cannot, and actually does not, use all or such portion of the Premises for a period in excess of five (5) business days. The rent abatement in such case shall commence as of the second (2nd) business day after the impairment.

PIONEER shall give LANDLORD notice of any such interruption of access, use, or service prior to PIONEER ceasing to use all or any portion of the Premises. If such interruption or discontinuation in services continues beyond sixty (60) consecutive business days, PIONEER has the right to terminate the Lease with no additional financial obligation to LANDLORD, except for the repayment of the Construction Financing in accordance with section 7(e).
(d) Should PIONEER require, and should LANDLORD provide, additional building services during the Initial or Option Term of the Lease, as applicable, PIONEER agrees to pay the expense of such additional services as mutually agreed upon by both PARTIES. All costs for such additional services shall be prorated among all tenants in the Building then requesting comparable additional services during such time periods.
(e) In the event that building services provided by LANDLORD under the Lease are discontinued due to LANDLOR s failure to pay, PIONEER shall have the option to assume payment for such building services, in which event PIONEER will be entitled to a rent credit equal to the amount thus paid by PIONEER, which shall be applied against the first installments of Rent due under the Lease until the obligation is fully satisfied.
(f) PIONEER shall be responsible for any and all janitorial services within the Premises and all costs and expenses related thereto.

14. OPERATING EXPENSES:

LANDLORD shall be responsible for all operating expenses throughout the Initial and Option Term(s) of the Lease. No operating expenses and/or real estate taxes shall be passed through to PIONEER.
(a) Work Performance. Any maintenance or services performed on the Premises shall be done by skilled workers or mechanics with required licensure, as may be applicable. PIONEER retains the right to reject the LANDLORD's employees, agents, vendors, firms, and/or contractors ("LANDLORD's Agents . The following Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C D'
")
408002.4 10
are grounds for immediate dismissal and removal from the Premises: 1) failure to perform maintenance duties as prescribed by this Lease; or 2) LANDLOR Agents are unlicensed, unskilled, or otherwise incompetent; or 3) the work being performed is substandard and not to industry standards; or 4) LANDLOR Agents have demonstrated a history of either untimely or otherwise unacceptable performance during the Term of this Lease; or 5) LANDLORD's Agents are responsible for any physical or verbal abuse or sexual harassment of PIONEER staff or visitors.
(b) PIONEER Workforce. LANDLORD acknowledges and agrees that PIONEER may use its own unlicensed forces to perform routine maintenance duties or construct improvements or alterations as assigned or permitted pursuant to this Lease, unless such construction of improvements or alterations are required to be performed by licensed contractors by California law. PIONEE s employees shall receive wages as their sole compensation for this work. Such employees shall be working in their official capacity as members of PIONEE s maintenance staff. All work performed by PIONEER shall comply with all laws, regulations and rules pursuant to Section 22, as applicable. PIONEER shall be allowed to re-key all locks servicing the Premises at its sole cost and discretion. In the event of such re-keying, PIONEER shall provide LANDLORD with keys to all door locks.

15. APPURTENANT RIGHTS:

The appurtenant rights referred to in this Lease allow for PIONEER, subject to periodic maintenance requirements and coordination during completion of the Tenant Improvements, to have full and reasonable access to the Premises at all times.

16. TAXES & ASSESSMENTS:
(a) Personal Property Taxes: During the Initial Term and any Option Term, PIONEER shall pay prior to delinquency all taxes, if any, assessed against and levied upon trade fixtures, furnishings, equipment, and all other Personal Property of PIONEER contained in the Premises, and when possible PIONEER shall cause said trade fixtures, furnishings, equipment, and other Personal Property to be assessed and billed separately from the real property of LANDLORD. LANDLORD shall be responsible for payment of all real property taxes.
(b) Substitute and Additional Taxes: PIONEER shall not be required to pay any income, estate or inheritance taxes levied or assessed by any federal, state or local authority upon the rent received by LANDLORD hereunder.

17. USES PROHIBITED:

PIONEER shall not use, or permit said Premises, or any part thereof, to be used for any purpose or purposes other than as set forth in this Lease. No prohibited use shall be made or permitted to be made of said Premises, nor prohibited acts done, which will increase the existing rate of insurance upon the Premises, or cause a cancellation of any insurance policy covering said Premises or any part thereof, nor shall PIONEER sell or permit to be kept, used or sold in or about said Premises any article which may be prohibited by standard form of fire insurance policies. PIONEER shall, at its sole cost, comply any Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C D's
D's
R'
R'
with
408002.4 11
and all requirements pertaining to the use of said Premises, including any insurance company requirements necessary for the maintenance of reasonable fire and public liability insurance covering said Premises and appurtenances.

18. RESERVED

19. RESERVED

20. RIGHT OF FIRST OFFER TO LEASE:

PIONEER shall have a right of first offer to lease any available space in the Building ("Available Space") (subject to the Available Space being owned by the current or a successor LANDLORD of the Premises) throughout the Initial and any Option Term of the Lease. LANDLORD shall not lease space in the Building to any other person or entity until the process set forth in this provision has been fully complied with. PIONEER shall be required to lease the entirety of the Available Space, and LANDLORD shall not be required to make any adjustments in the demising walls, or other tenant improvements unless by separate agreement between the PARTIES at such time.

Prior to marketing any or all of the Building(s) for lease, LANDLORD shall deliver written notice to PIONEER notifying PIONEER of the availability of the Building space for lease "Availability Notice") and requested terms (including term and rent). PIONEER shall have the right, but not the obligation, for a period of ten (10) business days following receipt of the Availability Notice from LANDLORD (the "Offer Period"), to deliver to LANDLORD a notice of its intent to elect to lease the Available Space ("Intent to Exercise Notice"). If PIONEER fails to timely deliver the Intent to Exercise Notice to LANDLORD, LANDLORD may begin openly marketing and leasing the Available Space to a third party under such terms and conditions as agreed upon by and between LANDLORD and any other prospective tenant.

Within thirty (30) days following delivery of an Intent to Exercise Notice (the "Approval Period") to LANDLORD, PIONEER shall seek approval by the governing body of PIONEER to exercise the right to lease the Available Space at an open and public hearing upon proper legal notice. If PIONEER fails to receive approval for the election to lease the Available Space prior to the end of the Approval Period, LANDLORD may begin openly marketing and leasing the Available Space to a third party under such terms and conditions as agreed upon by and between LANDLORD and any other prospective tenant.

21. RESERVED

22. COMPLIANCE WITH LAWS:

PIONEER shall keep and maintain compliance with all laws and regulations within the Premises. LANDLORD and PIONEER shall each do all acts required to comply with all applicable laws, ordinances, regulations and rules of any public authority relating to their respective maintenance and/or improvement obligations as set forth herein. During the Initial or Option Term of this Lease, any cost associated with compliance, including Title 24 and/or ADA compliance under Section 12.2(g) above, shall be paid by LANDLORD and LANDLORD shall not pass on the cost of such compliance to PIONEER. All work Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C (
408002.4 12
performed pursuant to Sections 9, 11 and 12, as applicable, shall comply with all laws regarding payment of prevailing wage, including without limitation, California Labor Code Sections 1775, 1777, and 1811, and as such laws may be amended or modified.

LANDLORD agrees that it will comply with any directives or regulations issued by the California Department of Industrial Relations or any other regulatory body of competent jurisdiction. In the event of imposition of federal or state governmental controls, rules, regulations, or restrictions on the use or consumption of energy or other utilities during the Term of the Lease, both LANDLORD and PIONEER shall be bound thereby. Any cost associated with compliance shall be paid by LANDLORD.

LANDLORD shall be responsible for the performance of all work, and costs thereof, to bring the Premises, Building, and Common Area, into compliance with (1) existing federal, state and local statutes, codes, and ordinances, including ADA and Title 24 requirements, and (2) any modified or new requirements of statutes, codes, and ordinances during the Initial and Option Terms of the Lease.

23. WASTE:

PIONEER shall not commit, or suffer to be committed, any waste upon the Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenants in Premises. This shall include PIONEER making its best efforts to ensure there is no loitering of PIONEER's clients, customers or invitees outside the Premises.

24. INSURANCE:

24.1 PIONEER's Insurance.

24.1.1 PIONEER represents to LANDLORD that it is a joint powers agency formed and existing under the provisions of the Joint Exercise of Powers Act of the State of California, Government Code Section 6500 et. seq., that is self- insured as of the Effective Date and maintains a program of self-insurance in an amount no less than Three Million Dollars ($3,000,000.00). LANDLORD agrees that PIONEER may satisfy the requirements regarding insurance limits set forth in this Section 24, et seq., by maintaining the foregoing minimum standard of self-insurance ("Self-Insurance Requirements"). The provisions in sections 24.1.2 through 24.1.8 regarding the provision of separate insurance policies with specified limits shall only apply in the event PIONEER fails to meet the Self-Insurance Requirements. However, the other rights and obligations of LANDLORD and PIONEER with respect to PIONEER's provision of the insurance coverages set forth in sections 24.1.2 through 24.1.7 shall still apply.

24.1.2 PIONEER shall maintain in full force throughout the Term, commercial general liability insurance providing coverage on an occurrence form basis with limits of not less than One Million and No/100ths Dollars ($1,000,000.00) each occurrence for bodily injury and property damage combined, One Million and No/100ths Dollars ($1,000,000.00) annual general aggregate, and One Million and No/100ths Dollars ($1,000,000.00) products and completed operations annual aggregate. PIONEER's liability insurance policy or policies shall: (i) include premises and operations liability coverage, products and completed operations liability coverage, broad form property damage coverage including completed operations, blanket contractual liability Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 13
coverage including, to the maximum extent possible, coverage for the indemnification obligations of PIONEER under this Lease, and personal and advertising injury coverage; (ii) provide that the insurance company has the duty to defend all insureds under the policy;
(iii) provide that defense costs are paid in addition to and do not deplete any of the policy limits; (iv) cover liabilities arising out of or incurred in connection with PIONEER's use or occupancy of the Premises; and (v) extend coverage to cover liability for the actions of PIONEER's Representatives. PIONEER shall also maintain workers compensation coverage as required by law.

24.1.3 PIONEER shall at all times maintain in effect with respect to any Alterations and PIONEER's trade fixtures and Personal Property, commercial property "Special Form" insurance providing coverage to the extent of ninety percent (90%) of the full replacement cost of covered property. PIONEER may carry such insurance under a blanket policy, provided that such policy provides equivalent coverage to a separate policy. During the Initial Term and any Option Term, the proceeds from any such policies of insurance shall be used for the repair or replacement of the Alterations, trade fixtures and Personal Property so insured. LANDLORD shall be provided coverage under such insurance to the extent of its insurable interest and, if requested by LANDLORD, both LANDLORD and PIONEER shall sign all documents reasonably necessary or proper in connection with the settlement of any claim or loss under such insurance. LANDLORD will have no obligation to carry insurance on any Alterations or on PIONEER's trade fixtures or Personal Property.

24.1.4 PIONEER shall obtain and at all times maintain in effect business interruption insurance in such amounts as will reimburse PIONEER for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent tenants or attributable to prevention of access to the Premises or the Building. In the event PIONEER fails to obtain or maintain business interruption insurance, it shall be conclusively determined that PIONEER has elected to self-insure for this exposure.

24.1.5 Each policy of insurance required under this Section 24.1 shall: (i) be in a form, and written by an insurer, reasonably acceptable to LANDLORD, (ii) be maintained at PIONEER's sole cost and expense, and (iii) require at least thirty (30) days' written notice to LANDLORD prior to any cancellation, nonrenewal or modification of insurance coverage. If PIONEER's insurance companies will not affirmatively agree to provide thirty (30) days advance written notice to LANDLORD, PIONEER shall have the affirmative obligation, not later than three (3) days after receipt of any notice of cancellation or notice of any material modification of insurance coverage, to deliver a copy of the notice to LANDLORD.

24.1.6 Each policy of liability insurance required by this Section 24.1 shall: (i) contain a cross liability endorsement or separation of insureds clause; (ii) provide that any waiver of claims or release effecting subrogation rights prior to a loss does not void coverage; (iii) provide that it is primary to, and not contributing with, any policy of insurance carried by LANDLORD covering the same loss; (iv) provide that any failure to comply with the reporting provisions shall not affect coverage provided to LANDLORD, its partners, property managers and mortgagees; and (v) name LANDLORD, its partners, LANDLORD's property manager, and such other parties in interest as LANDLORD may from time to time reasonably designate to PIONEER in Docusign Envelope ID: 5BA7 A 141-3C84-4A96-9C94-4285C82D852C 408002.4 14
writing, as additional insureds. Such additional insureds shall be provided the same extent of coverage as provided to PIONEER under such policies. All endorsements affecting such additional insured status shall be acceptable to LANDLORD and LANDLORD's insurance carrier or insurance consultant.

24.1.7 Prior to occupancy of the Premises by PIONEER, and not less than thirty (30) days prior to expiration of any policy thereafter, PIONEER shall furnish to LANDLORD a certificate of insurance reflecting that the insurance required by this Section 24.1 is in force, accompanied by an endorsement showing the required additional insureds satisfactory to LANDLORD in substance and form. Notwithstanding the requirements of this paragraph, PIONEER shall at LANDLORD's request provide to LANDLORD a certified copy of each insurance policy required to be in force at any time pursuant to the requirements of this Lease or its exhibits.

24.2 LANDLORD's Insurance. During the Term, LANDLORD shall maintain in effect insurance on the Building against special form perils (to the extent such coverage is available), with responsible insurers, insuring the Building in an amount equal to at least ninety percent (90%) of the replacement cost thereof, excluding land, foundations, footings and underground installations. LANDLORD shall also maintain commercial general liability insurance in such limits as LANDLORD deems appropriate. LANDLORD may, but shall not be obligated to, carry insurance in greater amounts and/or against additional perils including, without limitation, business income, flood, earthquake and/or boiler and machinery, as LANDLORD or its lenders may from time to time deem appropriate.

24.3 Waiver of Subrogation. LANDLORD and PIONEER each hereby waive any right of recovery against the other and the partners, members, shareholders, officers, directors and authorized representatives of the other for any loss or damage that is covered by any policy of insurance maintained by either party (or required by this Lease to be maintained) with respect to the Premises or any operation therein. If any such policy of insurance relating to this Lease or to the Premises or PIONEER's property does not permit the foregoing waiver or if the coverage under any such policy would be invalidated as a result of such waiver, the party maintaining such policy shall obtain from the insurer under such policy a waiver of all right of recovery by way of subrogation against either party in connection with any claim, loss or damage covered by such policy. Additionally, except as otherwise provided in this Lease, neither LANDLORD nor PIONEER shall be liable to the other or to any insurance company (by way of subrogation or otherwise) insuring the other party for any loss or damage for loss of income or losses under workers compensation laws and benefits, even though such loss or damage might have been occasioned by the negligence of such party, its agents or employees.

25. INDEMNIFICATION AND HOLD HARMLESS:

LANDLORD shall defend, indemnify, and hold PIONEER harmless from any and all liabilities, losses, claims, liens, demands, and causes of action arising out of this Lease, including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses arising out of this Lease, provided that such liabilities, losses, claims, liens, demands, and causes of action are attributable to bodily injury or death or Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 15
injury to or destruction of tangible property, but only to the extent caused by the breaches of this Lease, gross negligence, or willful misconduct of LANDLORD, its agents, employees, contractors and consultants, or invitees.

PIONEER shall defend, indemnify, and hold LANDLORD free and harmless from any and all liabilities, losses, claims, liens, demands, and causes of action arising out of this Lease, including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses arising out of this Lease, provided that such liabilities, losses, claims, liens, demands, and causes of action are attributable to bodily injury or death or injury to or destruction of property, but only to the extent caused by the breaches of this Lease, gross negligence, or willful misconduct of PIONEER, its agents, employees, separate contractors and consultants, or invitees.

LANDLORD and PIONEER shall provide one another with prompt written notice upon becoming aware of the occurrence of any such claim. This section shall survive expiration or termination of this Lease.

26. FREE FROM LIENS:

PIONEER shall keep the Premises free from any liens arising out of any work performed, material furnished, or obligation incurred by PIONEER.

27. RESERVED

28. PREMISES SIGNAGE:

PIONEER is permitted directory, building, monument and other signage subject to the CC&Rs and reasonable approval, if necessary, by LANDLORD. Any building and/or monument signage shall be at the sole cost and expense of PIONEER. PIONEER shall not place, or permit to be placed, any sign, including, but not limited to, parking directional signs, upon the exterior or in the windows of the building without LANDLORD's prior written consent, which shall not be unreasonably withheld.

29. ENTRY, INSPECTION AND ACCESS:

LANDLORD reserves the right to enter the Premises, and PIONEER agrees to make the Premises available during business hours and following at least forty-eight (48) hours written notice for the purpose of inspecting, maintaining or making repairs, as may be required, or for the purpose of posting notices of non-liability for alterations, additions or repairs. In an emergency, after a reasonable attempt has been made to notify PIONEER, LANDLORD shall have the right to use any reasonable means to obtain entry to the Premises. Any entry to the Premises obtained by LANDLORD in such emergency shall not be construed or deemed to be a forcible or unlawful entry into, or a detainer of the Premises, or an eviction of PIONEER from the Premises or any portion thereof. Any entry of Premises by LANDLORD shall be without liability to LANDLORD except for any failure to exercise due care for PIONEER's property. LANDLORD acknowledges that PIONEER may have records of a confidential nature and LANDLORD agrees to refrain from disturbing such records and will ensure oversight of LANDLORD's agents, contractors, or employees to ensure that they do not disturb such records.

Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 16
Any inspection, entry or non-emergency access to the Premises shall be coordinated through PIONEER's management or personnel and with no less than twenty-four (24) hours prior notice. Access to the Premises will be under supervision and accompanied at all times by PIONEER employees. All work shall be done as expeditiously as feasible so as to cause as little disruption to PIONEER as reasonably possible.

30. PIONEER's RIGHT TO PERFORM LANDLORD's OBLIGATIONS:

If LANDLORD fails to make any material payment required of it hereunder, or defaults in the performance of any other material promise, term, covenant, or condition required of it under this Lease, PIONEER may, at its sole option, without being under any obligation to do so and without thereby waiving such default, make such payment and/or remedy such other default, for the account of and at the expense of LANDLORD. PIONEER may do so immediately and without notice to LANDLORD in the case of an emergency or in any other case, on notice as specified herein, if LANDLORD fails to make such payment or remedy such default with all reasonable dispatch after PIONEER has given ten (10) calendar days' notice to LANDLORD in writing of the same. In the event of any such payment or remedy by PIONEER, PIONEER shall be reimbursed such payment or remedy in the form of a credit against the next scheduled Rent payment in effect at the time until the amount is satisfied.

31. DAMAGE AND DESTRUCTION OF PREMISES:
(a) If any part of the Premises, Building, or Common Area is damaged by fire, hazardous substance condition, or other casualty and the damage affects PIONEER's use or occupancy of the Premises, PIONEER shall give prompt notice to LANDLORD, and LANDLORD shall repair such damage with reasonable diligence. Except as provided herein, LANDLORD shall, at its sole cost and expense, restore or repair the Premises, Building, or Common Area diligently and to their condition immediately prior to the damage. If such casualty occurs and a portion of the Premises is still usable by PIONEER, the Rent shall be abated and prorated on a square footage basis of usable space until the Premises are restored to their original condition.
(b) If LANDLORD is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such repair, remediation, or restoration of the Premises within sixty (60) days after such obligation shall accrue, PIONEER may at any time prior to the commencement of such repair or restoration give written notice to LANDLORD of PIONEER's election to terminate the Lease on a date not less than thirty (30) days following the giving of such notice. "Commence" shall mean the beginning of the actual work on the Premises. Actual work shall include but not be limited to demolition of damaged structures or parts thereof, site surveys, architectural drafting of plans, insurance inspections and claim processing, repair equipment positioned on site, repair or replacement materials placed on site, and the application for demolition and building permits. (c) Notwithstanding the above, this Lease may be terminated by LANDLORD in any of the following situations:

Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 17
(1) If substantial alteration or reconstruction of the Premises is required as a result of the damage to an extent exceeding forty percent (40%) of the full insurable value thereof.
(2) If the damage to the Premises is caused by the negligence or willful misconduct of PIONEER, its employees or agents.
(3) If existing laws do not permit the Premises to be restored to substantially the same condition as they were in immediately before the destruction. (4) If the damage occurs during the six (6) months before the end of the Initial Term or, if exercised, any Option Term, and the repair, reconstruction, or restoration of the Premises will take more than six (6) months to complete.

Any such election to terminate this Lease shall be exercised by written notice to PIONEER delivered within sixty (60) days after the occurrence of the event of casualty causing such damage. The notice shall specify the date of termination, which shall be at least sixty (60) days after such notice is given. If LANDLORD gives such notice of termination, this Lease shall terminate as of the date specified, and all rent shall be prorated to the earlier of the date of termination or PIONEER's vacation of the Premises. (d) If the Premises are rendered unusable for the conduct of PIONEER's business by reason of such damage, LANDLORD shall give PIONEER written notice of the estimated time required for repair within thirty (30) days after the date of damage.

If LANDLORD reasonably estimates that the time needed for repair will extend more than three (3) months after the date of damage, then PIONEER shall have the right to terminate this Lease by giving written notice within fifteen (15) days after receipt of LANDLORD's notice. The termination shall be effective ten (10) days after the date such notice of termination is given.

32. ASSIGNMENT AND SUBLETTING:

PIONEER shall not assign, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, or sublet or license or permit the use or occupancy of the Premises or any part thereof by or for the benefit of anyone other than PIONEER, or in any other manner transfer all or any part of PIONEER's interests under this Lease (each and all a "Transfer"), without the prior written consent of LANDLORD, which consent shall not be unreasonably withheld, conditioned or delayed. If PIONEER is a joint powers authority, any loss of status as such shall be deemed a Transfer.

Prior to any proposed Transfer, PIONEER shall submit in writing to LANDLORD (i) the name and legal composition of the proposed assignee, subtenant, user or other transferee (each a "Transferee"); (ii) a current balance sheet, income statements for the current and immediately preceding two (2) years and such other reasonable financial and other information concerning the proposed Transferee as LANDLORD may request; and (iii) a copy of the proposed written assignment, sublease or other agreement governing the proposed Transfer. Within fifteen (15) business days after LANDLORD receives all such information it shall notify PIONEER in writing whether it approves or disapproves such Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 18
Transfer. If LANDLORD does not provide written approval or disapproval within the In no event may
PIONEER publicly offer or advertise all or any portion of the Premises for assignment or sublease at a rental less than that then sought by LANDLORD for a direct lease (non-sublease).

If LANDLORD consents to a sublease, LANDLORD shall be entitled to receive an amount equal to fifty percent (50%) of the amount (if any) by which the rent and other consideration payable by the subtenant exceeds the amount of Base Rent payable hereunder applicable to the subleased space.

No Transfer and no consent by LANDLORD to any Transfer shall relieve PIONEER of any obligation to be performed by PIONEER under this Lease, whether occurring before or after such consent, assignment, subletting or other Transfer. Each Transferee shall be jointly and severally liable with PIONEER (and PIONEER shall be jointly and severally liable with each Transferee) for the payment of Rent (or, in the case of a sublease, rent in the amount set forth in the sublease) and for the performance of all other terms and provisions of this Lease. Notwithstanding the foregoing, a Transfer may release PIONEER same is provided to Landlord.

33. DEFAULT BY PIONEER:
(a) The occurrence of any of the following (an "Event of Default") shall constitute a material default and breach of this Lease by PIONEER:
(1) Any failure by PIONEER to pay the Rent or any other monetary sums required to be paid per Section 7. After the twelve (12) day grace period has expired, written notice shall be provided to PIONEER by the LANDLORD and PIONEER shall have an additional three (3) days to rectify any outstanding sums owed to the LANDLORD before constituting a material default and breach of this Lease. (2) A failure by PIONEER to observe and perform any other material provisions of this Lease, where such failure continues for thirty (30) days after written notice thereof by LANDLORD to PIONEER; provided, however, that if the nature of the default is such that the default cannot reasonably be cured within said thirty (30) day period, PIONEER shall not be deemed to be in default if PIONEER commences such cure within the thirty (30) day period and thereafter diligently prosecutes the same to completion, which completion shall not take more than ninety (90) days after the initial thirty (30) day period following such written notice. (b) Upon the occurrence of an Event of Default, LANDLORD shall have the following remedies, which shall not be exclusive but shall be cumulative and shall be in addition to any other remedies now or hereafter allowed by law or equity:
(1) LANDLORD may terminate PIONEER' s right to possession of the Premises at any time by written notice to PIONEER. PIONEER expressly
acknowledges that in the absence of such written notice from LANDLORD, no other Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C foregoing time period, LANDLORD's approval shall be deemed granted. from any obligations under this Lease if PIONEER's Transferee expressly and irrevocably assumes such obligations in a writing signed by PIONEER's Transferee and a copy of at least thirty (30) days' prior
408002.4 19
act of LANDLORD, including re-entry into the Premises, efforts to relet the Premises, reletting of the Premises for PIONEER' s account, storage of PIONEER' s personal property and trade fixtures, acceptance of keys to the Premises from PIONEER or exercise of any other rights and remedies under this Section 33, shall constitute an acceptance of PIONEER' s surrender of the Premises or constitute a termination of this Lease or of PIONEER' s right to possession of the Premises. Upon such termination in writing of PIONEER' s right to possession of the Premises, as herein provided, this Lease shall terminate and LANDLORD shall be entitled to recover damages from PIONEER as provided in California Civil Code section 1951.2 and any other applicable existing or future law providing for recovery of damages for such breach, including the worth at the time of award of the amount by which the Rent which would be payable by PIONEER hereunder for the remainder of the Initial Term or Option Term (as applicable) after the date of the award of damages exceeds the amount of such rental loss as PIONEER proves could have been reasonably avoided, discounted at the discount rate published by the Federal Reserve Bank of San Francisco for member banks at the time of the award plus one percent (1%). (2) LANDLORD shall have the remedy described in California Civil Code section 1951.4 (LANDLORD may continue this Lease in effect after PIONEER' s breach and abandonment and recover Rent as it becomes due, if PIONEER has the right to sublet or assign, subject only to reasonable limitations).
(3) LANDLORD may cure the Event of Default at PIONEER' s expense. If LANDLORD pays any sum or incurs any expense in curing the Event of Default, PIONEER shall reimburse LANDLORD upon demand for the amount of such payment or expense with interest at a 10% per annum simple interest rate from the date the sum is paid or the expense is incurred until LANDLORD is reimbursed by PIONEER. (4) LANDLORD may remove all of PIONEER' s property from the Premises (if any), and such property may be stored by LANDLORD in a public warehouse or elsewhere at the sole cost and for the account of PIONEER. If LANDLORD does not elect to store any or all of PIONEER' s property left in the Premises, LANDLORD may consider such property to be abandoned by PIONEER, and LANDLORD may thereupon dispose of such property in any manner deemed appropriate by LANDLORD.

PIONEER hereby relinquishes all right, title and interest in such PIONEER' s property and agrees that LANDLORD may dispose of such PIONEER' s Property as it sees fit in its sole discretion, without any accounting or liability therefor, it being understood that PIONEER waives the provisions of California Civil Code Section 1993 et seq. governing the disposal of lost or abandoned property.
(5) LANDLORD shall be under no obligation to observe or perform any covenant of this Lease on its part to be observed or performed which accrues after the date of any uncured Event of Default by PIONEER hereunder.

34. DEFAULT BY LANDLORD:

LANDLORD shall be in default if LANDLORD fails to perform material obligations required of LANDLORD within a reasonable time, but in no event later than thirty (30) days after written notice by PIONEER to LANDLORD, whose name and address shall have theretofore been furnished to PIONEER in writing, specifying wherein LANDLORD has Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 20
failed to perform such obligations, provided, however, that if the nature of LANDLORD's obligation is such that more than thirty (30) days are required for performance, then LANDLORD shall not be in default if LANDLORD commences performance within such thirty (30)-day period and thereafter diligently prosecutes the same to completion, which completion shall not be more than ninety (90) days after written notice.

In the event of any such default or breach by LANDLORD, PIONEER may, without limiting PIONEER in the exercise of any right or remedy at law or in equity which PIONEER may have by reason of such default or breach, (i) perform work as would have been done by LANDLORD, applying the cost for such work as an offset to the next scheduled Rent payment along with adequate evidence of costs incurred, (ii) withhold such Rent until the n notice.

35. SURRENDER OF LEASE:

The voluntary, or other surrender of this Lease by PIONEER or a mutual cancellation thereof shall not work a merger and shall, at the option of LANDLORD, terminate all of any existing subleases or sub-tenancies or may, at the option of LANDLORD, operate as an assignment to it of any or all of such subleases or sub-tenancies.

36. TRANSFER OF LANDLORD's INTEREST:

In the event of any sale or transfer of the Property containing the Premises, LANDLORD shall be and hereby is entirely freed and relieved of all further liability under any and all of its covenants and obligations contained in or derived from this Lease, except with respect to any liabilities or obligations of LANDLORD that expressly survive the expiration or earlier termination of this Lease, and the purchaser at such sale or any subsequent sale of the Premises shall assume and carry out all of the covenants and obligations of LANDLORD under this Lease. In order for future rent payments to be properly redirected to a successor-in-interest of LANDLORD, LANDLORD agrees to ensure that any such successor-in-interest properly execute and deliver to PIONEER a "Hold Harmless and Indemnification Agreement" satisfactory in form and content to PIONEER. In the event the LANDLORD fails to have said successor-in-interest execute a "Hold Harmless and Indemnification Agreement" and/or the LANDLORD fails to notify PIONEER of the name and address of the new owner(s), PIONEER shall not be held liable for any late rent charges incurred during and up to the date that PIONEER receives proper notification of this information pursuant to Section 40. If any security deposit or prepaid Rent has been paid by PIONEER, LANDLORD will transfer the security deposit and prepaid Rent, if not already applied, to LANDLORD's successor and, upon such transfer, LANDLORD shall be relieved of all further liability with respect thereto.

37. LEGAL JURISDICTION:

This Lease is subject to the laws and jurisdiction of the State of California. In the event that any court action should be brought in connection with this Lease, it shall be subject to interpretation under the laws of the State of California, and any legal proceedings shall be brought under the jurisdiction of the Superior Court of the County of Placer, State of California.

The PARTIES hereby waive any federal court removal and/or original jurisdiction rights they may have.

38. HOLDING OVER:

Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C default is cured, or (iii) terminate this Lease upon thirty (30) days' prior writte 408002.4 21
Any holding over after the expiration of the Initial Term or any Option Term of this Lease shall be construed to be a tenancy from month-to-month, cancellable by either PARTY upon ninety (90) days' written notice to other PARTY, except that PIONEER shall have the unconditional, unilateral right to hold over for a period of six (6) months following the expiration of the Initial Term or any Option Term. The Rent to be paid during the hold-over period shall be one hundred twenty percent (120%) of PIONEER's then current Rent paid during the last month of the Initial or Option Term of the Lease, as applicable.

39. SUCCESSORS IN INTEREST:

The covenants herein contained shall, subject to the provisions as to assignment and novation, apply to and bind the PARTIES, heirs, successors, executors, administrators, and assigns of all the PARTIES hereto. This Lease shall not be affected by any sale of the Premises and PIONEER agrees to attorn to the purchaser or assignee, provided all of LANDLORD's obligations hereunder are assumed in writing by the transferee. The obligations contained in this Lease to be performed by LANDLORD shall be binding on LANDLORD's successors and assigns during their respective periods of ownership. The obligations contained in this Lease to be performed by PIONEER shall apply to and be binding upon all permitted successors and assigns.

40. NOTICES:

All notices, demands, consents, requests or other communications required to or permitted to be given pursuant to this Lease shall be in writing, shall be given only in accordance with the provisions of this Section 40, shall be addressed to the parties at the addresses set forth below. Written notices must be delivered through (a) an established national courier service that maintains delivery records and confirmations with courier fees prepaid; or (b) certified or registered U.S. Mail with prepaid postage and return receipt requested. All notices, demands or other correspondence in connection with this Lease will be effective on the date: (1) properly sent and received; (2) refused by the recipient; or (3) deemed undeliverable by the delivery service.

LANDLORD: 2540 Warren, LLC
2540 Warren Drive, Suite A
Rocklin, California 95677
PIONEER: Pioneer Community Energy
2510 Warren Drive, Suites B and C
Rocklin, California 95677
Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 22
Each party shall make an ordinary, good faith effort to ensure that it will accept or receive notices that are given in accordance with this Section and that any person to be given notice actually receives such notice. Any copies required to be given constitute an . A party may
change or supplement the addresses set forth herein or designate additional addresses for the purposes of this Section by delivering to the other party written notice in the manner set forth in this Section 40.

41. FORCE MAJEURE:

If either PARTY hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, pandemics, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws or regulations, unreasonable delays in processing of required permits, delays in responses or approvals of another PARTY hereto, or other cause without fault and beyond the control of the PARTY obligated (financial inability excepted), performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended by the lesser of: (1) a period equivalent to the period of such delay, or (2) the reasonable time required to perform said act.

42. PARTIAL INVALIDITY;
If any term, covenant, condition or provision of this Lease is held by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, the remainder of the Lease will not be affected, and in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision will be added as part of this Lease that is as similar to the illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable.

43. CAPTIONS:

The captions of the sections and paragraphs of this Lease are for convenience only and shall not be deemed to be relevant in resolving any question of interpretation or construction of any section of this Lease. All references to paragraph and section numbers refer to paragraphs and sections in this Lease. Words used in neuter gender include the masculine and feminine and words in the masculine or feminine gender include the neuter.

44. TIME OF THE ESSENCE:

Time is of the essence with respect to the performance of this Lease.

45. SUBORDINATION:

This Lease, at LANDLORD's option, shall be subject and subordinate to all ground or underlying leases which now exist or may hereafter be executed affecting the land upon Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C administrative step for the parties' convenience and not actual notice 408002.4 23
which the Premises are situated, and to the lien of any mortgages or deeds of trust in any amount or amounts whatsoever now or hereafter placed on or against the land or improvements or either thereof (including but not limited to new loans), of which the Premises are a part, or on or against LANDLORD's interest or estate therein, or on or against any ground or underlying lease without the necessity of the execution and delivery of any further instruments on the part of PIONEER to effectuate such subordination; provided, however that such other ground leases, underlying leases, Lease will be recognized and PIONEER shall not be disturbed in its possession so long as PIONEER is not in uncured default under this Lease beyond all applicable cure periods.

46. ATTORNMENT:

In the event any proceedings are brought for default upon any ground lease or any underlying lease or in the event of foreclosure or the exercise of the power of sale under any mortgage or deed of trust made by LANDLORD affecting the Premises, PIONEER shall attorn to the purchaser, transferee or subsequent LANDLORD, as the case may be, upon any such foreclosure or sale and recognize that party as LANDLORD under this Lease, provided such party acquires and accepts the Premises subject to the terms, conditions and covenants of this Lease.

47. ESTOPPEL:

Within thirty (30) days after PIONEE s receipt of a written request from LANDLORD, delivered to PIONEER in accordance with Section 40, PIONEER shall execute and deliver to LANDLORD or LANDLORD's designee, a written statement: (1) certifying this Agreement is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying this Agreement, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any, and (2) acknowledging that there are not, to PIONEE s knowledge, any uncured defaults on the part of LANDLORD hereunder, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by a prospective purchaser, assignee or encumbrancer of the Premises. PIONEE s failure to deliver such Estoppel Certificate within said thirty (30) day time period shall be conclusive upon PIONEER that:
(1) this Agreement is in full force and effect, without modification except as may be represented by LANDLORD, provided LANDLORD delivers written proof of said modification, (2) there are no uncured defaults in LANDLORD's performance, (3) not more than one month's rent has been paid in advance, and (4) PIONEER has no right of offset, counter-claim or deduction against rent.

48. QUIET ENJOYMENT:

So long as PIONEER pays the rent, and performs all of its obligations in this Lease, PIONEE s possession of the Premises will not be disturbed by LANDLORD, or anyone claiming by, through, or under LANDLORD.

49. NON-DISTURBANCE PROTECTION:

Notwithstanding anything to the contrary contained herein, PIONEE s obligations to Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C liens of any mortgages or deeds of trust shall provide that PIONEER's rights under this R'
R'
R'
R'
R'
408002.4 24
subordinate its rights hereunder to any future mortgage or to attorn to any future lender shall be conditioned upon LANDLORD's reasonable efforts to obtain from the lender (upon request from PIONEER) a non-disturbance agreement in such commercially reasonable form as may be acceptable to LANDLORD's lender, providing in substance that: (i) so long as PIONEER is not in uncured default beyond all applicable cure periods under this Lease, PIONEE s tenancy will not be disturbed, nor its rights under this Lease affected, by any default under such mortgage, nor shall PIONEER be named as a defendant in any foreclosure proceeding (unless the lender is legally required to do so), (ii) any successor landlord shall assume the obligations of LANDLORD under this Lease accruing thereafter, and (iii) the non-disturbance agreement shall be binding upon and inure to the benefit of the successors or assigns of the PARTIES thereto.

50. CONDEMNATION:

Condemnation of a portion or all of the Premises by any authority or person having jurisdiction to do so rendering the same unfit for the purpose for which leased, shall entitle either PARTY to cancel and terminate this Lease in its entirety at any time after the date of an order of possession. Upon such cancellation and termination, any rent paid in advance by PIONEER shall be refunded to it. All consideration, compensation, damages, income, rent, awards, relocation expenses and interest that may be paid or made in connection with any taking will be divided between the PARTIES as their respective interests may appear as determined by the condemning authority.

51. ENTIRE AGREEMENT:

This Lease, along with any exhibits, addenda, and attachments, constitutes the entire agreement by and between LANDLORD and PIONEER relative to the lease of the Premises, and this Lease and the exhibits, addenda, and attachments may be altered, amended, or revoked only by an instrument in writing signed by both PARTIES. All prior or contemporaneous oral or written agreements by and between the PARTIES and their agents or representatives relative to the lease of the Premises are revoked and extinguished by this Lease. If any provision contained in an addendum to this Lease is inconsistent with any other provision herein, the provision contained in the addendum shall control, unless otherwise provided in the addendum.

52. COUNTERPARTS:

This Lease may be executed in one or more counterparts, each of which shall be an original and all of which taken together shall constitute one instrument.

53. SIGNATURE AUTHORITY:

The persons signing this Lease on behalf of the LANDLORD and PIONEER each warrant and represent that they have the authority to execute this Lease on behalf of the respective PARTY.

54. CONSTRUCTION AND INTERPRETATION:

It is agreed and acknowledged by the PARTIES that the provisions of this Lease have Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C R'
408002.4 25
been arrived at through negotiation, and that each of the PARTIES has had a full and fair opportunity to review the provisions of this Lease and to have such provisions reviewed by legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply in construing or interpreting this Lease.

55. Mortgagee Protection
PIONEER agrees to give any holder of any encumbrance covering any part of the Premises (the "Mortgagee"), by registered mail, a copy of any notice of default served upon LANDLORD, provided that prior to such notice PIONEER has been notified in writing (by way of notice of assignment of rents and leases, or otherwise) of the address of such Mortgagee. If LANDLORD shall have failed to cure such default within thirty (30) days from the effective date of such notice of default, then the Mortgagee shall have an additional thirty (30) days within which to cure such default or if such default cannot be cured within that time, then such additional time as may be necessary to cure such default (including the time necessary to foreclose or otherwise terminate its Encumbrance, if necessary to effect such cure), and this Lease shall not be terminated so long as such remedies are being diligently pursued.

56. LANDLORD's Limited Liability
In consideration of the benefits accruing hereunder, PIONEER and all successors and assigns covenant and agree that in the event of any actual or alleged failure, breach or default hereunder by LANDLORD: (1) PIONEER's sole and exclusive recourse against LANDLORD shall be against LANDLORD's interest in the Property. PIONEER shall not have any right to satisfy any judgment which it may have against LANDLORD from any other assets of LANDLORD; (2) no partner, member, stockholder, director, officer, employee, beneficiary or trustee (collectively, "Partner") of LANDLORD shall be sued or named as a party in any suit or action (except as may be necessary to secure jurisdiction over LANDLORD, and only if such suit or action does not arise from the willful misconduct of the applicable Partner of LANDLORD); (3) no service of process shall be made against any Partner of LANDLORD (except as may be necessary to secure jurisdiction over LANDLORD, and only if such suit or action does not arise from the willful misconduct of the applicable Partner of LANDLORD); (4) no Partner of LANDLORD shall be required to answer or otherwise plead to any service of process provided that the suit or action does not arise from the willful misconduct of the applicable Partner of LANDLORD; (5) no judgment shall be taken against any Partner of LANDLORD provided that the judgment does not arise from the willful misconduct of the applicable Partner of LANDLORD; (6) any judgment taken against any Partner of LANDLORD may be vacated and set aside at any time nunc pro tunc provided that the judgment does not arise from the willful misconduct of the applicable Partner of LANDLORD; (7) no writ of execution shall ever be levied against the assets of any Partner of LANDLORD provided that the writ of execution does not arise from the willful misconduct of the applicable Partner of LANDLORD; and (8) these covenants and agreements are enforceable by PIONEER, LANDLORD and also by any Partner of LANDLORD.

57. WAIVER:

The failure of LANDLORD or PIONEER to insist upon strict performance of any of the terms, covenants, or conditions of this Lease shall not be deemed a waiver of any right Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 26
or remedy that LANDLORD or PIONEER may have, and shall not be deemed a waiver of their right to require strict performance of all terms, covenants, and conditions thereafter, nor a waiver of any remedy for the subsequent breach of any of the terms, covenants or conditions.

58. REASONABLE CONSENT:

Except as limited elsewhere in this Lease, wherever in this Lease LANDLORD or PIONEER is required to give its consent or approval to any action on the part of the other, such consent or approval shall not be unreasonably conditioned, delayed or withheld.

59. HAZARDOUS MATERIALS:
(a) PIONEER and LANDLORD shall comply with all applicable laws, ordinances, regulations, rules or requirements, including but not limited to those relating to work safety, public health and the environment. Specifically, but without limiting PIONEE s and LANDLORD's obligations described above, LANDLORD shall establish and adhere to any required hazardous material management plan (HMMP) for all Hazardous Materials used and/or stored on the Premises by LANDLORD. PIONEER shall establish and adhere to an HMMP if required by applicable laws for any Hazardous Materials used by PIONEER. (b) LANDLORD shall not hold PIONEER responsible or liable for any known or unknown pre-existing Hazardous Materials or contamination in effect prior to PIONEER entering into this Lease. LANDLORD shall not hold PIONEER responsible or liable for any Hazardous Materials or contamination caused by other tenants or third parties.
(c) PIONEER and LANDLORD will immediately notify the other orally (with a written notice to follow within five (5) days) if they know or have reasonable cause to believe that a release of Hazardous Materials has come or will come to be located on, in, about, or beneath the Premises or the parcel on which said Premises are located ("subject parcel" , in violation of applicable laws, provided that such notification obligation shall not in itself imply the existence of a remediation obligation on the part of PIONEER or LANDLORD.
(d) LANDLORD shall indemnify, defend, and hold harmless PIONEER, its officers, agents, employees, successors and assigns from any and all claims, demands, judgments, damages, liabilities or losses (including diminution in value of the Premises or damages from loss or restriction on use of the Premises), costs and expenses (including attorney's fees, consulting fees and expert fees), response and/or removal costs (including costs associated with site restoration, monitoring, corrective action, or closure), penalties, fines and punitive damages arising out of or in connection with the handling, storage, use, generation, treatment, manufacture, other management, or release of any Hazardous Materials by any person or entity other than PIONEER or its officers, agents, or employees.

Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C R'
)
408002.4 27

60. DEFINITIONS:

In addition to the terms defined throughout this Lease, the following terms shall have the meanings specified below when used in the Lease:
(a) "Common Area" means all areas within the exterior boundaries of the subject parcel now or later made available for the general use of PIONEER and other persons entitled to occupy floor area in the Building, including any mechanical, electrical rooms, ramps, parking stalls or areas, parkways, sidewalks, retaining walls, driveways and roadways, loading and unloading areas, trash areas, landscaped areas, and the common pipes, conduits, wires and appurtenant equipment serving the Premises. Any enlargement of or addition to the Common Area shall be included in the definition of Common Area. (b) "Days" means calendar days, unless otherwise specifically referred to as business days.
(c) "Hazardous Materials" means any substance, material, product, chemical, waste, contaminant, or pollutant including but not limited to, asbestos and asbestos-containing materials, urea formaldehyde, radioactive substance, flammable explosives, petroleum including crude oil or any fraction thereof, polychlorinated biphenyls, and all other hazardous substances, materials, or waste regulated by existing or future federal, state or local law, ordinance, regulation, code, resolution, administrative or legal decisions, and any common law theory relating to such materials.
(d) "Person" means an individual, trust, partnership, joint venture, association, corporation, and any other legal or business entity.
(e) "Personal Property" means any trade fixtures, furnishings or equipment, and all other personal property contained in the Premises from time to time. (f) "Systems and Equipment" means any plant, machinery, transformers, duct work, cable, wires, equipment, facilities, or systems designed to supply heat, ventilation, air conditioning, humidity, or any other services or utilities, or comprising or serving as any component or portion of the electrical, gas, steam, plumbing, sprinkler, communications, alarm, security, or fire/life/safety systems or equipment, or any other mechanical, electrical, electronic, computer or other systems or equipment utilized for any portion of the Premises, Building, or Common Area.

61. RESERVED

62. RESERVED

63. RESERVED

64. RESERVED
Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C 408002.4 28

65. FURTHER ASSURANCES:

From me to time, either PARTY, at the request of the other PARTY, and without further consideration, shall execute and deliver further instruments and take such other actions as the requesting PARTY may reasonably require to complete more effectively the transactions contemplated by this Lease.

66. AMENDMENTS:

This Lease may not be modified or amended except pursuant to a written instrument duly executed by all of the PARTIES hereto.

67. MOLD; AIR QUALITY; ASBESTOS:

LANDLORD warrants and represents that to the actual knowledge of LANDLORD, the Premises are free of asbestos, mold, and odor. LANDLORD, at its sole cost and expense, shall remove, mitigate or remediate any such asbestos, mold or odor that PIONEER identifies during the Initial and Option Terms of the Lease. PIONEER shall immediately notify LANDLORD of any asbestos, mold, odor or chronic water intrusion or flood conditions that exist upon or within the Premises.

68. RESERVED

69. SURRENDER OF PREMISES:

Upon the expiration or earlier termination of this Lease, PIONEER shall surrender the Premises in the same condition as when received, ordinary wear and tear excepted.

PIONEER, at its own expense, shall perform any restoration made necessary by the removal of PIONEE s personal property or alterations in the Premises, the exception of any improvements made pursuant to Sections 9 and 11, and Exhibit B of this Lease, or any other alterations made with written LANDLORD consent, all of which may remain in place.

70. RELOCATION:

LANDLORD shall not have the right to relocate PIONEER or PIONEER from the Premises under any circumstances.

71. If any party commences any action against the other party hereto to enforce or interpret this Lease, the prevailing party shall be entitled to recover from the losing party reasonable attorneys' fees and costs of suit.

72. SUCCESSORS.

This Agreement shall be binding on and inure to the benefit of the parties and their respective successors and assigns.

Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C ti
R' with

ATTORNEYS' FEES,
408002.4 29

73. AUTHORITY OF THE CEO:

The Chief Executive Officer , or his designee, shall administer this Lease on behalf of PIONEER. Unless otherwise provided herein or required by applicable law, the CEO shall be vested with all rights, powers, and duties of PIONEER hereunder. [SIGNATURE PAGE FOLLOWS]
Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C ("CEO")
[Signature Page to Lease Agreement]
408002.4
IN WITNESS WHEREOF, the PARTIES have duty executed this Lease, together with the aforementioned exhibits attached hereto, which Lease will be in effect on the year and day last written below.

LANDLORD:
2540 WARREN, LLC, a California limited
liability company
By: ______________________________
Name: __________________________
Its: ______________________________
Date of Execution: _________________
By: ______________________________
Name: __________________________
Its: ______________________________
Date of Execution: _________________
By: ______________________________
Name: __________________________
Its: ______________________________
Date of Execution: _________________
PIONEER:

PIONEER COMMUNITY ENERGY, a joint
powers agency formed under and existing
under the provisions of the Joint Exercise
of Powers Act of the State of California,
Government Code Section 6500 et. seq
By: _____________________________
Name: __________________________
Its: _____________________________
Date of Execution: __________________
PIONEER GENERAL COUNSEL:

Approved as to form
By: _____________________________
Name: __________________________
Its: _____________________________
Date of Execution: __________________
By: ______________________________
Name: __________________________
Its: ______________________________
Date of Execution: _________________
Attachments: EXHIBIT A - PREMISES

EXHIBIT B - CONSTRUCTION RIDER
Docusign Envelope ID: 5BA7A141 -3C84-4A96-9C94-4285C82D852C Tony Moayed
Owner
10/10/2025
GOocuSigned by:
(,.,,-J c.,,.;er
E7B74FCBCFAD49C ...

Chris Cormier
Owner
10/9/2025
Matt Carota
Owner
10/9/2025
Ryan Smith
Owner
10/9/2025
David Ruderman
Exhibit A

PREMISES
Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C Leased
Suite C
7,335 sf
OQ- tllll
Premises
Exhibit B

CONSTRUCTION RIDER

1. Tenant Improvements. PIONEER has approved the design and preliminary budget provided by TriCorp Group for the construction of new improvements ("Tenant Improvements") as set forth in that certain Preliminary Estimate of Project Probable Cost dated July 3, 2025 ("Preliminary Plan") attached hereto as Attachment 1 and incorporated herein by this reference. LANDLORD shall cause its space planner, architect and engineers to convert the Preliminary Plan into final working drawings and specifications ("Tenant Improvement Plans") consistent with the approved Preliminary Plan. The Tenant Improvement Plans will include all architectural, mechanical and electrical engineering plans required for the issuance of required permits ("Permits") and the completion of the Tenant Improvements, including complete detailed plans and specifications for PIONEER's partition layout, reflected ceiling, heating and air conditioning, electrical outlets and switches, telephone outlets, plumbing, fire sprinklers and finish specifications, all as required by the permitting authority.

2. Approval of Tenant Improvement Plans. PIONEER's failure to reasonably disapprove the Tenant Improvement Plans by written notice to LANDLORD (specifying the items in the Tenant Improvement Plans disapproved by PIONEER, the changes required to make the items acceptable, and the reasonable basis for PIONEER's disapproval) within ten (10) business days after PIONEER's receipt of the Tenant Improvement Plans shall be deemed to constitute PIONEER's approval of the proposed Tenant Improvement Plans (or PIONEER's approval of all items in the Tenant Improvement Plans that PIONEER does not disapprove in accordance with this section). If PIONEER reasonably disapproves any items in the Tenant Improvement Plans in accordance with this section, LANDLORD shall submit revised Tenant Improvement Plans to PIONEER, subject only to PIONEER's approval of the revisions of those items in the Tenant Improvement Plans previously disapproved by PIONEER. PIONEER's failure to reasonably disapprove such revised items in the Tenant Improvement Plans by written notice to LANDLORD (which notice shall specify in detail the changes required to make the items acceptable and the reasonable basis for PIONEER's disapproval) within ten (10) business days after receipt from LANDLORD shall be deemed to constitute PIONEER's approval of such items in the Tenant Improvement Plans. This procedure shall be repeated until the Tenant Improvement Plans are approved (or deemed approved) by PIONEER.

3. Cost of Tenant Improvements. The cost of the Tenant Improvements shall be paid for by PIONEER, including the cost of: space plans and studies; architectural and engineering fees; permits, approvals and other governmental fees; labor at prevailing wages, material, equipment and supplies; construction fees and other amounts payable to contractors or subcontractors; taxes; sales taxes on materials used; filing and recording fees; premiums for insurance and bonds, and all other costs expended or to be expended in the construction of the Tenant Improvements to the extent approved by PIONEER pursuant to Section 4 of this Construction Rider below.

4. Cost Proposal. LANDLORD and PIONEER acknowledge that the estimated costs of the Tenant Improvements pursuant to the Preliminary Plans as of the Effective Date is Five Hundred Sixty-Nine Thousand Sixty-Three Dollars ($569,063) (the "Estimated Costs").

After the Tenant Improvement Plans are approved in writing by LANDLORD and PIONEER, LANDLORD shall provide PIONEER with a cost proposal within ten (10) business days for the cost of completing the Tenant Improvements (the "Cost Proposal").

Docusign Envelope ID: 5BA7 A 141-3C84-4A96-9C94-4285C82D852C PIONEER shall within fifteen (15) business days after receipt of the Cost Proposal either (a) approve and deliver the Cost Proposal to LANDLORD, or (b) notify LANDLORD that PIONEER desires to change specific items in the Tenant Improvement Plans to reduce the amount of the Cost Proposal, in which case such changes shall be made to the Tenant Improvement Plan and the revised Tenant Improvement Plans shall be submitted for repricing and LANDLORD shall revise the Cost Proposal for PIONEER's approval. This procedure shall be repeated until the Cost Proposal is approved by PIONEER. The date by which PIONEER has approved the Cost Proposal shall be known hereafter as the "Cost Proposal Approval Date." In the event that, after the Cost Proposal Approval Date, any revisions, changes, or substitutions requested by PIONEER and approved by LANDLORD shall be made to the Tenant Improvement Plans, any additional costs which arise in connection with such revisions, changes or substitutions or any other additional costs shall be paid by PIONEER to LANDLORD as a "Change Order Cost" pursuant to Section 5 of this Construction Rider.

5. Change Orders. PIONEER may propose a change in the work described in the approved Tenant Improvement Plans only by written request to LANDLORD, which proposed change shall be subject to LANDLORD's reasonable prior written approval. Before commencing any change, LANDLORD shall prepare and deliver to PIONEER, for PIONEER's approval, a change order setting forth any increased cost of such change ("Change Order Cost"), which will include any associated architectural, engineering, construction and contractor overhead fees, and any delay in construction that would be caused by such change. If PIONEER fails to approve such change order and its associated Change Order Cost in writing within three (3) business days after receipt, PIONEER shall be deemed to have withdrawn the proposed change and LANDLORD will not proceed to perform that change. If PIONEER timely approves such change order in writing, PIONEER shall concurrently with such approval deposit with LANDLORD funds in the amount equal to such Change Order Cost.

6. Time Deadlines. PIONEER shall use its best, good faith, efforts and all due diligence to cooperate with LANDLORD and its architects and contractors to complete all phases of the Tenant Improvement Plans, the Cost Proposal, and the permitting and construction process, as soon as possible after the execution of the Lease, and, in that regard, shall meet with LANDLORD on a scheduled basis to be determined by LANDLORD, to discuss progress in connection with the same.

7. Payment Schedule. The Cost Proposal shall be referred to as "PIONEER's Share of Improvement Costs". In addition to payment of any Change Order Costs pursuant to Section 6 of this Construction Rider, PIONEER shall pay to LANDLORD the PIONEER's Share of Improvement Costs in the following three (3) installments: (i) thirty-four percent at issuance of the Permits; (ii) an
additional thirty-three percent (33%) of PIONEER's Share of Improvement Costs, including any approved change orders, upon the completion of fifty percent (50%) of the work required by the Tenant Improvement Plans, as reasonably determined by LANDLORD's contractor; and (iii) the remaining thirty-three percent (33%) of PIONEER's Share of Improvement Costs , including any approved change orders, upon successful completion of the work required by the Tenant Improvement Plans, as approved during the final inspection under the Permits.

8. Completion of the Work. LANDLORD shall use commercially reasonable efforts to complete construction of the Tenant Improvements in accordance with the provisions of this Construction Rider on or before the date that is six (6) months after the date the necessary permits are issued by the applicable authority, subject to events of Force Docusign Envelope ID: 5BA7A141-3C84-4A96-9C94-4285C82D852C (34%) of total PIONEER'S Share of Improvement Costs
Majeure (as provided in Section 41 of this Lease) and extensions provided as a result of approved changes under Section 5 to the Construction Rider. For the purposes of this Construction Rider, completion of the Tenant Improvements shall be deemed to have occurred upon successful completion of the final inspection under the Permits. PIONEER hereby waives all claims against LANDLORD relating to, or arising out of, the design and construction of the Tenant Improvements, including (without limitation) any restrictions on the quiet use and enjoyment and any other impacts on PIONEER's use of the Premises and Common Areas during the course of construction of the Tenant Improvements, except as arising from the gross negligence or willful misconduct of LANDLORD, its agents, employees or contractors. Upon completion of construction for the Tenant Improvements according to Tenant Improvement Plans and full payment by PIONEER to LANDLORD of PIONEER's Share of Improvement Costs and all Change Order Costs, LANDLORD shall assign to PIONEER all warranties and guaranties it received relating to the PIONEER Improvements.

Docusign Envelope ID: 5BA7 A 141-3C84-4A96-9C94-4285C82D852C

PIONEER ENERGY TI
Rocklin, CA

PRELIMINARY BUDGET
Date: 7/3/2025

QTY UNIT UNIT COST TOTAL DIV TOTAL
DIVISION 1: GENERAL CONDITIONS $53,000
Preconstruction - design coordination & permit processing 1 LS 3,500.00 $3,500 Architectural Design 1 LS 15,000.00 $15,000
Permit Fees - ALLOWANCE 1 LS 10,500.00 $10,500
Management/Supervision 4 MO 6,000.00 $24,000
DIVISION 2: SITEWORK/DEMOLITION $57,005
Interior Demolition 7335 SF 3.00 $22,005
ADA Improvements 1 LS 35,000.00 $35,000
DIVISION 3: CONCRETE $6,500
Concrete Cutting & Patchback 1 LS 6,500.00 $6,500
DIVISION 4: MASONRY $0
Not Used 0 LS 0.00 $0
DIVISION 5: METALS $0
Not Used 0 LF 0.00 $0
DIVISION 6: WOOD AND PLASTICS $11,900
New Breakroom Cabinets & Countertops 1 LS 9,500.00 $9,500 Common Area Niche Cabinets & Top - NIC, by others 1 LS NIC NIC Backing & Blocking for TVs/misc 8 EA 300.00 $2,400
DIVISION 7: THERMAL AND MOISTURE $22,005
Insulation 7,335 SF 3.00 $22,005
DIVISION 8: DOORS AND WINDOWS $16,250
New Interior Doors 3 EA 2,400.00 $7,200
New Interior Windows - glazing in HM frames 3 EA 850.00 $2,550 New Storefront Door/Storefront Modification 1 LS 6,500.00 $6,500 DIVISION 9: FINISHES $107,290
Metal Stud Framing & Drywall 7335 SF 4.30 $31,541
Acoustic Ceiling Repairs & Tile Replacement 7335 SF 3.00 $22,005 Painting 7,335 SF 3.65 $26,773
New Carpet Tiles 6,135 SF 3.90 $23,927
New VCT @ Breakroom 435 SF 7.00 $3,045
DIVISION 10: SPECIALTIES $0
Not Used 0 SF 0.00 $0
DIVISION 11: EQUIPMENT $0
Appliances - NIC 0 EA 0.00 $0
DIVISION 12: FURNISHINGS $0
Furnishings - NIC 0 EA 0.00 $0
Window Coverings - NIC 0 EA 0.00 $0
DIVISION 13: SPECIAL CONSTRUCTION $0
Not Used 0 SF 0.00 $0
DIVISION 14: CONVEYING SYSTEMS $0
Not Used 0 EA 0.00 $0
DIVISION 15: MECHANICAL $80,700 $11.36
HVAC Design & Construction - reroute existing ductwork 1 LS 72,000.00 $72,000 Reuse Existing Registers & All Unchanged Ductwork 1 LS Included Included (3) New T-stats and (3) New temperature sensors 2 LS Included Included Air Balance - in house, not 3rd Party 2 LS Included Included PREVAILING WAGE, Non-Union Wages
Attachment 1
~ TRICORP GROUP
- ---
Plumbing - remove & reinstall new sink @ breakroom w/disposal 1 EA 1,200.00 $1,200 Fire Sprinklers Design & Construction - head relocations as required 1 LS 7,500.00 $7,500 DIVISION 16: ELECTRICAL $139,541 $19.65
Electrical Design & Construction 1 LS 108,000.00 $108,000 Demo Existing Lights 1 LS Included Included
Install New Lights 1 LS Included Included
Low Voltage Work 7,335 SF 4.30 $31,541
A/V Low Voltage Work - NIC 1 LS NIC NIC
SUB TOTAL $494,190 $494,190
INSURANCE 1.00% $4,942
BUILDERS RISK INSURANCE - NIC; by Owner $0
OH&P 8.00% $39,931
P&P BOND - NIC $0
DESIGN CONTINGENCY / CONTINGENCY $30,000
TOTAL COST $569,063
$80.14
BREAKDOWN:

PRECONSTRUCTION & DESIGN $37,500
CONSTRUCTION COSTS $531,563
TOTAL $569,063

PIONEER ENERGY TI
Rocklin, CA
Preliminary Estimate QUALIFICATIONS
Date: 7/3/2025

QUALIFICATIONS

1. Preliminary Estimate based upon a mutually agreeable contract, terms, and conditions

2. Preliminary Estimate does not include utility meters, transformers or any utility fees

3. Preliminary Estimate does not include any union wages, but does include prevailing wages

4. Preliminary Estimate does not include unforeseen conditions including removal or remediation of contaminated or unsuitable soils, tanks, debris, etc.

5. Preliminary Estimate does not include security guard during construction

6. Preliminary Estimate does not include bringing the property up to full code or ADA requirements - allowance is included for ADA improvements needed for permitting

7. Preliminary Estimate does not include testing or removal of any hazardous materials

8. Preliminary Estimate does not include providing of T24 calculations or meeting T24 requirements

9. Preliminary Estimate does not include any A/V low voltage work

10. Preliminary Estimate does not include any unforeseen conditions

11. Preliminary Estimate does not include any site fencing or barricades

12. Preliminary Estimate does not include any after hours or weekend work - assumes regular Monday thru Friday 7AM-4PM work week

13. Preliminary estimate is based on historical data/pricing and limited subcontractor input - actual improvements costs will need to be solidified based on the final design and subcontractor bids ~ TRICORP GROUP

Page 1 of 2 ends

Staff Report – Item IV-B
To: The Governing Board
From: Donald Eckert Jr., Chief Executive Officer
Item IV-B: CEO Report
Date: 10/16/2025

PERSONNEL
Pioneer is pleased to welcome our newest team member, Braden Henderson, to the Legislative and Regulatory Analyst II position. Braden’s experience includes previous positions at Empirical Systems Aerospace and the California Energy Commission. Braden’s prior duties include leading proposal development and contracting for projects with private companies and government programs and evaluating grant funding opportunities for clean energy research projects including energy storage, energy generation, grid resilience, and public charging infrastructure. Braden holds degrees in Electromechanical Systems Engineering Technology from California Polytechnic University, Pomona and a Masters in Urban Land Development from Sacramento State University.

There are two active recruitments for a Power Supply Manager/Analyst position and Customer Care Coordinator.

CHIEF EXECUTIVE OFFICER AGREEMENTS EXECUTED (NON-POWER SUPPLY) The following agreements have been conducted by the Chief Executive Officer, consistent with the authority delegated by the Board:
 Consultant Services Agreement with Arup US, Inc. for Technical Engineering Partner (Microgrid Incentive Program) RFP services in an amount not to exceed $50,000 and each project not to exceed $25,000.

UPCOMING GEYSERS TOUR
Just a reminder that Pioneer is hosting a tour of the Calpine Geysers on Friday, November 7, from 10:00 – 3:00.

Located north of San Francisco in the Mayacamas Mountains, the Geysers are the nation’s largest renewable geothermal power producer. A survey was sent to the Board on October 9th to confirm attendance, transportation needs, and preferred lunch. We need to finalize attendance by October 23rd.

GOOGLE REVIEW ACHIEVES 4-STAR STATUS
Pioneer achieved an average 4-star rating on Google from our ratepayers based on interactions with our customer service. Most of the inquiries are related to our program offerings. Pioneer is now ranked #1 amongst all CCAs in the state both in the number of reviews we received and in overall rating. This is a source of pride for the staff but also helps with the expansion and brings credibility to our current and future ratepayers.

FUTURE BIOMASS PLANT IN GRASS VALLEY THROUGH THE BIOMAT PROGRAM Together with the City of Grass Valley and West Biofuels, Pioneer will soon get its first BioMAT project under contract in Grass Valley. West Biofuels has filed a Program Participation Request with Pioneer that will be processed and lead to the execution of a power purchase agreement. Community Choice Aggregators like Pioneer can access the BioMAT program through the passage of Assembly Bill 843 in 2021 that Pioneer led.

After over 2 years of arduous implementation work, BioMAT only became available to CCAs in 2024, and now in 2025, a key Pioneer mission has become a reality.

SPONSORSHIP QUARTERLY REPORT
The following table includes sponsorship activity throughout the first quarter of the fiscal year:

Agenda Item: IV-B Agenda Date: 10/16/2025

Page 2 of 2 ends

HOW TO READ YOUR BILL VIDEO
Pioneer now is creating many of its customer care and outreach materials in-house, which allows for increased efficiency, greater message discipline, and additional resources for the customer care and outreach teams. One of the most pressing needs is information that helps customers understand their often-complex bills. To address this need, Pioneer is developing a series of educational videos for customers that will be displayed on the website, used at customer care field days, events, and on social media. Additionally, since many of the other CCAs also need these types of resources, Pioneer plans share templates of the videos as another way of showing Pioneer’s leadership in the CalCCA community.

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

Presentations and Relevant Meetings attended by the Chief Executive Officer

1. Participated in CalCCA Weekly/Monthly Board meetings.

2. Participated in CalCCA Board Retreat

3. Presented at County of Colusa and Madera Board of Supervisors meetings regarding expansion.

ATTACHMENTS

1. Agenda Planning Document

2. Legislative and Regulatory Report

3. Communications Report

4. Programs Report

5. Strategic Plan Quarterly Progress Report
Event Date Member Community Vendor Special Event Amount CY 2025 Auburn Hillmen Foundation Future Innovators Science Lab Sponsorship $ 2,500 7/3/2025 Colfax Colfax Railroad Days Colfax 3rd of July $ 1,500 7/4/2025 Auburn Auburn Chamber of
Commerce Auburn Family Fourth of July $ 2,000
7/4/2025 Grass Valley Grass Valley Downtown
Association Grass Valley 4th of July $ 1,500
8/6-10, 2025 Grass Valley/Nevada
County Nevada County Fairgrounds Nevada County Fair $ 1,950 8/22-23,
2025 Lincoln Lincoln Area Chamber of Commerce Lincoln Airport Wings & Wheels $ 1,500 9/10/2025 Auburn/Placer County Latino Leadership Council Latino Leadership Council Annual Forum $ 500 9/12/2025 Statewide League of California Cities Sacramento Valley Division Meeting $ 1,500 9/14/2025 Rocklin Rocklin Public Saftey
Foundation Patriot Day $ 1,000
9/20/2025 Rocklin Rocklin Area Chamber of
Commerce 32nd Annual Hot Chili & Cool Cars $ 1,500
9/22-28,
2025 Placer County Placer Land Trust 2025 Conservation Celebration Week $ 500 9/25/2025 Auburn Auburn Chamber of
Commerce Annual Celebrate the Community Dinner $ 1,500
TOTAL $ 17,450
Quarter Ended September 30, 2025
*Special Note: Pioneer invested, for community outreach visibility purposes, $7,500 to support the Placerville Aquatics Center’s pump upgrade of its City Pool.

Counterparty Name Execution
Date Type Product Start Date End Date Notional Value
Janus Solar PV, LLC 9/2/2025 Buy Renewables - PCC1 6/1/2027 5/31/2042 $193,085,987 Janus Solar PV, LLC 9/2/2025 Buy Resource Adequacy - Flexible 6/1/2027 5/31/2042 $239,040,000 Shell Energy North America 9/17/2025 Sell Resource Adequacy 1/1/2026 6/30/2026 $45,725 Agenda Planning Document – Pioneer Community Energy ATTACHMENT 1 10-8-25

BOARD OF

DIRECTORS
OCTOBER 16, 2025

REGULAR MEETING
3:00 PM
(Post Agenda: October 10)
NOVEMBER 20, 2025

SPECIAL MEETING

REGULAR MEETING
3:00 PM
(Post Agenda: November 14)
DECEMBER 18, 2025

SPECIAL MEETING

PH & REGULAR MEETING
3:00 PM
(Post Agenda: December 12)

IN THE FUTURE
Special Meeting
Closed Session
(1)Conference with Legal Counsel
(1)Conference with Labor Negotiator
(1)Conference with Legal Counsel
Regular Meeting
3:00 PM
JANUARY 15, 2025
Consent 1a Minutes for Approval-SEPT 18, 2025 Minutes for Approval-OCT 16, 2025 Minutes for Approval-NOV 20, 2025 DEC-JAN RES Governing Board 2026 Schedule (FEB 2026-JAN 2027) (Eckert)
1b Receive Draft Financials JUL 2025
(Koehn)
Receive Draft Financials SEP 2025
(Koehn)
Receive Draft Financials OCT 2025
(Koehn)
RES Contract Renewal – Calpine (Koehn)
1c Receive Draft Financials AUG 2025
(Koehn)
RES IT Policies – part 2 (Koehn) RES IT Policies – part 3 (Koehn) 2026 RES Yes Energy (Kang) 1d RES Compensation Adjustments;
Employee Welfare & Benefits (Koehn)
1e RES IT Policies – part 1 (Koehn)
1f RES Facilities Lease (Koehn)
Presentation 2 Final Resolution on the Pathways Bill
(AB 825) Presentation (discussion-Kang)
Calpine Grant Award Presentation – (action- Stassi-Vanacore) guest: x
PH – RES Rates (action-Eckert) DEC-JAN Annual Audit (discussion) FEB RES IRP (Integrated Resource Plan) – (action-Kang) Regular 3 Approve 30-Day Notice for DEC 18 vote
(JPA Amendment No. 8) (action-Eckert)
guest: PEA (Alden)
End of Legislative Session Update
(discussion-Kang)
guest: NPA
RES JPA Amendment No. 8
(action-Eckert)
NOV-DEC RES Amendment No. 6 to CEO
Employment Agreement (GC/Board Chair)
4 Fiscal Year 2024-25 in Review
(discussion-Koehn)
MIP Update
(discussion-Kang)
RES Addendum No. 4 to
Implementation Plan (action-Eckert)
JAN update on Advertising Campaign
(discussion- Stassi-Vanacore)
5 RES AI Acceptable Use Policy
(action-Koehn)
RES Amended Line of Credit
(action-Koehn)
Programs Year-in-Review
(discussion- Stassi-Vanacore)
JAN Annual Selection of Board Officers
(action-Eckert)
6 RES Facilities Lease (action-Koehn) Power Procurement Year-in-Review (discussion-Kang)
JAN Annual Appointment of ad hoc EPRC
Members (2026)
7 Recognition of Board Members
(action-Eckert)
DEC-JAN RES Rebate Program
(action-Stassi-Vanacore)
8 guest: Dr. Ahmad Faruqui (in person)
General Function II Chief Executive Officer’s Report
REG Reports:

Leg/Reg; Communications; Programs;
“How to Read Your Bill” presentation
(Taylor); Geysers tour RSVP,
transportation requests, & menu
selection due October 23.

QTRLY Updates requested by the Board
 Strategic Plan Objectives
 Sponsorship Activity
Chief Executive Officer’s Report
REG Reports:

Leg/Reg; Communications; Programs;
Chief Executive Officer’s Report
REG Reports:

Leg/Reg; Communications; Programs;
Chief Executive Officer’s Report
QTRLY Updates requested by the Board
JAN – APR – JULY – OCT
 Strategic Plan Objectives
 Sponsorship Activity
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms
Informational Items
Glossary of Terms FEB Celebratory Toast-Debt Free
LJ
7 7 7
Agenda Planning Document – Pioneer Community Energy ATTACHMENT 1 10-8-25
AUDIT/FINANCE COMMITTEE TO BE SCHEDULED – EARLY DECEMBER in-person & remote locations IN THE FUTURE
David Ring, Chair
Richard Pearl, Vice Chair
Greg Janda
Gary Petersen
o May 12, 2025 Minutes
o Rates
o Financial Audit
Selection of Officers through 2026

ENERGY PROCUREMENT REVIEW

AD HOC COMMITTEE
TUESDAY, NOVEMBER 4, 2025
3:00 PM
zoom only

IN THE FUTURE
Gary Petersen, Chair
Alice Dowdin Calvillo, Vice Chair
Ryan Carter
Greg Janda
Sean Lomen
o (1) PPA (JAN-BOARD) Annual Appointment of EPRC Members (2026) Selection of Officers through 2026

EXPANSION

AD HOC COMMITTEE
TUESDAY, OCTOBER 14, 2025
10:00 AM
zoom only IN THE FUTURE
Alice Dowdin Calvillo, Chair
Tom Ivy, Vice Chair
Suzanne Jones
Lori Parlin
o Review Impact Assessment Study results Selection of Officers through 2026 GOVERNANCE COMMITTEE TO BE SCHEDULED – LATE JANUARY
in-person & remote locations IN THE FUTURE
Board - Chair
Board - Vice Chair
Committee Chairs
Board Chair, Ex Officio (prior year)
o September 11, 2025 Minutes
o Administration of Meetings for Large Boards
o Governance Best Practices
Selection of Officers through 2026

COMMUNITY ADVISORY COMMITTEE
TO THE CHIEF EXECUTIVE OFFICER OCTOBER 22, 2025 IN THE FUTURE Meets on the 4th Wednesday
(even-numbered months)
December (date TBD)
I

Page 1 of 21 ends

Attachment 2: Legislative and Regulatory Update
Date: 10/16/2025
Legislative Affairs
• As part of Pioneer’s 2025 Legislative Policy and Platform that the Board of Directors approved, Pioneer staff have submitted letters of support for the following bills:
o AB 706 (Aguiar-Curry): This is a Pioneer sponsored bill that would establish the FOREST and Wildfire Prevention Fund, to promote biomass utilization that contributes to California’s wildfire fuel reduction targets while providing clean firm energy to improve grid resiliency. o AB 66 (Tangipa): This bill would provide a temporary CEQA exemption, until January 1, 2032, for projects that create or improve emergency egress routes in residential areas and communities that currently lack a secondary route.
o SB 88 (Caballero): This bill would require the California Air Resources Board, CalFire and the California Energy Commission to take specific steps to track, locate, and quantify the emissions from the burning of forest and agricultural waste. This bill intends to monetize the value of avoided emissions during biomass waste utilization processes and encourage the beneficial use of biomass residues to prevent wildfires and avoid managed open pile burning. o SB 540 (Becker): This bill would provide the California Independent System Operation (CAISO) with authority to implement the “Pathways Initiative”, which would allow CAISO to tap into a wider market of electricity sources throughout the broader Western region. Many studies have shown establishing a regional energy market stands to provide Californians with significant cost savings, enhanced grid reliability, and reduced air pollution. o AB 1227 (Essayli): This bill would affirm the Governor’s State of Emergency Proclamation, issued on March 1, 2025, ordering state agencies to fast-track critical wildfire prevention projects, by requiring specified state agencies to report on these expedited projects. The bill would also create a temporary CEQA exemption, until January 1, 2028, for critical fuels reduction projects conducted in communities located in high fire hazard severity zones. • Pioneer-sponsored bill, AB 706 (Aguiar-Curry) has been put on pause by the author’s office, due to the delay in budget negotiations. The author’s office is still committed to advocating for funding allocation for a biomass development program, as outlined in AB 706, through the ongoing budget negotiations. • On SB 540 (Becker), Pioneer changed its position from “Support” to “Oppose unless amended (OUA)” due to concerning provisions that were added through Senate amendments. Our specific areas of concern are the creation of the Regional Energy Markets Oversight Council, the inclusion of legislative oversight with the appropriate committees, revisions to the Renewable Portfolio Standard, and unnecessary restrictions on future markets. These added provisions create significant roadblocks to achieving the bill’s original intent of enabling the creation of a robust regional Western energy market.

Pioneer sent updated letters expressing our OUA position to our constituent legislators and signed onto two coalition letters, along with a number of other CCAs and CalCCA, urging the Legislature to pass a workable version of SB 540.
• In the final days of the legislative session, the Pathways Initiative language in SB 540 (Becker) was moved to a new bill vehicle, AB 825 (Becker, Petrie-Norris, Rivas). AB 825 did not contain the provisions of concern that Pioneer had previously opposed in SB 540, allowing the Pathways Initiative to move forward successfully. Pioneer joined a coalition of broad supporters from the energy and environmental space including CalCCA and other CCAs, in signing onto a support letter for AB 825. • As of September 13, 2025, the deadline for the legislature to pass bills onto the Governor’s desk, below are the results for Pioneer’s high priority bills:
o AB 706: Held in Senate policy committee
[Publish Date] Agenda Date: 10/16/2025

Page 2 of 21 ends

o AB 825 (previously SB 540): Passed onto Governor’s desk o AB 66: Held in Senate policy committee
o SB 88: Passed onto Governor’s desk
o AB 1227: Held in Senate appropriations committee
• On September 19, 2025, the Governor signed a package of bills aimed at promoting energy affordability and state climate goals. The energy-related bills include:
o AB 825: This bill would enable the Pathways Initiative by authorizing CAISO to participate in a Western regional energy market.
o AB 1207: This bill extends the California Cap and Trade Program, rebranded as “Cap and Invest” beyond 2030 to 2045.
o SB 254: This is an affordability omnibus bill that has a broad range of provisions aimed at promoting energy affordability and strengthens the state’s Wildfire Fund. • The governor has until October 13, 2025 to sign or veto the bills on his desk.

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

Key Terms
CPUC- California Public Utilities Commission CAISO- California Independent System Operator CEC- California Energy Commission OIR- Order Instituting Rulemaking/ “Proceeding” LSE- Load Serving Entity AL- Advice Letter
IOU- Investor-Owned Utility PD- Proposed Decision
ALJ- Administrative Law Judge
Proceeding Issue Pioneer Position
R.22-10-010 OIR to Implement AB 843 (2022) –
The Bioenergy Adjusting Tariff
Program (BioMAT)
Expeditiously implement AB 843 to
allow CCA access to the BioMAT
program for future subsidies for
biomass procurement
R.20-05-003 OIR to Continue Electric Integrated
Resource Planning (IRP) and
Related Procurement Processes
Advocate for procurement planning
policies that prioritize affordable
baseload resources such as biomass
energy
R.24-01-017; CEC OIR 21-RPS-02
OIR to Continue Implementation
and Administration, and Consider
Further Development, of California
Renewables Portfolio Standard
Program (RPS)
Ensure Pioneer maintains
compliance with RPS mandates and
advocate for fair inclusion of
biomass in RPS guidelines
R.23-10-011 OIR to Oversee the Resource
Adequacy (RA) Program, Consider
Program Reforms and Refinements,
and Establish Forward Resource
Adequacy Procurement Obligations
Refine the current RA Program
construct; reduce volatility of RA
prices; increase RA procurement
availability and grid reliability
R.22-07-005 OIR to Advance Demand Flexibility
Through Electric Rates
Limit negative impacts of the
Income Based Graduated Fixed
Charge and educate Pioneer Board
and customers prior to the rollout.
[Publish Date] Agenda Date: 10/16/2025

Page 3 of 21 ends

A.20-02-009; A.21-03-008;
A.21-06-001; A.22-05-029;
A.24-05-009; A.25-05-011
PG&E 2019 Energy Resource
Recovery Account (ERRA)
Compliance Application; PG&E 2020
ERRA Compliance Application; 2021
ERRA Compliance Application; 2022
ERRA Compliance Application; 2023
ERRA Compliance Application; 2023
ERRA Forecast Application; 2024
ERRA Forecast Application; 2024
ERRA Compliance Application; 2025
ERRA Forecast Application; 2026
ERRA Forecast Application
Reduce the ERRA impact on the
PCIA; increase data transparency
from the IOUs
R.21-03-011 OIR to Implement Provider of Last
Resort (POLR)
Limit the impacts of changes to the
Financial Security Requirement
(FSR)
R.18-12-005 Utility De-energization, Public
Safety Power Shutoffs (PSPS), and
Enhanced Powerline Safety Settings
(EPSS)
Reduce impacts of PSPS and EPSS
events; increase coordination and
communications with IOUs to
ensure public safety during de-energization; limit PSPS and EPSS impacts on CCA load scheduling
CEC 21-OIR-03; 23-LMS-01 Load Management Standards (LMS) Ensure Pioneer maintains compliance with CEC mandates and
requirements
R.25-02-005 OIR to Update and Reform Energy
Resource Recovery Account (ERRA)
and Power Charge Indifference
Adjustment (PCIA) Policies and
Processes
Advocate for ERRA and PCIA
reforms that will not result in unfair
cost shifts between bundled and
unbundled customers
AB 843 BioMAT Implementation:
• October 20, 2022- The OIR was opened to examine the implementation of AB 843. • November 30, 2023- The CPUC voted to approve the revised PD which clarified many of the issues raised in the comments of the PD, while retaining the favorable outcome for CCAs. • January 2, 2024- The IOUs submitted their Tier 2 ALs modifying the BioMAT Tariff to incorporate CCAs. • January 29, 2024- 60 days from the Decision- CCAs finalized two provisions with Accion for website work and third-party administrator. In addition, CCAs submitted a revised tariff, a program participation request, power purchase agreement, rate schedule, and balancing statement as part of a Tier II AL to the CPUC. • February 1, 2024- Tier III ALs were submitted by 4 CCAs indicating interest in participating in the BioMAT program (3CE, Pioneer, RCEA, and OCPA).
• February 23, 2024- CalCCA submitted a 15-day extension until March 14 to meet the requirement for the central BioMAT Accion webpage and standard framework for individual CCA webpages within 90 days of the decision due to an issue raised by Accion in the third-party administrator Statement of Work that the CCAs, IOUs, and Accion are attempting to resolve.
• February 25, 2024- RCRC submitted reply comments in support of the Joint CCAs proposal to consider extending the BioMAT program sunset date.
• March 1, 2024- A group of CCAs (Pioneer, RCEA, 3CE, OCPA, MCE, and VCE) submitted comments in the RPS proceeding asking the CPUC to consider expediting consideration of an extension to the BioMAT program beyond 2025.
• March 5, 2024- There is an agreement with Accion as the Third-Party Administrator. The agreement has been reviewed and signed by Pioneer as well as the other 3 CCAs. [Publish Date] Agenda Date: 10/16/2025

Page 4 of 21 ends

• March 21, 2024- There was a meeting with CPUC staff on implementation of AB 843. Brad Hill will be moving over to the Natural Resources Agency.
• March 28, 2024- Assembly Member Aguiar-Curry submitted a letter of support to the CPUC for the extension of the BioMAT program. This letter included the support of other legislators: Senator Alvarado-Gil, Senator Dahle, Senator Talamantes Eggman, and Assembly Member Dahle. • March 28, 2024- CalCCA submitted a third request for extension of time for an additional 31-day extension of time (until April 29) for the central BioMAT Accion webpage and standard framework for individual CCA webpages to be completed within 90 days of the effective date of the decision. Work has been delayed pending final agreement from all parties to revisions to the third-party administrator Statement of Work. • April 4, 2024- There was a prehearing conference to address the preliminary scope of issues in the OIR for IRP where the Joint CCAs are asking for an extension of the BioMAT program. During this conference, Scott Blaising represented the Joint CCAs and asked for 1) the CPUC to expedite the extension of the BioMAT program and 2) broadly review the program.
• May 1, 2024- CPUC approved the joint CCAs Tier 2 Advice Letter which approved the BioMAT standard program documentation which included the tariff, the pro-forma power purchase agreement, program participation request forms, BioMAT program website and portal development contracts, independent third-party contracts, initial balancing account statements, and non-bypassable charge rate scheduled. • Pioneer has completed the implementation of the BioMAT program. The website and all necessary documents for BioMAT are live.
• June 20, 2024- CPUC issued a Draft Resolution to approve participating CCAs’ forecast revenue requirements, which is $0 for 2024-2025 for all participating CCAs, since no BioMAT projects are forecasted to COD before then.
• September 1, 2024- CPUC granted the joint CCAs’ extension request for the BioMAT application for prudent contract management, since there are no BioMAT contracts to report on. The new deadline will be 6 months after the first BioMAT contract is executed or September 1, 2025, whichever date comes first. • January 31, 2025- Pioneer submitted a Tier 3 AL to seek cost recovery for forecasted revenue requirements for 2026, which are $0.
• March 6, 2025- The CPUC issued a notice to Pioneer, informing us that our Tier 3 AL seeking cost recovery for BioMAT forecasted revenue requirements for 2026 is suspended for review for up to 120 days beginning March 3, 2025.
• April 7, 2025- Pioneer filed supportive reply comments to the Bioenergy Association of California (BAC)’s Petition to Modify (PFM) CPUC Decision 20-08-043 in the 2018 RPS proceeding, regarding changes to the BioMAT program. In its PFM, BAC urged the CPUC to extend or remove the sunset date on the BioMAT program, along with other program revisions, to ensure the program can meet its statutory requirement of enabling the procurement of 250 MW of distributed generation bioenergy. Pioneer, in partnership with the Redwood Coast Energy Authority (RCEA), filed comments, detailing our BioMAT project development efforts and urging the CPUC to consider expedited action on the extension of the BioMAT program, considering it is scheduled to sunset at the end of 2025. Pioneer’s comments also echoed BAC’s other requested changes to the BioMAT program to enable more subscription, including improving interconnection issues and removing cost caps for Category 3 projects using forest biomass waste. • In the weeks of August 25th and September 1st of 2025, Pioneer and RCEA conducted five ex-parte meetings with the offices of commissioners assigned to the RPS proceedings where the issue of BioMAT implementation is being considered. The purpose of the ex partes was to request for the Commission to expeditiously grant a five-year extension of the BioMAT program, considering the sunset date of December 31, 2025 is quickly approaching. In the ex-partes, Pioneer and RCEA presented on the background of CCAs’ interest and involvement in BioMAT, our current efforts to implement the program, and justifications for why BioMAT should be extended. The commissioners’ offices did not explicitly address if or when the issue of BioMAT extension will be considered in the current RPS proceeding. • September 18, 2025- The CPUC issued a PD, denying BAC’s PFM seeking to extend or remove the BioMAT sunset date, along with other suggested program revisions. In the PD, the CPUC concludes that BioMAT is a costly rate-payer program that remains underutilized after multiple program revisions and should be set to [Publish Date] Agenda Date: 10/16/2025

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sunset at the end of 2025, following the directive set forth in the Governor’s Executive Order N-5-24 on Energy Affordability. Pioneer and RCEA staff met with Energy Division (ED) on September 25, 2025 to discuss how CCAs’ continued interest and efforts in implementing BioMAT were considered in the rationale of the PD. ED Staff acknowledged that despite CCA’s’ efforts to foster relationships with potential BioMAT projects, the PD only considered the lack of program utilization in the formal BioMAT queue. Pioneer and RCEA staff will work together to file joint comments to the PD on October 8, 2025, further advocating against the sunsetting of the BioMAT program.

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

The IRP proceeding serves as the vehicle for the CPUC to evaluate utilities’ progress towards meeting the SB 350 goals, as well as the general planning proceeding to consider California’s long-term energy needs and electric procurement policies.
• June 24, 2021- In Decision 21-06-035, the CPUC ordered the collective procurement of 11,500 MW of new net qualify capacity (NQC) to come online in 2023-2026. 2,000 MW NQC must come from long lead-time resources providing clean firm power or long duration energy storage. • March 13, 2023- In Decision 23-02-040, the CPUC ordered the collective procurement of an additional new 4,000 MW NQC in 2026-2027. The decision also extends the deadline for procurement of new long lead-time resources to 2028.
• October 7, 2024- Pioneer filed reply comments in response to the ALJ’s ruling seeking comments on the proposed resource portfolios for the 2025-2026 Transmission Planning Process (TPP). Pioneer urged the Commission to recognize the value of biomass as a clean firm resource needed to meet reliability and renewable energy goals. Our comments ultimately recommended an increase of 0.1 GW growth of biomass in the proposed portfolio.
• January 10, 2025- The CPUC issued the PD transmitting electricity resource portfolios to the CAISO for the 2025-2026 TPP. The PD failed to adopt many of the requests made by party comments, including Pioneer’s recommendation to increase the growth of biomass.
• January 10, 2025- The Long Duration Energy Storage (LDES) Council filed a petition for modification (PFM), urging the CPUC to clarify that derated short-duration battery energy storage cannot be used to meet the mid-term reliability procurement obligation for long-duration storage, as ordered in Decision 21-06-035.

Pioneer does not have any derated short-duration battery energy storage resources in our portfolio that would be negatively impacted if the PFM were to go into effect. • February 10, 2025- CalCCA responded to the LDES Council’s PFM, recommending the CPUC to deny the petition due to the clear nature of the language already present in the original decision, as well as to avoid the precedent of retroactive policymaking which would disadvantage LSEs who already made procurement decisions based on the given language.
• February 20, 2025- The CPUC issued the final decision (D. 25-02-026) transmitting electricity resource portfolios to the CAISO for the 2025-2026 TPP, which adopted the originally proposed base case and sensitivity portfolios.
• April 29, 2025: The CPUC issued a Staff Proposal on the Reliable and Clean Power Procurement Program (RCPPP), with an ALJ ruling seeking comments. RCPPP is a new proposal for a long-term procurement planning framework, intended to forecast procurement needs for reliability and GHG reduction goals 10 years forward. Pioneer staff will review and work with CalCCA to provide comments. • May 15, 2025- CalCCA requested a deadline extension on comments to the RCPPP Staff Proposal and was granted an extension from the original deadline of June 5 to July 15. In the meantime, CPUC Staff will host two workshops to facilitate stakeholder discussion on the RCPPP proposals, which include two options for a reliability procurement framework and one option for a new GHG reduction procurement framework called the “Clean Energy Standard (CES)”. In these discussions, Pioneer will continue to advocate for [Publish Date] Agenda Date: 10/16/2025

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programmatic changes and policies that allow us to meet state-mandated reliable clean energy goals, while limiting unnecessarily complex and costly compliance measures. • July 15, 2025- CalCCA filed opening comments on the RCPPP Staff Proposal, supporting the development of a long-term procurement framework that takes into account the practical realities and constraints LSEs face in the current procurement environment (supply chain issues, interconnection delays, federal policy changes). CalCCA supported the adoption of an RCPPP reliability framework beginning in 2029 resembling Staff Proposal’s Option I with modifications to 1) align RCPPP to the RA program using the SOD methodology, 2) establish 5-year forward showing requirements in alignment with RA processes, 3) remove the proposed buffers in favor of LSE-level risk management, 4) adopt a penalty waiver process, 5) clearly define the “good faith efforts” standards adopted in the MTR order, and 6) incorporate sufficient transactability mechanisms to prevent over-procurement. CalCCA also supported development and adoption of the CES GHG-emissions reduction framework based on actual energy sales as an extension of the RPS program beginning in 2031. CalCCA urged the CPUC to coordinate with the CEC to develop a workshop process aimed at ensuring load forecast accuracy at the hourly level by LSE. CalCCA’s reply comments further urged the CPUC to consider the constraints in the current procurement environment by rejecting party recommendations for near-term procurement orders without rigorous needs assessment, overly prescription RCPPP frameworks that would establish long lead time (LLT) specific requirements, enforced procurement of the preferred system portfolio (PSP), and establishing excessively high procurement requirements in forward years.
• July 21, 2025- American Clean Power- California (ACP-CA) filed a motion to amend the current IRP scoping memo to include an additional track for expedited procurement of clean resources eligible for the expiring federal tax credits (investment tax credit/ production tax credit (ITC/ PTC)). ACP-CA’s motion suggests for this procurement to be done by IOUs, with costs allocated to all LSEs through the cost allocation mechanism (CAM). Pioneer filed a response highlighting the breach in procurement autonomy afforded to CCAs under law that the ACP-CA motion represents. Pioneer also supported CalCCA’s response which asserts the ACP-CA motion should be rejected on the basis that it does not meet the robust needs assessment required for procurement orders, cannot substantiate its claims of customer savings, and would only serve to further constrain the procurement environment. ACP-CA replied to CalCCA’s response, claiming that “CCAs are waiting on the sidelines” and not actively seeking procurement of ITC/ PTC eligible resources, to which CalCCA filed a sur-reply requesting the CPUC dismiss ACP-CA’s reply due to its mischaracterization of CCA procurement activity, as shown through CCA solicitation data. • August 1, 2025- CalCCA filed opening comments on the new IRP OIR, R.25-06-019, which includes recommendations to the scope and schedule of the new proceeding. CalCCA recommended that the individual LSE IRP plans should be due no earlier than February 2026 or six months after the IRP filing materials and compliance guidelines are issued.
• August 13, 2025- The CPUC issued a PD in response to Southern California Edison’s (SCE) petition for modification (PFM), seeking a waiver for the bridge contracts requirement for MTR resources in non-peak months. SCE PFM’s argued that there is no short-term reliability need for bridge resources during non-peak months, and LSEs already demonstrate fulfillment of short-term reliability needs by meeting their month-ahead RA requirements. The CPUC’s PD recognizes that short-term reliability needs are already met through RA compliance, and that the MTR bridging requirement imposes unnecessary ratepayer costs. The PD goes beyond the relief requested by SCE by eliminating the option for LSEs to use bridge contracts as an alternative compliance mechanism for long lead time (LLT) resource requirements in the MTR orders for all months of the year. CalCCA filed opening comments, urging the CPUC to clarify the intent of the PD and reduce ambiguity by adopting SCE’s PFM with modifications to apply it to all months. CalCCA asked the CPUC to confirm that adoption of the PD would mean LSEs will not be found out of compliance with their MTR obligations if they have a contract that is either delayed or has been terminated for reasons beyond their control, if they are meeting their RA requirements and making good faith efforts to replace the contract. CalCCA also urges the CPUC to more clearly define the “good faith efforts” standard and consider the issue of alternative pathways to compliance for LLT resource delays in the current or new IRP proceeding.
• September 18, 2025- The CPUC issued a decision granting, with modifications, SCE’s PFM seeking a waiver for the bridge contracts requirement for MTR resources in non-peak months. The final decision makes many [Publish Date] Agenda Date: 10/16/2025

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clarifications from the PD, as recommended by CalCCA. The final decision specifies that LSEs will be deemed compliant with their MTR procurement obligations if they can meet their month-ahead system RA obligations for all months in which their procurement is delayed, by the final deadline for curing any RA deficiency. The decision clarifies that this compliance pathway may be used for up to three years from the required online date of the applicable procurement requirement. The decision also clarifies that while bridge contracts will no longer be available as a compliance option, bridge contracts that were used prior to the adoption of this decision are still a valid means of compliance. Lastly, the decision commits Energy Division to bringing forward a proposal in the new IRP proceeding, R.25-06-019, to clarify the compliance and enforcement standards including the “good faith efforts” showing requirements, as recommended by CalCCA. • September 30, 2025- The CPUC issued an ALJ ruling seeking comments on electricity portfolios for 2026- 2027 transmission planning process (TPP) and need for additional reliability procurement. The ruling proposes near-term procurement of an additional 1,500 MW annually from 2029-2032, split among LSEs based on the same allocation methodology used in the MTR and Supplemental MTR procurement orders.

Renewables Portfolio Standards:
• September 12, 2002- The Renewables Portfolio Standards (RPS) program was established in 2002, by Senate Bill (SB) 1078 with the initial requirement that 20% of electricity retail sales must be served by renewable resources by 2017. The program was accelerated in 2015 with SB 350 which mandated a 50% RPS target by 2030. In 2018, SB 100 was signed into law, which again increased the RPS target to 60% by 2030 and requires all the state’s electricity to come from carbon-free resources by 2045. The RPS proceeding at the CPUC serves as the vehicle for the CPUC to implement and administer RPS compliance rules for LSEs including Pioneer. Concurrently, the CEC is responsible for the certification of electrical generation facilities as eligible renewable energy resources and adopting regulations for the enforcement of RPS procurement requirements.
• July 22, 2024- Pioneer filed our Draft 2024 RPS Procurement Plan to the CPUC. • August 1, 2024- Pioneer submitted our 2023 RPS Compliance Reporting materials to the CPUC. • November 1, 2024- Pioneer filed comments on the CEC RPS docket, regarding the Draft 10th Edition of the RPS Eligibility Guidebook. Our comments urge the CEC to consider changes to the Guidebook that would reduce barriers to the certification of biomass facilities and burdens associated with reporting and verification. Furthermore, Pioneer recommended that the Guidebook should provide guidance to potential developers on eligible biomass conversion technologies and ensure accurate accounting of the generation from these sources.
• June 30, 2025- Pioneer filed our 2025 RPS Procurement Plan to the CPUC, providing an overview of our procurement progress and plans to meet current and future load needs for our service territories, in accordance with the RPS mandates.

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

June 29, 2023- The CPUC issued a decision adopting a one percent minimum threshold for RA deficiencies that would limit CCA expansions; clarifying that if an LSE “cures” its year-ahead RA deficiency in the month-ahead timeframe, the year-ahead deficiency will not be applied to the expansion requirement. • July 26, 2023- CalCCA and CCCE filed two Applications for Rehearing (AfR) of the decision to limit CCA expansion for two years due to uncured RA deficiencies. CalCCA’s PfR cited a lack of CPUC statutory authority to limit CCA expansion, and that it gives itself new unauthorized powers to needlessly discriminate against CCAs to prevent their growth; it also asserted, that without credible evidence, the CPUC determined that addition of new CCA load would be detrimental to grid reliability, and that the decision violates the CPUC’s legal requirement to apply RA enforcement measures in a nondiscriminatory manner, not just to CCAs.
[Publish Date] Agenda Date: 10/16/2025

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• On September 19, 2023, PG&E and SCE submitted their annual central procurement entity (CPE) reports.

PG&E is short RA for all months - up to 4,400 MW.
• October 12, 2023- The Commission opened the new RA proceeding through OIR R.23-10-011, which proposes the scope, schedule, and administration of this next RA proceeding. • November 9, 2023- CalCCA submitted comments recommending additional scoping items for the RA proceeding, including additional refinements to the RA program for the local RA CPE, compliance and penalty structure, slice-of-day (SOD) transactability, and RA import rules. • December 14, 2023- CPUC denied CalCCA’s request for a rehearing of the decision on RA procurement obligations and the prohibition against CCA expansion for failure to comply. • January 17, 2024- Petition for Writ of Review prohibition of CCA expansion filed. Shell also filed a petition for somewhat different reasons. CPUC is seeking to consolidate since there are two filings. CalCCA did not oppose the motion.
• January 19, 2024- Proposals due in the RA proceeding for Track 1, addressing time-sensitive issues that must be resolved for the 2025 RA compliance year. CalCCA has identified 3 major problems that the RA proposals should address: RA market scarcity, the potential exercise of market power, and removing the economic incentives not to comply. CalCCA is seeking to remove the prohibition from CCA expansion in the event of noncompliance and add the ability for the CPUC to waive penalties if CCAs can show reasonable efforts to comply were unsuccessful. The RA proposal approved by CalCCA’s Board included a temporary waiver proposal for system and flexible RA from 2025 to 2027. Partial waivers would waive the penalty points and non-fiscal consequences, and a full waiver would also be available that would waive financial penalties as well under certain circumstances. A slice of day waiver would also be available. • February 23, 2024- There was a SOD proposal workshop. CalCCA is asking for a delay in SOD implementation from 2025 until 2026 because the showing and compliance tools are not working properly. • March 22, 2024- CalCCA submitted comments on the RA Program with regards to considering RA reforms and refinements and establishing forward RA procurement obligations. CalCCA believes the focus should be to adopt proposals that protect customers against excessive RA costs and increase RA capacity availability. • June 6, 2024- CalCCA filed comments on the CPUC’s RA Track 1 PD, regarding key issues with SOD implementation. CalCCA emphasized how customer affordability will be put at risk due to the hourly transactability issue, and the CPUC’s refusal to delay SOD implementation or offer system RA waivers. The comments also included a host of other issues including the CPUC’s insistence on using a higher than necessary planning reserve margin (PRM), exclusion of existing resources in cure period extensions, restrictions on the amount of RA imports allowed, and concerns about the resource counting methodology. • June 14, 2024- CalCCA filed comments on the Assigned Commissioner’s Scoping Memo and Ruling on Track 2, proposing an adjustment of the CPE timeline. Currently, the Commission authorizes the CPE to procure local RA until 2 months before LSEs must submit their year-ahead RA showings. This leaves LSEs with limited time to fill their shortages in response to CPE allocation. CalCCA’s proposal urges the Commission to require the CPE to provide their LSEs with their local RA allocations at least 1 year prior to their year-ahead RA filings.
• June 20, 2024- The CPUC issued a decision to adopt local capacity requirements for 2025-2027, flexible capacity requirements for 2025, and refinements to the RA program as scoped in Track 1. The Commission maintains that the 2025 RA compliance year will be the first year for the new SOD framework, but remains open to considering hourly transactability after implementation, should any issues arise. • August 23, 2024- CalCCA filed reply comments on the ALJ ruling modifying the Track 2 schedule, expressing concerns about the upcoming loss of load expectation (LOLE) study and how it will be used to set the PRM for SOD implementation, and the proposed changes to the CPE framework and timeline. • August 30, 2024- Energy Division (ED) published the revised version of their RA LOLE study, which the CPUC will use to calibrate the PRM for the 2026 SOD implementation. Based on the LOLE study, ED staff recommended the CPUC adopt a 26.5% PRM during the months of January to May and a 23.5% PRM during the months of June through December, to maintain the target reliability level of 1 day in 10 years (0.1 LOLE). This recommended PRM is much higher than the originally set 17% PRM in the 2025 SOD implementation framework.
[Publish Date] Agenda Date: 10/16/2025

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• September 9, 2024- CalCCA filed comments on the published RA LOLE study, urging the Commission to conduct further analysis before adopting the recommended PRM of 26.5% PRM during the months of January to May and a 23.5% PRM during the months of June through December. CalCCA cited concerns with potential study methodology flaws and significant impacts to ratepayer affordability associated with the recommended PRM.
• September 19, 2024- PG&E released their 2024 CPE Annual Compliance report. The report shows they are short in their centralized procurement of RA for 3 years forward. • October 29, 2024- The CPUC issued a PD for RA Track 2, which deals with the PRM and CPE framework.

Regarding the proposed PRM, the Commission agreed additional vetting and further analysis is needed, authorizing ED to undertake a further revision of the 2026 PRM analysis which will be considered in Track 3 of the proceeding. As for the CPE framework, the Commission successfully adopted CalCCA’s proposal to lock in CPE allocations one year earlier, giving LSEs more time to self-procure, along with various other revisions.
• November 18, 2024- CalCCA filed comments on the RA Track 2 PD, recommending that the CPUC recognize the significant impact that changes to the PRM can have on reliability and affordability, and allow for earlier adoption of the 2026 PRM if thorough analysis is completed by all relevant stakeholders in advance of the Track 3 timeline. CalCCA also urged the CPUC to adopt revisions to the CPE framework as outlined in the PD, with an opportunity to review their effectiveness at the end of 2027. • December 20, 2024- ED published another revised version of their RA LOLE study, recommending an updated 2026 PRM of 21% for the months of October to May and 22.5% for the months of June to September. Due to affordability concerns, ED also included two proposals to mitigate the adverse effects of the high PRMs. The first proposal entails adopting a 17% PRM as an RA requirement, paired with an effective PRM of 22.5% which only IOUs are required to comply with; this proposal would extend the current 2025 status quo. The second proposal entails adopting a 22.5% PRM, but with an option for LSEs to apply for temporary System Waivers in peak months (June to September) for requirements above a 17% PRM based on a cost threshold.
• January 17, 2025- CalCCA filed their RA Track 3 proposals, recommending the CPUC to allow LSEs to transact load obligations on an hourly basis, address co-located generation and RA needs, and incorporate the local RA CPE data request process into the existing RA filing rather than the IRP data collection process. • February 25, 2025- ED issued a correction to their LOLE study, updating their recommended 2026 PRM to 20% for the months of November to May (off-peak) and 21% for the months of June through October (peak). Under this new PRM, the two price mitigation proposals change accordingly. Proposal A entails adopting a 17% PRM as an RA requirement, paired with an effective PRM of 21% in the peak months of June through October, which only IOUs are required to comply with; this proposal would extend the current 2025 status quo. Proposal B entails adopting a 20% PRM for off-peak months and 21% PRM for peak months, paired with an option for LSEs to apply for temporary System Waivers in peak months for requirements above a 17% PRM based on a cost threshold.
• February 28, 2025- The CalCCA Board voted to support Proposal B, which would require LSEs to adopt an increased PRM of 20% in the off-peak months and a 21% PRM in the peak months, with the option of applying for a System Waiver in the peak months for obligations above a 17% PRM. • March 3, 2025- Opening comments were filed on the RA Track 3 Proposals. Most parties, except the IOUs, supported CalCCA’s proposals to adopt hourly load transactability and allow co-located energy only resources to count as RA under SOD. Furthermore, most parties opposed the price mitigation Proposal B which would allow for System RA waivers, and instead recommended the adoption of a PRM that will allow the grid to consistently meet the pre-determined target of 0.1 LOLE. • March 17, 2025- Reply comments were filed on the RA Track 3 Proposals. CalCCA urged the CPUC to reject arguments made by PG&E, SDG&E, and Middle River Power regarding the hourly transactability proposal. As for the proposed PRM and price mitigation proposals, CalCCA reasserted that the CPUC should adopt a 21% PRM in peak months, 20% PRM in off peak months, along with a system RA waiver option in peak months for obligations above a 15.5% PRM, as indicated by SCE’s independent PRM study. However, due to the ongoing disputes over a correct PRM to meet the 0.1 LOLE target, CalCCA urges the CPUC to continue [Publish Date] Agenda Date: 10/16/2025

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refining their LOLE modeling for the upcoming 2027 PRM. • April 16, 2025 - CalCCA held ex-partes with CPUC Commissioners to continue advocating for adoption of the hourly load obligation trading proposal, setting the PRM at 21% in peak months and 20% in off-peak months with an option for system RA waiver for requirements above 15.5% consistent with Southern California Edison’s modeling results, and enabling increased co-located resource RA participation under the RA slice-of-day framework.
• May 22, 2025- The CPUC issued a PD adopting local capacity obligations for 2026-2028, flexible capacity obligations for 2026, and program refinements as proposed in Track 3 of the RA proceeding. Regarding the PRM proposals, the PD adopts an 18% binding PRM with extension of the effective PRM target of 3-5.5% for June to October, for the 2026 RA year. The effective PRM procurement target will be divided between the three IOUs based on the approximate CAISO load share. As for CalCCA’s proposals, the PD does not adopt hourly load obligation trading. Instead, the PD directs ED to conduct an evaluation after a full year of SOD implementation to assess the need, benefits, and feasibility of an hourly load obligation trading mechanism, by Q2 2026.
• June 11, 2025- Pioneer collaborated with Central Coast Community Energy (3CE) to file opening comments on the RA Track 3 PD, urging the Commission to reduce the effective PRM target from 3-5.5% to 3%, which when paired with the binding 18% PRM, is more in line with ED’s recommended total PRM of 21%. The comments also urge the Commission to reconsider adopting CalCCA’s hourly load transactability proposal, due to the abundance of supporting evidence on the record of its potential widespread affordability benefits.

In reply comments filed on June 16, 2025, multiple parties echoed Pioneer and 3CE’s argument for reducing the effective PRM target, to not exceed ED’s recommended PRM, based on intensive modeling/ study results. • June 27, 2025- The RA Track 3 final decision was approved at the CPUC voting meeting. The final decision did not incorporate the changes to the PRM or adoption of the hourly load transactability proposal as requested by Pioneer and 3CE in our opening comments to the PD. • September 19, 2025- PG&E released their 2025 CPE Annual Compliance report. The report found that the PG&E CPE has “not been able to procure enough capacity to meet the needs in all months for any of the seven (7) local capacity areas within its territory and will be deferring procurement to CAISO backstop mechanisms for those areas for a majority of the months of the 2026 and 2027 compliance years”.

Demand Flexibility:
• June 30, 2022- AB 205 passed giving the CPUC the authority to approve a pricing structure that incorporates an Income Based Graduated Fixed Electricity Charge (IGFC). • July 14, 2022- The Commission issued an OIR to begin this proceeding to establish demand flexibility policies and modify electric rates to advance the following objectives: 1) enhance the reliability of California’s electric system; 2) make electric bills more affordable and equitable; 3) reduce the curtailment of renewable energy and greenhouse gas emissions associated with meeting the state’s future system load; 4) enable widespread electrification of buildings and transportation to meet the state’s climate goals; 5) reduce long-term system costs through more efficient pricing of electricity; and 6) to enable participation in demand flexibility by both bundled and unbundled customers. • July 31, 2023- Parties submitted Comments on the IGFC Implementation Pathways considering the ALJ Ruling’s questions.
• August 21, 2023- CalCCA submitted Reply Comments to refute parties’ arguments regarding including the PCIA or Competitive Transition Charge (CTC) as fixed costs eligible for inclusion in the IGFC. • October 27, 2023- 22 Democratic lawmakers sent a letter to the CPUC asking for an extension of the timeline for the proceeding and require public participation hearings before implementing an IGFC. • November 3, 2023- Track A (IGFC)- CalCCA filed a reply brief continuing to refute party proposals that the PCIA be included in the IGFC and noting that the parties advocating for inclusion of the PCIA have not addressed the arguments put forth by CalCCA.
• December 15, 2023- Track B (demand flexibility)- The CPUC issued a PD which directs PG&E to expand the Valley Clean Energy Ag-Fit pilot program. CCAs that participate in the expanded pilot may receive $20/kW for each year of customer enrollment in the PGE Ag-Fit pilot as an incentive. The incentive is capped at $1.8 [Publish Date] Agenda Date: 10/16/2025

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million for PG&E’s territory. The budgets are for all the CCAs wanting to participate to share. PG&E will be administering the pilot so there will be no administrative costs, but several of the CCAs want to have a say in how the pilot is administered and the education and outreach of the pilot. December 18, 2023- Track A (IGFC)- CPUC issued a ruling requesting implementation information from the IOUs on the IGFC. The ruling directs the IOUs to file additional information about the proposed budgets for implementing the first income-graduated fixed charges by January 24, 2024. • January 23, 2024- (Track B) There was a revised PD on the expanded pilots. Pioneer is considering offering the expanded Ag-Fit program to its customers. The pilot will be administered by PG&E so it will involve minimal work on behalf of Pioneer staff, but it will also bolster our Load Management Standards program and keep us competitive with PG&E.
• January 26, 2024- The CPUC approved the expanded pilots revised decision. In D.24-01-032 to Advance Demand Flexibility Through Electric Rates, the CPUC directed PG&E to expand the Valley Clean Energy Ag Real Time Pricing Pilot (VCE AgFIT Pilot). The decision orders PG&E to extend the duration and expand participation of the VCE AgFIT Pilot to agricultural customers throughout PG&E’s service territory. • January 30, 2024- (Track A)- There was a press conference held by a group of 20 Democratic Legislators calling for the repeal of income-graduated fixed charge. AB 1999 would repeal the income-graduated fixed charge approved under AB 205 (2022) and replace it with a $5 fixed charge for CARE customers and a $10 fixed charge for all other residential customers.
• February 13, 2024- Pioneer staff sent PG&E an email indicating interest in possibly participating in the expanded pilot expansion program, particularly the Ag Pilot. • February 13, 2024- At the Senate Utilities, Energy and Communications hearing the IGFC was brought up by CPUC president, Alice Reynolds, who indicated the CPUC was working on an IGFC decision possibly by the end of Q1.
• March 1, 2024- There is an expanded pilot workshop to address dual participation, since some demand flexibility programs prohibit dual enrollment. Dual Participation is allowed for- Critical Peak Pricing: (Peak Day Pricing and SmartRate), Electrification Rates: (E-ELEC), TOU Rates (E-TOU, E-TOU-D), Simple NEM and NBT, and ELRP Subgroup A: (A1-A6). Dual Participation is Prohibited- Supply-Side DR Programs (BIP, CBP, ART, DRAM, non-DRAM DR RA Contracts, DSGS Option 2), Flex Market Pilot, DAHRTP, ELRP Subgroup B:

B1-B2, and Other Event-Based Load-Modifying Programs (OBMC, SLRP). • March 25, 2024- PG&E submitted their Tier 2 AL for implementation plans for PG&E’s Expanded Ag Pilot. 5 CCAs have expressed an interest in participating in PG&E’s Ag Pilot in 2024 (Ava, SVCE, VCE, 3CE, and Pioneer). PG&E will launch the pilot in June of 2024. Participants will continue to pay their current bill and will receive the shadow bill, which they will not pay. The shadow bill will illustrate a customer’s potential savings under the dynamic pilot rate. There is also a $20 per unbundled kW per year incentive, subject to a $1.8 million cap for all CCA incentives.
• March 27, 2024- The CPUC issued a PD addressing AB 205 (Income Graduated Fixed Charge) requirements for electric utilities. The earliest this PD could be adopted is May 9, 2024. This decision authorizes all IOUs to shift the recovery of a portion of fixed costs from volumetric rates to a separate, fixed amount on bills without changing the total costs that utilities may recover from customers. As a result, this decision reduces the volumetric price of electricity (in cents per kilowatt hour) for all residential customers of IOUs. The CPUC did not adopt the IOUs’ proposal and instead the proposal would have Tier 1 (customers enrolled in CARE) pay $5 a month, Tier 2 (customers enrolled in FERA or who live in affordable housing restricted to residents with incomes at or below 80% of Area Median Income) pay $12 a month, and Tier 3 (all other customers) pay $24.15 per month. This new billing structure would apply to all residential rates of the IOUs, except for master-meter rates that are not sub-metered.
• May 9, 2024- CPUC approved implementation of the Income Graduated Fixed Charge without any changes to the structure described in the previous bullet.
• June 12, 2024- CalCCA filed reply comments on the Track B Proposal, urging the CPUC to reconsider the process for updating marginal cost values and to clarify a cost recovery structure that ensures CCA customers do not get double-charged for being unbundled. • August 28, 2025- The CPUC adopted a final decision closing the demand flexibility proceeding. The decision leaves many scoped issues unresolved including systems and processes needed to enable access to dynamic rates, enabling unbundled customer participation and expanding existing dynamic rate pilots, and most [Publish Date] Agenda Date: 10/16/2025

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Pioneer Community Energy Board of DirectorsOctober 16, 2025

Pioneer Community Energy Board of Directors
October 16, 2025