AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER AGENDA
Regular Meeting
Finance and Risk Management Committee
November 13, 2025, 3 p.m.
Don L. Nay Port Administration Boardroom
3165 Pacific Hwy., San Diego, CA 92101
The meeting will be held in person at the above date, time and location. Finance and Risk Management Committee (FRMC) members and members of the public can attend in person. Under certain circumstances, FRMC members may also attend and participate virtually in the meeting, pursuant to the Brown Act (Gov. Code § 54953). As a convenience, San Diego Community Power provides a Zoom teleconference option for members of the public to virtually observe and provide public comments at its meetings. Additional details on in-person and virtual public participation are below. Please note that in the event of a technical issue causing a disruption in the Zoom teleconference option, the meeting will continue unless otherwise required by law (such as when an FRMC member is virtually attending the meeting), pursuant to certain provisions of the Brown Act.
Note: Any member of the public may provide comments to the FRMC on any agenda item. When providing comments, it is requested that members of the public include their name and city of residence for the record. Members of the public are requested to address their comments to the FRMC as a whole through the chairperson. Comments may be provided in one of the following ways:
1. Oral comments during the meeting. Anyone attending in person who wishes to address the FRMC is asked to complete a speaker’s card and present it to the clerk of the Board. To provide remote comments during the meeting, join the Zoom meeting by computer, mobile phone or dial-in number. When participating in a Zoom video teleconference by computer or mobile phone, use the “Raise Hand” feature. This will notify the moderator that a member of the public wishes to address the FRMC during a specific item on the agenda or during the non-agenda public comment period. Members of the public will not be shown on video but will be able to address the FRMC when called upon. If joining the meeting using the Zoom dial-in number, members of the public can raise their hand by pressing *9. Comments will be limited to three minutes.
2. Written comments. Written public comments must be submitted prior to the start of the meeting to [email protected]. Members of the public are asked to indicate a specific agenda item when submitting comment. All written comments received prior to the meeting will be provided to the FRMC members. At the discretion of the chairperson, the first ten submitted comments shall be stated into the record of the meeting. Comments read at 1 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER the meeting will be limited to the first 400 words. Comments received after the start of the meeting will be collected, sent to the FRMC members and become part of the public record.
If members of the public have any materials to be distributed to the FRMC, they should be sent to [email protected], who will distribute the information to FRMC members.
The public may participate using the following remote options:
Teleconference Meeting Webinar
https://sdcommunitypower-org.zoom.us/j/95148519712
Telephone (audio only): 669-900-6833 or 253-215-8782 | Webinar ID: 95148519712
WELCOME
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
LAND ACKNOWLEDGEMENT
ITEMS TO BE ADDED, WITHDRAWN OR REORDERED ON THE AGENDA
PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
This is an opportunity for members of the public to address the FRMC on any items not on the agenda but within the jurisdiction of the FRMC. Members of the public may provide comments in any manner described above.
CONSENT CALENDAR
1. Approve October 16, 2025, Meeting Minutes
2. Approve 2026 Meeting Schedule
REGULAR AGENDA
3. Fiscal Year End 2024-25 Financial Audit
Recommendation: Receive and file Fiscal Year End 2024-25 Financial Audit. 2 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER
4. Treasurer’s Report for Period Ending August 31, 2025 Recommendation: Receive and File Treasurer’s Report for Period Ending August 31, 2025.
Committee Member Announcements
FRMC members may briefly provide information to other members and the public. There is to be no discussion or action taken on comments made by FRMC members unless authorized by law.
ADJOURNMENT
The Finance and Risk Management Committee will adjourn until the next regular meeting scheduled for Thursday, December 4, 2025, at 3 p.m.
Compliance with the Americans with Disabilities Act
Community Power committee meetings comply with the Americans with Disabilities Act. Individuals with a disability who require a modification or accommodation, including auxiliary aids or services, to participate in a public meeting may contact [email protected]. Requests for disability-related modifications or accommodations require varying lead times and should be provided at least 72 hours in advance of the public meeting.
Availability of Committee Documents
Copies of the agenda and related materials are available at https://sdcommunitypower.org/resources/meeting-notes/. Late-arriving documents related to an agenda item are distributed to the committee members prior to or during the committee meeting and are available for public review as required by law. Public records, including agenda-related documents, can be requested electronically from [email protected]. or by mailing San Diego Community Power, Attn: Clerk of the Board, P.O. Box 12716, San Diego, CA 92112. The documents may also be posted on Community Power’s website. Such public records are also available for inspection by contacting [email protected] to arrange an appointment.
3 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– OCTOBER 16, 2025
SAN DIEGO COMMUNITY POWER
FINANCE AND RISK MANAGEMENT COMMITTEE
Regular Meeting Minutes
October 16, 2025
City of Chula Vista
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
__________________________________________________________________________
WELCOME
CALL TO ORDER
Chair Yamane called the Finance and Risk Management Committee meeting to order at 3:03 p.m.
ROLL CALL
PRESENT: Chair Yamane, City of National City; Vice Chair Suzuki, City of La Mesa; and Director Inzunza, City of Chula Vista
Absent: None
Staff Present: Chief Financial Officer/Treasurer Dr. Washington; General Counsel Tyagi; Director of Finance Manglicmot; Senior Strategic Finance Manager Spengler; Clerk of the Board Hernandez; and Assistant Clerk of the Board Vences
PLEDGE OF ALLEGIANCE
Chair Yamane led the Pledge of Allegiance.
LAND ACKNOWLEDGEMENT
Chair Yamane acknowledged the Kumeyaay Nation and all the original stewards of the land.
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA There were no items added, withdrawn, or reordered on the agenda.
PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
There were no public comments.
4 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– OCTOBER 16, 2025
CONSENT CALENDAR
Vice Chair Suzuki requested Item No. 2 be pulled from Consent for discussion.
1. Approve September 18, 2025, Meeting Minutes
3. Recommend Board Approval of Non-Material Revisions to FY 2025-2026 Operating Budget, the FY 2025-2026 Capital Budget, and the FY 2026-2030 Capital Investment Plan There were no public comments on Consent Item Nos. 1 and 3.
Motioned by Director Inzunza and seconded by Vice Chair Suzuki to approve Consent Item Nos. 1 and
3. The motion carried unanimously as follows:
AYES: Chair Yamane, Vice Chair Suzuki, and Director Inzunza NOES: None
ABSTAINED: None
ABSENT: None
2. Approve 2026 Finance and Risk Management (FRMC) Committee Meeting Schedule Committee members discussed the possibility of moving 2026 FRMC meetings to 4 pm.
There were no public comments on Consent Item No. 2.
Motioned by Vice Chair Suzuki and seconded by Director Inzunza to direct staff to check the availability of the Chula Vista Chambers to move FRMC meetings to 4 p.m. The motion carried unanimously as follows:
AYES: Chair Yamane, Vice Chair Suzuki, and Director Inzunza NOES: None
ABSTAINED: None
ABSENT: None
REGULAR AGENDA
4. Fiscal Year End 2024-25 Financial Audit Progress Report Presentation
Dr. Washington introduced the item and turned it over to Kellin Gilert and Alauna Rico (via Zoom Teleconference), representatives from Sorren, to present the progress report.
There were no public comments on Item No. 4.
5 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– OCTOBER 16, 2025
After Committee Member questions and comments, the Fiscal Year End 2024-25 Financial Audit Progress Report Presentation was received and filed.
5. Treasurer’s Report for Period Ending July 31, 2025
Dr. Washington presented the Treasurer’s Report for Period Ending July 31, 2025.
There were no public comments on Item No. 5.
The Committee received and filed the Treasurer’s Report for Period Ending July 31, 2025.
6. Recommend Board Adoption of Resolution No. 2025__, Approving a Third Revision to the Financial Reserves Policy
Mr. Spengler provided an overview of the proposed revisions to the Financial Reserve Policy.
There were no public comments on Item No. 6.
Motioned by Vice Chair Suzuki and seconded by Director Inzunza to recommend Board Adoption of Resolution No. 2025-__, approving a Third Revision to the Financial Reserves Policy. The motion carried unanimously as follows:
AYES: Chair Yamane, Vice Chair Suzuki, and Director Inzunza NOES: None
ABSTAINED: None
ABSENT: None
COMMITTEE MEMBER ANNOUNCEMENTS
Committee members made announcements and reported on various events taking place in their member jurisdictions.
ADJOURNMENT
The Finance and Risk Management Committee adjourned at 3:40 p.m. to the next regular meeting scheduled for Thursday, November 13, 2025, at 3 pm.
____________________________________
Sandra Vences, Assistant Clerk of the Board
6 SAN DIEGO COMMUNITY POWER
Staff Report – Item 2
To: Finance and Risk Management Committee
From: Maricela Hernandez, Clerk of the Board
Via: Karin Burns, Chief Executive Officer
Subject: Approval of 2026 Finance and Risk Management (FRMC) Committee Meeting Schedule
Date: November 13, 2025
Recommendation
Approve the FRMC regular meeting schedule for calendar year 2026.
Background
During calendar year 2025, the FRMC held their meetings every third Thursday of the month at 3 p.m., except when an adjustment was required.
Analysis and Discussion
At the request of FRMC members, the meeting time is being moved to 4 pm during calendar year 2026. Meetings are scheduled to be held at the City of Chula Vista Council Chambers, 276 Fourth Avenue, Chula Vista, CA or at other locations compliant with public meetings specifications, as coordinated and communicated by Community Power staff in compliance with the Brown Act.
Meetings are expected to be in person with a remote/teleconference option for members of the public, staff, and FRMC members as needed.
Below are 2026 FRMC meeting dates with a start time of 4 p.m. (exceptions noted):
• February 19, 2026
• March 19, 2026
• April 16, 2026
• May 21, 2026
• June 18, 2026
7 • August 20, 2026
• September 17, 2026
• October 15, 2026
• December 3, 2026 (First Thursday)
The FRMC will observe recess during the months of July and November, which coincides with the Board of Directors’ meeting schedule. In addition, the FRMC will observe recess during the month of January.
Fiscal Impact
N/A
Attachments
N/A
8 SAN DIEGO COMMUNITY POWER
Staff Report – Item 3
To: Finance and Risk Management Committee
From: Dr. Eric Washington, Chief Financial Officer/Treasurer Via: Karin Burns, Chief Executive Officer
Subject: Fiscal Year End 2024-25 Financial Audit
Date: November 13, 2025
Recommendation
Receive and file Fiscal Year End 2024-25 Financial Audit.
Background
On October 1, 2019, the Founding Members of San Diego Community Power (Community Power) adopted the Joint Powers Agreement (JPA) which was amended and restated on December 16, 2021.
Section 4.6.14 of the JPA specifies the Board of Directors (Board) shall arrange for an annual independent fiscal audit.
Section 5.4 of the JPA specifies the Board shall appoint a Treasurer who shall function as the combined offices of Treasurer and Auditor and shall strictly comply with the statutes related to the duties and responsibilities specified in Section 6505.5 of the Government Code. The section further specifies that the Treasurer shall cause an independent audit(s) of the finances of Community Power to be made by a certified public accountant, or public accountant, in compliance with Section 6505 of the Government Code. Section 7.2.2 of the JPA additionally specifies that the Community Power Board shall contract with a certified public accountant to make an annual audit of the financial statements of Community Power, which shall be conducted in accordance with the requirements of Section 6505 of the Government Code.
On July 1, 2021, Community Power entered into a professional services agreement with Pisenti & Brinker to perform its annual audit for FY 2020-21.
9 On July 1, 2022, Community Power exercised an option in the professional services agreement to extend the term from June 30, 2022, to June 30, 2023, to conduct its annual audit for FY 2021-22.
Subsequently, on July 20, 2023, Community Power exercised an option in the professional services agreement to extend the term from June 30, 2023, to June 30, 2024, to conduct its annual audit for FY 2022-23.
Later, on July 30, 2024, Community Power issued an invitation to bid from qualified and experienced professionals to provide independent financial statement auditing and additional as-needed services such as assisting with the preparation and reporting of audit findings to Community Power’s Board. As a result of the invitation to bid, on September 1, 2024, Community Power entered into a professional services agreement with Pisenti & Brinker to perform its annual audit for FY 2023-24.
Shortly thereafter, Pisenti & Brinker subsequently merged with several accounting firms to form Sorren CPAs P.C. (Sorren), and Sorren assumed all of Pisenti & Brinker’s rights, duties, and obligations under the professional services agreement.
Finally, on September 23, 2025, Community Power executed Amendment No. 1 to the professional services agreement with Sorren to extend the professional services agreement by one year, from September 30, 2025, to September 30, 2026.
This amendment to extend the contract term was necessary to conduct Community Power’s FY 2024-25 annual audit with Sorren.
On October 16, 2025, Sorren provided the Finance and Risk Management Committee (FRMC) with a progress report presentation for the Fiscal Year End 2024-25 Financial Audit that provided the preliminary results. Subsequently, on October 23, 2025, the Board was similarly provided with a progress report presentation.
Sorren is a firm with extensive experience auditing CCA’s throughout California, as well as other local government entities.
Analysis and Discussion
Audit results for Community Power’s June 30, 2025, Fiscal Year End Audited Financial Statements will be presented to the FRMC on November 13, 2025, to receive and file.
Fiscal Impact
N/A
10 Strategic Plan
The FY 2024-25 financial audit supports Community Power’s strategic goal for fiscal sustainability and strengthening financial controls across the agency.
Attachments
A: Audited Financial Statements for Fiscal Year Ended June 30, 2025 B: Report to the Board of Directors
11 ITEM 3
ATTACHMENT A
12 FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 & 2024
WITH REPORT OF
INDEPENDENT AUDITORS
13 TABLE OF CONTENTS
Independent Auditor’s Report ………………………………………………….......... 1 Management’s Discussion and Analysis ……………………………………………... 4 Basic Financial Statements:
Statements of Net Position …………………………………………………… 10
Statements of Revenues, Expenses and Changes in Net Position …................ 11 Statements of Cash Flows ……………………………………………………. 12
Notes to the Basic Financial Statements ……………………………………… 14 14 Ph: (707) 542-3343 sorren.com
3562 Round Barn Cir, #200, Santa Rosa, CA 95403
Independent Auditor’s Report
To the Board of Directors
San Diego Community Power
Opinion
We have audited the accompanying financial statements of San Diego Community Power (Community Power), which comprise the statements of net position as of June 30, 2025 and 2024, the related statements of revenue, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Community Power as of June 30, 2025 and 2024, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Community Power and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Community Power’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued, including any currently known information that may raise substantial doubt shortly thereafter.
15 Independent Auditor’s Report (continued)
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Community Power’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Community Power’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control– related matters that we identified during the audit.
16 Independent Auditor’s Report (continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Santa Rosa, California
October 30, 2025
17 SAN DIEGO COMMUNITY POWER
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
4 The purpose of management’s discussion and analysis (MD&A) is to help stakeholders and other readers understand what the financial statements and notes in this report say about San Diego Community Power’s (Community Power) financial health and why it has changed since last year.
It contains information drawn from other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of Community Power’s finances.
If you have questions about this report or require further information, please contact Community Power at [email protected]
Overview of the Financial Statements
Community Power’s financial report contains basic financial statements, which include:
o The Statements of Net Position include all of Community Power’s assets, liabilities, and net position and provide information about the nature and amounts of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of Community Power’s revenue and expenses for the years shown. o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as capital and non-capital and investing activities. o The notes to the Basic Financial Statements provide additional details and information related to the basic financial statements.
18 SAN DIEGO COMMUNITY POWER
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
5 Financial Summary
COMMUNITY POWER’S NET POSITION
2025 2024 2023
Current assets $ 547,449,994 $ 533,740,155 $ 300,522,958 Noncurrent assets:
Other noncurrent assets 70,552,811 1,147,000 5,032,000
Capital assets, net 1,317,542 1,258,843 1,032,334
Total noncurrent assets 71,870,353 2,405,843 6,064,334
Total assets 619,320,347 536,145,998 306,587,292
Current liabilities 135,046,542 159,813,660 83,699,768
Noncurrent liabilities 8,041,641 949,956 36,875,193
Total liabilities 143,088,183 160,763,616 120,574,961
Net position
Restricted for security collateral 1,147,000 1,647,000 2,147,000 Unrestricted 475,085,164 373,735,382 183,865,331
Total net position 476,232,164 $ $ 375,382,382 $ 186,012,331 As of June 30, 2025, Community Power’s total net position was approximately $476,232,000, an increase of $118,800,000 compared with June 30, 2024. Most of the increase in net position was concentrated in increases in cash, cash equivalents and investments, as a result of Community Power’s operating surplus discussed in the following sections.
COMMUNITY POWER’s Changes in Net Position
2025 2024 2023
Operating revenues $ 1,243,031,946 $ 1,264,369,520 $ 891,178,064 Nonoperating revenues 13,467,273 9,384,873 433,366
Total income 1,256,499,219 1,273,754,393 891,611,430
Operating expenses 1,155,213,375 1,082,692,389 746,131,125 Nonoperating expenses 436,062 1,691,953 1,998,926
Total expenses 1,155,649,437 1,084,384,342 748,130,051
Change in net position 100,849,782 $ $ 189,370,051 $ 143,481,379 Total income was fairly steady in FY 2025. Increases in electricity sales accounted for most of the increase in total income from FY 2023 to FY 2024 due to territory expansions and increases in electricity rates. See the following sections of MD&A for a detailed analysis of the changes in net position.
19 SAN DIEGO COMMUNITY POWER
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
6 Detailed Analysis
Total current assets increased significantly year-over-year, reflecting growth in cash balances and receivables. Unrestricted cash and cash equivalents totaled approximately $292,772,000 at June 30, 2025, compared to $299,795,000 in the prior year. Restricted cash increased to $25,756,000 from $500,000, due to the receipt of grants not expended by June 30, 2025. Accounts receivable rose to $116,027,000 from $103,512,000 reflecting increased rates charged to customers. Accrued revenue declined modestly to $72,742,000 from $76,863,000 based on billing cycle cutoffs.
A notable change in 2025 was the presentation of $69,906,000 in noncurrent investments for the first time. Management expects to hold these investments for over one year. Other noncurrent assets also include certain restricted cash and cash equivalents of $647,000 at the end of 2025 and $1,147,000 at the end of 2024.
Capital assets are reported net of depreciation and amortization. See Note 5 to the basic financial statements for a detail of changes for fiscal years 2025 and 2024. Capital assets held by Community Power include furniture, equipment, and intangible right-of-use lease assets.
The largest component of current liabilities remains the accrued cost of electricity, which decreased to $102,202,000 from $148,116,000 in 2024, reflecting changes in payment timing and energy procurement terms. Unlike 2025, suppliers had significant delays in sending Community Power invoices for certain energy products which resulted in a large accrued liability at the end fiscal year 2024. Accounts payable and other accrued liabilities were stable, while deposits from energy suppliers dropped from $4,055,000 in 2024 to $229,000 in 2025 reflecting the return of deposits to suppliers. A new liability of $25,256,000 is reported as Advances from Grantors, representing unspent San Diego Regional Energy Network (“SDREN”) grant funds received during the year. Noncurrent liabilities decreased from 2023 to 2024 with the retirement of bank debt. While Community Power did draw on its credit line in both 2024 and 2025, it repaid the amounts in full within each year. Noncurrent liabilities increased from 2024 to 2025 as a result of increased supplier security deposits that are to be held longer than a year.
Revenues increased from 2023 to 2024 primarily due to higher sales volumes from territory expansion and rate adjustments. Although Community Power reduced rates in January 2024, the effect was offset by strong sales volumes earlier in the year, resulting in overall revenue growth.
From 2024 to 2025, revenues were relatively flat because a March 2025 rate increase was largely offset by the lower rate environment in place at the beginning of the year. 20 SAN DIEGO COMMUNITY POWER
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
7 Detailed Analysis (continued)
Community Power also receives revenues from sources other than retail customer sales. These sources include grant income used to assist with various customer programs and liquidated damage revenue resulting from supplier violations of contract provisions. Revenue from liquidated damages increased notably from 2023 to 2024 primarily due to delays in the operations of certain energy supplier facilities and other contractual shortfalls. There were fewer delays in 2025 resulting in a large drop in liquidated damages revenue.
Investment income increased from 2024 to 2025 with increases in the amount of invested assets and from achieving higher rates of return as a result of diversifying its investment portfolio by investing in high value debt instruments.
Operating expenses increased from 2023 to 2024, due to increased prices for certain products in the energy markets and operational territory expansion. In April 2023, Community Power expanded into National City as well as the unincorporated County of San Diego. Providing service to these additional customers, as well as providing service for full year to the customers enrolled prior to fiscal year 2023, accounted for much of the increased revenue in fiscal year 2024. While operating expenses also increased from 2024 to 2025, the change was less significant. For all the years presented, the largest expense was the cost of electricity. Community Power procures energy from a variety of sources to minimize this risk and maintain a balanced renewable power portfolio.
The cost of electricity increased from 2024 to 2025 by $53,992,000 (5.2%), primarily due to rising costs in the resource adequacy marked and the pricing of certain contracts that were executed to comply with the State’s Renewable Portfolio Standards. Other operating expenses that increased from 2024 to 2025 were staff compensation and other operating expenses. Staff compensation rose due to planned staffing increases needed to accommodate Community Power growing operational needs. Other operating expenses include costs to implement various new and expanding customer programs, including a significant amount of cash incentives paid to customers.
Significant Capital Asset and Long-Term Financing Activity Community Power does not own assets used for electric generation or distribution. Capital assets represent office equipment, such as computers, furniture, and right-of-use assets related to Community Power’s office lease.
During fiscal year 2024, Community Power repaid its bank note of $35,730,000, reducing its outstanding financing debt to $0. Community Power borrowed $55,500,000 in fiscal year 2025 and repaid the balance in full in the same fiscal year. 21 SAN DIEGO COMMUNITY POWER
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
8 Currently Known Facts, Decisions, or Conditions
Community Power is a community-owned organization that provides affordable clean energy and invests in the community to create an equitable and sustainable future for the San Diego region.
The agency’s vision is to be a global leader inspiring innovative solutions to climate change by powering our communities with 100% clean affordable energy while prioritizing equity, sustainability, and high-quality jobs.
Even as we deliver near-term savings, we continue to plan for long-term energy security and stability. The broader power market remains volatile, shaped by a constrained statewide resource supply and uncertain federal tax credit and trade policies. Our Power Services team is navigating these challenges through disciplined procurement and long-range planning. To date, we’ve executed 17 long-term power purchase and energy storage agreements that will deliver reliable, renewable electricity to nearly 1 million homes and businesses across our region. These investments not only support our goal of 100% renewable energy by 2035, but also help insulate customers from future price spikes.
In 2024, we marked a major milestone with the ribbon cutting of the Vikings Solar and Storage Project in Imperial County. Developed by Arevon, with Community Power as the offtaker, Vikings is more than just a solar generation site. As one of the first utility-scale solar peaker plants in the United States, the project is designed to keep the lights on and costs down when demand is at its highest — powering the equivalent of 50,000 San Diego homes with clean, affordable energy. It exemplifies our broader procurement strategy: securing long-term renewable power while creating local and regional economic opportunity.
Community Power also launched its Solar Battery Savings Program as a pilot with $11,500,000 million in funding in the summer of 2024. Shortly thereafter, the California Public Utilities Commission approved Community Power and the County of San Diego’s joint effort to establish a regional energy network, called “SDREN” that is poised to bring $124,300,000 million in energy efficiency programs to the region through 2027.
22 SAN DIEGO COMMUNITY POWER
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
9 Currently Known Facts, Decisions, or Conditions (continued) Community Power anticipates $344,300,000 in similar one-time investments through its fiscal year 2026-30 Capital Investment Plan. These investments reflect Community Power’s priorities as we transition toward our mid-term program strategy, which focuses on optimizing customer energy use around time-of-use rate schedules and individual preferences. These efforts reduce participants’ bills while lowering major cost drivers like energy procurement and resource adequacy — creating system-wide savings that benefit all ratepayers. In the years ahead, we will continue building the tools and incentives that align customer behavior with grid needs, helping make our clean energy system smarter, more affordable and more resilient.
Community Power remains on track to meet its 100% renewable energy goal by 2035. As Community Power looks ahead, our focus remains on driving measurable impact: accelerating the region’s clean energy transition, supporting local climate goals and building a more just and resilient energy system. With the continued leadership of our Board of Directors, Community Advisory Committee and dedicated staff, San Diego Community Power is proud to power the path toward a cleaner, more resilient future — together.
Requests for Information
This financial report is designed to provide Community Power’s board members, stakeholders, customers, and creditors with a general overview of Community Power’s finances and to demonstrate Community Power’s accountability for the funds under its stewardship.
Please address any questions about this report or requests for additional financial information to the finance department at P.O. Box 12716, San Diego, CA 92112-3716. 23 BASIC FINANCIAL STATEMENTS
24 SAN DIEGO COMMUNITY POWER
STATEMENTS OF NET POSITION
JUNE 30, 2025 AND 2024
10 The accompanying notes are an integral part of these financial statements. 2025 2024
ASSETS
Current assets
Cash and cash equivalents - unrestricted $ 292,771,532 $ 299,795,110 Cash and cash equivalents - restricted 25,755,714 500,000 Accounts receivable, net of allowance 116,027,223 103,512,165 Accrued revenue 72,742,359 76,863,423
Prepaid expenses 23,802,135 35,018,400
Other receivables 4,099,991 5,888,858
Deposits 11,094,211 12,162,199
Investments 1,156,829 -
Total current assets 547,449,994 533,740,155
Noncurrent assets
Cash and cash equivalents - restricted 647,000 1,147,000 Investments 69,905,811 -
Capital assets, net of depreciation and amortization 1,317,542 1,258,843 Total noncurrent assets 71,870,353 2,405,843
Total assets 619,320,347 536,145,998
LIABILITIES
Current liabilities
Accrued cost of electricity 102,447,166 148,116,316
Accounts payable 3,565,972 4,726,594
Other accrued liabilities 2,159,955 1,141,121
State surcharges payable 535,146 528,942
Deposits - energy suppliers 228,731 4,055,000
Interest and finance costs payable 281,283 -
Lease liability 853,858 964,404
Advances from grantors 25,255,714 -
Total current liabilities 135,046,542 159,813,660
Noncurrent liabilities
Lease liability 598,191 325,956
Deposits - energy suppliers 7,443,450 624,000
Total noncurrent liabilities 8,041,641 949,956
Total liabilities 143,088,183 160,763,616
NET POSITION
Restricted for security collateral 1,147,000 1,647,000
Unrestricted 475,085,164 373,735,382
Total net position $ 476,232,164 $ 375,382,382
25 SAN DIEGO COMMUNITY POWER
STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2025 AND 2024
11 The accompanying notes are an integral part of these financial statements. 2025 2024
OPERATING REVENUES
Electricity sales, net $ 1,239,973,471 $ 1,252,787,768
Grant revenue 1,780,217 983,500
Other income 1,278,258 10,598,252
Total operating revenues 1,243,031,946 1,264,369,520
OPERATING EXPENSES
Cost of electricity 1,101,545,238 1,047,553,476
Contract services 19,487,406 19,750,534
Staff compensation 17,159,242 11,399,388
Other operating expenses 16,295,134 3,261,424
Depreciation and amortization 726,355 727,567
Total operating expenses 1,155,213,375 1,082,692,389
Operating income 87,818,571 181,677,131
NONOPERATING REVENUES (EXPENSES)
Investment income 13,467,273 9,384,873
Interest expense (436,062) (1,691,953)
Nonoperating revenues (expenses), net 13,031,211 7,692,920 CHANGE IN NET POSITION 100,849,782 189,370,051
Net position at beginning of year 375,382,382 186,012,331 Net position at end of year $ 476,232,164 $ 375,382,382
26 SAN DIEGO COMMUNITY POWER
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2025 AND 2024
12 The accompanying notes are an integral part of these financial statements. 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 1,233,997,068 $ 1,264,068,317 Receipts from grantors 27,035,931 983,500
Receipts of supplier security deposits 15,196,186 37,126,179 Receipts from wholesale sales and other operating activities 13,235,888 14,572,544 Payments to suppliers for electricity (1,155,287,321) (1,002,775,871) Payments for other goods and services (35,849,830) (22,030,135) Payments for deposits and collateral (1,984,371) (15,783,943) Payments for staff compensation (17,174,536) (11,066,586) Payments of state surcharges (2,411,387) (2,321,269)
Net cash provided by operating activities 76,757,628 262,772,736
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds from bank note 55,500,000 -
Principal payments - bank note (55,500,000) (35,730,000) Interest payments (393,962) (1,909,624)
Net cash used by noncapital
financing activities (393,962) (37,639,624)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (643,272) (604,328)
Purchases of capital assets - (71,550)
Net cash used by capital and related financing activities (643,272) (675,878)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 11,828,321 9,153,996
Proceeds from investment sales and maturities of investments 3,195,096 - Purchase of investments (73,011,675) -
Net cash provided (used) by investing activities (57,988,258) 9,153,996 Net change in cash and cash equivalents 17,732,136 233,611,230 Cash and cash equivalents at beginning of year 301,442,110 67,830,880 Cash and cash equivalents at end of year $ 319,174,246 $ 301,442,110 Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) $ 292,771,532 $ 299,795,110 Restricted cash - current 25,755,714 500,000
Restricted cash - noncurrent 647,000 1,147,000
Cash and cash equivalents $ 319,174,246 $ 301,442,110
NONCASH INVESTING ACTIVITIES
Change in fair value of investments $ 1,638,952 $ -
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of lease asset $ 1,284,053 $ -
27 SAN DIEGO COMMUNITY POWER
STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED JUNE 30, 2025 AND 2024
13 The accompanying notes are an integral part of these financial statements. 2025 2024
Operating income $ 87,818,571 $ 181,677,131
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 726,355 727,567
(Increase) decrease in:
Accounts receivable, net (12,515,058) 7,001,566
Accrued revenue 4,121,064 1,929,361
Prepaid expenses 11,216,265 (4,490,902)
Other receivables 2,181,758 (5,424,266)
Deposits 1,067,988 5,494,151
Increase (decrease) in:
Accrued cost of electricity (45,914,150) 70,770,973
Accounts payable (1,196,904) 4,287,328
Advances from grantors 25,255,714 -
Other accrued liabilities 996,640 (2,653,526)
State surcharges payable 6,204 28,353
Deposits - energy suppliers 2,993,181 3,425,000
Net cash provided by operating activities $ 76,757,628 $ 262,772,736
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
28 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
14 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
San Diego Community Power (Community Power) is a California Joint Powers Authority created on October 1, 2019. As of June 30, 2025, parties to its Joint Powers Agreement (JPA) consist of the following local governments:
County Cities
San Diego (Unincorporated) Chula Vista La Mesa
Encinitas National City
Imperial Beach San Diego
Community Power is separate from and derives no financial support from its members.
Community Power is governed by a Board of Directors (Board) whose membership is composed of elected officials or other representatives of the member governments.
The core function of Community Power is to provide electric service that includes the use of renewable sources under the Community Choice Aggregation Program under California Public Utilities Code Section 366.2.
Community Power began its energy delivery operations in March 2021. Electricity is acquired from commercial suppliers and delivered through existing physical infrastructure and equipment managed by San Diego Gas and Electric.
BASIS OF ACCOUNTING
Community Power’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.
Community Power’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time related liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories, if applicable – net investment in capital assets, restricted and unrestricted.
When both restricted and unrestricted resources are available for use, it is Community Power’s policy to use restricted resources first, then unrestricted resources as they are needed. 29 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
15 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
CASH AND CASH EQUIVALENTS
For the purpose of the Statements of Cash Flows, Community Power defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with an original maturity of three months or less. The Statements of Net Position presents restricted cash balances separately. Restricted cash reported on the Statements of Net Position includes advanced funding from grantors, collateral related to a bank line of credit, as well as a required minimum balance to be maintained in one of its bank accounts.
INVESTMENTS
Investments are stated at fair value based on prices listed on a national exchange. Investments with a maturity of less than one year are shown as current assets in the Statements of Net Position.
Investments with a maturity of one year or more are shown as noncurrent assets in the Statements of Net Position.
Community Power’s investment policy permits the following types of investments:
Deposits at banks Money market funds
Local Agency Investment Fund Commercial paper
Federal agency securities Medium-term notes
Bankers' acceptances Pass-through securities
Negotiable certificates of deposits Municipal securities Placement service deposits Supranationals
ACCRUED REVENUE
Accrued revenue reflects the estimated value of electricity delivered to customers during the reporting period for which invoices had not been issued by the end of the fiscal year.
PREPAID EXPENSES
Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid expenses.
DEPOSITS
Contracts to purchase energy may require Community Power to provide a supplier with advanced payments or security deposits. Security deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of the time the deposits will be outstanding.
30 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
16 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
CAPITAL ASSETS AND DEPRECIATION
Community Power’s policy is to capitalize furniture and equipment valued over $5,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, and five years for furniture. Leasehold improvements are depreciated over the lesser of seven years or the length of the original lease term. Community Power does not own any electric generation, transmission, or distribution assets.
LEASE ASSETS AND LEASE LIABILITIES
Community Power recognizes an asset and liability when it enters into certain leasing arrangements. The leased assets are amortized over the term of the leases. The lease liabilities initially recognized at the present value of payments expected to be paid to the lessors during the terms of the lease. Community Power’s leased assets and liabilities relate to its office premises.
DEPOSITS - ENERGY SUPPLIERS
Various energy contracts entered into by Community Power require the supplier to provide Community Power with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent, depending on the length of time the deposits will be held.
ADVANCES FROM GRANTORS
Community Power received grant funding from grantors. The amount in this category represents funds received by Community Power but not yet expended to carry out specific goals.
NET POSITION
Net position is presented in the following components:
Restricted: This component of net position consists of restraints placed on net asset use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.
Unrestricted: This component of net position consists of net position that does not meet the definition “restricted.”
OPERATING AND NONOPERATING REVENUE
Operating revenues include energy sales to retail and wholesale customers, program-related grants, and liquidated damages from suppliers that fail to meet delivery commitments.
Investment income is considered nonoperating revenue.
31 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
17 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
REVENUE RECOGNITION
Community Power recognizes revenue according to the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed. Management estimates that a portion of the billed amounts will be uncollectible.
Accordingly, an allowance for uncollectible accounts has been recorded. Revenue is presented net of estimated uncollectible accounts.
OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity, services, administrative expenses, and depreciation of capital assets. Operating expenses are expenses other than nonoperating expenses.
Nonoperating expenses are expenses related to financing.
COST OF ELECTRICITY
During the normal course of business, Community Power purchases electrical power from numerous suppliers. Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers as well as generation credits and load and other charges arising from Community Power’s participation in the California Independent System Operator’s (CAISO) centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position.
To comply with the State of California’s Renewable Portfolio Standards (RPS) and self-imposed benchmarks, Community Power acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System. Community Power obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive.
Community Power purchases capacity commitments from qualifying generators to comply with the California Public Utilities Commission’s (CPUC) Resource Adequacy (RA) Program. The goals of the Resource Adequacy Program are to provide sufficient resources to CAISO to ensure the safe and reliable operation of the electrical grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future. 32 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
STAFFING COSTS
Community Power fully pays employees semi-monthly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. Community Power is not obligated to provide post-employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements.
Community Power provides compensated absences, including paid time off, which are accrued when earned and recorded as part of accrued liabilities. The liability includes leave that is attributable to services already rendered, accumulates, and is more likely than not to be used or paid. The liability is measured using the employee’s pay rate as of the financial statement date.
INCOME TAXES
Community Power is a joint powers authority under the provision of the California Government Code and is not subject to federal or state income or franchise taxes.
ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
RECLASSIFICATIONS
Certain amounts in the prior year’s financial statements have been reclassified for comparative purposes to conform to the presentation of the current year financial statements. These reclassifications did not result in any change in previously reported net position or change in net position or change in net position.
33 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
19 2. CASH AND CASH EQUIVALENTS
Community Power maintains its cash in both interest-bearing and non-interest-bearing accounts.
Community Power deposits are subject to California Government Code Section 16521 which requires banks to provide collateral of 110% of balances in excess of the $250,000 insurance coverage provided by the Federal Deposit Insurance Corporation. Accordingly, the amount of risk is not disclosed for bank deposits. The risk disclosures in Note 4 address the risks related to certain short-term investments with original maturities of less than three months that are classified as cash and cash equivalents in the statements of net position and statements of cash flows.
Community Power monitors its risk on an ongoing basis.
3. ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of June 30:
2025 2024
Accounts receivable from customers 164,527,223 $ $ 141,912,165 Allowance for uncollectible accounts (48,500,000) (38,400,000) Net accounts receivable 116,027,223 $ $ 103,512,165
The majority of account collections occur within the first few months following the issuance of customer invoices. Community Power estimates that a portion of the invoiced accounts will not be collected. Community Power continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, Community Power continues to have success in collecting older accounts.
34 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
20 4. INVESTMENTS
During the year ended June 30, 2025, Community Power began holding investments with original maturities of three months or more. As of June 30, the fair value of investments was as follows:
2025 2024 Level
Current Investments:
U.S. Treasury securities $ 1,006,055 $ 1 -
Corporate bonds - U.S. 150,774 2 -
Total current investments $ 1,156,829 $ -
2025 2024 Level
Noncurrent Investments:
U.S. Treasury securities $ 36,261,017 $ 1 -
U.S. agency obligations 9,007,232 2 -
Corporate bonds - U.S. 21,457,839 2 -
Corporate bonds - foreign 2,302,456 2 -
Municipal bonds 877,267 2 -
Total noncurrent investments $ 69,905,811 $ -
FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. Community Power’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
35 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
21 4. INVESTMENTS (continued)
CREDIT RISK
Credit risk is the risk an issuer or other counterparty to an investment will not fulfill its obligations. Certain investments, such as obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk. As of June 30, 2025, Community Power’s investments were rated from A3 to Aaa, as measured by Moody’s Investment Service.
Community Power’s investment policy addresses this risk. Community Power limits investments to those allowed by Section 53601 of the California Government Code that addresses the risk allowable for each investment.
CUSTODIAL CREDIT RISK
Cash and cash equivalents
Custodial credit risk is the risk that in the event of a financial institution failure, Community Power’s deposits may not be returned to Community Power. Community Power’s deposits are fully insured or collateralized.
As of June 30, 2025 and 2024, none of Community Power’s bank balances are known to be individually exposed to credit risk.
Investments
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, Community Power would not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. All of Community Power’s investments are exposed to credit risk.
Community Power’s investment policy addresses custodial credit risk. All investments owned by Community Power shall be held in safekeeping by a third-party custodian, acting as an agent for Community Power under the terms of a custody agreement. 36 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
22 4. INVESTMENTS (continued)
INTEREST RATE RISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. Duration is calculated as the weighted average time to receive a bond’s coupon and principal payments. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates. Community Power manages its exposure to declines in fair values by limiting the weighted average maturity of its investments.
Following is a summary of investment maturities as of June 30, 2025:
Investment Type Fair Value
Less Than 1
Year 1-5 Years
U.S. Treasury securities $ 37,267,072 $ 1,006,055 $ 36,261,017 U.S. agency obligations 9,007,232 9,007,232 -
Corporate bonds-U.S. 21,608,613 150,774 21,457,839
Corporate bonds-foreign 2,302,456 2,302,456 -
Municipal bonds 877,267 - 877,267
$ 71,062,640 $ 1,156,829 $ 69,905,811
Investment Maturities
CONCENTRATION OF CREDIT RISK
Concentration of credit risk is the risk of loss to the magnitude of Community Power’s investment in a single issuer. Community Power manages the concentration of credit risk by diversifying its portfolio so that reliance on any one issuer will not place an undue burden on Community Power.
As of June 30, 2025 and 2024, Community Power’s investment portfolio was concentrated as follows:
Issuer Investment Type 2025 2024
Federal Home Loan Mortgage
Corporation (Freddie Mac)
U.S. agency implicitly
guaranteed 11.4% 0.0%
Percentage of Portfolio
37 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
23 5. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated and amortized:
Furniture and equipment 163,138$ -$ -$ 163,138$
Lease assets 2,076,825 1,284,053 (1,122,749) 2,238,129
Total capital assets being depreciated and amortized: 2,239,963 1,284,053 (1,122,749) 2,401,267 Less accumulated depreciation and amortization:
Furniture and equipment (39,354) (35,301) - (74,655)
Lease assets (941,766) (691,054) 623,750 (1,009,070)
Total accumulated depreciation and amortization (981,120) (726,355) 623,750 (1,083,725) Total capital assets, net of depreciation and amortization 1,258,843$ 557,698$ (498,999)$ 1,317,542$ Capital asset activity for the year ended June 30, 2024 was as follows:
Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated and amortized:
Furniture and equipment 163,138$ -$ -$ 163,138$
Lease assets 1,122,749 954,076 - 2,076,825
Total capital assets being depreciated and amortized: 1,285,887 954,076 - 2,239,963 Less accumulated depreciation and amortization:
Furniture and equipment (4,055) (35,299) - (39,354)
Lease assets (249,498) (692,268) - (941,766)
Total accumulated depreciation and amortization (253,553) (727,567) - (981,120) Total capital assets, net of depreciation and amortization 1,032,334$ 226,509$ -$ 1,258,843$
38 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
24 6. DEBT
BANK NOTE PAYABLE
In February 2023, Community Power entered into a revolving credit agreement with JPMorgan (JPM) to borrow up to $150,000,000. In October 2024, Community Power amended its credit agreement with JPM to increase the borrowing limit to $250,000,000 and Community Power assigned a security interest in all customer accounts receivable, revenues, debt service reserve accounts, and cash collateral accounts. Principal can be drawn as needed and interest is accrued on the outstanding balance. In the event of default, the note becomes immediately due and payable. In addition to borrowings, Community Power issues Standby Letters of Credit secured by the line of credit agreement that reduces the available portion of the line but is not considered debt to Community Power. The line of credit matures in February 2028.
Bank note activity and balances were as follows:
Beginning Additions Payments Ending
Year ended June 30, 2025
Bank note payable - JPM $ 55,500,000 - $ $ (55,500,000) $ - Amounts due within one year -
Amounts due after one year $ -
Year ended June 30, 2024
Bank note payable - JPM 35,730,000 $ $ (35,730,000) - $ $ - Amounts due within one year -
Amounts due after one year $ -
39 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
25 7. LEASES
Lease assets and lease liabilities are reported in accordance with GASB 87.
PROPERTY LEASES
In October 2023 and February 2025, Community Power entered into non-cancelable leases for its office space. Rental payments for Community Power’s office space were $705,000 and $610,000 for the fiscal years ended June 30, 2025 and 2024, respectively.
As of June 30, 2025, future minimum lease payments were projected as follows:
Principal Interest Total
Year ended June 30,
2026 $ 853,858 $ 66,899 $ 920,757
2027 598,191 13,859 612,050
Total $ 1,452,049 $ 80,758 $ 1,532,807
8. GRANTS
During the year ended June 30, 2025, Community Power, as the lead administrator of the San Diego Regional Energy Network (“SDREN”), received $26,682,000 in grant funding approved by the CPUC. SDREN is a regional partnership focused on delivering energy efficiency, electrification, and climate resilience programs, with Community Power responsible for managing program design, contracting, and implementation. Of the funds received, $1,427,000 was recognized as grant revenue in the current year upon meeting eligibility requirements. The unspent balance of approximately $25,256,000 represents funds received in advance for which eligibility requirements had not yet been met as of year-end and accordingly is reported as Advances from Grantors in the liabilities section of the Statements of Net Position. Community Power also received approximately $353,000 in funding from the CPUC as part of their Disadvantage Communities Green Tarriff program.
40 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
26 9. DEFINED CONTRIBUTION RETIREMENT PLAN
The San Diego Community Power Plan (Plan) is a defined contribution retirement plan established by Community Power to provide benefits at retirement to its employees. The Plan is administered by Empower Retirement. As of June 30, 2025, there were 80 plan members.
Community Power is required to contribute 10% of annual covered payroll to the Plan and contributed $1,216,000 and $864,000 during the fiscal years ended June 30, 2025 and 2024, respectively. The Plan includes vesting provisions intended to encourage employee retention.
Plan provisions and contribution requirements are established and may be amended by the Board.
10. RISK MANAGEMENT
Community Power is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year, Community Power purchased insurance policies from highly rated commercial carriers to mitigate risks that include those associated with earthquakes, theft, general liability, errors and omissions, cybersecurity, and property damage. There were no significant reductions in coverage compared to the prior year.
Community Power has general liability coverage of $2,000,000 with a deductible of $100,000.
From time to time, Community Power may be party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and Community Power’s legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on Community Power’s financial position or results of operations.
Community Power maintains a comprehensive risk management framework to identify and mitigate credit, liquidity, market, operational, regulatory, and other risks associated with participation in the California energy market. The framework employs credit risk strategies, including a preference for transacting with highly rated counterparties, establishing credit limits, and securing collateral when necessary. To address market risks, Community Power utilizes hedging strategies, netting arrangements, and liquidity monitoring. Internal controls and compliance mechanisms are in place to manage operational and regulatory risks, ensuring adherence to legal and market regulations. Risk monitoring and oversight are continuously performed through frequent reporting, with key risks communicated promptly to stakeholders.
This integrated approach enables Community Power to maintain a balanced risk profile while adapting to evolving market conditions.
41 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
27 11. PURCHASE COMMITMENTS
In the ordinary course of business, Community Power enters into various power purchase agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind, and hydro-electric facilities.
The following table represents the expected, undiscounted, contractual obligations outstanding as of June 30, 2025:
Year ending June 30,
2026 $ 532,200,000
2027 624,800,000
2028 518,900,000
2029 595,300,000
2030 601,900,000
2031-2047 7,239,300,000
Total $ 10,112,400,000
12. JOINT VENTURE
Community Power participates in a JPA through the California Community Choice Financing Authority (CCCFA). CCCFA was formed to assist its members by undertaking the financing or refinancing of energy prepayments through tax-advantaged bonds on behalf of one or more of the members by issuing or incurring bonds and entering into related contracts with its members. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member. Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member does not constitute an asset or reserve of that member.
Community Power will purchase energy from CCCFA in the same manner as it purchases energy from other suppliers. Community Power purchased approximately $12,836,000 and $0 from CCCFA during fiscal years 2025 and 2024, respectively. The outstanding purchase commitments related to these financing facilities are included in Note 11. This amount represents executed energy contracts assigned to CCCFA at June 30, 2025. Additional contracts will be assigned throughout the full bond period. The financial statements of CCCFA are available online at http://www.cccfa.org/key-documents.html.
42 SAN DIEGO COMMUNITY POWER
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
28 13. RECENTLY ADOPTED AND FUTURE ACCOUNTING PRONOUNCEMENTS Community Power implemented GASB Statement No. 102, Certain Risk Disclosures, which requires additional disclosures regarding concentrations and constraints that could impact Community Power’s financial position or results of operations. Implementation of this statement did not have a material effect on the financial statements.
Community Power also implemented GASB Statement No. 103, Financial Reporting Model Improvements, which establishes revised guidance for the presentation of financial statements by state and local governments. The adoption of this statement did not have a material effect on Community Power’s financial statements.
In addition, Community Power adopted GASB Statement No. 104, Disclosure of Certain Capital Assets. Implementation of this statement did not have a material effect on the financial statements. 43 ITEM 3
ATTACHMENT B
44 CPAs, PC
Report to the
Board of
Directors
San Diego Community Power
For the year ended June 30, 2025
45 Ph: (707) 542-3343 sorren.com
3562 Round Barn Cir, #200, Santa Rosa, CA 95403
To the Board of Directors
San Diego Community Power
815 E Street, Suite 12716
San Diego, CA 92112
We are pleased to present this report related to our audit of the financial statements of San Diego Community Power (“Community Power”) as of and for the year ended June 30, 2025. Our report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for Community Power’s financial reporting process.
This report is intended solely for the information and use of the Financial and Risk Management Committee, Board of Directors and management of Community Power and is not intended to be and should not be used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have about this report. We appreciate the opportunity to continue to be of service to San Diego Community Power.
Santa Rosa, California
October 30, 2025
cc: Eric Washington, Chief Financial Officer/Treasurer
46 TABLE OF CONTENTS
Required Communications 1
Significant Accounting Estimates 3
Appendices
Appendix A—Significant Written Communications Between Management and Our Firm
• Representation Letter 4
47 REQUIRED COMMUNICATIONS
The following required communications summarize our responsibilities regarding the financial statement audit as well as observations from our audit that are significant and relevant to your responsibility to oversee the financial reporting process.
Our Responsibilities
We described our responsibilities under auditing standards generally accepted in the United States of America have been described to you in our engagement letter dated September 23, 2025. Our audit of the financial statements does not relieve management or you of your responsibilities, which are also described in that letter.
Planned Scope and Timing
We previously issued a separate communication dated August 26, 2025 regarding the planned scope and timing of our audit and identified significant risks.
Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice.
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by Community Power. Community Power did not change any existing significant accounting policies. As disclosed in Note 13, Community Power adopted GASB 102-104 which did not have a significant effect on the financial statements.
Significant Accounting Policies
We did not identify any significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant or Unusual Transactions
We did not identify any significant unusual transactions.
Management’s Judgments and Accounting Estimates
Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Significant Accounting Estimates.
Audit Adjustments and Uncorrected Misstatements
Management chose to pass on one adjustment related to GASB 96 which management concluded wasn't material. We are not aware of any other passed adjustments that were not trivial. 1 48
2 Observations About the Audit Process
Disagreements With Management
We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements.
Consultations With Other Accountants
We are not aware of any consultations management had with other accountants about accounting or auditing matters.
Significant Issues Discussed With Management
No significant issues arising from the audit were discussed or were the subject of correspondence with management.
Significant Difficulties Encountered in Performing the Audit We did not encounter any significant difficulties in dealing with management during the audit.
Shared Responsibilities for Independence
Auditor independence is a joint responsibility and is managed most effectively when management, audit committees, and audit firms work together in considering compliance with applicable independence rules.
For Sorren CPAs P.C. (the Firm) to fulfill its professional responsibility to maintain and monitor independence, management, the Board of Directors, and the Firm each play an important role.
Our Responsibilities
• We are required to maintain both independence of mind and in appearance when providing audit and other attestation services. It is our responsibility to ensure that the general requirements for performing nonattest services are adhered to and included in all letters of engagement. • We are required to maintain a system of quality management over compliance with independence rules and firm policies.
Community Power’s Responsibilities
• Timely inform the Firm, before the effective date of transactions or other business changes, of the following:
− New affiliates, directors, or officers.
• Understand and conclude on the permissibility, prior to Community Power’s, officers, directors, or persons in a decision-making capacity, engaging in business relationships with the Firm. • Not entering into relationships resulting in close family members of the Firm covered persons, temporarily or permanently acting as an officer, director, or person in an accounting or financial reporting oversight role at the Company.
Significant Written Communications Between Management and Our Firm Copies of significant written communications between our firm and the management of Community Power, including the representation letter provided to us by management, are attached as Appendix A. 49 SIGNIFICANT ACCOUNTING ESTIMATES
Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events, and certain assumptions about future events. You may wish to monitor throughout the year the process used to determine and record these accounting estimates.
The following summarizes the significant accounting estimates reflected in Community Power’s June 30, 2025 financial statements.
Significant Accounting Estimates
Accrued Revenue
Accounting policy/
Management’s estimation
process
Management’s estimate of accrued revenue includes historical trends and anticipated energy usage.
Basis for our conclusion on
the reasonableness of the
estimate
We tested management’s estimate analytically and determined management’s estimate to be reasonable in relation to the financial statements taken as a whole.
Cost of Electricity
Accounting policy/
Management’s estimation
process
Management’s estimate of accrued cost of electricity includes historical trends and anticipated energy usage.
Basis for our conclusion on
the reasonableness of the
estimate
We tested management’s estimate through subsequent
disbursements and analytical procedures and determined
management’s estimate to be reasonable in relation to the financial statements taken as a whole.
Allowance for Uncollectible Accounts
Accounting policy/
Management’s estimation
process
Management’s estimate of the allowance for uncollectible accounts includes historical collection trends and anticipated future collections.
Basis for our conclusion on
the reasonableness of the
estimate
We evaluated the key factors and assumptions used to develop the estimate in determining that the allowance is reasonable in relation to the financial statements taken as a whole.
3 50
APPENDIX A
Significant Written Communications Between Management and Our Firm
51 52
53 54
55 SAN DIEGO COMMUNITY POWER
Staff Report – Item 4
To: Finance and Risk Management Committee
From: Dr. Eric W. Washington, Chief Financial Officer/Treasurer Via: Karin Burns, Chief Executive Officer
Subject: Treasurer’s Report for Period Ending August 31, 2025 Date: November 13, 2025
Recommendation
Receive and File Treasurer’s Report for Period Ending August 31, 2025.
Background
San Diego Community Power (Community Power) prepares its accounting records on a full accrual basis under GAAP for governmental enterprise funds. Year-to-date financial statements for the two-month period ending August 31, 2025, include budget comparisons.
The Board adopted an Investment Policy on May 25, 2023, with subsequent revisions on June 27, 2024, and August 28, 2025, to ensure the safeguarding of principal, preservation of liquidity, generation of returns, and adherence to a high standard of fiduciary care. The policy requires regular reporting to the Financial and Risk Management Committee (FRMC) via the Treasurer’s Report.
To enhance transparency, Community Power reports newly executed contracts between $50,000 and $150,000 in the Treasurer’s Report, per the Delegated Contract Authority Policy. Monthly operational metrics are presented at Board meetings, and key risk metrics are shared during FRMC meetings as part of the Treasurer’s Report.
On June 26, 2025, the Community Power Board of Directors (Board) approved the Fiscal Year 2025-26 Operating Budget, which serves as the basis for comparison in this report. 56 Table 1: Budget Comparison Versus Actual Results
SANDIEGO COMMUNITY POWER OPERATING FUND
BUDGETARY COMPARISON SCHEDULE
Two Months Ended August 31, 2025
Year-to-Date Annual
REVENUES AND OTHER SOURCES
Budget Actual
Budget Variance
(Under) Over
Actual/
Budget % Budget
Budget
Remaining
Gross Ratepayer Revenues 323,700,000 $ 313,406,353 (10,293,647) 97% 1,220,987,000 $ 907,580,647 Less: Uncollectible Customer Accounts (5,665,000) (4,701,095) 963,905 83% (21,367,000) (16,665,905) Total Revenues and Other Sources 318,035,000 308,705,258 (9,329,742) 1,199,620,000 890,914,742
OPERATING EXPENSES
Cost of Energy 234,931,000 223,237,904 (11,693,096) 95% 956,691,000 733,453,096 Professional Services and Consultants 4,119,000 3,052,362 (1,066,638) 74% 24,713,000 21,660,638 Personnel Costs 3,535,000 3,142,615 (392,385) 89% 21,209,000 18,066,385 Marketing and Outreach 411,000 424,120 13,120 103% 2,464,000 2,039,880 General & Administrative 978,000 852,899 (125,101) 87% 5,867,000 5,014,101 Total Operating Expenses 243,974,000 230,709,900 (13,264,100) 1,010,944,000 780,234,100 Operating Income (Loss) 74,061,000 77,995,358 3,934,358 188,676,000 110,680,642
NON-OPERATING REVENUES (EXPENSES)
Investment Income - 2,467,988 2,467,988 N/A - (2,467,988) Interest and Related Expenses (315,000) (309,806) 5,194 98% (1,893,000) (1,583,194) Transfer to Capital Investment Program (22,170,000) (22,170,000) - 100% (22,170,000) - Total Non-Operating Revenues(Expenses) (22,485,000) (20,011,817) 2,473,183 (24,063,000) (4,051,183) NET CHANGE $ 51,576,000 $ 57,983,540 $ 6,407,540 $ 164,613,000 $ 106,629,460 57 Analysis and Discussion
Actual financial results for the period ended August 31, 2025: $308.7 million in net operating revenues were reported compared to $318.0 million budgeted for the period. Community Power’s change in net position of $58.0 million was reported year-to-date for Fiscal Year 2025-26. The following is a summary of the actual results compared to the Fiscal Year 2025- 26 Adopted Budget
• Operating revenues year-to-date are $9.3 million, or 2.9% under budget primarily due to cooler temperatures driving lower energy sales.
• Operating expenses year-to-date are $13.3 million, or 6.0% under budget, primarily due to lower costs of energy primarily as a result of timing differences due to accruals of REC pricing.
• Investment Income: Favorable variance of $2.5 million year-to-date. Investment returns are not budgeted and will be reflected in financial statements as realized. • Professional Services and Consultants: $1.1 million below year-to-date budget, mainly due to lower-than-expected utilization of outside professional services. • Personnel Costs: $0.4 million under budget, driven by vacancies and accrued vacation.
Community Power reserves at the end of the period totaled $439.9 million, including $357.7 million in unrestricted cash and $82.1 million in investment holdings. Total available liquidity (including unrestricted cash, investment holdings, and lines of credit availability) was $667.4 million. Community Power has a total Fiscal Year 2025-26 year-end reserve target of $498.5 million which is equivalent to 180-days of total Fiscal Year 2025-26 budgeted operating expenses as set in Community Power’s Reserve Policy and Strategic Goals. 58 Investment Portfolio Report
Chandler Asset Management manages Community Power’s investment portfolio.
As of August 31, 2025, the market value of the portfolio was $83.2 million compared to the $82.3 million market value as July 31, 2025. The following is a snapshot of the overall characteristics of the portfolio.
59 August 2025 Contract Execution between $50,000 and $150,000 Temporary Staffing Services
• Vendor: LHI, Inc.
• Contract Total: $140,000
Customer Participation Rates
Metrics Figure 2: Participation Rates as of 10/1/2025
The participation rate for Community Power reflects full enrollment of current member agencies. We are reporting on the opt outs and eligible accounts associated with the phase based on those accounts that we have noticed for enrollment on a rolling basis as of the reporting month.
60 Staff are also presenting the state of Community Power Arrearages related to financial risk for FRMC consideration and for regular review. The below arrearage data includes Community Power’s Receivables aged 120+ Days as of October 1, 2025.
Figure 3: State of Community Power Arrearages as of 10/1/2025 Figure 4: State of Community Power Arrearages Residential vs Commercial as of 10/1/2025 Fiscal Impact
N/A
Strategic Plan
Strategic Plan of practicing fiscal strategies to promote long-term organizational sustainability. 61 Attachments
A: FY 2026 Year-to-Date Period Ended August 31,2025, Financial Statements. 62 ITEM 4
ATTACHMENT A
63 1
ACCOUNTANTS’ COMPILATION REPORT
Management
San Diego Community Power
Management is responsible for the accompanying financial statements of San Diego Community Power (a California Joint Powers Authority) which comprise the statement of net position as of August 31, 2025, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the two months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. San Diego Community Power’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
October 9, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 64 Current assets
Cash and cash equivalents - unrestricted $ 357,664,335
Cash and cash equivalents - restricted 25,724,644
Accounts receivable, net of allowance 150,200,457
Accrued revenue 101,293,724
Prepaid expenses 20,399,193
Other receivables 4,982,605
Deposits 12,163,108
Investments 1,960,099
Total current assets 674,388,165
Noncurrent assets
Cash and cash equivalents - restricted 647,000
Investments 80,252,389
Capital assets, net of depreciation and amortization 1,125,149 Total noncurrent assets 82,024,538
Total assets 756,412,703
Current liabilities
Accrued cost of electricity 160,409,600
Accounts payable 3,536,891
Other accrued liabilities 2,429,523
State surcharges payable 419,044
Deposits - energy suppliers 383,731
Lease liability 862,962
Advances from grantors 25,224,644
Total current liabilities 193,266,395
Noncurrent liabilities
Lease liability 448,056
Deposits - energy suppliers 7,443,450
Total noncurrent liabilities 7,891,506
Total liabilities 201,157,901
Restricted for security collateral 1,147,000
Unrestricted 554,107,802
Total net position $ 555,254,802
NET POSITION
SAN DIEGO COMMUNITY POWER
STATEMENT OF NET POSITION
As of August 31, 2025
ASSETS
LIABILITIES
See accountants' compilation report. 2
65 OPERATING REVENUES
Electricity sales, net $ 308,705,258
Grant revenue 31,071
Total operating revenues 308,736,329
OPERATING EXPENSES
Cost of electricity 223,237,904
Contract services 3,660,330
Staff compensation 3,142,615
Other operating expenses 1,933,504
Depreciation and amortization 192,393
Total operating expenses 232,166,746
Operating income 76,569,583
NON-OPERATING REVENUES (EXPENSES)
Investment income 2,467,988
Interest expense (14,933)
Nonoperating revenues (expenses), net 2,453,055
CHANGE IN NET POSITION 79,022,638
Net position at beginning of year 476,232,164
Net position at end of year $ 555,254,802
SAN DIEGO COMMUNITY POWER
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Two Months Ended August 31, 2025
See accountants' compilation report. 3
66 CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 246,399,702
Receipts of supplier security deposits 268,448
Receipts from wholesale sales and other operating activities 602,872 Payments to suppliers for electricity (163,478,705)
Payments for other goods and services (6,216,590)
Payments for deposits and collateral (100,000)
Payments for staff compensation (3,179,290)
Payments of state surcharges (535,146)
Net cash provided by operating activities 73,761,291
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (155,964)
Net cash used by capital and related financing activities (155,964)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 2,122,083
Proceeds from investment sales and maturities of investments 1,236 Purchase of investments (10,866,913)
Net cash provided (used) by investing activities (8,743,594) Net change in cash and cash equivalents 64,861,733
Cash and cash equivalents at beginning of year 319,174,246 Cash and cash equivalents at end of year $ 384,035,979
Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents - current $ 357,664,335 Restricted cash and cash equivalents - current 25,724,644 Restricted cash and cash equivalents - noncurrent 647,000 Cash and cash equivalents $ 384,035,979
NONCASH INVESTING ACTIVITIES
Change in fair value of investments $ 284,171
Change in interest income receivable $ 61,734
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS
Two Months Ended August 31, 2025
See accountants' compilation report. 4
67 Operating income $ 76,569,583
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 192,393
(Increase) decrease in:
Accounts receivable, net (34,173,234)
Accrued revenue (28,551,365)
Prepaid expenses 3,402,942
Other receivables (820,880)
Deposits (1,068,897)
Increase (decrease) in:
Accrued cost of electricity 58,207,434
Accounts payable (274,081)
Advances from grantors (31,070)
Other accrued liabilities 269,568
State surcharges payable (116,102)
Deposits - energy suppliers 155,000
Net cash provided by operating activities $ 73,761,291
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Two Months Ended August 31, 2025
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report.
68 5
2025/26 YTD
Budget
2025/26 YTD
Actual
2025/26 YTD
Budget Variance
(Under) Over
2025/26 YTD
Actual/
Budget %
2025/26 Annual
Budget
2025/26 Budget
Remaining
OPERATING REVENUES
Gross Ratepayer Revenues $ 323,700,000 $ 313,406,353 $ (10,293,647) 97% 1,220,987,000 $ $ 907,580,647 Less Uncollectible Accounts (5,665,000) (4,701,095) 963,905 83% (21,367,000) (16,665,905) Other Income - - - - -
Net Operating Revenues 318,035,000 308,705,258 (9,329,742) 1,199,620,000 890,914,742
OPERATING EXPENSES
Cost of Energy 234,931,000 223,237,904 (11,693,096) 95% 956,691,000 733,453,096 Professional Services and Consultants
Data Management 2,470,000 2,096,116 (373,884) 85% 14,819,000 12,722,884 SDG&E Fees 673,000 484,121 (188,879) 72% 4,036,000 3,551,879 Technical Support 341,000 128,475 (212,525) 38% 2,045,000 1,916,525 Legal/Regulatory 253,000 141,803 (111,197) 56% 1,516,000 1,374,197 Other Services 383,000 201,845 (181,155) 53% 2,297,000 2,095,155 Total 4,120,000 3,052,360 (1,067,640) 24,713,000 21,660,640 Personnel Costs
Salaries 2,815,000 2,496,060 (318,940) 89% 16,889,000 14,392,940 Benefits (Retirement/Health) 527,000 473,847 (53,153) 90% 3,163,000 2,689,153 Payroll Taxes 192,000 172,708 (19,292) 90% 1,157,000 984,292 Total 3,534,000 3,142,615 (391,385) 21,209,000 18,066,385 Marketing and Outreach
Printing 132,000 70,610 (61,390) 53% 790,000 719,390
Partnerships/Sponsorships/Memberships 165,000 290,452 125,452 176% 990,000 699,548 Marketing and Communications 114,000 63,058 (50,942) 55% 684,000 620,942 Total 411,000 424,120 13,120 2,464,000 2,039,880
General and Administration
Other G&A 669,000 535,644 (133,356) 80% 4,012,000 3,476,356 Cal CCA Dues 99,000 92,500 (6,500) 93% 594,000 501,500
Rent 156,000 170,480 14,480 109% 936,000 765,520
Insurance 54,000 54,275 275 101% 325,000 270,725
Total 978,000 852,899 (125,101) 5,867,000 5,014,101
Total Operating Expenses 243,974,000 230,709,898 (13,264,102) 1,010,944,000 780,234,102 Operating Income (Loss) 74,061,000 77,995,360 3,934,360 188,676,000 110,680,640
NON-OPERATING REVENUES (EXPENSES)
Investment income 2,467,988 - 2,467,988 (2,467,988) -
Interest and Related Expenses (315,000) (309,806) 5,194 0% (1,893,000) (1,583,194) Transfer to Capital Investment Program (22,170,000) (22,170,000) - (22,170,000) - Total Non-Operating Rev (Exp) (22,485,000) (20,011,818) 2,473,182 (24,063,000) (4,051,182) CHANGE IN NET POSITION $ 51,576,000 $ 57,983,542 $ 6,407,542 $ 164,613,000 $ 106,629,458 FY25 - Supplemental Operating Budget Details
Two Months Ended August 31, 2025
SAN DIEGO COMMUNITY POWER
69 Glossary
AB – Assembly Bill: An Assembly Bill is a piece of legislation that is introduced in the Assembly. In other words, the Assembly (rather than the Senate) is the bill’s house of origin in the Legislature. In California, it is common for legislation to be referred to by its house of origin number even after it becomes law. However, because bill numbers “reset” and start again from 1 in each legislative session, it is less confusing to include chapter and statute information when referring to a bill that has become law; for example, SB 350 (Chapter 547, Statutes of 2015).
AL - Advice Letter: An Advice Letter is a request by a California Public Utilities Commission (CPUC) jurisdictional entity for Commission approval, authorization or other relief.
ALJ – Administrative Law Judge: ALJs preside over CPUC cases to develop the evidentiary record and draft proposed decisions for Commission action.
ARB – Air Resources Board: The California Air Resources Board (CARB or ARB) is the “clean air agency” in the state government of California. CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change.
AReM – Alliance for Retail Energy Markets: AReM is a not-for-profit corporation that advocates for continued development of successful customer choice in retail energy markets and provides a focused voice for competitive energy retailers and their customers in select public policy forums at the state level. It represents direct access providers such as Constellation NewEnergy and Direct Energy.
BayREN – Bay Area Regional Energy Network: BayREN offers regionwide energy programs, services and resources to members of the public by promoting energy efficient buildings, reducing carbon emissions and building government capacity.
CAISO – California Independent System Operator: CAISO is a nonprofit public benefit corporation that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (approximately 80% of California’s electric flow). Its stated mission is to “operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate effective markets and promote infrastructure development.” CAISO is regulated by the Federal Energy Regulatory Commission (FERC) and governed by a five-member governing board appointed by the governor.
CalCCA – California Community Choice Association: CalCCA is a statewide association, made up of Community Choice Aggregators (CCAs), that represents the interests of California’s community choice electricity providers.
1 70
CALSEIA – California Solar Energy Industries Association: CALSEIA represents more than 200 companies doing solar-related business in California, including manufacturers, distributors, installation contractors, consultants and educators. Members’ annual dues support professional staff and a lobbyist who represents the common interests of California’s solar industry at the Legislature, Governor’s Office and state and local agencies.
CALSLA – California City-County Street Light Association: CALSLA is a statewide association representing cities, counties and towns before the CPUC that is committed to maintaining fair and equitable streetlight electricity rates and facilities charges and disseminating streetlight-related information.
CAM – Cost Allocation Mechanism: CAM is the cost recovery mechanism to cover procurement costs incurred in serving the central procurement function.
CARB – California Air Resources Board: The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.
CARE – California Alternative Rates for Energy: CARE is a state program for low-income households that provides a 30% discount on monthly energy bills and a 20% discount on natural gas bills. It is funded through a rate surcharge paid by all other utility customers.
CBE – Communities for a Better Environment: CBE is an environmental justice organization that was founded in 1978. The mission of CBE is to build people’s power in California’s communities of color and low-income communities to achieve environmental health and justice by preventing and reducing pollution and building green, healthy and sustainable communities and environments.
CCA – Community Choice Aggregator: A community choice aggregator, sometimes referred to as community choice aggregation, is an entity of local governments that procure power on behalf of their residents, businesses and municipal accounts from an alternative supplier while still receiving transmission and distribution service from their existing utility provider. CCAs are an attractive option for communities that want more local control over their electricity sources, more green power than is offered by the default utility, and/or lower electricity prices. By aggregating demand, communities gain leverage to negotiate better rates with competitive suppliers and choose greener power sources.
CCSF – City and County of San Francisco: The City and County of San Francisco often engage in joint advocacy before the CPUC. San Francisco operates CleanPowerSF, a CCA.
CEC – California Energy Commission: The CEC is the primary energy policy and planning agency for California, whose core responsibilities include advancing state energy policy, achieving energy efficiency, investing in energy innovation, developing renewable energy, transforming transportation, overseeing energy infrastructure and preparing for energy emergencies.
CEE – Coalition for Energy Efficiency: CEE is a nonprofit composed of U.S. and Canadian energy-efficiency administrators working together to accelerate the development and availability of energy-efficient products and services.
2 71
CLECA – California Large Energy Consumers Association: CLECA is an organization of large, high-load factor industrial customers located throughout the state; its members are in the cement, steel, industrial gas, pipeline, beverage, cold storage, food packaging and mining industries and their electricity costs comprise a significant portion of their costs of production. Some members are bundled customers, others are Direct Access (DA) customers, and some are served by Community Choice Aggregators (CCAs); a few members have onsite renewable generation.
CPUC – California Public Utility Commission: The CPUC is a state agency that regulates privately owned electric, natural gas, telecommunications, water, railroad, rail transit and passenger transportation companies, in addition to authorizing video franchises.
C&I – Commercial and Industrial: C&I customers are business customers who generally consume much higher volumes of electricity and gas. Many utilities segment their C&I customers by energy consumption (small, medium and large).
CP – Compliance Period: A Compliance Period is the time period to become Renewables Portfolio Standard (RPS) compliant, set by the California Public Utilities Commission (CPUC).
DA – Direct Access: Direct Access is an option that allows eligible customers to purchase their electricity directly from third-party providers known as Electric Service Providers (ESPs).
DA Cap: The DA Cap is the maximum amount of electric usage that may be allocated to Direct Access customers in California or, more specifically, within an investor-owned utility service territory.
DACC – Direct Access Customer Coalition: DACC is a regulatory advocacy group composed of educational, governmental, commercial and industrial customers that utilize direct access for all or a portion of their electrical energy requirements.
DA Lottery: The DA Lottery is a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently applicable Direct Access Cap.
DA Waitlist: The DA Waitlist consists of customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.
DAC – Disadvantaged Community: “Disadvantaged communities” refers to the areas throughout California that most suffer from a combination of economic, health and environmental burdens.
These burdens include poverty, high unemployment, air and water pollution and the presence of hazardous wastes as well as high incidences of asthma and heart disease. One way that the state identifies these areas is by collecting and analyzing information from communities statewide.
CalEnviroScreen, an analytical tool created by the California Environmental Protection Agency (CalEPA), combines different types of census tract-specific information into a score to determine which communities are the most burdened or “disadvantaged.” DASR – Direct Access Service Request: DASR is a request submitted by C&I customers to become direct access eligible.
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Demand: Demand refers to the rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts (kW), megawatts (MW) or gigawatts (GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.
DER – Distributed Energy Resource: A DER is a small-scale physical or virtual asset (e.g., EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.
Distribution: Distribution refers to the delivery of electricity to the retail customer’s home or business through low-voltage distribution lines.
DLAP – Default Load Aggregation Point: In the CAISO’s electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled.
DR – Demand Response: DR is an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
DRP – Distributed Resource Plans: Distributed Resource Plans are required by statute and intended to identify optimal locations for the deployment of distributed resources.
DWR – Department of Water Resources: DWR is the state agency charged with managing California’s water resources, systems and infrastructure in a responsible, sustainable way.
ECR – Enhanced Community Renewable: ECR is an IOU (Investor-Owned Utility) program that reflects the “Community Solar” model of renewable energy purchasing. Customers sign up to purchase a portion of a local solar project directly from a developer at a level that meets at least 25% and up to 100% of their monthly electricity demand. The customer pays the developer for the subscribed output and receives a credit on their utility bill that reflects their enrollment level.
ED – Energy Division: The CPUC’s Energy Division develops and administers energy policy and programs to serve the public interest, advise the Commission and ensure compliance with Commission decisions and statutory Mandates.
EE – Energy Efficiency: Energy Efficiency refers to the use of less energy to perform the same task or produce the same result. Energy-efficient homes and buildings use less energy to heat and cool and run appliances and electronics, and energy-efficient manufacturing facilities use less energy.
ELCC – Effective Load Carrying Capacity: ELCC is the additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources, the ELCC is the amount of capacity that can be counted for Resource Adequacy purposes.
EPIC – Electric Program Investment Charge: The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of Pacific Gas and Electric (PG&E), San Diego Gas & Electric Company (SDG&E) and Southern California Edison Company (SCE).
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ERRA – Energy Resource Recovery Account: ERRA proceedings are used to determine fuel and purchased power costs that can be recovered in rates. The utilities do not earn a rate of return on these costs and recover only actual costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, then the utility gives money back, and vice versa.
ES – Energy Storage: Energy Storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production.
ESA – Energy Storage Agreement: An ESA refers to a battery services contract, a capacity contract, demand response contract or similar agreement.
ESP – Energy Service Provider: An Energy Service Provider is an energy entity that provides service to a retail or end-use customer.
EV – Electric Vehicle: An EV is a vehicle that uses one or more electric motors for propulsion.
FCR – Flexible Capacity Requirements: “Flexible capacity need” is defined as the quantity of resources needed by the CAISO to manage grid reliability during the greatest three-hour continuous ramp in each month. Resources will be considered as “flexible capacity” if they can sustain or increase output or reduce ramping needs during the hours of “flexible need.” FCR means the flexible capacity requirements established for LSEs by the CPUC pursuant to the CPUC decisions.
GHG – Greenhouse gas: Water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane and chlorofluorocarbons (CFCs) are gases that cause the atmosphere to trap heat radiating from the earth. The most common GHG is carbon dioxide.
GRC – General Rate Case: General Rate Cases are proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California’s three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible for and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocate’s Office and interested parties and for approval by the CPUC.
GTSR – Green Tariff Shared Renewables: The GTSR program enables customers to receive 50 to 100 percent of their electricity demand from renewable sources. The GTSR program has two components:
the Green Tariff (GT) component and the Enhanced Community Renewables (ECR) component.
Through GT, a customer may pay the difference between their current generation charge and the cost of procuring 50 to 100 percent renewables. With ECR, a customer agrees to purchase a share of a community renewable (typically solar) project directly from a developer and in exchange will receive a credit from their utility for the customer’s avoided generation procurement.
GWh – Gigawatt-hour: This is the unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.
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ICA – Integration Capacity Analysis: The enhanced integrated capacity and locational net benefit analysis quantify the capability of the system to integrate Distributed Energy Resources (DERs) within the distribution system. Results are dependent on the most limiting element of the various power system criteria such as thermal ratings, power quality, system protection limits and safety standards of existing equipment.
IDER – Integrated Distributed Energy Resources: A CPUC proceeding that aims to more effectively coordinate the integration of demand-side resources in order to better meet customer and grid needs, while enabling California to attain its greenhouse gas reduction goals.
IDSM – Integrated Demand-Side Management: This is an approach that joins together all the resources utilities have at their disposal to plan, generate and supply electricity in the most efficient manner possible.
IEPA – Independent Energy Producers Association: IEPA is California’s oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.
IMD – Independent Marketing Division: Under state law, IOUs are prohibited from lobbying or marketing on community choice unless the IOU forms an independent marketing division funded by shareholders rather than ratepayers. SDG&E and its parent company Sempra were permitted by the CPUC to create such an independent marketing division, which allowed SDG&E to lobby against plans to create a CCA program.
IOU – Investor-Owned Utility: An IOU is a private electricity and natural gas provider, such as SDG&E, PG&E or SCE, which are the three largest IOUs in California.
IRP – Integrated Resource Plan: An Integrated Resource Plan outlines an electric utility’s resource needs in order to meet expected electricity demand long-term. kW – Kilowatt: This is a measure of power where power (watts) = voltage (volts) x amperage (amps) and 1 kW = 1,000 watts.
kWh – Kilowatt-hour: This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.
LCE – Lancaster Choice Energy: LCE is the CCA that serves the City of Lancaster, California.
LCFS – Low Carbon Fuel Standard: This is a CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels and, therefore, reduce greenhouse gas emissions.
LCR – Local (RA) Capacity Requirements: This is the amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.
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LMP – Locational Marginal Price: Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day-ahead and real-time market as it balances the system using the least cost. The LMP is composed of three components: the marginal cost of energy, congestion and losses. The LMP is used to financially settle transactions in the CAISO.
LNBA – Locational Net Benefits Analysis: This is a cost-benefit analysis of distributed resources that incorporates location-specific net benefits to the electric grid.
Load: Load refers to an end-use device or customer that receives power from an energy delivery system. Load should not be confused with Demand, which is the measure of power that a load receives or requires. See Demand.
LSE – Load-serving Entity: Load-serving Entities have been granted authority by state, local law or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.
LTPP – Long-Term Procurement Rulemaking: This is an “umbrella” proceeding to consider, in an integrated fashion, all of the CPUC’s electric procurement policies and Programs.
MCE – Marin Clean Energy: MCE was the first CCA in California and began serving customers in 2010.
It serves customers in Contra Costa, Marin, Napa and Solano counties in Northern California.
MEO – Marketing Education and Outreach: This is a term generally used to describe various strategies to inform customers, such as to motivate consumers to take action on energy efficiency or conservation measures and change their behavior.
MW – Megawatt: A megawatt hour (Mwh) is equal to 1,000 Kilowatt hours (Kwh) or 1,000 kilowatts of electricity used continuously for one hour.
MWH – Megawatt-hour: This is a measure of energy.
NAESCO – National Association of Energy Service Companies: NAESCO is an advocacy and accreditation organization for energy service companies (ESCOs). Energy service companies contract with private and public-sector energy users to provide cost-effective energy efficiency retrofits across a wide spectrum of client facilities.
NBC – Non-Bypassable Charge: Non-Bypassable Charges are fees that are paid on every kilowatt-hour of electricity that is consumed from the grid. These charges can be used to fund things like energy assistance programs for low-income households and energy efficiency programs. These charges apply even if customers buy grid-supplied power from an outside power company such as a CCA.
NDA – Non-Disclosure Agreement: An NDA is a contract by which one or more parties agree not to disclose confidential information that they have shared with each other. 7 76
NEM – Net Energy Metering: NEM is a program in which solar customers receive credit for excess electricity generated by solar panels.
NRDC – Natural Resources Defense Council: NRDC is a nonprofit international environmental advocacy group.
NP-15 – North Path 15: NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in Northern California in PG&E’s service territory.
OIR – Order Instituting Rulemaking: An OIR is a procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five commissioners of the CPUC.
OSC – Order to Show Cause: OSC is an order requiring an individual or entity to explain, justify or prove something.
ORA – Office of Ratepayer Advocates: The ORA is an independent consumer advocate within the CPUC, now called the Public Advocates Office.
PA – Program Administrator (for EE Business Plans): IOUs and local government agencies can be authorized to implement CPUC-directed energy efficiency programs.
PCE – Peninsula Clean Energy Authority: PCE is the CCA serving San Mateo County and all 20 of its cities and towns as well as the City of Los Banos.
PCC1 – RPS Portfolio Content Category 1: RPS Portfolio Content Category 1 includes bundled renewables where the energy and Renewable Energy Certificate (REC) are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO, also known as “in-state” renewables.
PCC2 – RPS Portfolio Content Category 2: RPS Portfolio Content Category 2 includes bundled renewables where the energy and Renewable Energy Certificate (REC) are from out of state and not dynamically scheduled to a CBA.
PCC3 – RPS Portfolio Content Category 3: RPS Portfolio Content Category 3 includes Unbundled Renewable Energy Certificate (REC).
PCIA or “exit fee” – Power Charge Indifference Adjustment: The Power Charge Indifference Adjustment (PCIA) is an “exit fee” based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.
PCL – Power Content Label: The PCL is a user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Chapter 313, Statutes of 2009) and SB 1305 (Chapter 796, Statutes of 1997). 8 77
PD – Proposed Decision: A PD is a procedural document in a CPUC Rulemaking that is formally commented on by parties to the proceeding. A PD is a precursor to a final decision voted on by the five commissioners of the CPUC.
PG&E – Pacific Gas & Electric: PG&E is the IOU that serves 16 million people over a 70,000-square-mile service area in Northern California.
PHC – Prehearing Conference: A PHC is a CPUC hearing to discuss the scope of a proceeding, among other matters. Interested stakeholders can request party status during these conferences.
Pnode – Pricing Node: In the CAISO optimization model, this is a point where a physical injection or withdrawal of energy is modeled and for which an LMP is calculated.
PPA – Power Purchase Agreement: A PPA is a contract used to purchase the energy, capacity and attributes from a renewable resource project.
PRP – Priority Review Project: These are transportation electrification pilot projects approved by the CPUC pursuant to SB 350 (Chapter 547, Statutes of 2015).
PRRR – Progress on Residential Rate Reform: Pursuant to a CPUC decision, the IOUs must submit to the CPUC and other parties periodic updates on the progress of their efforts to assist customers with residential rate design changes related to rate reform, including tier collapse and transition to a default time of use rate.
PUC – Public Utilities Code: The PUC is a California statute that contains 33 divisions; the range of topics within this code includes natural gas restructuring, private energy producers, telecommunication services, and specific municipal utility districts and transit authorities; the primary statute for governance of utilities as well as CCAs in California.
PURPA – Public Utilities Regulatory Policy Act: The PURPA is a federal statute passed in 1978 by Congress in response to the 1973 energy crisis to encourage fuel diversity via alternative energy sources and to introduce competition into the electric sector. It was intended to promote energy conservation (reduce demand) and promote greater use of domestic energy and renewable energy (increase supply).
RA – Resource Adequacy: Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities — investor-owned utilities, electricity service providers and CCAs — to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.
RAM – Renewables Auction Mechanism: This is a procurement program the investor-owned utilities (IOUs) may use to procure RPS eligible generation. The IOUs may use RAM to satisfy authorized procurement needs, for example, system Resource Adequacy needs, local Resource Adequacy needs, RPS needs, reliability needs, Local Capacity Requirements, Green Tariff Shared Renewables needs and any need arising from commission or legislative mandates. 9 78
RE – Renewable Energy: Renewable energy is energy from a source that is not depleted when used, such as wind or solar power.
REC - Renewable Energy Certificate: A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every megawatt-hour of electricity they produce. Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.
RES-BCT – Renewables Energy Self-Generation Bill Credit Transfer: This program enables local governments and universities to share generation credits from a system located on one government-owned property with billing accounts at other government-owned properties. The system size limit under RES-BCT is 5 MW, and bill credits are applied at the generation-only portion of a customer’s retail rate.
RFO – Request for Offers: This is a competitive procurement process used by organizations to solicit the submission of proposals from interested parties in response to a scope of services.
RPS - Renewable Portfolio Standard: RPS is a law that requires California utilities and other load-serving entities (including CCAs) to provide an escalating percentage of California qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.
SB – Senate Bill: A Senate Bill is a piece of legislation that is introduced in the Senate. In other words, the Senate, rather than the Assembly, is the house of origin in the Legislature for the Legislation.
SBP – Solar Billing Plan: The Solar Billing Plan, also known as the Net Billing Tariff or NEM 3.0, is the new method of compensating customer-sited renewable energy self-generation, intended to promote grid reliability and incentivize solar and battery storage.
SCE – Southern California Edison: SCE is the large IOU that serves the Los Angeles and Orange County area.
SCP – Sonoma Clean Power Authority: SCP is the CCA serving Sonoma County and surrounding areas in Northern California.
SDG&E – San Diego Gas & Electric: SDG&E is the IOU that serves San Diego County and owns the infrastructure that delivers Community Power energy to our customers.
SGIP – Self-Generation Incentive Program: SGIP is a program that provides incentives to support existing, new and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.).
SUE – Super User Electric: This is an electric surcharge intended to penalize consumers for excessive energy use.
SVCE – Silicon Valley Clean Energy: SVCE is the CCA serving the communities in Santa Clara County. 10 79
TCR EPS Protocol – The Climate Registry Electric Power Sector Protocol: This refers to online tools and resources provided by The Climate Registry to assist organizations to measure, report and reduce carbon emissions.
TE – Transportation Electrification: For the transportation sector, electrification means replacing fossil fuels with electricity as the means of powering light-duty vehicles and medium- and heavy-duty trucks and buses. The primary goal is to reduce greenhouse gas (GHG) emissions and, ultimately, contribute to mitigating the effects of climate change on the planet.
Time-of-Use (TOU) Rates: TOU Rates refers to the pricing of delivered electricity based on the estimated cost of electricity during a particular time block. Time-of-use rates are usually divided into three or four time blocks per 24 hour period (on-peak, mid-peak, off-peak and sometimes super off-peak) and by seasons of the year (summer and winter). Real-time pricing differs from TOU rates in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.
TM – Tree Mortality: This is a term that refers to the death of forest trees and provides a measure of forest health. In the context of energy, as part of the Governor’s Tree Mortality Emergency Proclamation, the CPUC is tasked with utilizing its authority to extend contracts and take actions to authorize new contracts on bioenergy facilities that receive feedstock from high hazard zones.
TURN – The Utility Reform Network: TURN is a ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.
Unbundled RECs: Unbundled RECs are renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are “unbundled” and sold to different buyers.
VPP – Virtual Power Plant: A Virtual Power Plant is a cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid. For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.
VAMO – Voluntary Allocation, Market Offer: VAMO is the process for SDG&E to allocate a proportional share of its renewable portfolio to Community Power and other LSEs within the service territory.
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