Presentation — San Diego Community Power Board of Directors, December 11, 2025

2 Board of Directors
Regular Meeting
December 11, 2025
3 Welcome and Call to Order
4 Roll Call
55 6
Land Acknowledgement
7 Special Presentations and Introductions
8 Megan Phelps
Program Associate
WELCOME!
9 Items to be Withdrawn or
Reordered on the Agenda
10 Public Comment on non-Agenda Items
11 Consent
Calendar

1. Approve November 20, 2025, Meeting Minutes

2. Receive and File Update on Programs

3. Receive and File Update on Power Services

4. Receive and File Update on Customer Operations

5. Receive and File Update on IT and Data Analytics

6. Receive and File Update on Human Resources

7. Receive and File Community Advisory Committee Monthly Update

8. Receive and File Update on Marketing, Public Relations, and Local Government Affairs

9. Receive and File Treasurer’s Report for Period Ending September 30, 2025

10. Receive and File Update on Regulatory and Legislative Affairs

11. Approve a Sole Source Amendment No. 5 to Agreement with GB Endeavors LLC., for an additional not-to-exceed amount of $95,000 for a total revised not-to-exceed amount of $219,999 and to extend the term through June 30, 2027
12 Public Comment on Consent Calendar
13 Regular
Agenda

12. Community Advisory Committee Quarterly Update

13. Fiscal Year End 2024-25 Performance Review

14. Adopt Resolution No. 2025-23, Approving a Fourth
Revision to the Financial Reserves Policy

15. Update on SDGE's 2026 Projected Rates

16. Approve Master Service Agreement with Ascend
Analytics for Energy Storage Optimization Services

17. Update on Smart Home Flex Project
14 Item No. 12
Community
Advisory
Committee
Quarterly Update
Recommendation:

Presenter:

David Harris, Community Advisory Committee Chair
Receive and File Community
Advisory Committee Quarterly
Update.
15 Community Advisory Committee Quarterly Report
• Solar Battery Savings Program Relaunch
• Revisions to existing Net Energy Metering tariff,
Net Billing Tariff, and Net Billing Tariff-Aggregation
• Pilot Projects
• San Diego Regional Energy Network
• 2024 Power Content Label and Power Source
Disclosure Update
September – November 2025
• City of Imperial Beach
• City of Encinitas
• City of National City
Vacancies
• Revisions to existing Renewable Energy Sefl-Generation Bill Credit Transfer Tariff • Battery Energy Storage Systems
• Regulatory and Legislative Affairs Quarterly
Update
• Smart Home Flex Project
• California Energy Commission Grant Agreement
EPC-25-015
16 Community Advisory Committee Quarterly Report
2025-26 Ad-Hoc Committees
2026 CAC Work Plan
Revise the annual, Board-approved work plan.
• Luis Montero-Adams (City of San Diego)
• Matthew Vasilakis (City of San Diego)
Community Power Plan Review
Evaluate the progress made toward the
implementation of the goals and actions
outlined in the 5-year Community Power Plan.
• David Harris (City of La Mesa)
• Ross Pike (Unincorporated San Diego
County)
• Alonso Gonzalez (City of Chula Vista)
• Lawrence Emerson (City of National City)
Distributed Energy Resources/Local Infill
Development Plan
Review procurement strategies, financing
issues, and economic incentives.
• David Harris (City of La Mesa)
• Anthony Sclafani (City of Chula Vista)
• Shaun Sumner (City of La Mesa)
17 Public Comment on
Item No. 12
18 Item No. 12
Board Members
Comments or
Questions
Community Advisory Committee
Quarterly Update
Recommendation:

Receive and File Community Advisory
Committee Quarterly Update
19 Item No. 13
Fiscal Year End 2024-
25 Performance
Review
Presenter:

Dr. Eric Washington, Chief Financial Officer/Treasurer
Recommendation:

Receive and File Fiscal Year End 2024-25
Performance Review
20 Fiscal Year End 2024-25 Performance Summary
Item Actuals Budget Difference ($)
Operating Revenue
Total Operating Revenues $1,243,031,946 $1,221,258,173 $21,773,773 Expenditures
Cost of Energy $1,101,545,238 $1,116,836,549 ($15,291,311) Non-Energy Expenses $53,668,137 $69,002,590 ($15,334,453) Subtotal Operating Expense $1,155,213,375 $1,185,839,139 ($30,625,764) Nonoperating Revenues
Investment Income $13,467,273 $0
Interest Expense $436,062 $1,276,000 ($839,938)
Nonoperating Revenues $13,031,211 ($1,276,000)
Net Position $100,849,782 $34,143,034 $66,706,748
21 Revenue Results
PowerBase:
• Budgeted for $2.6M or 15%
• Actuals at $0.3M or 1.3%
Uncollectibles:
• Budgeted for 1.75% of
Revenue $22M
• Actuals came in 1% or $12M
Demand:
• Actual Load higher than
expected
22 Operating Expense Savings
Energy Coast Savings: $15.3M
• Lower CPUC market price
benchmarks
• SDG&E VAMO savings
Non-Energy Cost Savings
$15.3M
• Professional services: $6.1 M
million
• Personnel: $2.9M
• General/Admin: $1.8M
• Marketing/Outreach: $1.0M
• Capital investment spend:
$3.5M
Non-Operating Income $13M
• Investment Earnings
• Interest expense savings
23 Historic Reserve Build
24 Investment History
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
08/01/2024 09/01/2024 10/01/2024 11/01/2024 12/01/2024 01/01/2025 02/01/2025 03/01/2025 04/01/2025 05/01/2025 06/01/2025 Investments
Principal Return
25 Public Comment on
Item No. 13
26 Item No. 13
Board Members
Comments or
Questions
Fiscal Year End 2024-25
Performance Review
Recommendation:

Receive and File Fiscal Year End 2024-25
Performance Review.
27 Item No. 14
Adopt Resolution No.
2025-23, Approving a
Fourth Revision to the
Financial Reserves Policy
Presenter:

Tim Manglicmot, Director of Finance
Jeb Spengler, Senior Strategic Finance Manager
Recommendation:

Adopt Resolution No. 2025-23, Approving a
Fourth Revision to the Financial Reserves
Policy.
28 Agenda

1. Reserve Background

2. Power Charge Indifference
Adjustment & Rates Deep Dive

3. New Reserves Policy Deep Dive
29 Reserve Background
Presenter: Timothy Manglicmot
30 Reserves
90-Days
Former Goal
180 Days
Community Power
Goal
SD Community Power
180 Days
AVA
180 Days
3CE
180 Days
PCE
180 Days
CPA
Days Cash on Hand Reserve Targets
180 Days
SJCE
180 Days
Desert Clean Energy
180 days cash on hand is the
investment-grade CCA and
municipal advisor generally
accepted best practice
31 Reserves
90-Days
Former Goal
180 Days
Community Power
Goal
SD Community Power
180 Days
AVA
180 Days
3CE
180 Days
PCE
180 Days
CPA
Days Cash on Hand Reserve Targets
180 Days
SJCE
180 Days
Desert Clean Energy
180 days cash on hand is the
investment-grade CCA and
municipal advisor generally
accepted best practice
Reserves
Is 180-days cash
on hand right for
SD Community
Power?
32 How We Approached the Question
Enterprise
Risk
Management
Bolstered risk management team
composed of representatives from the
Community Power’s senior leadership
and business units
Multi-Department
Risk Team
cQuant.io provides several price
simulation models that consume
internal data combined with the most
up-to-date market data available to
generate financial projections.
cQuant Energy
Risk Management
Used APPA risk framework to
proactively identify, assess, respond,
communicate, and monitor risks and
threats to Community Power.

APPA Risk Best
Practices
Hired expert risk consultant to
establish business-specific risk model
similar to Silicon Valley Clean Energy
and in alignment with American Public
Power Association best practices.

Risk Consultant
Onboarded
33 Multiprong Reserve Target Approach

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

3. Other (Cybersecurity, Force Majeure)
Bottom-Up Risk
Analysis

1. Peer CCA Policy Comparison
Peer Analysis 2. Peer CCA Financial Metric Comparison

1. Moody’s

2. S&P

3. Fitch
Credit Rating
Agency Criteria

1. APPA recommendations

2. CA public power

3. National public power
National Medians
Data
34 Risks to Community Power Stability

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

3. Other (Cybersecurity, Force Majeure)
Bottom-Up Risk Analysis
Category Risk Estimate of Adverse
Outcome
Market Price Benchmark Volatility* PCIA & Generation Rate “SNAPBACK” $420 million Energy Costs* Wholesale, Load and Open Position Volatility $245 million Load* Participation Rate Drops to 86% $51 million
Uncollectibles* Increase in uncollectibles to 5% $36 million Prepay Savings Loss Prepay savings loss to unforeseen event $12 million Operations Legal Loss $5 million
Operations Force Majeure or Cybersecurity Event $2 million Total $771 million
(Approx. 278 DCOH)
* Risk categories may fluctuate marginally due to changes in market conditions 35 Risks to Community Power Stability

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

3. Other (Cybersecurity, Force Majeure)
Bottom-Up Risk Analysis
Category Risk Estimate of Adverse
Outcome
Market Price Benchmark Volatility* PCIA & Generation Rate “SNAPBACK” (65% Coverage) $420 million $273 million Energy Costs* Wholesale, Load and Open Position Volatility $245 million Load* Participation Rate Drops to 86% $51 million
Uncollectibles* Increase in uncollectibles to 5% $36 million Prepay Savings Loss Prepay savings loss to unforeseen event $12 million Operations Legal Loss $5 million
Operations Force Majeure or Cybersecurity Event $2 million Total $624 million
(Approx. 225 DCOH)
* Risk categories may fluctuate marginally due to changes in market conditions Target reserves
$624 million or 225-days
cash on hand
38 PCIA/Rates Deep Dive
Presenter: Timothy Manglicmot
39 PCIA Deep Dive
400
800
1,200
1,600

M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J 2017 2018 2019 2020 2021
Prior to Community Power,
SDG&E contracted long-term energy.
* Illustrative example of SDG&E’s contracted long-term energy 40 PCIA Deep Dive
400
800
1,200
1,600

M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J 2017 2018 2019 2020 2021
PCIA is designed to
make investor-owned
utilities whole for the
long-term energy they
contracted for.
* Illustrative example of SDG&E’s contracted long-term energy 41 PCIA Deep Dive – Example
2024 2025 2026
Forecast
(Energy Resource Recovery Account)
True-Up
(Portfolio Allocation Balancing Account)
PCIA
42 PCIA Deep Dive – Renewables Example
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E PCC1
renewable
cost for 2026.
* Illustrative example of calculating PCIA
43 PCIA Deep Dive – Renewables Example
2024 2025 2026
CPUC PCC1
projected
renewable
cost for 2026.

SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
* Illustrative example of calculating PCIA
44 PCIA Deep Dive – Renewables Example
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
PCIA pays
back SDG&E
$7.55/MWh
* Illustrative example of calculating PCIA
45 PCIA Deep Dive – Renewables Example
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
Forecast
(Energy Resource Recovery Account)
* Illustrative example of calculating PCIA
46 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E PCC1 renewable
cost for 2025.

SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
* Illustrative example of calculating PCIA
47 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
CPUC PCC1 projected
renewable cost for 2025.
* Illustrative example of calculating PCIA
48 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E can make $1.24/MWh
in the open market and owes
customers through PCIA rates
effective 1/1/25.
* Illustrative example of calculating PCIA
49 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
But remember this was a
‘forecasted’ 2025 price by
the CPUC.
* Illustrative example of calculating PCIA
50 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Actual MPB: $63.86/MWh
$71.24 – $63.86= $7.38/MWh
The actual price
for 2025 was
$63.86
* Illustrative example of calculating PCIA
51 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Actual MPB: $63.86/MWh
$71.24 – $63.86= $7.38/MWh
SDG&E needs
to be made
whole for 2025.
* Illustrative example of calculating PCIA
52 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Actual MPB: $63.86/MWh
$71.24 – $63.86= $7.38/MWh
SDG&E is paid
through PCIA
rates effective
1/1/26.
$71.24 – $63.86= $7.38/MWh
* Illustrative example of calculating PCIA
53 * Illustrative example of calculating PCIA
PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Actual MPB: $63.86/MWh
$71.24 – $63.86= $7.38/MWh
$71.24 – $63.86= $7.38/MWh True-Up
(Energy Resource Recovery Account)
54 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Actual MPB: $63.86/MWh
$71.24 – $63.86= $7.38/MWh
$71.24 – $63.86= $7.38/MWh
PABA true-up
$70.00 - $62.45 = $7.55/MWh
ERRA forecast
* Illustrative example of calculating PCIA
55 * Illustrative example of calculating PCIA
PCIA Deep Dive – Example
2024 2025 2026
Forecast
(Energy Resource Recovery Account)
True-Up
(Portfolio Allocation Balancing Account)
PCIA
56 Historical Generation Rates
SDCP Gen Rate

0.1667 $/kWh
PCIA (0.0136)
$/kWh
3% SDCP Discount
SDG&E Rate

0.1578 $/kWh
2025 Current
Effective
2021 20232022 2024 SDCP Gen Rate 0.1543 $/kWh
PCIA 0.0073
$/kWh

3.4% SDCP Premium
SDG&E Rate

0.1499 $/kWh
SDCP Gen Rate

0.1702 $/kWh
PCIA 0.0169
$/kWh
3% SDCP Discount
SDG&E Rate

0.1947 $/kWh
SDCP Gen Rate

0.1113 $/kWh
PCIA 0.0281
$/kWh
2% SDCP Discount
SDG&E Rate

0.1422 $/kWh
SDCP Gen Rate

0.0725 $/kWh
PCIA 0.0351
$/kWh

1.2% SDCP Discount
SDG&E Rate

0.1089 $/kWh
SDCP Costs0.1050 $/kWh Reserve Contribution
SDCP Costs0.1235 $/kWh Reserve Contribution
SDCP Costs0.1532 $/kWh Reserve Contribution
SDCP Costs0.1472 $/kWh Reserve Contribution
SDCP Costs0.0982 $/kWh Reserve Loss
* Illustrative example of generation rates using TOU-DR1 and PCIA using Vintage 2021 residential 57 $-
$20.00
$40.00
$60.00
$80.00
2021 2022 2023 2024 2025 2026
Projected
$-
$20.00
$40.00
$60.00
$80.00
$100.00
2021 2022 2023 2024 2025 2026
Projected
$-
$5.00
$10.00
$15.00
2021 2022 2023 2024 2025 2026
Projected
PCIA Deep Dive
Renewables

RPS CPUC MPB
Resource adequacy
RA Flex CPUC MPB (2021-2024)
Base load energy
Index on-peak

CPUC MPB
Historically, CPUC
market price
benchmarks for
energy have been
very volatile,
leading to big PCIA
fluctuations.
58 PCIA Deep Dive
Currently, CPUC
MPB prices are
very high
compared to prior
years.
$-
$20.00
$40.00
$60.00
$80.00
2021 2022 2023 2024 2025 2026
Projected
$-
$20.00
$40.00
$60.00
$80.00
$100.00
2021 2022 2023 2024 2025 2026
Projected
$-
$5.00
$10.00
$15.00
2021 2022 2023 2024 2025 2026
Projected
Renewables

RPS CPUC MPB
Resource adequacy
RA Flex CPUC MPB (2021-2024)
Base load energy
Index on-peak

CPUC MPB
59 PCIA Deep Dive
What happens if
energy prices drop
to 2021 levels?
$-
$20.00
$40.00
$60.00
$80.00
2021 2022 2023 2024 2025 2026
Projected
$-
$20.00
$40.00
$60.00
$80.00
$100.00
2021 2022 2023 2024 2025 2026
Projected
$-
$5.00
$10.00
$15.00
2021 2022 2023 2024 2025 2026
Projected
Renewables

RPS CPUC MPB
Resource adequacy
RA Flex CPUC MPB (2021-2024)
Base load energy
Index on-peak

CPUC MPB
60 Quantifying the Risks – Stress Test 1
Stress Test Scenario 1

1. Energy prices drop to 2021 market price
benchmark levels.

Risk
Register
Risk
Assessment
Risk
Mitigation
Stress
Test
61 $.0M
$100.0M
$200.0M
$300.0M
$400.0M
$500.0M
$600.0M
$700.0M
$800.0M
3/1/2021
6/1/20219/1/2021
12/1/2021
3/1/2022
6/1/20229/1/2022
12/1/2022
3/1/2023
6/1/20239/1/2023
12/1/2023
3/1/2024
6/1/20249/1/2024
12/1/2024
3/1/2025
6/1/20259/1/2025
12/1/2025
3/1/2026
6/1/20269/1/2026
12/1/2026
3/1/2027
6/1/20279/1/2027
12/1/2027
Base Case (Reserves)
Stress Test (Reserves)
Stress Test – 2021 Market Price Benchmarks
Reserves drop to $331 million or
120-DCOH due to PCIA true up and
low SDG&E rates from low market
prices.
62 Quantifying the Risks – Stress Test 2
Stress Test Scenario 2

1. Energy prices drop for renewables and
resource adequacy similar to PG&E CCAs. -Higher PCIA and lower gen rate

2. Negative Community Power sentiment
leads to customer opt outs -Customer participation rate drops

3. A disaster creates an inability for
customers to pay energy bills -Uncollectibles increase to 5% Risk
Register
Risk
Assessment
Risk
Mitigation
Stress
Test
63 Stress Test – PG&E PCIA/Rates, Uncollectibles, Participation $.0M
$100.0M
$200.0M
$300.0M
$400.0M
$500.0M
$600.0M
$700.0M
$800.0M
3/1/2021
6/1/20219/1/2021
12/1/2021
3/1/2022
6/1/20229/1/2022
12/1/2022
3/1/2023
6/1/20239/1/2023
12/1/2023
3/1/2024
6/1/20249/1/2024
12/1/2024
3/1/2025
6/1/20259/1/2025
12/1/2025
3/1/2026
6/1/20269/1/2026
12/1/2026
3/1/2027
6/1/20279/1/2027
12/1/2027
Base Case (Reserves)
Stress Test (Reserves)
Reserves drop to $238 million or
99-DCOH with: PG&E PCIA, increase
in uncollectibles and decrease in
participation.
64 PCIA Deep Dive – Renewables Example
Mitigation Strategies
Regulatory/Legislative
 CPUC knows volatility is an issue,
changed Resource Adequacy
methodology to a rolling average
 PCIA Track 2 Proceeding
Reserves
 Set a reserve target that accounts
for fluctuations in PCIA and rates
 Rate development policy goal to
reduce customer price volatility when
possible
$-
$20.00
$40.00
$60.00
$80.00
2021 2022 2023 2024 2025 2026
Projected
$-
$20.00
$40.00
$60.00
$80.00
$100.00
2021 2022 2023 2024 2025 2026
Projected
$-
$5.00
$10.00
$15.00
2021 2022 2023 2024 2025 2026
Projected
Renewables

RPS CPUC MPB
Resource adequacy
RA Flex CPUC MPB (2021-2024)
Base load energy
Index on-peak

CPUC MPB
65 Establishing Risk-Based
Reserve Target &
Thresholds
Presenter: Jeb Spengler
66 Reserve Policy Strategy
Target DCOH Current Proposed
Minimum N/A 180
Target 180 225
Maximum
(Upper Target)
N/A 270
Determining appropriate reserve levels involves assessing minimum requirements, recommended ranges, and upper thresholds:
o Minimum reserves protect against short-term liquidity risks and ensure operational continuity.
 Ability to meet essential obligations and maintain short-term financial stability  Aligns with industry standards; supports a strong credit profile
o Target Reserves are based on factors such as operating expenses, risk exposure, peer comparisons and necessary credit metrics.
 Covers normal cyclical fluctuations to market price
benchmark volatility resulting from fluctuations to PCIA and SDG&E rates.
o Maximum reserves (upper thresholds) prevent excessive accumulation of reserves.
 Provides sufficient reserves for significant fluctuations in market volatility and/or unforeseen circumstances
67 Market Volatility = Moving Targets
Storage
Weather
Financial
Storage
Weather
Weather/
Storage
Weather
Pandemic
2 years 3 years 2 years 2 years 4 years 8 years 2 years Low price periods
historically persist
from anywhere
between 2-4 years.
68 Forecasted Financial Reserves – Base Case as of Sept. 30, 2025 • *Projections as of Sept. 30, 2025
$M
$100M
$200M
$300M
$400M
$500M
$600M
$700M
$800M
3/1/2021
6/1/20219/1/2021
12/1/2021
3/1/2022
6/1/20229/1/2022
12/1/2022
3/1/2023
6/1/20239/1/2023
12/1/2023
3/1/2024
6/1/20249/1/2024
12/1/2024
3/1/2025
6/1/20259/1/2025
12/1/2025
3/1/2026
6/1/20269/1/2026
12/1/2026
3/1/2027
6/1/2027
Base Case 180 DCOH 225 DCOH 270 DCOH
180 DCOH
225 DCOH
270 DCOH
Financial Reserves Projections* – Base Case
Actuals Projections
Total Unrestricted Cash &
Investments $363 million (115 days)
Net Position $476 million (170 days)
Total Unrestricted Cash &
Investments $583 million
Days Cash on Hand 213
Community Power’s Audited FYE 2025 Reserves
Projected* 2025-2026 FYE Reserves
Base Case projections* show target of 225 Day Cash On Hand is reached in FY 2026 -2027 69 $M
$100M
$200M
$300M
$400M
$500M
$600M
$700M
$800M
3/1/2021
6/1/20219/1/2021
12/1/2021
3/1/2022
6/1/20229/1/2022
12/1/2022
3/1/2023
6/1/20239/1/2023
12/1/2023
3/1/2024
6/1/20249/1/2024
12/1/2024
3/1/2025
6/1/20259/1/2025
12/1/2025
3/1/2026
6/1/20269/1/2026
12/1/2026
3/1/2027
6/1/2027
Stress Test (Reserves) 180 DCOH 225 DCOH 270 DCOH
180 DCOH
225 DCOH
270 DCOH
Forecasted Financial Reserves – Moderate Stress Scenario Moderate Stress Case Assumptions:
o 2021 Market Price Benchmarks
• Low Reserves Balance:
o Occurs Q1 2027
o Use of Reserves = $232 million
o Low balance = $331 million (120 DCOH)
• Projected Reserves (Stress Scenario)
o 2025-2026 FYE = $583 million
o 2026-2027 FYE = $391 million
• Stress scenario projections show recovery to 180
DCOH minimum threshold by October 2027.

Financial Reserves Projections – Trough Scenario
Actuals Projections
70 Multiprong Reserve Target Approach

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

3. Other (Cybersecurity, Force Majeure)
Bottom-Up Risk
Analysis

1. Peer CCA Policy Comparison
Peer Analysis 2. Peer CCA Financial Metric Comparison

1. Moody’s

2. S&P

3. Fitch
Credit Rating
Agency Criteria

1. APPA recommendations

2. CA public power

3. National public power
National Medians
Data
Validation
71 Validating Reserve Target – Peer Analysis

1. Peer CCA Policy Comparison

2. Peer CCA Financial Metric Comparison Peer Analysis Policy Comparison 72 Validating Reserve Target – Peer Analysis
• Source: 2024 CCA audit data for SCP, SVCE, PCEA, AVA, Pioneer, SJCE, CPSF, 3CE, CEA; • 2025 CCA audit data for SDCP, MCE and CPA

1. Peer CCA Policy Comparison

2. Peer CCA Financial Metric Comparison Peer Analysis Metric Comparison Comparison of audited fiscal year end data for
California CCAs.

Days Cash on Hand calculation compares:

San Diego Community Power 2025 Audit:
363,834,172 x 365 = 115 DCOH 1,155,213,375
Unrestricted Cash & Investments
x 365 = DCOH Total Operating Expenses
441
392
308
222 218 195 187 174 149
115
0 50
100
150
200
250
300
350
400
450
500
Days Cash on Hand
73 Validating Reserve Goal – Credit Rating Agency Criteria

1. Moody’s

2. S&P

3. Fitch
Credit Rating Agency Criteria Moody’s
• Moody’s uses Municipal Joint Action Agency Criteria to assess CCAs • The strongest rating assessment (AAA) suggests cash >250 days • Liquidity is 10% of Moody’s overall assessment
74 Validating Reserve Goal – Credit Rating Agency Criteria

1. Moody’s

2. S&P

3. Fitch
Credit Rating Agency Criteria S&P
• S&P uses U.S. Municipal Retail Electric Criteria to assess CCAs • A “Very Strong” Liquidity Assessment assumes a minimum of 150 days • The highest assessment “Extremely Strong” assumes >270 days 75 Validating Reserve Goal – Credit Rating Agency Criteria

1. Moody’s

2. S&P

3. Fitch
Credit Rating Agency Criteria Fitch
• Fitch uses Local Government Revenue Criteria to assess CCAs • Fitch’s liquidity cushion metric assumes greater than 90 days cash is neutral to the overall rating
• Liquidity of less than 90 days is considered “weak” and assumes additional risk 76 Validating Reserve Target – National Medians Data

1. APPA recommendations

2. California public power

3. National public power
National Medians Data
Retail Public Power Credit Rating Median Days Cash on Hand AA 296
AA- 208
A+ 165
A 143
A- 118
BBB 74
Source: Fitch Ratings – U.S. Public Power – Peer Credit Analysis (July 7, 2025) National Medians
• Public Power medians data is less relevant due to the different nature of risks that public power utilities use reserves for.
77 Updated Reserve Policy
78 Policy Language Revisions
Update language and definitions to better define Reserves as liquidity available for emergency purposes. • Policy Guideline Proposed Revisions:
o Minimum: 180-Days Cash on Hand
o Recommended Target: 225-Days Cash on Hand
o Maximum: 270-Days Cash on Hand
• “Reserves” definition:
o Current: Net position
o Proposed: Unrestricted cash, cash equivalents, and investments unencumbered by legal agreements and not earmarked for specific purposes
79 Policy Language Revisions
Updated Purpose and Intent of Reserves Balance Thresholds Reserves below the Minimum Reserve Balance:
o The Board should ensure that Reserves do not drop below the Minimum Reserve Balance unless determined by the Board to be necessary to address a Reserve Event.

Reserve above the Maximum Reserve Balance:
o The Board may evaluate opportunities for strategic investments, programmatic reserves, or other purposes as authorized by the Board.

Reserve Between Target and Maximum:
o The Board may authorize the use of Reserves between the Target Reserve Balance and Maximum Reserve Balance to be designated as Rate Stabilization Reserves*. Rate Stabilization Reserves allows Community Power to defer revenues in years of strong financial results for use in future years when financial results are weaker or stressed.

The Board shall determine the contribution to Reserves at least annually, with the goal of maintaining balances between the Target Reserve Balance and Maximum Reserve Balance.
*Rate Stabilization Policy to be introduced Q1 2026
80 Public Comment on
Item No. 14
81 Item No. 14
Board Members
Comments or
Questions
Adopt Resolution No. 2025-
23, Approving a Fourth
Revision to the Financial
Reserves Policy
Recommendation:

Adopt Resolution No. 2025-23, Approving a
Fourth Revision to the Financial Reserves
Policy.
82 Item No. 15
Update on SDG&E's
2026 Projected Rates
Presenter:

Aaron Lu, Rates and Strategy Manager
Recommendation:

Receive and File SDG&E’s 2026 Projected
Rates Update.
83 Rate Development Timeline
Board adopted
2025 rates,
effective
retroactively on
February 1,
2025.

February 7,
2025
SDG&E filed the
Application for
Approval of the
2026 Energy
Resources
Recovery Account
(ERRA) Forecast.

May 15, 2025
Commission
adopted
SDG&E’s
General Rate
Case (GRC)
Phase 2.

September 18,
2025
SDG&E filed
Update to the
2026 ERRA
Forecast.

October 14,
2025
SDG&E filed its
advice letter for
Preliminary
Consolidated
Filing to
Implement
January 1, 2026
Electric Rates.

November 17,
2025
Staff brief
committees and
the Board on 2026
rate projections
and schedule.

December 2025
SDG&E is
expected to file
its advice letter
for Final
Consolidated
Filing to
Implement
January 1, 2026
Electric Rates.

December 31,
2025
SDG&E’s
implements 2026
generation,
delivery, and the
Power Charge
Indifference
Adjustment (PCIA)
rates.

January 1, 2026
Community
Power Board
adopts 2026
rates, effective
retroactively on
January 1, 2026.

January 15,
2026
SDG&E is
expected to file an
advice letter on its
GRC Phase 2 rate
design changes.

March 1, 2026
Community
Power Board
adopts GRC
Phase 2 rate
design changes,
effective on April
1, 2026.

March 2026
SDG&E and
Community Power
implement GRC
Phase 2 rate
design changes.

April 1, 2026
84 Rate Development
Policy Objectives Competitiveness
Stability
EquitySimplicity
Reserves
Cost
Recovery
Cost of
Service
Avoid Cost-Shifting
Transparency
85 Community Power Rate Components
• Generation: Community Power charges for purchasing or generating electricity. • SDG&E Delivery: SDG&E charges for the delivery of electricity to the home or business. • Power Charge Indifference Adjustment (PCIA): above-market costs related to power supply commitments that the utilities made many years ago.
• Franchise fees: a surcharge applied to electricity transported over SDG&E systems that are constructed in public streets and highways.

Illustration of current effective rates as of 6/1/2025. 86 Rate Trifurcation: Equality vs. Equity
• Equality means an individual or a group of
people is given the same resources or
opportunities.
• Equity recognizes that each person has different
circumstances and allocates the exact resources
and opportunities needed to reach an equal
outcome.
• This trifurcation of Community Power rates by
vintage will maintain a fair, equitable, and
balanced rate structure.
87 Rate Trifurcation
• Community Power's Phase 1 and 2
customers (vintage 2020), Phase 3
customers (vintage 2021), and Phase 4
customers (vintage 2022) are all charged a
different PCIA by SDG&E because they are
assigned different vintage years.
• Due to the substantial deltas expected
between PCIA vintages 2020, 2021, and
2022, staff will continue to recommend
trifurcation of three sets of rates to the
Board to ensure customer equity.

Illustrative Trifurcation Example
Competitive Factor (Discount) 5% 5% 5%
Rates ($/kWh) Vintage 2020 Vintage 2021 Vintage 2022
SDG&E Commodity Rate 0.1800 0.1800 0.1800
PCIA 0.0100 0.0280 0.0540
Franchise Fees (FF) 0.0020 0.0020 0.0020
Resulting Illustrative Community Power Rate 0.1590 0.1410 0.1150 Community Power Rate + PCIA + FF 0.1710 0.1710 0.1710
88 2026 SDG&E Bundled Generation Rate Outlook
• SDG&E’s system avg. commodity rates are projected to increase by ~12%. • SDG&E attributes the increase in commodity rates to decreased credits and revenues from lower market values, as well as a lower sales forecast.

SDG&E Avg. Commodity Rate ($/kWh) SDG&E Avg. Commodity Rate Change (%) Customer Class 10/1/2025
(Current Effective)
1/1/2026
(Oct. ERRA Update)
1/1/2026
(Nov. Prelim)
10/1/2025 - 1/1/2026
(Oct. ERRA Update)
10/1/2025 - 1/1/2026
(Nov. Prelim)
Residential 0.15777 0.18929 0.17168 19.98% 8.82%
Small Commercial 0.13478 0.16134 0.15071 19.71% 11.82%
M/L C&I 0.16156 0.19444 0.19096 20.35% 18.20%
Agricultural 0.11424 0.13634 0.12773 19.35% 11.81%
Lighting 0.10341 0.12408 0.11745 19.99% 13.58%
System Total 0.15515 0.18453 0.17394 18.94% 12.11%
89 2026 PCIA Rate Outlook
• SDG&E’s PCIA rates are projected to increase by approximately 4 cents per kWh. 2021 Vintage PCIA ($/kWh) PCIA Change (%)
Customer Class 10/1/2025
(Current Effective)
1/1/2026
(Oct. ERRA Update)
1/1/2026
(Nov. Prelim)
10/1/2025 - 1/1/2026
(Oct. ERRA Update)
10/1/2025 - 1/1/2026
(Nov. Prelim)
Residential (0.01364) 0.03563 0.03636 361.22% 366.57%
Small Commercial (0.01178) 0.02958 0.02895 351.10% 345.76% M/L C&I (0.01769) 0.03384 0.03379 291.29% 291.01%
Agricultural (0.01216) 0.03340 0.03388 374.67% 378.62%
Lighting (0.01109) 0.02838 0.02755 355.91% 348.42%
90 2026 SDG&E Delivery Rate Outlook
• SDG&E’s system avg. delivery rates are projected to increase by ~8%. • SDG&E's delivery rates will change further because certain proposals have yet to be included (i.e., wildfire mitigation costs).

SDG&E Avg. Delivery Rate ($/kWh) SDG&E Avg. Delivery Rate Change (%) Customer Class 10/1/2025
(Current Effective)
1/1/2026
(Oct. ERRA Update)
1/1/2026
(Nov. Prelim)
10/1/2025 - 1/1/2026
(Oct. ERRA Update)
10/1/2025 - 1/1/2026
(Nov. Prelim)
Residential 0.21483

0.23583 0.25192 9.78%17.26%
Small Commercial 0.23628

0.25100 0.23315 6.23%-1.32%
M/L C&I 0.17517

0.18238 0.18445 4.12%5.30%
Agricultural 0.14770

0.15405 0.13595 4.30%-7.96%
Lighting 0.25186

0.26450 0.22485 5.02%-10.72%
System Total 0.19602

0.20851 0.21169 6.37%7.99%
91 SDG&E General Rate Case (GRC) Phase 2
• SDG&E filed its 2024 GRC Phase 2 Application on January 17, 2023, and the Commission adopted a decision on September 18, 2025.
o SDG&E is required to present the PCIA as a separate line item on bundled customers’ bills to ensure consistent comparison between bundled and CCA customers, expected in Q2 2026.
o The Commission granted approval of proposals for revenue allocation to customer classes and rate design changes, including three notable changes that Community Power will mirror.

Seasonality Adjustment for
Residential Tiered Rates
• Moves the seasonal (winter / summer)
adjustment from the delivery rate
component to the commodity /
generation rate component.
• Reduces seasonal volatility in
commodity rates.
• Effective January 1, 2026.

Time-of-Use (TOU) Super Off-Peak Extension
• Extends existing weekday mid-day
Super Off-Peak (10 a.m. - 2 p.m.),
currently applied to March and April, to
the full year.
• Reduces mid-day prices to encourage
load-shifting to the mid-day period.
• Effective April 1, 2026.

New Medium Commercial
Customer Class
• Creates a new Medium Commercial
customer class for customers with
demand between 20-200 kW.
• Reclassifies several schedules as
Medium Commercial.
• Effective April 1, 2026.
92 Next Steps
• Staff continues to monitor updates from SDG&E and CPUC. • SDG&E commodity rates and PCIA rates, that will go into effect on January 1, 2026, will not be finalized until December 31, 2025.
• Staff will recommend to the Board to adopt a rate change on January 15, 2026. • Due to variation in PCIA for vintage years, staff will continue to recommend trifurcated rates. • After SDG&E files its March 1, 2026 rate changes relating to GRC Phase 2 implementation, staff will recommend to the Board to adopt appropriate rate design updates to be effective on April 1, 2026 to align rates with SDG&E to improve the overall customer experience. 93 Public Comment on
Item No. 15
94 Item No. 15
Board Members
Comments or
Questions
Update on SDG&E's 2026
Projected Rates
Recommendation:

Receive and File SDG&E’s 2026 Projected
Rates Update.
95 Item No. 16
Approval of a Master
Service Agreement
with Ascend Analytics
for Energy Storage
Optimization Services
Presenter:

Jennine Camara, Director of Portfolio Manager
Recommendation:

Approve and authorize the Chief Executive Officer
(CEO) to execute a Master Service Agreement (MSA)
with Ascend Analytics for Energy Storage Optimization
Services for an initial three-year term, with one-year
automatic renewals; and authorize the CEO to execute
work orders for energy storage resources, for a not-to-exceed amount of $2,500,000 over the initial term of the MSA and for a not-to-exceed amount of
$2,000,000 for each auto renewal term.
96 Background
• Daily optimization of Community Power’s Battery Energy Storage System (“BESS”) projects is needed for participation in the California Independent System Operator (“CAISO”) markets.
• Community Power’s online and planned BESS projects are stand-alone battery resources, or are batteries paired with a renewable generation source.
• Energy storage optimization services have been provided to Community Power to date under the Scheduling Coordinator Services agreement, that agreement will terminate April 1, 2026.
• As part of a competitive bidding process, staff evaluated energy storage optimization proposals.
97 Energy storage optimization adds value
Energy storage optimization:
• Captures market revenues by charging battery energy storage systems when prices are low, and discharging battery storage when prices and energy demand are high
• Must account for each project’s unique configuration to ensure that day-to-day operations consider limitations set forth in the underlying energy storage services, or power purchase agreement • Ensures each project meets resource-adequacy requirements in the day ahead and real time energy markets • Updates energy storage bids automatically, on a 24x7 basis, based on the battery’s state of charge and when real-time market conditions call for • Mitigates risk associated with oversupply and reduces renewable energy curtailments on the electric grid Energy storage optimization supports the Power Services strategic plan goal to:
• Prudently manage the power portfolio to minimize risk and customer costs 98 Competitive process provides an experienced partner
• Following a competitive request for proposal process, Community Power staff recommends the approval of a three-year agreement with Ascend Analytics’ SmartBidder for energy storage optimization services • SmartBidder allows Power Services staff to manage resource-specific bidding strategies and override energy resource bids when market and grid conditions call for
• The service includes price forecasts that will integrate with internal systems, and with Community Power’s scheduling-agent’s scheduling systems
• Ascend Analytics has been operating in California providing portfolio management and optimization services since 2003, they supports a diverse mix of clients, including CCAs, investor-owned utilities, developers, and independent power producers
• SmartBidder is currently contracted for Bid Optimization support to over 5.1 GW of energy storage assets connected to the electric grid
99 Impact
• Daily optimization of Community Power’s Battery Energy Storage System (“BESS”) projects is an operating expense of the power supply portfolio, and total cost will be determined by the number of projects that reach commercial operations • The total cost of energy storage optimization services provided under this agreement will not-exceed $2,500,000 over the initial three-year term
• Ongoing costs associated with energy storage optimization services will be between $1,500,000 - $2,000,000
annually
• Project optimization charges will begin during the New Resource Implementation process, approximately three
months prior to each battery energy storage project’s
commercial operations date
• Cost associated with the agreement are included in the approved Fiscal Year 2025-2026 operating budget
100
Public Comment on
Item No. 16
101
Item No. 16
Board Members
Comments or
Questions
Approval of a Master Service
Agreement with Ascend
Analytics for Energy Storage
Optimization Services
Recommendation:

Receive and File Update on the Smart
Home Flex Pilot Project.

Presenter:

Nelson Lomeli, Senior Program Manager
103
Load Flexibility
• Critical element of California’s clean energy goals
• Allows increased use of renewable energy
• Supports grid reliability during extreme climate-induced events • Can help lower costs for everyone
• Can reduce Resource Adequacy obligations
104
Community Power’s Flex Load
Strategy
• Increases affordability
• Supports development of programs that reduce
high-cost, on-peak energy
• Lowers resource adequacy and energy
procurement costs for all customers
• Control assets incentivized through programs with
single platform
105
SDCP VPP Goal by 2035
1 GW
local renewable & clean energy capacity
150 MW
Non-VPP Local Capacity
100 MW
battery storage
(SBS)
50 MW
VPP
Resources
106
SDCP VPP Goal by 2035
*Currently in pilot – EV Flex Connect
** Illustrative
50 MW
VPP Resources

SMART HOME FLEX
Smart
Thermostats
Heat Pump
Water
Heaters
EV Charging* Pool Pumps** Behavioral** Commercial**
107
Jan – Mar 2024
Flex Load Strategy
Presented to Board
July – Sept 2024
Virtual Peaker Selected
as DERMS Provider
Jan - Mar 2025
Smart Home Flex
(BYOD) Pilot Launches
June – Oct 2025
Smart Flex
Events Called for
Thermostats
Apr – June 2024
RFP for DERMS
Released
Oct – Dec 2024
Bring Your Own Device
(BYOD) Pilot Design
and Development
Apr – June 2025
Develop dispatch
strategy and prepare for
events
Nov 2025 – March
2026
Conduct impact
evaluation
Development of Smart Home Flex
April – June 2026
Scale Smart Home
Flex & Seek Funding
for Relaunch
108
Goals
Smart Home Flex Pilot
Support development of Community
Power’s 150 MW VPP
Test out capability of the DERMS platform
Gather data and lessons learned
Validate the value stream
*based on preliminary estimates from other similar IOU thermostat programs. Not validated. 109
Smart Home Flex Pilot
Smart Thermostats Heat Pump Water Heaters
• Reduce use during Smart Flex Events (high
peak periods)
• $50 per device enrollment incentive
• $25 per device participation incentive
• Limited to 2,000 thermostats
• Existing Google Nest and ecobee
thermostats
• Shift daily water heating to off-peak times
• $50 per water heater enrollment incentive
• $5 per month participation incentive paid
twice a year
• Targeting ~100 heat pump water heaters
• Limited to new installs through TECH Clean
California statewide initiative
110
Smart Thermostats
Results
1,943 smart thermostats enrolled
6 events called in summer 2025
(mild summer)
90%+ participation rate for events
< 1 MW* under control
*based on preliminary estimates from other similar IOU thermostat programs. Not validated.

For illustrative purposes only
111
Water Heaters
Results
Default Water Heater Rewards program for
TECH incentivized water heaters
3 Rheem Wi-Fi connected water heaters
enrolled and reporting
Expanding enrollment with universal control
modules purchase
112
Next Steps
Send out participation incentives
Evaluate Smart Home Flex Pilot
Modify pilot as need to scale Smart Home Flex
Seek Board approval for program budget
Relaunch Smart Home Flex in mid-2026
Assess additional VPP technologies & strategies
113
Public Comment on
Item No. 17
114
Item No. 17
Board Members
Comments or
Questions
Update on Smart Home Flex
Project
Recommendation:

Receive and File Update on the Smart
Home Flex Pilot Project.
115
Chief Executive Officer Report
116
Year in Review
• Local Development – 11 new distributed energy resource projects • Customer Savings – $12 million annual savings through prepay bonds • Financial Strength – On track to reach 180 days cash on hand and $13 million investment income • Customer Programs – Relaunched Solar Battery Savings and launched new pilot programs • San Diego Regional Energy Network – SDREN launching countywide in 2026 • Policy and Advocacy – Advocated for energy efficiency programs and grid reliability • Technology – Launched internal Enterprise Data Platform and improved cybersecurity • Community Outreach – Attended 200+ community events and launched new website • People Operations – Maintained one of the highest retention rates in the industry 117
118
Board Member Announcements
119
Adjournment
120
Next Regular Community
Power Board Meeting
January 15, 2026
[email protected]

San Diego Community Power Board of DirectorsDecember 11, 2025

San Diego Community Power Board of Directors
December 11, 2025