PIONEER COMMUNITY ENERGY
AUDIT & FINANCE COMMITTEE
April 7, 2026
Minutes
Entry No. 1
Heard General Administrative Functions, Part I.
Call to Order
Pioneer Community Energy Audit & Finance Committee met in open session at 3:00 PM on April 7, 2026.
The Members convened in person and the meeting was accessible to the public at Pioneer Community Ener gy, 2510 Warren Drive, Suite B, Rocklin, California, 95677; and was accessible for viewer participation on the Zoom platform at the following link :
httos://us06web.zoom.us/i/85439561094; and live streamed for viewing on the Pioneer website :
httos://oioneercommunityenergy.org/about-us/meetings-and-agendas/.
Roll Call
Committee Chair Ring (Loomis), Committee Vice Chair Pearl (Lincoln), Committee Member Janda (Rocklin), Committee Member Petersen (Nevada City), Committee Member Lomen (Colfax).
Selection of Officers
Director Janda moved to select Director Petersen as Committee Chair for 2026 effective immediately.
Director Petersen accepted the nomination.
MOTION: Janda . Vote: 5:0:0.
ROLL CALL VOTE: Janda, Lomen, Pearl, Petersen, Ring .
NOES: None.
Director Petersen moved to select Director Pearl as Committee Vice Chair for 2026 effective immediately.
Director Pearl accepted the nomination.
MOTION: Petersen. Vote: 5:0:0.
ROLL CALL VOTE: Janda, Lomen, Pearl, Petersen, Ring.
NOES: None.
Agenda Review
Reviewed the meeting agenda for April 7, 2026, with no amendments made to the agenda.
Public Comment
There were no comments from the public regarding items not listed on this agenda.
Entry No. 2
Acted on the Consent Agenda as follows:
Approved Minutes of the February 18, 2026, Audit & Finance Committee regular meeting as presented .
MOTION: Janda/Ring . Vote: 4:0:1.
ROLL CALL VOTE: Janda, Pearl, Petersen, Ring.
NOES: None.
ABSTAIN : Lomen .
Audit & Finance Committee
April 7, 2026
Entry No. 3
Overview of Information Technology Audit
The Committee received an overview of the Information Technology Audit from Information Technology Analyst Ponce and found that audit results and penetration testing confirm a strong security posture; there were no security incidents to date; and, the Managed Service Provider believes Pioneer's data security program is ahead of the curve.
Pioneer is continuously improving as Board-approved IT Policies have strengthened our control environment and we are improving documentation to demonstrate consistent adherence. Pioneer continuously monitors, strengthens, and adapts our defenses to stay ahead of evolving threats.
The Committee discussed and confirmed with staff that Pioneer has no risk concerns regarding an attack on the grid; that Pioneer passed Artificial Intelligence-focused testing; and, that paid individuals tried hacking but Pioneer passed penetration testing.
Chief Executive Officer Eckert informed the Committee that this presentation will be presented to the Board of Directors who will have opportunity to present their questions to the auditor.
Finance and Administration Director Koehn informed the Committee that no employees fell for phishing tests sent to their emails during the last quarter.
Entry No. 4
Overview of Economic Incentive
The Committee received a presentation from Finance and Administration Director Koehn and discussed presentation of a proposed economic incentive for large load customers through December 2026.
Director Koehn informed the Committee that seven percent of Pioneer's total load is represented in the top ten Commercial and Industrial customers; power has been contracted to serve these large customers; loss of large customers would result in abandoned power, reduced revenue, and shift cost burden to remaining customers; and, recently Pioneer had been contacted by a large load customer exploring opting out of Pioneer service.
Director Koehn presented a proposed Power Charge Indifference Adjustment (PCIA) Offset Credit to 1) proactively apply credit to specific rates for customers who exceeded 7.0 million kWh in 2025 usage; 2) credit would be reflected on May statements for April usage and would expire after December 2026 usage; 3) would result in large customers receiving rates, at minimum, at par with PG&E or a small discount; and, 4) the large load customer who contacted Pioneer has committed to staying with Pioneer if the proposed PCIA Offset Credit is approved by the Board of Directors.
The Committee discussed and confirmed with staff that the financial impact to Pioneer would be $3.75 Million reduction in revenue rather than a $10 Million loss if large customers opt out; by applying the PCIA Offset Credit would build stronger relationships with the top ten customers; legislation regarding the PCIA is moving forward; the 2027 PCIA forecast will be released in May; and, that the billing process would add a credit at par to PG&E to the balance for all ten customers.
Further discussion regarding the long term - considering the value of connections with regional organizations such as the Greater Sacramento Economic Council; looking at tariffs; the possibility of a PCIA credit paid in the future but more likely to have a lower PCIA that would be reflected in future rates; and, the possibility for some sort of opt-out fee applied for large customers leaving Pioneer. 2 Audit & Finance Committee
April 7, 2026
The Committee directed staff to provide customers with information on long-term savings over PG&E; to put this item on the regular agenda for transparency at the Board of Directors meeting; and, to reach out to the Board of Directors ahead of the meeting.
The Committee recommended that the Board of Directors Adopt the Power Charge Indifference Adjustment (PCIA) Offset Credit for Large Load Customers for Usage between April 1, 2026 and December 31, 2026.
MOTION: Janda/Lomen. Vote: 5:0:0.
ROLL CALL VOTE: Janda, Lomen, Pearl, Petersen, Ring.
NOES: None.
Entry No. 5
Using Put Options as a Power Charge Indifference Adjustment (PCIA) Hedge The Committee received a presentation from Quantitative Analysis & Modeling Manager Yurashku and discussed presentation on using Put Options as a PCIA Hedge.
Manager Yurashku informed the Committee that the quantitative analysis revealed three key findings - 1) downside protection in low-price scenarios; 2) improved cost predictability; and, 3) premium cost functions like insurance.
Acting like an insurance policy to offset the PCIA, using the Put Options as a way to hedge when power supply cost goes down beyond a certain rate, then Pioneer still gets paid (purchasing earthquake insurance but only cash out if there is an earthquake).
The Committee discussed and confirmed that cost of premiums would be $5-$10 Million and timing would be for 2027 or beyond if market is not favorable; and, that the PCIA has increased like it has due to PG&E changing the formula.
The Committee agreed to approve Pioneer Community Energy to further investigate Put Options as a Power Charge Indifference Adjustment (PCIA) Hedge.
Entry No. 6
Chief Executive Officer Eckert informed the Committee that following the March 19, 2026 Board of Directors meeting, the City of South Lake Tahoe reached out to Pioneer due to receiving notice from Liberty Utilities (current provider) that would no longer provide City of South Lake Tahoe as of May 2027.
At the April 16. 2026 Board of Directors meeting, staff will request the Board to allow opportunity to investigate the possibilities of serving the customers in City of South Lake Tahoe (El Dorado County). This will involve a lot of work regarding CAISO connection, billing services, and neighboring cities in Counties of Nevada and Placer.
The Committee discussed and were agreed to investigate further.
Chief Executive Officer Eckert also informed the Committee of the Financial Services Requirements (FSRs), a trust/escrow account to cover if a CCA fails, the collateral on hold calculated at the number of meters served multiplied by a set fee for PG&E to afford returning customer load. All CCAs are dealing with this problem right now. The PCIA should be going down and there is current legislative discussion on formula and transparency.
3 Audit & Finance Committee
April 7, 2026
Pioneer currently has a Line of Credit of $50 Million with a split between Letters of Credit ($30 Million) and Working Capital ($20 Million); and will be requesting the Board of Directors to approve a proposed split between Letters of Credit ($40 Million) and Working Capital ($10 Million).
The meeting adjourned at 4 :23 PM.
ATTEST:
Minutes approved as presented by a majority vote
of the Audit & Finance Committee on May 11, 2026.
Teresa Willock, Board Secretary
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