Staff Report
Agenda Item # 10.2
Information
Agenda Date June 25, 2026
To Board of Directors
Prepared by Lori Biondini, Director of Business Planning and Finance Beth Burks, Executive Director
Subject Fiscal Year 2026-2027 Recommended Budget
Summary
Staff introduced the draft fiscal year 2026-2027 budget at the May meeting of the RCEA Board of Directors and received feedback on potential strategies to better balance the final recommended budget.
The draft budget showed a net loss based on current power cost projections and forecasted electricity sales revenue. The recommended budget includes using cash reserves and assumes a retail rate increase to address the net loss.
Background
The recommended Fiscal 2026-2027 budget is attached. While RCEA’s cash reserves can be used to offset power and operational expenses that exceed electricity sales revenue, efforts to reduce the anticipated net loss are necessary to adhere to the adopted Reserve Policy.
Board Feedback
At the May Board of Directors Meeting, staff received the following feedback:
• Keep the Director of Engagement and Climate Planning in the Personnel budget • Retain a 100% renewable and carbon free energy portfolio • Avoid electricity retail rate increases to the extent feasible • Target maintaining a reserve level of 160 days CCE operating expense as unrestricted cash on hand
• Reduce funds allocated for E-bike and EV rebates (staff recommendation is $130,000 compared to $160,000 last year)
• Remove funds allocated for strategic planning consulting services (reduced from $175,000 to $10,000 without consultants)
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Rates
Since first starting the Community Choice Energy program in 2017, RCEA has been able to offer retail rates that are discounted from competitor investor-owned utility, PG&E. Retail rates are here defined as electricity generation rate plus the Power Charge Indifference Adjustment (PCIA) and franchise fees.
This has ranged from 3% to the current 0.5% discount.
The volatility of the PCIA has been an ongoing concern but heightened in 2026 when, due to changes in PCIA policy, the PCIA increased over 200% from the prior year. Currently, for the most typical customer, the PCIA adds approximately 51% on top of RCEA’s generation charge. If RCEA only had to recover our generation costs, our current rate would be 31% lower than PG&E’s generation rate. However, once the PCIA is included, we cannot recover power costs and remain at a total retail rate lower than PG&E.
Current forecasting indicates that PCIA will remain high in the years to come. Without PCIA reform, the ongoing fiscal health of the CCE program is a serious concern.
Staff recommend raising RCEA’s retail rates (inclusive of the PCIA charged by PG&E) to 12.5% above PG&E’s current generation rates beginning in September 2026. This will allow RCEA to maintain 160 days cash on hand through the end of calendar year 2027 without facing higher rate increases in later months.
Advocacy
Feedback from the Board included increasing advocacy around the importance of PCIA reform. PCIA reform is CalCCA’s top advocacy priority this year. RCEA is contributing to these discussions as well as directly engaging with our state representatives to convey the dire need for reform. Hiring a full-time Staff General Counsel will continue and further advance RCEA’s advocacy abilities.
Power Products
Some community choice aggregators automatically enroll their customers in a “premium” high renewable energy content service at a rate higher than the investor-owned utility option but then allow customers to “opt-down” to a product that has a lower proportion of renewable power with rates at or below the investor-owned utility. The Board asked staff to explore if this approach might be effective for RCEA.
Some important factors to consider include:
1. Cost of alternative portfolios. Would a less than 100% renewable and carbon free power mix be significantly cheaper to procure? At this time, renewable energy certificate prices have come down significantly, reducing the cost savings potential of a portfolio having lower renewable energy content. Adjusting RCEA’s power portfolio to just meet minimum state standards would result in about $3 million in savings this year, which would not be enough to cover costs and have rate parity with PG&E. Staff have yet to explore if having options for customers that include no environmental attributes would result in cost savings.
2. Customer participation. If RCEA does offer an option that includes little or no renewable or carbon free power in order to be at parity with PG&E rates, and customer participation is high, RCEA risks non-compliance with state renewable standards.
3. Equity. Does offering different power portfolio products raise equity issues? Some CCE programs have chosen to automatically opt down their customers who receive CARE and FERA income-254
based discounts to a low- or no-renewable energy service. This could be construed as assuming that lower income customers put less value on using clean energy.
4. Climate action impacts. The Regional Climate Action Plan (RCAP) assumes that RCEA will continue to retain a 100% renewable and carbon free power mix. Does deviating from this create unintended consequences for achieving meaningful greenhouse gas reductions in our region? At the Board’s direction RCEA staff can begin to explore some of these questions and engage the Community Advisory Committee as well.
Staff Recommendation
Adopt recommended RCEA Fiscal Year 2026-2027 Annual Budget.
Attachments
1. RCEA Fiscal Year 2026-2027 Draft Budget
2. RCEA Fiscal Year 2026-2027 Annual Budget Narrative
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This page
intentionally
left blank.
256
Redwood Coast Energy Authority Fiscal Year 2026-2027 Draft Budget Regional State Federal Non-government Enterprise
Resilience Grant
(Governor's
Office of Land
Use and Climate
North Coast
Regional
Charging
Network Grant
(CEC) WFIP (CEC)
Northern Rural
Energy Network
(CPUC)
Implementation
NREN Portfolio
Administration TERAS (DOE) PG&E LGP Core CCA
Revenue Earned
State Contracts 2,000,000 21,200 275,000 2,988,896 12,110,686 Non-government Contracts 399,996
Electricity Sales 54,669,877
Other Income 152,560 600,000
Total 2,000,000 21,200 275,000 2,988,896 12,110,686 152,560 399,996 55,269,877 Expense
WHOLESALE POWER SUPPLY
Sub-total - - - - - - - 52,790,011
PERSONNEL EXPENSES
Sub-total 93,355 15,390 38,822 1,373,794 648,223 83,843 276,072 1,706,157
FACILITIES AND OPERATIONS
Sub-total - - - 10,850 536,232 - - -
COMMUNICATIONS AND OUTREACH
Sub-total - - 191,000 50,963 - - - 125,500
PROFESSIONAL & PROGRAM SERVICES
Regulatory & Legislative 379,601 20,500
Legal 5,000 60,000 20,000 64,500
Accounting 35,000
Program Related Professional Services
Organization Dues & Memberships 155,000 313,839
Subcontractors/Consultants 1,866,039 27,000 45,000 929,281 3,300 CC Power - special projects 86,487
NREN Partner Pass-thru 6,110,548
Wholesale Services - TEA 1,146,894
Procurement Credit - TEA -
Data Management - Calpine 774,452
Customer Billing - PG&E 254,994
Sub-total 1,866,039 - 27,000 50,000 7,634,430 20,000 - 2,699,966
INCENTIVES & REBATES
Sub-total - - - 745,505 2,948,541 - - 760,000
NON OPERATING COSTS
Sub-total - - - - - - - 126,000
Total Expense 1,959,394 15,390 256,822 2,231,112 11,767,426 103,843 276,072 58,207,634 Net Income
Pre-pay savings of 8% (1,914,261)
Net Income w/ Pre-pay
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Redwood Coast Energy Authority Fiscal Year 2026-2027 Draft Budget Revenue Earned
State Contracts
Non-government Contracts
Electricity Sales
Other Income
Total
Expense
WHOLESALE POWER SUPPLY
Sub-total
PERSONNEL EXPENSES
Sub-total
FACILITIES AND OPERATIONS
Sub-total
COMMUNICATIONS AND OUTREACH
Sub-total
PROFESSIONAL & PROGRAM SERVICES
Regulatory & Legislative
Legal
Accounting
Program Related Professional Services
Organization Dues & Memberships
Subcontractors/Consultants
CC Power - special projects
NREN Partner Pass-thru
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Customer Billing - PG&E
Sub-total
INCENTIVES & REBATES
Sub-total
NON OPERATING COSTS
Sub-total
Total Expense
Net Income
Pre-pay savings of 8%
Net Income w/ Pre-pay
Indirect
Proposed Fiscal Year
2026-2027
Redwood Community
Airport Microgrid REVNet
Regional Climate
Planning G&A TOTAL
17,395,782
115,536 515,532
152,404 54,822,281
2,930,582 3,683,142
2,930,582 152,404 - 115,536 76,416,737
- - - - 52,790,011
94,051 31,278 305,368 2,182,489 6,848,843
194,500 103,000 1,100 567,244 1,412,926
- - - 16,000 383,463
400,101
5,000 57,000 211,500
53,000 35,000 123,000
468,839
2,870,620
86,487
6,110,548
1,146,894
-
774,452
254,994
53,000 - 5,000 92,000 12,447,435
- - - - 4,454,047
- - - 3,300 129,300
341,551 134,278 311,468 2,861,033 78,466,024
(2,049,287)
1,914,261
(135,026)
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Budget Considered for Adoption: June 25, 2026
Fiscal Year 2026-27
259
Executive Director’s Message 01
Introduction
03 Local Governance
06 Member Agencies
06 Board of Directors
07 Community Advisory Committee
08 Highlights of FY 25-26 Accomplishments
09 Background Documents
12 FY 26-27 Priorities
13 Budget
14 Fiscal Year 26-27 Summary
14 Table of Contents
Redwood Coast Energy Authority
Sandrini Solar
Revenues
15 Expenses
16 Department Overview
17 Deputy Executive Director/Operations
19 Business Planning & Finance
20 Power Resources
21 Engagement & Regional Climate Planning
22 Customer Programs
23 Debt Service & Cash Reserves 24
Organizational Charts
17 260
Executive Director’s Message
Elizabeth Burks RCEA EXECUTIVE DIRECTOR
Welcome to the Redwood Coast Energy Authority
FY 2026-2027 Budget. This fiscal year ending
June 30, 2027, marks RCEA’s 24th anniversary
as a local joint powers authority and the 10th
anniversary of the Community Choice Energy
(CCE) program. As RCEA matures as an
organization and electricity provider, we continue
to find ways to implement meaningful programs
in Humboldt County and beyond, and harness
outside funding to make local dollars go further.
The FY 2026-2027 recommended budget
includes $76.4 million in revenues and $78.4
million in expenses and will require the use of
cash reserves to balance the budget. The budget
was developed based on delivering 556,176
megawatt hours of energy to customers, realizing
more than $17 million of State contracts and
grant revenues, and providing 39 full-time jobs.
The financial position of RCEA continues to be of
utmost concern as we face volatility of the Power
Charge Indifference Adjustment (PCIA),
wholesale power costs, and affordability. This
budget represents efforts to provide clean power
and useful programs to our customers, minimize
electricity rate increases, and maintain minimum
financial reserves consistent with our Reserve
Policy while also delivering clean power and
useful programs for our customers.
556,176 $17.9M 39
megawatt hours of energy to
customers
in contracts and grant revenues full-time jobs
Redwood Coast Energy Authority 1
261
For the first time, RCEA’s retail rates (electricity generation rate plus the PCIA fee) will be above Pacific Gas & Electric Company (PG&E) retail rates. This step is not something we take lightly but is necessary to ensure the health of the organization. PCIA reform will be necessary to ensure competitive rates in the coming years.
The Northern Rural Energy Network (NREN) continues to roll out customer energy-savings programs under the current business plan cycle. Officially launched in 2025, NREN programs bring public purpose funds, paid by all electricity consumers within PG&E’s service territory, back to Humboldt County to help reduce energy costs and improve the comfort of our residences and businesses. NREN now fully supports 13 full-time RCEA employees, including administration and implementation staff, as well as a portion of RCEA’s overhead costs.
Budget Highlights
Continued focus on financial health of the organization, including maintaining a minimum financial reserve of 160 days of CCE operating expense as cash-on-hand.
A 100% renewable and carbon-free power portfolio.
NREN-funded customer programs including energy efficiency assessments for homes, businesses, and government facilities; rebates and incentives for energy efficiency improvements; and workforce, education and training activities.
Popular e-bike and electric vehicle rebate program for customers Hiring a Director of Engagement and Regional Climate Planning, which will allow RCEA to begin leading Regional Climate Action Plan efforts.
A partnership with the Humboldt Bay Harbor, Recreation, and Conservation District, funded by the California Energy Commission, to assist with community outreach related to developing the heavy-lift marine terminal that will support future offshore wind development.
As RCEA navigates the risks and volatility within state and national energy policy and the California energy market, this budget allows a balance of RCEA's continued financial resilience, sensitivity to affordability, and delivery of customer programs. In the coming years, RCEA will continue to collaborate, lead, and innovate to bring tangible and practical solutions that create opportunities for all in our community to be part of, and benefit from a more sustainable future.
Redwood Coast Energy Authority 2
262
Introduction
RCEA was created to serve as a local leader in the effort to advance secure, sustainable, and affordable energy resources in Humboldt County. Founded as a Joint Powers Authority in 2003, RCEA’s mission is to lead, coordinate, and integrate regional efforts to create a cleaner, greener energy future for our community. In 2017, we launched the Community Choice Energy (CCE) program, taking on the responsibility of purchasing renewable electricity for Humboldt County customers, directly empowering local control over energy choices. Revenues generated through the CCE program are invested back into the Humboldt County community through customer programs, education, and the development of local renewable energy projects.
Redwood Coast Energy Authority 3
Redwood Coast Energy Authority’s mission and purpose as established through the formation of the Joint Powers Agency is to:
This mission continues to drive our work and motivate our team. “Develop and implement sustainable energy initiatives that reduce energy demand, increase energy efficiency and advance the use of clean, efficient and renewable resources available in the region.” 263
How it Works RCEA purchases power from renewable sources like wind and solar, and PG&E continues to deliver it to your home or business through its infrastructure.
Redwood Coast Energy Authority 4
RCEA PG&E YOU Generation Delivery Customer
RCEA purchases renewable
energy and uses revenue to
invest in the creation of new
local renewable energy
sources.
This is the Generation portion
of your bill.
PG&E delivers energy using
their poles and wires. They
also maintain this equipment
and handle billing.
This is the Delivery portion
of your bill.
As an RCEA customer, you
benefit from competitive
rates, local control, and
cleaner energy.
Thanks for being an RCEA
customer!
Customers are automatically enrolled in RCEA’s program, though you can choose to opt out at any time.
Our programs also include support for energy efficiency, electric vehicles, and local renewable energy projects. As a Community Choice Energy Provider:
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Customer Benefits Competitive Rates Powered By the
Community
Redwood Coast Energy Authority is
committed to competitve and stable
electricity generation rates.
We are powered by the communities
we serve, not by corporate
shareholders.
Redwood Coast Energy Authority 5
Why Choose Redwood Coast Energy Authority?
Renewable Energy
Every RCEA customer receives
100% renewable and carbon-free
electricity and access to energy
saving programs and rebates.
265
Local Governance
RCEA customers and community members benefit from a unique governance model that prioritizes local decision-making. Unlike traditional electricity providers like PG&E, RCEA is a not-for-profit locally governed Joint Powers Agency, empowering Humboldt County residents to shape their energy future.
Our Board of Directors and Community Advisory Committee work together to ensure that community priorities drive the decisions we make. This collaborative approach not only supports renewable energy adoption and sustainability but also creates opportunities for public participation in shaping programs, policies, and investments.
The County of
Humboldt
Arcata Blue Lake Eureka Ferndale
Fortuna
Member Agencies
Rio Dell Trinidad
Blue Lake
Rancheria
Yurok Tribe
Redwood Coast Energy Authority 6
266
RCEA customers and community members benefit from a community-focused approach where local government leaders make decisions about our energy. Our public Board meetings are your chance to stay informed, share your opinions, and help shape the future of energy in Humboldt County. Board members are appointed by RCEA’s member agencies: the County of Humboldt, the Cities of Arcata, Blue Lake, Eureka, Ferndale, Fortuna, Rio Dell and Trinidad, the Blue Lake Rancheria, and the Yurok Tribe.
Redwood Coast Energy Authority
Board of Directors
7 Sarah Schaefer
Vice Chair, City of Arcata
Elise Scafani
City of Blue Lake
Mike Wilson
County of Humboldt
Scott Bauer
City of Eureka
Skip Jorgensen
City of Ferndale
Carlos Diaz
City of Fortuna
Frank Wilson
City of Rio Dell
Jack Tuttle
City of Trinidad
Michael Gerace
Chair, Yurok Tribe
Jason Ramos
Blue Lake Rancheria
267
The Community Advisory Committee (CAC) was established by the Redwood Coast Energy Authority Board of Directors to enhance public engagement and provide valuable input and decision-making support to the Board. The CAC plays a critical role in ensuring that RCEA programs and initiatives align with community priorities.
Redwood Coast Energy Authority
Community Advisory Committee
8 Carol Schmitt
At-Large
Hope Sakho
At-Large
Norman Bell
Arcata
Kit Mann
Blue Lake
Vacancy
Blue Lake Rancheria
Luna Latimer
County 1
Ethan Lawton
County 2
Benjamin Fordham
County 3
Deborah Dukes
Eureka
Dennis Leonardi
Ferndale
Vacancy
Fortuna
Vacancy
Rio Dell
Richard Johnson
Trinidad
Vacancy
Yurok Tribe
268
FY 2025-26 Accomplishments
100% of RCEA's
electricity is from
renewable and carbon-free sources
Throughthe RRGP, RCEA delivered mobile solar trailers
that provide clean, resilient power for community events, emergency response, and critical needs during outages.
These trailers are already helping reduce reliance on
fossil-fueled generators while increasing local energy
resilience.
RCEA achieved this goal on schedule in 2025, reflecting our commitment to a clean energy future.
Redwood Coast Energy Authority 9
Regional Resilience Grant
Program (RRGP) solar
trailers delivered
Exceptional local
customer service
Our customer service team continues to be a point of
pride. In FY 2025-26, staff answered 1,492 customer
calls, providing trusted, local support to help customers understand their bills, explore programs, and make
informed energy choices.
269
Northern Rural Energy Network residential programs launched E-bike and EV rebates RCEA administers residential energy programs across 17 rural Northern California counties and brings these
programs home to Humboldt County. Along with partners
Lake Area Planning Council, Mendocino Council of
Governments, and the Sierra Business Council, the
Northern Rural Energy Network (NREN) helps customers
save energy and money. In FY 25-26, RCEA distributed 463 Energy Efficiency Kits and $99,049 in energy efficiency rebates locally. Plus, staff conducted 30 phone-based
energy assessments and provided custom reports.
Our popular e-bike and electric vehicle rebate programs helped residents afford lower-emission ways to get around.
In FY 25-26, RCEA provided 57 EV rebates (value of
$114,000) and 83 E-Bike vouchers (redeemed value of
$41,550).
Redwood Coast Energy Authority 10 Foster Clean Power is online Foster Clean Power is the first new-build, utility-scale solar and storage project under a power purchase agreement with RCEA to be completed in our Humboldt County service area. It now generates enough electricity for about 3,000 homes right here from the Arcata Bottoms. This project is an important step toward increasing local renewable generation and keeping energy investments close to home.
270
Community outreach across the county Strengthening organizational capacity Our team was out in the community all year, sharing information about RCEA programs and the benefits of community choice energy. In FY 2025-26, we delivered 24 community presentations and participated in 33 events throughout Humboldt County.
RCEA completed an internal reorganization focused on more closely aligning departments with RCEA’s core missionand activities. A classification and compensation study was completed by an outside consultant, resulting in the adoption of a new salary schedule and the institution of a 34-hour work week.
Redwood Coast Energy Authority 11 New charging stations added to REVNet RCEA continued expanding the Rural Electric Vehicle Network (REVNet), adding new public EV charging stations across Humboldt County to support cleaner transportation and reduce range anxiety for local drivers. In FY 25-26, we added 10 new Level 2 charging ports. We now have 76 ports at 39 stations throughout the County.
Building purchase After years of searching for a building to house staff under the same roof, RCEA purchased 718 3rd Street, Eureka, on June 4, 2026. Future renovations will include a Board and public meeting room, and allow RCEA to collect lease revenue for part of the building.
271
Background Documents
12 The Amended Joint Powers Agreement is the governing document that establishes the Redwood Coast Energy Authority as a joint powers authority and defines its purpose, powers, membership, and governance structure. It outlines how participating agencies collaborate to administer regional energy programs, including Community Choice Aggregation, and sets the rules for Board voting, member responsibilities, amendments, and withdrawal.
RCEA Joint Powers Agreement
The Redwood Coast Energy Authority’s Comprehensive Action Plan for Energy. RePower Humboldt serves as RCEA's strategic plan.
RePower Humboldt
The Energy Risk Management Policy establishes RCEA’s Energy Risk Management Program, including functions and procedures to manage the risks associated with power procurement activities. To help RCEA increase the likelihood of achieving its goals, this policy specifies management responsibilities, organizational structures, risk management standards, and operating controls and limits necessary to identify and manage RCEA’s exposure to risk.
Energy Risk Management Policy
RCEA's Reserve Policy sets a suitable cash balance to meet target levels of annual operating expenses. This cash balance provides for the following objectives: maintain long-term RCEA financial independence and rate stability; meet RCEA strategic objectives; secure favorable commercial terms with vendors and power providers; support RCEA’s pursuit of and maintenance upon receiving, a credit rating; provide a source of funds for unanticipated expenditures; and make cash available for other operational needs as approved by the Board of Directors.
Reserve Policy
The Investment Policy provides objectives and guidelines to RCEA officers and employees for the management of cash, deposits, and investments at RCEA. This policy covers all funds and investment activities under the direct authority of RCEA, as set forth in the California Government Code, Sections 53600 et seq.
Investment Policy
Procurement Policy
The Procurement Policy establishes clear guidelines for authorization, soliciting, and appropriate conduct of purchasing activities relating to the acquisition of approved goods and services. This policy is intended to promote impartial, transparent, and fair processes that seek to provide the best value for RCEA and ensure compliance with federal and state requirements. All purchases must be made in accordance with this policy, other RCEA policies and procedures, as well as any and all applicable laws and are subject to audit at any time.
272
FY 2026-27 Priorities
Financial Health
Maintain reserves
Maintain affordability &
explore options for rate
setting
PCIA reform
Redwood Coast Energy Authority 13
Begin RCEA office
construction
Provide exceptional customer
service
Make Redwood Coast Airport
Microgrid and REVNet self-sustaining
Operations
Lead the Regional
Climate Action Plan
Increase
coordination with
member agencies
Regional
Coordination
Programs
Full launch & implementation
of the NREN programs.
EV & E-bike rebates
Tribal Energy Resilience and
Sovereignty project, Regional
Resilience Grant Program,
Local Government Program
Vision Setting
Strategic Plan Update
Strengthen Community
Advisory Committee
engagement
273
Budget
Redwood Coast Energy Authority
Fiscal Year 2026-27 Summary
14 274
Redwood Coast Energy Authority 15
FY 2026-2027
State Contracts $17,395,782
Non-government Contracts $515,532
Electricity Sales $54,822,281
Investment Income & Tax Credits $3,683,142
Total $76,416,737
Revenues
Electricity Sales
71.7%
State Contracts
22.8%
Investment
Income & Tax
Credits
4.8%
Non-government
contracts
0.7%
275
FY 2026-2027
Wholesale Power Supply $52,790,011
Personnel $6,848,843
Facilities and Operations $1,412,926
Communications and
Outreach
$383,463
Professional and Program
Services
$12,447,435
Incentives and Rebates $4,454,047
Non Operating $129,300
Total $78,466,024
Wholesale
Power Supply
67.3%
Professional and
Program Services
15.9%
Personnel
8.7%
Incentives
and Rebates
5.7%
Facilities and Operations
1.8%
Redwood Coast Energy Authority 16
Expenses
Non-Operating
Costs 0.2%
Comms & Outreach
0.5%
276
Department Overview
In March 2026, the RCEA Board approved an update to the agency's organizational structure. Some changes were effective immediately, such as renaming the Demand Side Management Department as the Customer Programs Department. Other changes will be implemented in Fiscal Year 26-27, such as forming the Department of Engagement and Regional Climate Planning and hiring an in-house general counsel.
Redwood Coast Energy Authority 17
Organizational Chart
Executive Director
Director, Customer
Programs
Director,
Engagement &
Regional Climate
Planning
Program
Manager
Program
Manager
Communications
& Engagement
Manager
Deputy Executive
Director/Operations
HR Manager
Director, Power
Resources
Power
Resources
Manager
Director, Business
Planning & Finance
Accounting
Manager
Program
Manager
Program
Analyst
Program
Analyst
Part Time PR
Analyst
Part Time
Assistant
Program
Analyst
Program
Analyst
Specialist
Specialist
Specialist
Contracts/Grant
Manager
Specialist
Assistant
Grant Analyst
NREN
Administrator
(Administrative
Lead)
IT Technician
Clerk
Capital Assets
Manager
Account
Services
Manager
Account
Services
Representative
Coordinator
Assistant Part Time
Assistant
Specialist
Data Analyst
Compliance
Technician
Regulatory/
Legislative
Manager
Intern
NREN Administrator
(Portfolio Lead)
Data Analyst
Coordinator Part Time
Specialist
Specialist
RCAP
Administrator
General Counsel
•This organizational chart does not reflect direct reports/supervision. •Note: Part-time and limited-term positions are approved by the Executive Director.
Board Approved: 3.36.26
Board of Directors
277
Redwood Coast Energy Authority 18
Functional Organization Chart
Executive Director
Customer Programs
Engagement &
Regional Climate
Planning
NREN Programs
Implementation
Residential,
Public,
Workforce
Education and
Training,
Commercial and
other Non-residential
Marketing/
Communications
Deputy ED/
Operations
Human
Resources
Power Resources
Power
Procurement
Business Planning &
Finance
Accounting/
Bookkeeping
Local
Government
Partnership
CCA Programs
(E-bike, and EV
Rebates)
Grant Funded
Projects
Grants/
Contracts
Budget
Audits
CCA Rate
Setting
Treasury
Management
Information
Technology
Capital Assets
O&M
RCAM, REVNet,
facilities
Clerk of the
Board
Customer
Service
Special Projects
CCA
Compliance/
Power Portfolio
Management
Regulatory/
Legislative
Affairs
Education/
Engagement
Community
Advisory
Committee
Support
Regional Climate
Action Plan
Portfolio
Programs
Management
NREN Programs
Reporting/
compliance
NREN Portfolio
Administraton
Governing
Partner
Coordination
Offshore Wind
Strategic Plan
Update
Legal Services
NREN Portfolio
Fiscal &
Contracting
RCEA has five organizational departments fulfilling the following operational functions: Deputy Executive Director/Operations, Business Planning and Finance, Power Resources, Customer Programs, and Engagement and Regional Climate Planning. Each department has a director who reports to the Executive Director. Additionally, the NREN Portfolio (Programs) Administrator reports to the Executive Director. The in-house General Counsel (once hired) is appointed by the Board of Directors and receives administrative direction from the Executive Director..
Board of Directors
278
Deputy Executive Director/ Operations The Deputy Executive Director/Operations Department includes management of human resources, information technology, data security, infrastructure assets/facilities, the Board clerk, as well as special projects as needed, including coordinating RCEA’s role in realizing federal funding for the TERAS project. Customer/account service functions will be transferred to this department in the coming fiscal year, for a total of eight full-time and one part-time employee. There is currently one vacancy (Administrative Specialist) that will not be filled for at least six months as a cost-saving measure.
Infrastructure projects that RCEA owns and operates include the Redwood Coast Airport Microgrid and Rural Electric Vehicle Charging Network (REVNet).
REVNet currently offers 76 charging ports in 23 locations around Humboldt County. RCEA staff maintain these stations with the help of electricians when necessary. Budgeted revenue from charging fees is estimated each year based on usage patterns. This budget proposes a slight increase to the charging fees to ensure that the revenue generated from the stations covers the cost to operate and maintain them.
RCEA’s newest asset is the commercial building at 718 and 720 3rd Street, Eureka. This will become RCEAs' new office location after construction to build out the vacant warehouse is complete. Associated planning and construction costs are still being contemplated and are not included in this budget. Known costs associated with the purchase, including insurance, are included in the budget under General & Administrative costs. The building has a long-term tenant, and rental revenue is included under General & Administrative Non-government contracts.
Expenses Infrastructure Assets & TERAS
Personnel $209,173
Facilities $297,500
Professional Services $73,000
Total $579,673 Healthcare
Redwood Coast Energy Authority 19
279
Business Planning and Finance
Expenses General & Administrative
Personnel (including all employee Paid Time Off) $2,182,489 Facilities & Operations $567,244
Communications & Outreach $16,000
Professional Services $92,000
Non-Operating $3,300
Total $2,861,033 The Business Planning and Finance Department manages all accounting functions, including accounts payable and accounts receivable; finalizing payroll; financial reporting and financial audit support; purchasing; grants and contracts compliance and legal support coordination; as well as special projects as needed, such as coordinating the cost of service and rate study, and energy prepayment transactions. The Director of this department is RCEA’s treasurer and is responsible for daily cash management, investing consistent with the Investment Policy, maintaining cash reserves consistent with the Reserve Policy, and preparing and managing the annual budget. This department will also be responsible for the CCE program’s retail rate setting this coming fiscal year, and supervision of the NREN portfolio administrative lead, a role that will work in conjunction with the NREN portfolio programs lead.
This department currently includes four full-time employees. There are three vacancies (Contracts and Grants Manager, Finance Coordinator, and Financial Assistant) on this team. The recommended budget includes freezing the Contracts and Grants Manager position anticipating that a full-time General Counsel will take up much of the grants and contracts management workload. Upon final award for the TERAS project, staff will revisit hiring a Contracts and Grants Manager to take over work from the Deputy Executive Director. The Finance Coordinator will remain vacant for the full year, and the Financial Assistant will not be filled for at least six months as a cost saving measure.
The Business Planning and Finance department works across departments but is largely an indirect expense included in the General & Administrative budget category.
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Power Resources The Power Resources Department manages wholesale power purchasing and other key components of being an electricity load-serving entity in California. The department issues solicitations for energy procurement, analyzes offers received, and negotiates and manages energy product contracts. Department staff collaborates closely with several external partners in planning and managing RCEA’s power portfolio, including The Energy Authority, and with California Community Power on joint energy procurement with other CCAs. This department handles dozens of CCA-specific State compliance filings and works closely with the California Community Choice Association on policy advocacy. All regulatory and legislative tracking and advocacy efforts are led from this department, mostly as applicable to RCEA’s CCA function, but serving other RCEA departments as needed.
The department currently includes five full-time employees and one part-time employee.
Expenses Power Resources
Power Supply $52,790,011
Personnel $1,706,157
Communications & Outreach $125,500
Professional & Programs Services $2,699,966
Incentives (Net Energy Metering) $630,000
Non-Operating $126,000
Total $58,077,634
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The Engagement and Regional Climate Planning Department was recently adopted onto RCEA’s organizational chart. The department will not directly replace the previous Infrastructure Planning and Transportation Department, the functions of which have been divided between the Customer Programs and Operations Departments. Instead, the department represents a renewed RCEA focus on community engagement and regional planning activities.
This department will house the Community Strategies team and work on the Regional Climate Action Plan, as well as coordinate an overdue strategic plan update for RCEA. This department will also provide support and staffing to RCEA’s Community Advisory Committee and participate in State and regional offshore wind planning and engagement efforts and special projects as needed, including the Harbor District’s Waterfront Facility Improvement Program Grant.
The Community Strategies team is responsible for RCEA education, outreach, and marketing. This group will be supervised by the Executive Director until the Department Director is hired. This department currently includes three full-time and one part-time employee. The budget includes filling the Director position by October 2026. The Regional Climate Action Plan Administrator position will be filled once external funding becomes available.
Expenses Engagement & Regional Climate
Planning
Personnel $344,191
Communications & Outreach $192,100
Professional & Programs Services $32,000
Total $568,291
Engagement and Regional
Climate Planning
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The Customer Programs Department includes 12 full-time staff and one part-time employee to implement the NREN, which focuses on increasing energy efficiency in residences and businesses in 17 Northern California counties, the PG&E-funded Local Government Partnership program to increase energy efficiency at public agencies, and maintaining RCEA’s Energy Efficiency Lending Library and CCE customer rebate programs, including the E-bike voucher and electric vehicle rebate programs.
Additionally, the Customer Programs Department takes on special projects as needed, which currently includes implementing the construction of solar plus battery storage energy systems at several remote fire stations funded through the Governor’s Office of Land Use and Climate Innovation, Regional Resilience Grant Program.
Expenses Customer Programs
Personnel $2,406,833
Direct Operations $547,082
Communications & Outreach $50,963
Professional & Programs Services (including pass-thru funding) $9,550,469 Incentives & Rebates $3,824,047
Total $16,379,393
Customer Programs
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Debt Service and Cash
Reserves
RCEA maintains a loan from the Federal Financing Bank, granted through the Rural Utilities Service for the construction of the Redwood Coast Airport Microgrid. The annual debt service for this loan totals $381,199.68 for principal and interest. Interest expenses are included in this budget under Non-operating Costs.
The Board adopted the RCEA Reserve Policy in January 2025 which defines cash reserves as RCEA’s unrestricted cash position and sets the reserve target at between 120 and 180 days of forecasted annual CCE operating expenses. The target is approximately $26.5 million for this fiscal year’s budget. Energy markets and forecasted retail rates can change drastically during the fiscal year and may change the net revenue projections.
Maintaining cash reserves is crucial to stabilizing rates and continuing operations. Having a healthy reserve has the added benefit of improving RCEA’s creditworthiness, which in turn reduces operating costs associated with maintaining credit and posting security deposits.
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Staff Report
Agenda Item #10.3
Information
Agenda Date June 25, 2026
To Board of Directors
Prepared by
Richard Engel, Power Resources Director
Jocelyn Gwynn, Senior Power Resources Manager
Faith Carlson, Regulatory & Legislative Policy Manager
Subject 2026 CPUC Integrated Resource Plan Portfolio
Summary
Staff are seeking Board input on the power resource portfolio to be filed in RCEA’s 2026 Integrated Resource Plan (IRP) with the California Public Utilities Commission (CPUC). IRPs are comprehensive plans for what power resources a load serving entity (LSE) anticipates meeting their electric load over a long-term horizon, in this case, 20 years. The portfolio options presented are results of optimization modeling analysis conducted by The Energy Authority using assumptions provided by staff around resource types, locations and cost. Staff’s assumptions are based on policy considerations in RCEA’s Strategic Plan as well as system modeling results by the CPUC and their consultants.
Modeling Assumptions
Two portfolios were analyzed, one that is policy driven, and one that is economics driven. The differences between the portfolios are what resources were included as contracted regardless of economic performance (contract resources), and what resources were left up to the optimization model to include or exclude based on economic performance (market resources). Economic performance depends on whether a resource’s net cost, calculated as the assumed contract price minus anticipated energy market revenues, is forecasted to be lower than other market resources the optimizer can select from. The modeling assumptions for various resource types are summarized in the following table. (continued next page)
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Resource/Contract Policy Portfolio Economic Portfolio
Projects Already
Under Contract
All modeled as contract resources (whether operational or still in development)
Offshore Wind
Load share of North Coast, Central
Coast and CADEMO capacity
modeled as contract resources
Load share of North Coast, Central
Coast and CADEMO capacity
modeled as market resources
Small Hydropower Single local project modeled as
contract resource
Single local project modeled as
market resource
Geothermal Specified CC Power resources and
strategic, in-state enhanced
geothermal capacity modeled as
contract resources
Specified CC Power resources and
strategic, in-state enhanced
geothermal capacity modeled as
market resources
Biomass Continued procurement of HSC beyond current contract term and generic new biomass modeled as market resources
Solar Generic small- and large-scale CA solar modeled as market resources Onshore Wind Generic northern and southern CA wind modeled as market resources Results & Discussion
The IRP portfolio options resulting from preliminary modeling are presented in Attachment 1. The optimizer selected generic geothermal, solar and onshore wind resources in both portfolios, as well as specified geothermal, small hydro and biomass resources, indicating they performed well economically.
The optimizer did not select offshore wind and some specified geothermal resources when they were modeled as market resources in the Economic Portfolio due to higher net cost than other modeled resources. Therefore, these resources were modeled as contracted resources in the Policy Portfolio, resulting in a higher overall cost than the Economic Portfolio. Modeling is still underway to quantify how much the premium is and will be presented to the Board at the meeting. To give the Board a sense of the relative cost of various resources, assumed costs of planned resources are included in Attachment 1, based on the CPUC’s IRP Inputs & Assumptions Report. These prices do not take into account the anticipated market revenue of the resources, which generally result in higher value for baseload resources such as geothermal and biomass, offsetting their higher cost, and lower value for intermittent resources such as solar and wind.
Despite the higher cost, the Policy Portfolio aligns with key RCEA and state policy objectives: 1) the need for transmission development, which is directly driven by the IRP process, to enable deliverability of offshore wind and geothermal capacity, 2) the importance of a diverse resource mix of renewable generating resources, and 3) consistency with the CPUC’s modeled portfolio and California’s broader climate goals. Staff are interested in Board feedback on the two portfolio options and the specific 286
resources being modeled in each. Next month, the Board will be asked to approve the IRP filing in draft form in advance of submission to the CPUC by the August 10 filing deadline.
Background
Integrated resource planning is a standard planning exercise conducted by Load Serving Entities to analyze supply and demand resources needed to meet customer load at affordable rates. In California, IRPs also address non-energy requirements that the LSE must meet, such as system reliability, dependence on unspecified system power, renewable resource integration, greenhouse gas (GHG) emissions targets, and consideration of impacts that power portfolios may have on disadvantaged communities. The IRPs are used by the California Independent System Operator (CAISO) in their Transmission Planning Process.
CPUC Filing Requirements
For CPUC-jurisdictional LSEs, IRPs are mandated compliance filings, typically due every two years. The last IRP was submitted in 2022, and the 2024 IRP filing was delayed two years due to the CPUC deliberating on a holistic redesign of the IRP program, which is still ongoing but ultimately was not implemented this cycle. This cycle, the CPUC is requiring LSEs to submit a single portfolio, at minimum, that conforms to a GHG emissions benchmark for the electric sector of 8 million metric tons (MMT) statewide in 2045 and is consistent with the portfolio of new resources identified by the CPUC1 modeling.
RCEA’s share of the sector-wide GHG emissions benchmarks are shown in the chart below. Given RCEA’s power portfolio only includes zero- or low-GHG emitting resources, staff expect our IRP portfolio to be well below our allotted GHG emissions share.
In addition to meeting RCEA’s allotted GHG emissions benchmark, the portfolio must conform to other guidelines including meeting an assigned load forecast and capacity reliability standard. The IRP load forecast is from the California Energy Commission’s (CEC) Integrated Energy Policy Report (IEPR), which shows RCEA’s load forecast increasing substantially over the next twenty years due to data center and other large load growth, as well as building and transportation electrification. The chart below shows 1 https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M595/K085/595085015.PDF 0 10
20 30
40 50
60 2030 2035 2040 2045
Thousand Metric Tons CO2
Equivalent
GHG Emissions Benchmarks
287
this assigned forecast against RCEA’s actual historic load, which has been declining since 2021, and RCEA’s internal load forecast, which was submitted to the CPUC for use in the IRP but ultimately rejected in favor of the CEC IEPR forecast. Staff have been engaging with the CEC and CPUC regarding the accuracy of this load forecast in an effort to establish a more realistic load forecast for future IRP cycles. However, given the assigned forecast this cycle, RCEA will need to show more resources than it actually expects to procure, especially in the latter years of the planning horizon.
CAC Engagement
In anticipation of an earlier IRP filing deadline, staff engaged the Community Advisory Committee in September 2025 to solicit their input on portfolio makeup. Staff referred back to public workshops held in 2023 as part of the Humboldt’s Electric Future project to solicit community input for the next IRP, then expected to fall due in 2024. For those workshops, staff presented five hypothetical portfolios of resources to fill the roughly 60% of RCEA’s power needs for 2035 that would not be under existing long-term contracts at that time. The majority of workshop participants selected the portfolio that would reduce GHGs at lowest net cost, even though this was the only portfolio of the five that included a non-renewable resource, namely large hydropower. Another portfolio offered the quickest path to 100% renewables by de-emphasizing local project procurement. The other three portfolios each maximized 1) local resources, 2) resource diversity, or 3) offshore wind.
In their discussion CAC members noted that affordability has come into focus more since the Humboldt’s Electric Future workshops took place, which perhaps reinforces the preference the public expressed for the lowest cost portfolio. They discussed what might have motivated the workshop participants to prefer this portfolio, whether it was cost or desire to achieve GHG reduction as quickly as possible. The CAC members expressed interest in emissions-free technologies including ocean wave energy, geothermal power, and hydroelectric power at all scales but generally agreed that resources need to be affordable and commercially proven.
The CAC did not come up with a specific portfolio recommendation for the Board. Individual CAC members proposed some principles for the Board to consider in approving an IRP portfolio:
0 200
400
600
800
1,000
1,200
1,400
2021 2024 2027 2030 2033 2036 2039 2042 2045
Gigawatt-hours per Year
Load Forecast Comparison
Actual Historic Load Internal Forecast Assigned IRP Forecast 288
• While resources like large hydropower and nuclear may not be preferred, there is no additional harm done by including existing resources of this type in the portfolio. Staff note that the CPUC views reliance on existing resources not already under contract as a risky planning approach. • Biomass power should be phased out after the existing contract expires. • Keep looking for opportunities to include emerging technologies like advanced geothermal and wave energy as these become technically proven and affordable.
Equity Impacts
The IRP is a required compliance filing but does require narrative discussion of impacts LSEs’ power portfolios could have on disadvantaged communities.
Alignment with RCEA’s Strategic Plan
Although the IRP is primarily a compliance exercise, the proposed plan is consistent with RCEA’s Strategic Plan, specifically the following goals:
• 4.1.1 Maximize the Use of Local Renewable Energy to the Extent Technically and Economically Feasible and Prudent.
• 4.1.2 Minimize Greenhouse Gas Emissions Associated with RCEA’s CCE Program. • 4.1.4 Maximize Renewable Energy Content of RCEA’s CCE Program. • 4.1.9.2 Procure Local Offshore Wind Energy.
• 4.1.11.2 Procure Local Biomass Energy.
• 4.1.13.1 Support Existing and New Local Small-scale Hydroelectric Power.
Financial Impact
Apart from staff and consultant time required to prepare the IRP, there is no direct cost or other financial impact associated with the filings themselves. Currently, IRPs do not carry binding commitments for procurement, although the information submitted in them is used by the CPUC to issue procurement orders in the IRP proceeding. However, development of the IRP in particular is a risk management activity that mitigates financial risk exposure for RCEA by ensuring holistic, high-level decision-making regarding RCEA’s power portfolio, while ensuring conformance with regulatory mandates from the State.
Staff Recommendation
Provide feedback to staff on the 2026 Integrated Resource Plan portfolio.
Attachments
1. Preliminary IRP Portfolio Options Table
289
2035 2045 2035 2045
Small Hydro 20 15 20 15 Cove Hydro (expires in early
2035) Local Small Hydro Project $90
Biomass 66 54 66 54 Humboldt Sawmill Company
(through 2031)
Humboldt Sawmill Company
(recontracted through 2045) $110
Conventional Geothermal 264 413 387 549 Fish Lake, Ormat Portfolio CC Power Geothermal Projects,
Generic Conventional
Geothermal
$89 - $130
Enhanced Geothermal 153 116 0 0 None Strategic In-State Enhanced Geothermal $118 - $132
Onshore Wind 7 49 8 65 Paradigm Wind Generic In-State Wind $33 - $47 Offshore Wind 12 41 0 0 None North Coast, Central Coast, CADEMO $129 - $182
Utility Scale Solar 302 486 328 486
Sandrini, RCAM, Foster Clean
Power, Hatchery Road, North
Coast Highway Solar
Generic Large Scale Solar $19 - $30
Customer Solar 1 108 131 108 131 N/A N/A N/A
Battery Storage (MW) 156 59 156 59
Storage Paired w/ Solar
Projects, Tumbleweed,
Flycatcher, Drifter
None N/A
Total Generation Supply2 824 1174 808 1168
Assigned Load Forecast3 865 1,157 865 1,157
1RCEA would not contract for behind-the-customer-meter solar, but this generation is accounted for in RCEA’s assigned load forecast 2Represents supply before combined heat and power assignment and curtailments during high generation hours; does not include customer solar or battery storage capacity 3 Includes customer solar generation, energy efficiency savings, and load from data centers, electric vehicles and building electrification Policy Portfolio
(GWh)
Economic Portfolio
Resource Type (GWh) Contracted Resources Planned Resources Planned
Resource Costs
($/MWh)
290