Board of
Directors
Regular Meeting
February 27, 2025
Welcome
and
Call to
Order
Roll
Call
4 Land
Acknowledgement
6 Welcome Staff
Caryn Lai
Senior Counsel
Jennine Camara
Director of Portfolio
Management
Stephen Yi
Associate Director of Data
Analytics and IT
Welcome
New Board
Members
8 Welcome New Board Members
Sean Elo-Rivera
City of San Diego
Councilmember
Marco San Antonio
City of Encinitas
Councilmember
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
not
on the
Agenda
11 Consent
Calendar
1. Approve January 17, 23, and February 7, 2025, Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending December 31, 2024
3. Receive and File Update on Programs
4. Receive and File Update on Power Services
5. Receive and File Update on Customer Operations
6. Receive and File Update on Human Resources
7. Receive and File Update on Marketing, Public Relations, and Local Government Affairs
8. Receive and File Update on Regulatory and Legislative Affairs
9. Approve Request for Board Member Travel to CalCCA
Annual Conference April 28-30, 2025, in Irvine, CA
Public
Comment
for
Consent
Agenda
13 Regular
Agenda
10. Community Advisory Committee Quarterly Report
11. Presentation on Clean Energy Prepayment Financing
12. Adopt Resolution No. 2025-02 to Approve a Designation of Presiding Officer Policy
13. Appointment of a New Member to the Finance and Risk Management Committee
14. Amendment of the FY 2024-25 Operating Budget, the FY 2024-25 Capital Budget, and the FY 2025-29 Capital
Investment Plan
15. Approve Amended and Restated Energy Storage Service Agreement with Euismod Project I, LLC
16. Approve Energy Storage Service Agreement with North Johnson Energy Center, LLC
17. Approve Energy Storage Services Agreement Portfolio with Luminia CA DevCo 5, LLC
18. Update on Strategic Planning Goals for FY2026-2028
14 Item No. 10
Recommendation:
Receive and File Community Advisory Committee Quarterly Report.
Presenter:
Matthew Vasilakis, Community Advisory Committee Chair
Community Advisory Committee Quarterly Report
15 Quarterly Report on Community Advisory Committee (CAC) October 2024 through January 2025
Topics Discussed
• Customer Operations Metrics and Data Tracking
• Solar Battery Savings
• Flex Load Strategy
• 5-Year Key Organizational Highlights and Strategic
Planning Process Overview
• Allocation from Pacific Gas & Electric Greenhouse
Gas-Free Attributes
• 2025 CAC Work Plan
• 2025 Projected Rate Changes
• Strategic Partnerships
Board-Approved 2025 CAC Work Plan
Public
Comment
for Item
No. 10
17 Item No. 11
Recommendation:
Receive and File Presentation on Clean Energy Prepayment Financing.
Presenter:
Dr. Eric Washington, Chief Financial Officer/Treasurer
Mike Berwanger, PFM Financial Advisors
Presentation on Clean Energy Prepayment Financing
Energy Prepayment Discussion
PFM Financial Advisors LLC 1150 S. Olive Street,
10th Floor
Los Angeles, CA 90015
213.489.4075
February 27, 2025
© PFM 19
Prepayment Transaction Overview
Goal – Reduce cost of power purchases by 8% or more
How – Leverage use of tax-exempt bonding capacity to secure long-term supply Background
Codified in the U.S. tax law
Used since the 1990s largely for natural gas transactions Over 100 transactions totaling over $75 billion completed in the U.S. – mostly for gas 18 energy prepayment transactions totaling $17.8 billion completed last few years for 10 California Community Choice Aggregators:
Ava Community Energy (AVA) Pioneer Community Energy (Pioneer) Silicon Valley Clean Energy (SVCE) Clean Power Alliance (CPA) Marin Clean Energy (MCE) Central Coast Community Energy (3CE) San Jose Clean Energy (SJCE) Peninsula Clean Energy (PCE) Sonoma Clean Power (SCP) San Diego Community Power (SDCP) © PFM 20
San Diego Community Power – 2024 Prepayment Transaction CCCFA issued $1,000,500,000 in tax-exempt bonds on behalf of SDCP in November 2024
• 30-year transaction with an initial put period of November 2032 • For the initial period, 4,113,481 MWhs have been assigned into the deal • Total cashflow savings of $53.2 million are expected
• Annual savings of $6.8 million (which represents 12% of assigned energy procurement costs) have been locked in till 2032
Prepayment Transaction
© PFM 21
Prepayments That Have Been Completed by CCAs in California All transactions to date have achieved @ 9.5% savings or better.
Most recent transactions have been over 12%.
Date Amt. ($000) Issuer Description Beneficiary Prepay Counterparty 09/2021 1,234,720 California Community Choice Financing Authority Elec (Green) SVCE, AVA Morgan Stanley 11/2021 602,655 California Community Choice Financing Authority Elec (Green) MCE Goldman Sachs 07/2022 931,120 California Community Choice Financing Authority Elec (Green) AVA Morgan Stanley 01/2023 459,640 California Community Choice Financing Authority Elec (Green) Pioneer Goldman Sachs 01/2023 841,550 California Community Choice Financing Authority Elec (Green) SVCE Morgan Stanley 02/2023 998,780 California Community Choice Financing Authority Elec (Green) CPA Goldman Sachs 06/2023 958,290 California Community Choice Financing Authority Elec (Green) CPA Goldman Sachs 08/2023 997,895 California Community Choice Financing Authority Elec (Green) AVA Morgan Stanley 10/2023 647,750 California Community Choice Financing Authority Elec (Green) 3CE Goldman Sachs 12/2023 1,038,285 California Community Choice Financing Authority Elec (Green) MCE Goldman Sachs 01/2024 1,101,625 California Community Choice Financing Authority Elec (Green) SVCE Morgan Stanley 08/2024 1,524,180 California Community Choice Financing Authority Elec (Green) CPA Goldman Sachs 10/2024 959,825 California Community Choice Financing Authority Elec (Green) PCE Goldman Sachs 11/2024 1,243,210 California Community Choice Financing Authority Elec (Green) SJCE Morgan Stanley 11/2024 1,152,995 California Community Choice Financing Authority Elec (Green) CPA RBC Capital Markets 11/2024 1,000,500 California Community Choice Financing Authority Elec (Green) SDCP Morgan Stanley 11/2024 775,590 California Community Choice Financing Authority Elec (Green) SCP Goldman Sachs 12/2024 1,290,750 California Community Choice Financing Authority Elec (Green) CPA Goldman Sachs Total $17,759,360
Prepayment Transaction
© PFM 22
Prepayments That Have Been Completed by Public Utilities in California Date Amt. ($000) Issuer Description Beneficiary
06/2006 230,845 Vernon Natural Gas Fin Auth Nat. Gas City of Vernon Elec 01/2007 209,350 Roseville Natural Gas Fin Auth Nat. Gas City of Roseville Elec 05/2007 757,055 Northern Ca Gas Auth No. 1 Nat. Gas SMUD 09/2007 887,360 Long Beach Bond Fin Auth Nat. Gas City of Long Beach 10/2007 504,445 So. Ca Pub Power Auth Nat. Gas Multiple MOUs 10/2007 251,695 Long Beach Bond Fin Auth Nat. Gas City of Long Beach 08/2009 901,620 M-S-R Energy Authority Nat. Gas MID/Redding/SVP 10/2009 514,160 So. Ca Pub Power Auth (Windy Flats) Elec (Wind) LADWP, Mult. MOUs 04/2010 778,665 Cal. Statewide Comm Dev Auth Nat. Gas SMUD 11/2010 394,700 So. Ca Pub Power Auth (Milford 1 & 2) Elec (Wind) LADWP, Mult. MOUs 12/2018 539,615 Northern Ca Energy Auth Gas/Elec SMUD
05/2024 592,270 So. Ca Pub Power Auth Elec APU
01/2025 984,120 Central Valley Energy Auth Gas/Elec TID 02/2025 865,770 San Joaquin Valley Clean Energy Auth Elec MID Total $8,411,670
Prepayment Transaction
© PFM 23
Pre-Pay Deal Team
• Financial advisory
• Advice on structure,
timing, and terms
• Fiduciary
responsibility to
CCA
• PFM
Prepayment Transaction
San Diego Community Power
Municipal Advisor* Prepay Counsel* Conduit Issuer Prepaid Supplier* Custodian/Trustee* Rating Agency Bond/Tax Counsel*
• Legal advisory
• Represents CCA’s
interests
• Issuer of tax-exempt bonds
• California
Community Choice
Financing Authority
(CCCFA)
• Structures
transaction
• Markets and
underwrites bonds
• Manages prepay
estate
• Bond interest
payments
• Rates bonds
• Moody’s
• Legal services
• Affirms tax-exempt
bond status and
validity of bond
offering
Entities Selected by
SDCP
Other Entities in
Prepay Deal
Green Font = firms that will be used for the prepay transaction *Fees paid on contingency from bond proceeds
© PFM 24
1) SDCP partially assigns PPAs to
Counterparty
2) SDCP and CCCFA execute a
Clean Energy Purchase Contract
3) Counterparty delivers power to
CCCFA via a Master Power
Supply Agreement
4) CCCFA delivers power to SDCP
5) CCCFA issues non-recourse tax-exempt bonds
6) CCCFA makes a prepayment to
Counterparty for a 30-year
power supply
7) SDCP makes payments to the
CCCFA net of savings
8) CCFCA makes debt payments
with payments from SDCP
Summary of Energy Prepayment Structure Mechanics
Prepayment Transaction
PPA to be
“Partially
Assigned”
1 Non-Recourse
Tax-exempt
Debt Debt
Service
Bond
Proceeds
SDCP
Counterparty
MWhs
Prepayment $$$
PPA Price
less Discount
MWhs
CCCFA
Clean
Energy
Purchase
Contract
2 3
4 5
6 7
8 © PFM 25
Favorable Risk Allocation – “Take-and-Pay” Structure
Key Risk – Transaction terminates and SDCP no longer receives expected savings Counterparty default on energy delivery
SDCP receives too much energy and is
unable to have Qualified Use and/or has to
meet new renewable mandates in the future
Debt obligation could obligate SDCP over
long-term
Rating agency treatment of prepay debt
Debt is non-recourse to SDCP and the obligation
is take and pay. Rating agencies do not count
prepay transactions as debt or fixed costs of
SDCP
Counterparty will remarket the energy to qualified
entities to ensure SDCP compliance with Qualified
Use
SDCP only pays for energy if/when Counterparty
delivers the energy
Counterparty assumes debt obligations in the
event of Supplier default
Risk Mitigation
Commodity swap or guaranteed investment
contract (GIC) provider counterparty fails to
perform
Documents allow for replacement of swap and
GIC provider; Supplier is likely GIC provider (thus
no additional risk)
Supplier/Guarantor bears the risk of the
counterparty’s performance, and in the event of
default, the swap “tears up”
Prepayment Transaction
Public
Comment
for Item
No. 11
27 Item No. 12
Recommendation:
Adopt Resolution No. 2025-02 to approve a Designation of Presiding Officer Policy to set a process for identifying the Director to preside over a Community Power Board of Directors (“Board”) meeting in the absence of the Board Chair or Vice Chair and the Committee member to preside over a Community Power Committee meeting, in the absence of the Committee Chair or Vice Chair, if the Committee has appointed a Vice Chair.
Presenter:
Veera Tyagi, General Counsel
Adopt Resolution No. 2025-02 to Approve a Designation of Presiding Officer Policy
Public
Comment
for Item
No. 12
29 Item No. 13
Recommendation:
That the Board of Directors consider the appointment of a new member to the Finance and Risk Management Committee to fill the vacancy left by Community Power Board Chair and Mayor of Imperial Beach, Paloma Aguirre.
Presenter:
Chair Paloma Aguirre
Appointment of a New Member to the Finance and Risk Management Committee
Public
Comment
for Item
No. 13
31 Item No. 14
Recommendation:
Approve Amending the FY 2024-2025 Operating Budget, the FY 2024-2025 Capital Budget, and the FY 2025-2029 Capital Investment Plan.
Presenter:
Dr. Eric Washington, Chief Financial Officer/Treasurer
Tim Manglicmot, Director of Finance
Amendment of the FY 2024-25 Operating Budget, the FY 2024-25 Capital Budget, and the FY 2025-29 Capital Investment Plan
32 Budget Timeline
The Board adopted schedule for budget development is the following.
Develop Operating
Revenue Estimate
Develop Operating
Expense Estimate
Develop financial
plan for credit rating
in 3-years
February March-April
Strategic planning
sessions with SDCP
Board
Staff develop
operating budgets
Baseline budget is
developed
May
Financial and Risk
Management
Committee Review
SDCP Board Preview
(Information Item)
June
SDCP Board Approval July 1st Budget
Implemented
Mid-year budget
review (February)
Budget amendments
as necessary
33 Budget Principles for FY 2024-25
• Maintain Fiscal Responsibility
• Maintain Sufficient Reserves
• User-Friendly Financial Reports
• Model Best Practices
• Facilitate Engagement
• Promote Transparency
• Community Focused
34 Proposed FY 2024-25 Amended Budget
Operational Revenue
FY 2025
$1,177.9M
Total Expense
$1,143.9M
Net Position
+$34.0M
Operational Revenue
$1,221.3M
FY 2025 Amended
Total Expense
$1,187.1M
Net Position
+$34.2M
35 Proposed FY 2024-25 Amended Budget
Operational Revenue
FY 2025
$1,177.9M
Total Expense
$1,143.9M
Net Position
+$34.0M
Operational Revenue
$1,221.3M
FY 2025 Amended
Total Expense
$1,187.1M
Net Position
+$34.2M
+$43.3 million
Approved rate change,
effective February 1, 2025
+$43.2 million
Higher energy costs,
reduced non-energy
costs, and CIP investment
+$0.2 million
Increase to net position
over adopted budget
36 Budget Amendment – Summary
Item FY 25 Amended
Budget, $M
FY 25 Approved
Budget, $M Difference
Gross Revenue 1,243.0 1,233.4 9.6
Less Uncollectible Accounts (21.7) (54.5) (33.7)
Net Revenue 1,221.3 1,177.9 43.3
Cost of Energy 1,116.8 1,073.7 43.2
Non-Energy Costs 50.8 53.8 (3.0)
Subtotal Operating Expense 1,167.6 1,127.5 40.2
Debt Service 1.3 1.3 0.0
Capital Investment Program 18.2 15.2 3.0
Total Expense 1,187.1 1,143.9 43.2
Net Position 34.2 34.0 0.2
37 Proposed FY 2024-25 Budget Amendment
Budget Changes by Category
Revenue
Cost of Energy
Board approved rate change on
2/7/2025.
Increases in renewable and resource
adequacy energy prices.
FY25 (amendment)
$1,243.0m
FY25
$1,116.8m
Professional
Services
Personnel
Marketing and
Outreach
General and
Administrative
FY25 (approved)
$1,233.4m
FY25
$1,073.6m
Increase in personnel is lowering the
need for professional services.
FY25
$24.3m
FY25
$24.8m
Recruitment strategy of 7 new staff
growing the agency to 87 total staff.
FY25
$18.6m
FY25
$18.6m
Marketing and Outreach budget remains
relatively even.
FY25
$2.9m
FY25
$3.0m
Reduced spending through fiscal
prudence.
FY25
$4.9m
FY25
$7.4m
Capital Budget Proposed SBS investment of an
additional $3.0 million.
FY25
$147.6m
FY25
$144.6m
38 Budget – CCA Comparison
Community Choice
Aggregator
Years Est.
(JPA eff.
Date)
Customer
Accounts*
Cost of
Energy, $M**
Non-Energy
Costs, $M
Net
Ratepayer
Revenue, $M
Energy
Costs/Net
Revenue (%)
Clean Power Alliance Jun 2017 1,044,116 1,393.3 67.5 1,582.4 88% San Diego Community
Power Oct 2019 954,418 1,073.7 53.8 1,177.9 91%
Ava Community Energy Dec 2016 643,500 771.9 45.3 881.7 88% Marin Clean Energy Dec 2008 586,906 668.8 45.5 787.9 85% Central Coast Community
Energy Mar 2018 447,166 665.3 65.1 745.9 89%
Peninsula Clean Energy Feb 2016 314,175 423.4 57.1 451.9 94% *Customer are from CalCCA as of December 2024 (https://cal-cca.org/cca-impact/). **Cost of energy, non-energy costs and ratepayer revenue are from FY25 adopted budgets. SDCP costs and revenue are from its proposed FY25 budget amendment. ***SDCP includes CIP and debt service costs whereas most other CCAs do have minimal or zero debt service costs.
Public
Comment
for Item
No. 14
40 Item No. 15
Approve Amended and Restated Energy Storage Service Agreement with Euismod Project I, LLC
Recommendation:
Approve Amended and Restated Energy Storage Service Agreement with Euismod Project I, LLC for a 200 MW (8-hour) Battery Energy System Storage (BESS) facility with a 20-year term.
Presenter:
Kenny Key, Director of Power Contracts
41 Euismod: Project Summary
• 200MW/1,600MWh (8-hour) lithium-ion battery
• Location: Kern County
• Developer: Aypa
42 Euismod: Project Summary – Battery Technology
• Aypa has safety as its top priority, and it employs a multi-layered approach to ensure it • Partners with top battery manufacturers for quality control • Implements a detailed, site-specific Emergency Response Plan (ERP) with local fire officials and third-party experts
• Their systems feature gas, smoke, and fire detection, ventilation, fail-safe mechanisms, and 24/7 monitoring
• Aypa offers direct, site-specific response training to fire officials and first responders • The Euismod project is being developed in full compliance with the most advanced fire and safety standards available today, including NFPA 855, UL9540, IFC 2021, NFPA 69 or 68, UN 38.3, UL 864, and UL 9540A.
• Specifically, they are adhering to the comprehensive framework established by Kern County, which is widely regarded as a benchmark for BESS safety 43 Euismod: Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed for a 20-year term
• Timeline: Guaranteed Commercial Operation Date is June 1, 2028 • SDCP would receive financial compensation in the event of seller’s failure to successfully achieve certain development milestones as well as seller’s failure to meet guaranteed storage capacity, availability, and efficiency rates.
44 Eusimod: Amendment Scope
• Delivery Term: 20 year vs. 15 year
• Battery Duration: 8-hour vs. 4-hour
• Pricing adjustment based on the modified delivery term and duration • Clean up edits for resource availability calculations and slice of day resource adequacy accounting
45 Eusimod: Developer Experience
• Aypa Power, formerly known as NRStor C&I, was founded in Toronto in 2017 with its first project coming online in 2018.
• In March of 2020, the business was acquired by Blackstone and changed its name to Aypa Power.
• Aypa has 33 solar and lithium-ion battery energy storage projects either under construction or in operation to date, with 18 projects in various stages of development in California.
46 Eusimod: Staff Analysis
• Project would contribute to SDCP’s reliability and capacity targets • Pricing is competitive with comparable RA offers received from SDCP’s recent RFOs
• Project would help fulfill SDCP’s long-lead time Mid-Term Reliability requirements for long duration energy storage
• The long-term purchase of capacity, energy arbitrage, and ancillary services will provide SDCP with significant value and cost certainty over the term of this ESSA
47 Eusimod: Workforce Development & Community Benefits
• The project is estimated to create approximately 110 construction jobs and 4 permanent jobs
• Aypa partners with skilled and experienced contractors to perform the work required for its projects. As a component of our agreement with our selected contractor, they will be required to utilize a Project Labor Agreement (PLA). The PLA will cover all construction work and will comply with the standards set forth in State legislation. • The project is located in a rural desert area with no residential or sensitive receptors in close proximity
• The project has committed $100,000 to a community benefit fund to benefit SDCP customers
Public
Comment
for Item 15
49 Item No. 16
Approve Energy Storage Service Agreement (ESSA) for the North Johnson Energy Center (NJEC) Project
Recommendation:
Approve Energy Storage Service Agreement with North Johnson Energy Center, LLC for a 50 MW/200 MWh, 4-hour battery energy storage facility with a 15-year term
Presenter:
Kenny Key, Director of Power Contracts
50 NJEC: Project Summary
• North Johnson Energy Center (NJEC) is a stand-alone storage project being developed by Wellhead Electric Company, Inc. (Wellhead)
• 50MW/200MWh (4-hour) lithium-ion battery
• Location: El Cajon
51 NJEC: Project Summary – Battery Technology
• North Johnson Energy Center (NJEC) has selected batteries supplied by Tesla • Tesla MegaPack2XL’s have an excellent safety record
• Since 2023, 10,000 MegaPack2XL’s have been placed into service with no major incidents
• MegPack 2XL design features with an objective of safety • Purpose built containers with California Fire Code compliant spacing • Liquid cooling system
• Relatively small grouping of cells
• Lithium-Iron Phosphate (LFP) chemistry that is intrinsically very safe and design limits potential for thermal runaway without external activation 52 NJEC: Developer Experience
• Wellhead Electric
• Sacramento Based Business
• In business since 1985, same owner/family
• Developer, owner and operator of power/storage projects • Award-winning merger of standby gas-turbine peaker generator with battery storage, reduces GHG emission up to 90%
• Utility scale projects supplying California’s utilities • Diverse portfolio (gas peakers, peaker-battery hybrids, storage, and solar) of 11 projects totaling ~525 MW – all in California 53 NJEC: Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed for a 15-year term
• Timeline: Guaranteed Commercial Operation Date is June 1, 2026 • SDCP would receive financial compensation in the event of seller’s failure to successfully achieve certain development milestones as well as seller’s failure to meet guaranteed efficiency rates once the project is operational. 54 NJEC: Staff Analysis
• The project would contribute to SDCP’s local capacity target • With commercial operations commencing in 2026, the project would help fulfill SDCP’s Mid-Term Reliability requirements under CPUC D.21-06-025 • Pricing is competitive with comparable product offerings received from SDCP’s recent RFO • The long-term purchase of capacity, energy arbitrage, and ancillary services will provide SDCP with significant value and cost certainty over the term of this ESSA. 55 NJEC: Workforce Development and Community Benefits
• Wellhead is committed to using union labor at the project and has committed to entering into a Project Labor Agreement that is near execution
• Project development will bring approximately 130 clean-energy jobs throughout construction and will be staffed during operations by Wellhead's 6-person San Diego area O&M staff • Project is located in a disadvantaged community and will help displace local and regional gas-fired generation in peak hours and fewer renewable curtailments will occur • Wellhead is providing scholarships to local high schools for students continuing education in the areas of Science, Technology, Engineering and Math Public
Comment
for Item
No. 16
57 Item No. 17
Approve Energy Storage Services Agreement Portfolio with Luminia CA DevCo 5, LLC
Recommendation:
Approve Energy Storage Services Agreements (ESSAs) and a Framework agreement, in substantially final forms, for a Local RFO portfolio with Luminia CA DevCo 5, LLC, for up to 20.6 MW of 4-hr duration battery energy storage systems (BESS) for twenty years and authorize the Chief Executive Officer to execute the agreements.
Presenter:
Morgan Adam, Senior Local Development Manager
58 Luminia ESSA : Project Summary
• Portfolio of five (5) distributed
batteries by local developer, Luminia
– 3MW to 6MW each
• Aggregated capacity - 20.6 MW (4-
hour) lithium-ion battery energy
storage systems (BESS)
• Location: Cities of San Diego and
Chula Vista & County of SD
59 Luminia ESSA : Project Summary – BESS Technology
• Projects will source Tier-1 containerized solutions adhering to UL 9540A and NFPA 855 guidelines, including the following attributes:
• Liquid cooling system
• Lithium-Iron Phosphate (LFP) is safer than other li-ion chemistries with respect to thermal runaway, having a higher temperature threshold. • California Fire Code compliant spacing
• Projects, all located in secure facilities, will also have Emergency Response Plans (ERPs) and will focus on early detection to ensure reliable and safe operation • 24/7 monitoring via sensors with on-site visual and technical inspections • Commitment to safety extends from site selection and design, through transportation and construction, to decommissioning and recycling of the equipment at end of life 60 Luminia ESSA : Developer Experience
• Luminia LLC
• San Diego headquarters since formation in 2019
• Employs fifteen San Diego professionals in their local office • Developer, owner and operator of power/storage projects with focus on distributed and community solar projects across the country with over 50 MW of commercial and community solar projects in operation and development in California and New England. • Rooftop PPA portfolio with Luminia were approved by the Board last month 61 Luminia ESSA : Key Terms
• Product: Full toll and Resource Adequacy benefits
• Pricing: Fixed for a 20-year term
• Timeline: Guaranteed Commercial Operation Date is March 31, 2027 • SDCP receives financial compensation for failure to meet certain performance requirements including but not limited to meeting the guaranteed commercial operation date and meeting performance metrics over the delivery term. • A separate Framework Agreement will manage development of the individual site ESSAs at a portfolio level. The Framework Agreement governs a process by which the five (5) ESSAs presented for approval here may be replaced by ESSAs at different site locations not to exceed the aggregate 20.6 MW portfolio. 62 Luminia ESSA : Staff Analysis
• The project would contribute to SDCP’s local & infill/DER capacity targets • The long-term purchase of capacity, energy arbitration, and ancillary services will provide SDCP with significant value and cost certainty over the term of these ESSAs. • Pricing is competitive with comparable product offerings received through other SDCP solicitations
63 Luminia ESSA : Workforce Development and Community Benefits • Over $2.5 MM in local labor wages and salaries during the construction phases of the projects • Commitment to use local labor, prevailing wages and hiring from San Diego-based apprenticeship programs
• All sanitation, equipment rental, and waste services are to be provided by local companies and to work with community-based organizations to ensure that all RFPs are posted to local boards and released in appropriate community boards.
• Up to an estimated $2.9 MM in property tax revenue feeding to local jurisdictions Public
Comment
for Item
No. 17
65 Item No. 18
Update on Strategic Planning Goals for FY2026-2028
Recommendation:
Receive and file an update on the Strategic Plan Goals for FY 26-28 of San Diego Community Power.
Presenter:
Karin Burns, Chief Executive Officer
San Diego
Community Power
Strategic Plan Goals
FY 2026 – FY 2028
Karin Burns, CEO
February 2025
67 Our
Agenda
Review of what is Not Changing
Review & Discuss Proposed Goals from
each department level team
Feedback /Q&A
Next Steps
68 Mission — To provide affordable clean energy and invest in the community to create an equitable and sustainable future for the San Diego region
69 Vision — To become a global leader and inspire innovative solutions to climate change by powering our communities with 100% affordable clean energy while prioritizing equity and sustainability
70 Values: The "JIST" of Community Power
Our core values:
• Justice, Equity, Diversity and Inclusion (JEDI)
• Impact
• Integrity
• Innovation
• Servant Leadership
• Togetherness
Proposed Updated
Organizational Goals
Financial Stability
Practice fiscal strategies to
promote long-term organizational
sustainability
73 Proposed
Goals
Execute at least 6 clean pre-payment transactions over the next 3 years aimed at generating $30M of annual
savings on power costs
Obtain a public investment grade credit rating by
November 2027
Build reserves by $150M to maintain a reserve target of at least 180 Days Cash On Hand by December 2027
Develop Rate Stabilization Reserve of $70M to
mitigate power cost fluctuations and economic
downturns
Continue to enhance and implement financial controls
and policies to meet or exceed best practices - including contracting, risk management, and procurement
Energy Portfolio
Development
Provide sufficient, reasonably
priced, clean electricity to our customers
75 Proposed
Goals
Develop a clean energy portfolio with renewable content of 100% no later than 2035, with interim targets of 75% by 2027 and 85% by 2030
Support development of 1 Gigawatt of local renewable
and clean energy capacity by 2035, of which 300 MW will be distributed energy resources (DERs) enabled by
Community Power programs, tariffs, and procurement
Prudently manage the power portfolio to minimize risk and customer costs
Ensure cost-effective compliance with RA and RPS
requirements and all other regulatory obligations
Create high quality local jobs in renewable energy that support healthy families and vibrant communities
Community Program
Delivery
Implement energy projects and programs
that reduce greenhouse gas emissions,
align energy supply and demand, and
provide benefits to community
stakeholder groups
77 Proposed
GOALS
Deliver 150 Megawatts of local capacity from distributed energy resources (DERs) and our Virtual Power Plant
(VPP) by 2035, including expansion of the Solar Battery Savings program
Launch all San Diego Regional Energy Network
(SDREN) programs and make them available to
customers by FY 2026
Create and implement a program evaluation framework
for all programs/pilots by FY 2026
Increase program funding opportunities from external
sources and internal cost savings
Legislative and
Regulatory
Advocate for public policies
that advance Community Power
organizational priorities
79 Proposed
Goals
Continuously educate and engage policymakers
developing policies to ensure those policies are
consistent with Community Power’s regulatory and
legislative policy platform
Sponsor and support legislation consistent with our
policy platform, mission, vision, values & needs
Advocate for regulatory outcomes and seek to leverage opportunities consistent with our policy platform,
mission, vision, values, and needs
Continue to actively participate in trade associations, organizations & coalitions of which we are a member to
advance our policy platform
Identify external funding opportunities & develop a
strategic plan to guide our pursuit of opportunities that align with our policy platform, mission, values, & needs Public Affairs
Develop trusted brand reputation to
help drive participation in programs
and support customer service
and retention
81 Proposed
Goals
Establish Community Power as a trusted public
agency that collaborates and engages with other local
governments and stakeholders
Develop a robust Power Network of local nonprofits to support programs, build community relationships, and
reinvest in the communities we serve
Increase brand awareness through outreach,
education, and strategic communications to help
customers understand their energy usage, save
money, and utilize customer offerings
Develop and execute effective communications &
marketing plans to encourage San Diego residents to
take advantage of programs they qualify for to
enhance their energy efficiency
Customer Operations
Ensure high customer retention and
satisfaction
83 Proposed
Goals
Evolve rate strategy to ensure competitiveness,
affordability, and fiscal sustainability
Develop customer strategies to increase
retention and engagement
Resolve billing issues with SDG&E that cause
customer confusion and complaints
Identify options to develop best in class
customer service, including a potential energy
advisor center
Identify ways to help address, resolve, and
reduce outstanding arrearages
Human Resources
Ensure excellence by adopting sustainable
business practices and fostering a workplace
culture of innovation, diversity,
transparency and integrity
85 Proposed
Goals
Evolve into a learning organization by Q4 2026, with an emphasis on professional development for our staff and people leaders Ensure all employees are formally trained in workplace violence prevention, emergency preparedness and any additional safety meetings annually
Hire top talent according to plan and budget; launch internal job board (Q1) and finalize 3-year staffing plan (Q3)
Track and ensure 80%+ employee satisfaction through consistent improvement, onboarding survey metrics, and annual baseline surveys
Finalize current internship design and launch a successful summer intern program by FY 2027 for local college & community college students interested in the clean energy industry Launch succession planning in FY 26 with E-Team and leadership 86 Next Steps
Final reviews by SDCP team
Final set of goals presented at the regular CAC
meeting on March 13th for recommended approval
Final set of goals presented at regular Board
meeting on March 27th for approval
April - June: Staffing and resourcing, individual and
departmental annual goal setting, and incorporation
into FY 26 budget
Thank you!
Q&A
Public
Comment
for Item
No. 18
Report by
Chief
Executive
Officer
90 This week's presentation at the City of San Diego
Member Agency
Presentation
Date
San Diego Feb. 25
Chula Vista TBD
Encinitas TBD
Imperial Beach April 5
La Mesa TBD
National City March 4
County of San Diego TBD
Report by Chief Executive Officer
91 Report by Chief Executive Officer
Customer Feedback Survey
• Survey is open to all residents and
businesses in our service territory
• Promotional materials have been provided
• Please continue to share with constituents
• Let us know if you have questions
• Thank you!
Directors'
Comments
Adjournment
Next Regular
Board of Directors Meeting
March 27, 2025