Board of
Directors
Regular Meeting
May 22, 2025
Welcome
and
Call to
Order
Roll
Call
4 Land
Acknowledgement
6 Warm Welcome!
Krystal Carranza
Procurement Analyst
Items to
be Added,
Withdrawn
or Reordered
on the
Agenda
Public
Comment
on non-Agenda
Items
9 Consent
Calendar
1. Approve April 24, 2025, Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending March 31, 2025
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. Receive and File Community Advisory Committee Monthly Report
Public
Comment on
Consent
Calendar
11 Regular
Agenda
10. Community Advisory Committee Report
11. Presentation of Draft of FY 2025-2026 Operating Budget, FY 2025-2026 Capital Budget, and FY 2026-2030 Capital
Investment Plan
12. Approve Amended and Restated Renewable Power
Purchase Agreement with Pelicans Jaw Solar, LLC
13. Approve Amended and Restated Power Purchase
Agreement with Noble Solar, LLC
14. Approve EEI Master Agreement, Confirmation and
Collateral Annex with Clean Power Alliance of Southern
California
12 Item No. 10
Recommendation:
Receive and file the Community Advisory Committee (CAC) Quarterly Report.
Presenter:
Matthew Vasilakis, Community Advisory Committee Chair
Community Advisory Committee Report
13 Quarterly Report on Community Advisory Committee (CAC) February through April 2025
Topics Discussed
• FY2026-2028 Strategic Planning
Goals
• 2025 Rate Adjustments
• Community Clean Energy Grant
Program
• Regulatory and Legislative Affairs
• Equitable Building Decarbonization
Direct Install Program
• Power Services Overview
New CAC Members Ross Pike (San Diego County) and Shaun
Sumner (La Mesa) during their Oaths of Office
Public
Comment
on Item
No. 10
15 Item No. 11
Recommendation:
Receive and File Preliminary Draft of FY 2025-2026 Operating Budget, FY 2025-2026 Capital Budget, and FY 2026-2030 Capital Investment Plan.
Presenter:
Tim Manglicmot, Director of Finance
Presentation of Draft of FY 2025-2026 Operating Budget, FY 2025-2026 Capital Budget, and FY 2026-2030 Capital Investment Plan 16 Budget Development for FY 2025-26
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
SDCP Board
Preview
June
Financial and Risk
Management
Committee Review
SDCP Board Approval
July 1st Budget
Implemented
Mid-year budget
review (February)
Budget amendments
as necessary
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 17 Budget Highlights
Formed in
October 2019
Expense
Budget: zero
First Board meeting
CCA Ordinances, CPUC
Implementation Plan
2019 2020
Expense
Budget: $3.3M
FY20 Net Loss: $ (1.1M)
2021
Expense
Budget: $33.8M
FY21 Net Loss: $ (13.0M)
Implementation
and Start-Up
SDCP Becomes
Official Electricity
Provider for First
5 Cities 2022
Expense
Budget: $341.2M
FY22 Net Income: $56.6M
SD County and
National City
2023
Expense
Budget: $772.1M
FY23 Net Income: $143.5M
2024
All Enrollment
Complete
Over the past 3-years we’ve had stable
enrollment and are continuing to scale
effectively, operate efficiently, and
remain accountable to the public.
Full
Enrollment – First 5 Cities
Expense
Budget: $1.1B
FY24 Net Income: $189.4M
2025
2nd Year Full
Enrollment 3rd Year Full
Enrollment
Expense
Budget: $1.2B
FY25 Net Income: $34.0M
2026
Expense
Budget: $1.0B
FY26 Net Income: $165.4
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 18 Budget Highlights
Fiscal Sustainability. Continuing to work toward our reserve goals to ensure long-term financial strength.
Organizational Sustainability. Strengthening our internal capacity to support long-term strategy and service delivery.
Stable, Competitive Rates. Maintaining affordability through disciplined operations, long- term procurement and financial foresight.
Expanding Programs and Incentives. Scaling Solar Battery Savings and launching the SDREN portfolio to support clean energy adoption, equity
and resilience.
Capital Investment Planning. Advancing our Capital Investment Plan to guide infrastructure development and ensure transparency.
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 19 FY 2025-26 Operating Budget
Item
FY 2024-25
Amended Budget,
$M
FY 2025-26
Proposed Budget,
$M
Gross Revenue 1,243.0 1,221.0
Less Uncollectible Accounts (21.8) (21.4)
Net Revenue 1,221.3 1,199.6
Cost of Energy 1,116.8 956.7
Non-Energy Costs 50.8 54.3
Subtotal Operating Expense 1,167.6 1,010.9
Debt Service 1.3 1.9
Capital Investment Plan 18.2 21.4
Total Expense 1,187.1 1,034.2
Net Position 34.2 165.4
(3.0%)
PowerOn
Discount
Approved 2/7/25
(5.0%)
PowerBase
Discount
Approved 2/7/25
($160.1M)
Cost of Energy
Decrease
+$3.5M
Non-Energy
Increase
+$3.2M
CIP Contribution
+$165.4
Net Position
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 20 Scenarios Conservative Balanced
(Staff Recommended) Uncertain
PowerOn premium/(discount) compared to SDG&E 2.5% (3.0%) (5.0%) PowerBase (discount) compared to SDG&E (2.5%) (5.0%) (7.0%) Year over Year Community Power rate change 2.7% (2.8%) (4.9%) FY2025 operating margin (million $) 63 44 36
Meets Credit Rating Metrics?
Meets Debt Service Coverage Ratio (DSCR)?
Meets 180-Day Cash on Hand?
2025 Community Power Rate Scenarios
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 21 Reserves
$(100,000,000)
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O Net Position
Reserve Goal
2021 2022 2023 2024 2025
180-Days
Cash on Hand
Fall 2025 Through prudent
decision-making,
Community Power is on
track to achieve reserve
goal in FY 2025-26.
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 22 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
Clean Power Alliance Jun 2017 1,007,868 1,228.0 77.1 1,372.0 San Diego Community
Power Oct 2019 955,323 956.7 54.3 1,199.6
Ava Community Energy Dec 2016 643,275 753.5 56.6 962.7
Marin Clean Energy Dec 2008 586,296 688.8 45.6 787.9
Central Coast Community
Energy Mar 2018 445,377 520.3 42.5 562.8
Peninsula Clean Energy Feb 2016 309,994 437.9 56.7 466.9 Clean Energy Alliance*** Nov 2019 250,014 317.1 9.4 351.6 *Source: CalCCA as of December 2023. CEA includes recent Oceanside and Vista participation through 6/12/2024. **CPA from 5/1/25 Board FY25 draft budget. SDCP from proposed FY26 budget. EBCE from 5/8/24 Finance Subcommittee FY25 draft budget. MCE from 3/21/24 Board meeting FY25 proposed budget. PCE from 5/13/14 Audit and Finance Committee FY25 draft budget. 3CE from FY24 adopted budget. ***CEA assumes “Option A” budget with Winter Rate Increase 30%; Summer Rate Increase 15% Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 23 Budget – Cost of Energy
Resource
Adequacy
Down in 2026
Renewables
Down in 2026
Base Load
Up in 2026
$-
$20.00
$40.00
$60.00
$80.00
$100.00
2021 2022 2023 2024 2025
Projected
$-
$20.00
$40.00
$60.00
$80.00
2021 2022 2023 2024 2025
Projected
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2021 2022 2023 2024 2025
Projected
Renewables
RPS CPUC MPB
Resource adequacy
RA system CPUC MPB
Base load energy
Index on-peak
CPUC MPB
Renewable forward
prices decreased
resulting in savings.
Resource adequacy
forward prices decreased
resulting in savings for
open positions.
Brown power forward
prices increased
resulting in being more
‘in the money.’
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 24 Budget – Non-Energy Costs
Budget Changes by Category
Professional
Services
Personnel
Marketing and
Outreach
General and
Administrative
Professional Services remains relatively
even.
FY25
$24.3m
FY26
$24.6m
Recruitment strategy of 7 new staff.
Current staffing is: hired (80), previously
authorized (7), new request (7).
FY25
$18.6m
FY26
$21.1m
Marketing and Outreach budget slightly
lower.
FY25
$3.0m
FY26
$2.6m
Increase as Community Power has
scaled in staffing.
FY25
$4.9m
FY26
$5.9m
Capital Transfer Continued Solar Battery Savings
proposed funding of $18.8 million.
FY25
$18.2m
FY26
$21.4m
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 25 Budget – Personnel
2021 2022 2023 2024 2025 2026
12 FTE
$1.2m
18 FTE
$4.0m
44 FTE
$7.6m
70 FTE
$11.6m
87 FTE
$18.6m
94 FTE
$21.1m
Primary driver for increased FY 2025-26 personnel costs are positions hired last fiscal year with full salaries in the current fiscal year. Community Power is reaching a steady-state in staffing.
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 26 Budget – Personnel
Department SDCP
Current
SDCP
Proposed MCE AVA CPA PCE 3CE
Power Services 16 18 7 17 15 10 6
Data Analytics, IT & Customer
Ops. 17 17 21 18 17 9 10
Public Affairs 11 12 17 11 13 8 4
Programs 12 14 19 14 7 11 5
Finance 9 10 5 7 12 3 6
Legal/Regulatory and Legislative 8 9 11 12 8 8 4
Executive Team 5 5 5 3 5 3 4
Operations 5 5 6 3 3 4 3
Human Resources 4 4 5 4 4 0 2
Total 87 94 96 89 84 56 44
Large
Programs
Department
Similar by
load and
customer
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 27 Budget – Personnel
Category SDCP
Current
SDCP
Proposed MCE AVA CPA PCE 3CE
Core Operations 70 74 69 69 74 40 37
Programs 12 14 19 14 7 11 5
Overhead Support 5 6 9 6 3 5 2
Total 87 94 96 89 84 56 44
Community Power has the same staffing level as Clean Power Alliance for core operations.
However, Community Power has more Programs staff given the agency has more outside funding most notably for the SDREN.
Assumes a 44.9% overhead rate for Programs.
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 28 CIP Highlights
Solar Battery Savings. $18.8M
investment to fund Upfront and
performance-based incentives for
home battery systems that boost
resilience and reduce grid demand
during peak hours.
SD Regional Energy Network. In
partnership with the county, SDREN
generates nearly $125 million in energy
efficiency resources for the region
through 2027 and marks the final major
population area in California to
establish a Regional Energy Network.
Infrastructure. Investments in internal
systems and IT infrastructure.
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget 29 Capital Budget and CIP
Carryforward Capital Budget 5-Year CIP
Program, $M FY25 FY26 FY27 FY28 FY29 FY30 Total (Current) REN 0.3 31.8 59.5 51.4 42.0 43.7 228.7
DAC-GT 0.5 0.3 0.5 0.5 0.5 0.5 2.7
CDFA 0.5 - - - - - 0.5
Equitable Building
Decarbonization 1.5 - - - - - 1.5
Solar Battery Savings 2.7 18.8 11.1 10.4 8.3 8.5 59.9
IT Projects 2.0 1.5 - - - - 3.5
Flexible Load 0.2 0.3 0.6 0.6 0.8 0.7 3.1
All Other 2.5 1.6 - - - - 4.1
Total 10.3 54.4 71.7 62.9 51.6 53.4 304.3
Appropriated
in prior fiscal
year
Proposed
Capital
Budget
Proposed
Capital
Investment
Plan
External
Funding
Internal
Funding
Overview Operating Budget Energy Costs Non-Energy Costs Personnel CIP and Capital Budget Public
Comment
on Item
No. 11
31 Item No. 12
Recommendation:
Approve the proposed Second Amended and Restated Power Purchase Agreement with Pelicans Jaw Solar, LLC to modify the Commercial Operation Date (“COD”), adjust pricing based on COD, and make additional minor amendments, and authorize the Chief Executive Officer to execute the agreement.
Presenter:
Kenny Key, Director of Power Contracts
Approve Amended and Restated Renewable Power Purchase
Agreement with Pelicans Jaw Solar, LLC
32 Second Amended and Restated Power Purchase Agreement with Pelicans Jaw Solar LLC: Background
• PPA History:
• January 2024: SDCP BOD approved PPA
for renewable energy benefits from a
portion of the Pelican’s Jaw project equal to
226 MW of PV and 118 MW of BESS
• April 2024: SDCP BOD approved the first
amended and restated PPA to increase the
volumes to 440 MW of PV and 238.5 MW of
BESS
33 Pelicans Jaw PPA: Contract Overview
• Project: 440 MW solar PV electricity generating
facility, along with a 238.5 MWAC 4-hour battery
energy storage facility
• Location: Kern County
• Contract Term: 15 years
• Pricing: fixed pricing with no escalation
• Note: 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 the guaranteed energy
production
34 Pelicans Jaw Second Amendment to PPA: Scope
• Modify Commercial Operation Date from April 1, 2027, to September 1, 2026 • Adjusts pricing to account for earlier COD
• Updates resource adequacy language to account for Slice of Day regulations • Updates several commercial terms for clarity and consistency with SDCP’s current pro-forma
35 Pelicans Jaw Second Amendment to PPA: Staff Analysis • The Pelicans Jaw project will contribute to SDCP’s 100% renewable by 2035 target, providing over 1,200,000 MWh of renewable energy per year • With commercial operations commencing in 2026, Pelicans Jaw 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 RFPs.
The long-term purchase of energy, RPS attributes, and capacity will provide SDCP with significant value and cost certainty over the term of this PPA 36 Pelicans Jaw Second Amended and Restated PPA:
Workforce Development and Community Benefits
• The project is estimated to create approximately 800
temporary construction jobs and 6-8 permanent jobs
• The project has a fully executed Project Labor Agreement with:
• Operating Engineers Local 12 – San Diego, CA
• Southwest Regional Council of Carpenters – Los
Angeles, CA
• Southern California District Council of Laborers and its affiliated Local Union 220 – Bakersfield, CA
• IBEW Local 428 – Bakersfield, CA
• IBEW Local Union 47 – Diamond Bar CA
• Ironworkers Locals 416 and 433 – Norwalk, CA & City of Industry, CA
• The project has committed $500,000 to a community
benefit fund to benefit SDCP customers
Public
Comment
on Item
No. 12
38 Item No. 13
Recommendation:
Approve the proposed Second Amended and Restated Power Purchase Agreement with Noble Solar, LLC to amend the Commercial Operation Date (“COD”), increase the security and pre-COD liabilities, and make additional minor amendments, and authorize the Chief Executive Officer to execute the agreement.
Presenter:
Kenny Key, Director of Power Contracts
Approve Amended and Restated Power Purchase Agreement with Noble Solar, LLC
39 Purple Sage: Project Summary
• 400 MW PV and 400 MW/1,600 MWh (4-hour) lithium-ion battery • Location: Clark County, Nevada
40 Purple Sage: Key Terms
• Counterparty: Noble Solar LLC
• Product: RPS, capacity, energy and ancillary services • Pricing: Fixed for a 20-year term
• Timeline: Revised Guaranteed Commercial Operation Date is June 1, 2028 • SDCP receives financial compensation for failure to meet certain performance requirements including but not limited to achieving certain development milestones and meeting guaranteed efficiency rates over the delivery term 41 Purple Sage: Amendment Scope
• Delivery Term: Adjust Guaranteed Commercial Operation Date from 6/30/2027 to 6/1/2028 • Increase security requirements and pre-COD liabilities • Update resource adequacy terms to account for slice of day regulations • Update several commercial terms for clarity and consistency with SDCP’s current pro-forma • Adjust community benefit fund timeline to bring in funds sooner 42 Purple Sage: Staff Analysis
• The Purple Sage Energy Center project will contribute to SDCP’s 100% renewable by 2035 target, providing over 1,192,000 MWh of renewable energy per year • With commercial operations commencing in 2028, Purple Sage Energy Center 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 RFPs.
The long-term purchase of energy, RPS attributes, and capacity will provide SDCP with significant value and cost certainty over the term of this PPA • Primergy Solar LLC is the developer for Noble Solar LLC and has a 19,000-MW development pipeline consisting of solar and solar + storage projects across the U.S 43 Purple Sage: Project Summary – Battery Technology
• Primergy has safety as its top priority, implementing a multitude of safety measures:
• Battery Management System (“BMS”): Real-time monitoring and protection for voltage, current, temperature, and SOC/SOH
• Fire Suppression System: Built-in aerosol fire suppression system in each battery rack • Primergy will also implement multi-level protections into the BESS:
• Cell-level, module-level, rack-level, and system-level protections • Pre-charge circuit and HV interlock.
• Emergency Stop: Easily accessible emergency stop button • Isolation & Ground Fault Detection: Integrated insulation detection and relay control • Overcurrent & Short-Circuit Protection: Built-in fast-acting protection • Door Safety: Interlocked doors and alarms
44 Purple Sage: Workforce Development and Community Benefits • The project will provide 520 construction jobs and 6 permanent jobs. • There will be Labor Agreements in the form of Work Site Agreements with:
• International Brotherhood of Electrical Workers (“IBEW”) • Laborers International Union of North America (“LiUNA”) • International Union of Operating Engineers (“IUOE”)
• Primergy developed an apprenticeship scholarship for the Moapa Band of Paiutes (MBOP) and managed coordination between the MBOP and IBEW to develop training programs and provide valuable experience at prevailing wage plus a 10% bonus for MBOP Members • The project is planning to provide $15,000 annually to the local Nevada community • The project has committed to contribute $2,000,000 to a community benefit fund to benefit SDCP customers
Public
Comment
on Item
No. 13
46 Item No. 14
Recommendation:
Approve the proposed Edison Electric Institute (EEI) Master Power Purchase and Sale Agreement (Master Agreement), 10-year EEI Confirmation, and associated Paragraph 10 Collateral Annex with Clean Power Alliance of Southern California (CPA), referred to herein collectively as “VAMO Swap Agreements” or “VAMO Swap”, in substantially final form for California RPS-eligible electric energy and associate Green Attributes, and authorize the Chief Executive Officer to execute the agreements.
Presenter:
Andrea Torres, Director of Origination
Approve EEI Master Agreement, Confirmation and Collateral Annex with Clean Power Alliance of Southern California
47 VAMO Swap Background
• Purpose: Community Power and Clean Power Alliance (CPA) are collaborating to enable the “prepayment” of a material portion of our respective renewable portfolios that are currently contracted via “VAMO” contracts with SDG&E and SCE, respectively, resulting in material cost savings to our customers.
• What is VAMO? Stands for Voluntary Allocation Market Offer. VAMO is a mechanism adopted by the CPUC, which provided CCAs the option to receive contract benefits from long-term renewable contracts between IOU and renewable generators. Community Power and CPA have VAMO contracts with the IOUs in their respective territories. • What is prepayment? As briefed in February 2025, prepayments are historically used with natural gas transactions. Municipal electric, gas utilities, and tax-exempt entities (such as CCAs) in the U.S. can prepay for a supply of electricity or natural gas from a taxable (corporate) entity and fund that prepayment with tax-exempt municipal bonds. • At least 10 CCAs have executed 18 energy prepayment transactions totaling $17.9 billion in recent years.
48 VAMO Swap Key Terms
• Product: Solar PV-only renewable energy and REC swap
• Contract Structure: Enabled via an EEI Master Agreement and associated documents. • Limited Assignment Agreements: Each CCA agrees to support the limited assignment of VAMO volumes to their respective prepayment partners.
• Swapped Volume: Between 720 and 996 GWhs of energy and RECs each year. The swapped product will be sourced from Community Power’s and CPA’s VAMO agreements with the IOUs. However, Community Power and CPA may choose to supply energy and RECs to each other from other solar resources in their long-term portfolio. • Delivery Term: 10 years commencing in July 2025
• Settlements: Community Power and CPA will each retain CAISO revenues associated with the delivery of energy and pay each other the same administratively set REC price. 49 VAMO Swap Staff Analysis
• No impacts on Community Power’s RPS portfolio position • No direct fiscal impact given the settlement terms under the agreements are unchanged from our existing VAMO agreements.
• Through the use of future municipal prepayment transactions incorporating this VAMO swap, Community Power anticipates material VAMO portfolio cost savings for Community Power customers.
Public
Comment
on Item
No. 14
Report by
Chief
Executive
Officer
52 Recent Speaking Engagements
CalCCA Annual Conference Member Agency Presentation in Chula Vista Key Account Engagement Forum 53 Community Power in the Community
GRID Alternatives EV Ride or Drive Cyclovia Nipaquay Family STEAM Night Directors'
Comments
55 CLOSED
SESSION
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
PURSUANT TO GOVERNMENT CODE SECTION 54957
Title: Chief Executive Officer
Title: General Counsel
2. CONFERENCE WITH LABOR NEGOTIATORS
PURSUANT TO GOVERNMENT CODE SECTION 54957.6
Agency designated representative(s): Paula de Sousa, Best Best & Krieger
Unrepresented employee: Chief Executive Officer and General Counsel
Public
Comment
on Closed
Session
Items
CLOSED
SESSION
RECESS
OPEN
SESSION
Roll
Call
60 OPEN
SESSION
REPORT FROM CLOSED SESSION
Adjournment
Next Regular
Board of Directors Meeting
June 26, 2025