The August 21, 2025,
Regular Meeting of the
Finance and Risk
Management
Committee will Begin
Shortly
Finance and Risk
Management
Committee
Meeting
August 21, 2025
Welcome
and
Call to
Order
Roll
Call
5 Items to
be Added,
Withdrawn
or Reordered
on the
Agenda
Public
Comment
on non-Agenda
Items
8 Consent Calendar
Consent
Calendar
1. Approve June 12, 2025, Meeting
Minutes
Public
Comment on
Consent
Calendar
10 Regular
Agenda
2. Treasurer’s Report for Period Ending May 31, 2025
3. Recommend Board Adoption of Resolution No. 2025-08,
Approving a Second Revision to Community Power’s
Investment Policy
4. Recommend Board Adoption of Resolution No. 2025-09,
Approving a Disposal of Surplus Property Policy
5. Recommend Board Adoption of Resolution No. 2025-10,
Requesting CalPERS to Authorize the Division Vote of
Community Power Employees to Participate in Social
Security, and Upon Receiving Authorization, Authorize
Community Power to Conduct the Division Vote
6. Update on Results from Clean Prepayment Transaction No. 2 11 Item No. 2
Treasurer’s Report for Period Ending 05/31/2025
Recommendation:
Receive and File Treasurer’s Report for Period Ending May 31, 2025.
Presenter:
Tim Manglicmot, Director of Finance
12 Results for the period overperformed overall
compared to the amended budget:
• Net operating revenues 1.3 percent over
budget.
• Operating expenses came in
(1.5) percentage points under budget.
Financial results for the YTD FY25:
• $1,116.4M in net operating revenues
• $1,088.9M in total expenses (includes
energy costs of $1,045.4M or 94% of net
revenues)
• $27.4M change in YTD net position
Item 2: Treasurer’s Report
YTD FY25 Budget v. Actual
YTD FY25 as of
5/31/25 (11 months)
FY25 YTD Budget
Amended Budget Variance ($) Budget (%)
Net Operating Revenues $ 1,116,373,958 $ 1,101,668,882 $ 14,705,076 101.3% Total Expenses $ 1,088,943,381 $ 1,105,944,515 $ (17,001,134) 98% Change in Net Position $ 27,430,577 $ (4,275,633) $ 31,706,210 Budget Comparison
13 $M $200M $400M $600M
$27M
Reserve
Contribution
FY 2024-25 YTD
Item 2: Treasurer’s Report
$532M
Total Liquidity
FY 2024-25 YTD
$0M
Outstanding
Debt
FY 2024-25 YTD
55%
Percent Reserve
Goal Met
FY 2024-25
CONTRIBUTION RESERVES
GOAL DEBT
Reserve contribution
for the fiscal year
Outstanding loans
FY25 YTD
Total available liquidity
FY25 YTD
$575M 180-DCOH
Reserve Target FY25
$575M
$27M Actual
FYTD $(4.2)M Budget
FYTD
$319M
Cash
$212
LOC
$M $20M $40M $60M
Cash
55%
Unmet
Reserves
45%
14 Item 2: Treasurer’s Report
99 Days
Cash on Hand
166
Days
Cash on Hand with
Total Liquidity
15 Item 2: Treasurer’s Report
Public
Comment on
Item No. 2
17 ITEM NO. 2
COMMITTEE
MEMBER
COMMENTS
AND
QUESTIONS
Treasurer’s Report for Period Ending May 31,
2025
Recommendation:
Receive and File Treasurer's Report for Period Ending May 31, 2025.
18 Item No. 3
Recommend Board Adoption of Resolution No. 2025-08, Approving a Second Revision to Community Power’s Investment Policy
Presenter:
Jeb Spengler, Senior Strategic Finance Manager
Dan Delaney, Chandler Asset Management
Recommendation:
Recommend Board Adoption of Resolution No. 2025-08, Approving a Second Revision to Community Power’s Investment Policy.
19 Development of Investment Policy
Investment Policy
Peer CCAs
Member
Agencies
Reporting
Financial
Best
Practices
Investment
Objectives
Investment
Types
Prohibited
Investments
Controls
Development of Investment Policy
Investment Policy
20 Investment Objectives (Safety, Liquidity, Return,
Standard of Care)
Safety
Ensure the preservation of
principal.
Liquidity
Remain sufficiently liquid to
meet operating needs.
Return
Portfolio shall be designed to
attain a market rate of return.
Care
SDCP will manage investments
accordance with the “Prudent
Investor Standard”.
SDCP will manage investments pursuant to California Government Code 53600.3
21 Acceptable Investment Types
Deposits at Banks
Local Agency Investment Fund (LAIF)
US Treasury Obligations
Federal Agency Securities
Bankers’ Acceptances
Negotiable Certificates of Deposit
Placement Service Deposits
Money Market Funds
Commercial Paper
Added: Local Government Investment Pools (LGIPs)
All Authorized investment types for SDCP are pursuant to California Government Code 53601.
LGIPs: Shares of beneficial interest
issued by a Joint Powers Authority
(JPA) organized pursuant to California
Government Code Section 6509.7.
Each share shall represent an equal
proportional interest in the
underlying pool of securities owned
by the JPA.
22 Additional Updates
Chandler Asset Management made recommendations for the following further revisions:
• Further clarifications to the maximum percentage of the investment portfolio that may be invested in any specific investment product:
• Note added to Deposits at Banks that there are no limits to investments in collateralized bank deposits
• Note added to Placement Service Deposits to no more than 30% of the total portfolio; also noted that under a sunsetting provision on 1/1/2031, maximum investment allowed for Placement Service Deposits is 50% of the portfolio and maximum maturity shall not exceed five (5) years
Public
Comment on
Item No. 3
24 ITEM NO. 3
COMMITTEE
MEMBER
COMMENTS
AND
QUESTIONS
Recommend Board Adoption of Resolution No.
2025-08, Approving a Second Revision to
CommunityPower’s Investment Policy
Recommendation:
Recommend Board Adoption of Resolution No. 2025-08,
Approving a Second Revision to Community Power’s
Investment Policy.
25 Item No. 4
Recommend Board Adoption of Resolution No. 2025-09, Approving a Disposal of Surplus Property Policy
Presenter:
Tim Manglicmot, Director of Finance
Recommendation:
Recommend Board Adoption of Resolution No. 2025-09, Approving a Disposal of Surplus Property Policy.
26 Policy Review
Internal Policy
Review
Joint Powers
Agreement
Policy
Recommendations
Section 3.2.12
The Board may adopt rules,
regulations, policies, bylaws
and procedures governing
operations.
Section 4.5.5
One of the general purposes
of the Board is to set policy.
Community Power did an
internal review of policies
to determine policy gaps.
Community Power conducted a holistic internal review of policies to determine gaps and subsequent policy recommendations to the Board.
The analysis of policies
identified the need to
adopt a policy governing
the disposal of surplus
property.
27 Disposal Framework
Property Value
Property Value
$500 or less
(de minimis)
Property Value
$500 - $25,000
Property Value
$25,000+
Board
Approval
CEO
Approval
Disposed w/o
formal process
28 Disposal Methods
Property Value
$500 or less
(de minimis)
Property Value
$500 - $25,000
Property Value
$25,000+ Direct
Donation
Recycling
Regular
Waste
Auction
Operating
Budget
Public
Comment on
Item No. 4
30 ITEM NO. 4
COMMITTEE
MEMBER
COMMENTS
AND
QUESTIONS
Recommend Board Adoption of Resolution
No. 2025-09, Approving a Disposal of Surplus
Property Policy
Recommendation:
Recommend Board Adoption of Resolution No. 2025-09,
Approving a Disposal of Surplus Property Policy.
31 Item No. 5
Recommend Board Adoption of Resolution No. 2025-10, Requesting CalPERS to Authorize the Division Vote of Community Power Employees to Participate in Social Security, and Upon Receiving Authorization, Authorize Community Power to Conduct the Division Vote
Presenters:
Tim Manglicmot, Director of Finance
Chandra Pugh, Senior Director of People Operations and Administration Recommendation:
Recommend Board adoption of Resolution No. 2025-10, Requesting CalPERS to Authorize the Division Vote of Community Power Employees to Participate in Social Security and for Community Power to Conduct the Division Vote upon Receiving said Authorization.
32 Social Security Update
• Community Power and employees have been contributing to Social Security since agency inception
• In 2021, a 401(a) plan was established to which Community Power contributes an amount equal to 10% of the employee’s salary for the employee’s benefit
• To continue Social Security participation, Community Power needs a Section 218 Agreement with SSA covering its employees
• Community Power working closely with CalPERS to put a Section 218 Agreement in place
33 Social Security Update
Election requires initial Board Resolution, formal 90-day notice to employees prior to election, final Board Resolution, submittal of application and agreement to CalPERS, SSA approval Election will be administered through CalPERS - employees can opt in or opt out of Social Security
“Opt in” means the employee stays in Social Security – status quo “Opt out” means the employee can no longer participate in Social Security Each employee chooses for themselves
Former employes and future employees remain in Social Security as long as at least one employee opts in
Public
Comment on
Item No. 5
35 ITEM NO. 5
COMMITTEE
MEMBER
COMMENTS
AND
QUESTIONS
Recommend Board Adoption of Resolution No. 2025-10,
Requesting CalPERS to Authorize the Division Vote of
Community Power Employees to Participate in Social
Security, and Upon Receiving Authorization, Authorize
Community Power to Conduct the Division Vote
Recommendation:
Recommend Board adoption of Resolution No. 2025-10, Requesting CalPERS to Authorize the Division Vote of Community Power Employees to Participate in Social Security and for Community Power to Conduct the Division Vote upon Receiving said
Authorization.
36 Item No. 6
Recommendation:
Receive and file the update for the Clean Energy Prepayment Bond finance initiative.
Presenters:
Jeb Spengler, Senior Strategic Finance Manager
Update on Results from Clean Prepayment Transaction No. 2 37 Clean Energy Prepayment Transaction
Overview
• Goal – Reduce cost of power purchases by 8% or more to enhance affordability • 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 • 21 energy prepayment transactions totaling $21.5 billion completed since 2021 for California Community Choice Aggregators
• Community Power (through CCCFA) sold its first prepayment bond issue in November 2024 and second prepayment bond issue in July 2025
38 Prepayments That Have Been Completed by
CCAs in California
Date Amt. ($000) Issuer Description Beneficiary
09/2021 1,234,720 CCCFA (21A) Elec (Green) SVCE, AVA
11/2021 602,655 CCCFA (21B) Elec (Green) MCE
06/2022 931,120 CCCFA (22A) Elec (Green) AVA
12/2022 459,640 CCCFA (23A) Elec (Green) Pioneer
01/2023 841,550 CCCFA (23B) Elec (Green) SVCE
02/2023 998,780 CCCFA (23C) Elec (Green) CPA
06/2023 958,290 CCCFA (23D) Elec (Green) CPA
08/2023 997,895 CCCFA (23E) Elec (Green) AVA
10/2023 647,750 CCCFA (23F) Elec (Green) CCCE
12/2023 1,038,285 CCCFA (23G) Elec (Green) MCE
01/2024 1,101,625 CCCFA (24A) Elec (Green) SVCE
08/2024 1,524,180 CCCFA (24B) Elec (Green) CPA
10/2024 959,825 CCCFA (24C) Elec (Green) PCE
10/2024 1,152,995 CCCFA (24D) Elec (Green) CPA
Date Amt. ($000) Issuer Description Beneficiary
10/2024 1,152,995 CCCFA (24D) Elec (Green) CPA
11/2024 1,243,210 CCCFA (24E) Elec (Green) SJCE
11/2024 1,000,500 CCCFA (24F) Elec (Green) SDCP
11/2024 775,590 CCCFA (24G) Elec (Green) SCPA
12/2024 1,290,750 CCCFA (24H) Elec (Green) CPA
01/2025 493,345 CCCFA (25A) Elec (Green) VCEA
06/2025 1,062,605 CCCFA (25B) Elec (Green) MCE
[07/2025] *** CCCFA (25C) Elec (Green) AVA
07/2025 1,005,685 CCCFA (25D) Elec (Green) SDCP
Total 21,473,990
*** Preliminary, not yet final
39 Board Authorized Execution Parameters
• Aggregate principal amount of bonds will not exceed $1.5 billion • Minimum discount of at least 8% of the fixed cash flows or equivalent $ per MWh • Total issuance costs will not exceed 1.00% of the amount of bond proceeds issued • Bonds are not obligations of Community Power
40 2025 Prepay #2 Transaction Highlights
Aggregate Bond Principal $1,005,685,000
Municipal Bond Rating A2 (Moody’s)
Green Bond Certification Kestrel Sustainability Benchmark 5.00 out of 5.00, Top 1%*
*compared to all bonds scored in electric utility sector Initial Bond Pricing Period • 9 Years (July 1, 2034)
• After the initial period, bonds will be repriced per
the negotiated repricing agreement and a new
discount will be established based on the then
prevailing market conditions
Final Bond Maturity Date • October 1, 2055
Discount Achieved • $7.625/MWh 9/25 – 7/34
• ~$6.1 million per year for SDCP through initial
9-year period (including annual rebates)**
Energy Volume Supported by
Bond Proceeds
• 5,934,510 MWh (initial term)
Power Delivery Start Date • September 1, 2025 **Annual savings are not uniform 41 Community Power Prepay Energy Cost Savings
Total Energy Cost Savings Plus Annual Custodial Account Rebates -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Annual Energy Savings
Prepay #1 Prepay #2 Annual Rebates
Public
Comment on
Item No. 6
44 ITEM NO. 6
COMMITTEE
MEMBER
COMMENTS
AND
QUESTIONS
Update on Results from Clean Prepayment
Transaction No. 2
Recommendation:
Receive and file the update for the Clean Energy Prepayment Bond finance initiative.
Committee Member
Announcements
Adjournment
Next Regular
Finance & Risk
Management
Committee
Meeting
September 18, 2025
We are experiencing technical difficulties.
Please be assured that we are working to
resolve the issue and meeting will resume
shortly.
Thank you.