2 Finance and Risk
Management Committee
Regular Meeting
February 19, 2026
3 Welcome and Call to Order
4 Roll Call
55 6
Land Acknowledgement
7 Items to be Withdrawn or
Reordered on the Agenda
8 Public Comment on non-Agenda Items
9 Consent
Calendar
1. Approve December 4, 2025 Meeting Minutes
2. Recommend Appointment of Jeb Spengler as
San Diego Community Power’s Interim
Treasurer
10 Public Comment on Consent Calendar
11 Regular
Agenda
3. Treasurer’s Report for Period Ending November 30,
2025
4. Resolution, Authorizing Execution of an Energy
Prepayment Transaction, Related Documents, and
‘Form of’ Documents Subject to Maximum Issuance
Amount, Limitation on Fees, and Minimum Required
Savings
5. Amendment of the FY 2025-26 Operating Budget,
the FY 2025-26 Capital Budget, and the FY 2026-30
Capital Investment Plan
12 Item No. 3
Treasurer’s Report for
Period Ending
November 30, 2025
Recommendation:
Receive and File Treasurer’s Report for Period
Ending November 30, 2025
Presenter:
Jeb Spengler, Senior Strategic Finance Manager
13 Results for the 5-month period ending
November 30, 2025:
• Operating Revenues = 1.1% below
budget
• Operating Expenses = 10% below budget
Year-to-Date Totals for FY26:
• $682.0M in net operating revenues
• $511.5M in total expenses (including
energy costs of $477.3M)
• $170.4M change in YTD net position
Financial Statement Highlights
Summary of Actual Results vs. Adopted Budget
YTD FY26 as of
11/30/25 (5 months) FY26 YTD Budget Budget Variance ($) Budget (%) Net Operating Revenues $ 681,920,417 $ 689,291,000 $ (7,370,583) 98.9% Total Expenses $ 511,518,932 $ 569,781,000 $ (58,262,068) 90% Change in Net Position $ 170,401,486 $ 119,510,000 $ 50,891,486 Budget Comparison
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY26 Results v. Budget
YTD FY26 as of 11/30/25 (5 months) FY26 YTD Budget
14 FY Budget Net Position to Operating Income
-$10M
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
07/01/2508/01/2509/01/2510/01/2511/01/25
7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025
Operating
Income $42.8M $33.8M $27.6M $62.4M $17.1M
Budget Net
Position $40.9M $32.9M $21.3M $46.8M -$0.1M
Operating Income Budget Net Position
15 Reserves
16 Reserves and Total Liquidity
• Reserves are defined as unrestricted cash, cash equivalents, and investments unencumbered by legal agreements and not earmarked for specific purposes.
Unrestricted Cash,
460,442,268 , 82%
Investments (Current),
3,699,028 , 1%
Investments
(Non-Current),
98,357,348 ,
17%
RESERVES
$ 562,498,644 $ 227,500,000
0M 500M 1000M
11/30/2025
LIQUIDITY
Total Cash & Investments Letter of Credit Available
17 FY26 Year-To-Date Investment Income
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
7/1/2025 8/1/2025 9/1/2025 10/1/2025 11/1/2025
7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025
Accumulated Investment Income 742,685 2,467,988 3,551,532 4,842,114 6,521,057 Monthly Investment Income 742,685 1,725,303 1,826,229 3,015,885 3,505,172
INVESTMENT INCOME
Accumulated Investment Income
Monthly Investment Income
18 Quarterly Clean Energy Prepayment Bond Program Savings Q1 2025 Q2 2025 Q3 2025 Q4 2025
2025D Rebate
2024F Rebate 451,563
2025D 290,970 892,712
2024F 789,845 1,231,065 1,231,622 1,218,793
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Savings
Prepay Bond Program Savings
19 Participation by Jurisdiction
20 Public Comment on
Item No. 3
21 Item No. 3
Committee Members
Comments or
Questions
Treasurer’s Report for
Period Ending
November 30, 2025
Recommendation:
Receive and File Treasurer’s Report for
Period Ending November 30, 2025.
22 Item No. 4
Resolution, Authorizing
Execution of an Energy
Prepayment Transaction,
Related Documents, and
‘Form of’ Documents
Subject to Maximum
Issuance Amount,
Limitation on Fees, and
Minimum Required Savings
Presenter:
Jeb Spengler, Senior Strategic Finance Manager
Mike Berwanger, Managing Director, PFM Financial Advisors Recommendation:
Recommend Board adoption of Resolution
approving parameters under which an energy
prepayment transaction can be completed;
authorizing and approving documents or
“form of” documents supporting the prepay
transaction; and directing California
Community Choice Financing Authority
(CCCFA) to make payments to service
providers for issuance costs from prepay bond
proceeds.
23 Prepay Program To Date
• In 2023, Community Power began diligence on the energy prepayment opportunity. • In 2024, after detailed review by staff in conjunction with outside experts, Community Power approved moving forward with its first prepayment transaction.
• Two transactions have been completed to date and have been very successful (detailed below) and a third is seeking approval tonight.
• Given the size of Community Power’s portfolio, there is opportunity to do several transactions over the coming years.
• In November 2024, California Community Choice Financing Authority (CCCFA) issued Clean Energy Project Revenue Bonds, Series 2024F on behalf of Community Power in the amount of $1.005 billion. o Total savings through the initial term of the bonds of November 2032 are expected to equal $53.2 million • In July 2025, California Community Choice Financing Authority (CCCFA) issued Clean Energy Project Revenue Bonds, Series 2025D on behalf of Community Power in the amount of $1.006 billion. o Total savings through the initial term of the bonds of July 2034 are expected to equal $54.1 million 24 Prepayments That Have Been Completed by CCAs in California Date Amt. ($000) CCCFA Series Beneficiary
09/2021 1,234,720 21A SVCE, AVA
11/2021 602,655 21B MCE
06/2022 931,120 22A AVA
12/2022 459,640 23A Pioneer
01/2023 841,550 23B SVCE
02/2023 998,780 23C CPA
06/2023 958,290 23D CPA
08/2023 997,895 23E AVA
10/2023 647,750 23F CCCE
12/2023 1,038,285 23G MCE
01/2024 1,101,625 24A SVCE
08/2024 1,524,180 24B CPA
10/2024 959,825 24C PCE
10/2024 1,152,995 24D CPA
Date Amt. ($000) CCCFA Series Beneficiary
11/2024 1,243,210 24E SJCE
11/2024 1,000,500 24F SDCP
11/2024 775,590 24G SCPA
12/2024 1,290,750 24H CPA
01/2025 493,345 25A VCEA
06/2025 1,062,605 25B MCE
07/2025 1,005,685 25D SDCP
09/2025 1,004,395 25C AVA
10/2025 960,730 25E AVA
11/2025 844,495 25F SVCE
12/2025 1,035,235 25G PCE
01/2026 1,245,685 26A-1 26A-2 SJCE
02/2026 TBD 26B CPA
Total 25,411,535
• Several CCAs have comparable prepayment programs with multiple transactions including CPA, Ava, SVCE, PCE and MCE.
25 Community Power Prepay Savings from Prior Transactions Community Power has saved $7.05 million between January 2025 and January 2026 -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Annual Energy Savings
Prepay #1 Prepay #2 Annual Rebates
26 Prepay No. 3 Planning
• 2024: Request for Proposal process to select prepay municipal advisor, prepay counterparties and outside prepay counsel. Community Power also joins CCCFA as a member agency.
• November 2025: Staff engages with Goldman Sachs as clean energy prepay counterparty for Community Power’s energy prepayment transaction #3
• February 19, 2026: FRMC
• February 26, 2026: CCCFA Board Meeting (Conditional Approval) • February 26, 2026: Community Power Board Meeting
• March 3, 2026*: Bond Pricing
• March 12, 2026*: Bond closing date
• June 2026: (Tentative) Energy cost savings begin
*subject to change based on market conditions
FEB
M T W T F S S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
MAR
M T W T F S S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
27 • Structures transaction
• Markets and underwrites bonds
• Underwriter: Goldman Sachs
• Underwriter’s Counsel: Nixon Peabody
• Electricity Supplier: J. Aron & Company LLC
• Electricity Supplier Counsel: Sheppard Mullin
Key Financing Team & Project Participants
San Diego Community Power
Municipal Advisor* Prepay Counsel* Conduit Issuer Prepaid Supplier* Custodian/
Trustee* Rating Agency Commodity Swap Counterparty*
• Financial advisory
• Advice on structure,
timing, and terms
• Fiduciary responsibility
to SDCP
• PFM
• Legal advisory
• Represents SDCP’s
interests
• Chapman & Cutler LLP
• Issuer of tax-exempt
bonds
• California Community
Choice Financing
Authority (CCCFA)
• Manages prepay
estate
• Bond interest
payments
• U.S. Bank
• Rates bonds
• Moody’s
• Fixes out commodity
cashflows
• RBC
Green Bond Verifier
• Certifies that the
Bonds are green
• Kestrel
Bond/Tax Counsel*
• Legal services
• Affirms tax-exempt
bond status and validity
of bond offering
• Orrick, Herrington &
Sutcliffe
Green Font = firms that will be used for the prepay transaction *Fees paid on contingency from bond proceeds
28 Prepay Transaction Structure
Term: 30-year bonds repricing every 5-10 years depending on the optimal spread between taxable and tax-exempt interest rates.
Process:
1. CCCFA issues the Bonds to fund the prepayment for Energy.
2. CCCFA uses bond proceeds to prepay Energy Supplier (J.
Aron) for 30-years of energy deliveries.
3. Electricity Supplier enters into Commodity Swap with RBC for energy purchases at index prices.
4. CCCFA enters into Commodity Swap with RBC for energy sales at index price.
5. CCCFA sells SDCP all of the energy delivered by Electricity Supplier on a pay-go basis at an index price less the
discount.
6. Electricity Supplier enters into a Funding Agreement with a Funding Recipient to pay scheduled monthly amounts.
7. SDCP assigns it rights to receive EPS compliant Energy under existing and future PPAs to J. Aron.
Electricity
Supplier
(SPV)
Commodity
Swap
Counterparty
(RBC)
SDCP CCCFA
Tax-Exempt
Bond Investors
Debt
Service
Bond
Proceeds
Funding
Recipient
(Realty Income)
J. Aron
PPAs
5 4
1 7
6 3
2 Index
Price less
Discount
Energy
Fixed
Price
Index Price
Fixed
Price
Index Price
Energy
Prepayment
Scheduled
Amounts
Funding
Agreement
Energy
Mgmt.
Agreement
Index
Price
Index
Price Energy
Assigned
PPAs
One-Time (Upfront)
Monthly or Ongoing
29 Risks and Mitigation
Transaction terminates, loss of savings, reverts back to original contract terms • Mitigated by selecting an investment grade credit-rated Prepaid Supplier Out-of-pocket costs
• Most consultant fees are contingent on successful bond sale (with the exception of Green Bond designation and Rating Agency Fees)
Market-timing risks
• Mitigated by being ready to price the bonds when the market is favorable Load loss or inability to assign a PPA into the prepay
• Mitigated by volume of SDCP PPAs and Prepaid Supplier’s ability to source energy from the market for delivery to Bond Issuer / SDCP if needed
Tax and regulatory risk – loss of tax-exemption financing would eliminate future prepay issuance 30 Key Documents for Community Power Approval
Document Content
Clean Energy Purchase
Contracts
Document between Community Power and Issuer (CCCFA). This is the primary document that Community Power will enter into and lays out: (1) delivery obligations, (2) assignment provisions associated with a Power Purchase Agreement, and (3) minimum future savings
PPA Payment Custodial
Agreement
Details cash flows between Community Power, Prepay Supplier (Goldman Sachs) and Custodian (U.S. Bank)
Form of Limited
Assignment Agreement
Details terms of limited assignment of energy Power Purchase Agreements (PPA) that are assigned to prepay
31 Key Documents for Community Power Approval (continued) Document Content
Letter Agreement re:
PPA Assignments
Defines the commercial and administrative terms between the parties, including operational procedures, notice requirements, reporting expectations, etc.
Operational Services
Agreement
Agreement by and between CCCFA and SDCP to provide for the administration of certain operational matters during the term of the Bonds Memorandum of
Understanding
Agreement between SDCP and CCCFA indemnifying CCCFA from specific rating agency and Green Bond fees.
32 Other Related Documents
• Board Authorizing Resolution – includes transaction execution parameters o Aggregate principal amount of bonds will not exceed $1.25 billion o Minimum discount of at least 8% of the fixed cash flows or equivalent $ per MWh
o Total issuance costs will not exceed 1.00% of the amount of bond proceeds issued
o Bonds are not obligations of Community Power
• Appendix A to the Preliminary Official Statement
o Contains certain information regarding Community Power, for inclusion in the Preliminary Official Statement and Official Statement for the Bonds and distributed to potential bond investors.
33 Public Comment on
Item No. 4
34 Item No. 4
Committee Members
Comments or
Questions
Resolution, Authorizing Execution of
an Energy Prepayment Transaction,
Related Documents, and ‘Form of’
Documents Subject to Maximum
Issuance Amount, Limitation on Fees,
and Minimum Required Savings
Recommendation:
Recommend Board adoption of Resolution
approving parameters under which an energy
prepayment transaction can be completed;
authorizing and approving documents or
“form of” documents supporting the prepay
transaction; and directing California
Community Choice Financing Authority
(CCCFA) to make payments to service
providers for issuance costs from prepay bond
proceeds.
35 Item No. 5
Amendment of the FY
2025-26 Operating Budget,
the FY 2025-26 Capital
Budget, and the FY 2026-
30 Capital Investment Plan
Recommendation:
Recommend Board Approval of Amendment
of the FY 2025-26 Operating Budget, the FY
2025-26 Capital Budget, and the FY 2026-
30 Capital Investment Plan.
Presenter:
Tim Manglicmot, Director of Finance
Chris Do, Senior Financial Analyst
36 Budget Principles for FY 2025-26
Fiscal Responsibility.Continuing to work toward our reserve goals to ensure long-term financial strength.
Organizational Sustainability. Strengthening our internal capacity to support long-term strategy and service delivery.
Stable, Competitive Rates. Maintaining affordability through disciplined operations, long-term procurement and financial foresight.
Programs and Incentives. Scaling Solar Battery Savings and launching the SDREN portfolio to support clean energy adoption, equity and resilience.
Capital Investment Plan. Advancing our Capital Investment Plan to guide program and project development and ensure transparency. 37 Budget Cycle Timeline
July
August-October
November-December
January
February
Operating and
Capital Budgets (CIP)
Implemented
Adopted Operating and
Capital Budgets (CIP)
Monitored
Operating and Capital
Budgets (CIP) Mid-Year
Review
Rate Setting
Operating and Capital
Budgets (CIP) Budget
Amendment
38 Budget Amendment Summary
What is changing in the mid-year amendment?
PowerOn PowerBase
(4.0%) Discount
Largest discount to SDG&E in alignment with
Board Meeting on January 15, 2026.
Customers can save up to 10% on
Electricity Generation.
(10.0%) Discount
Non-Energy
($4.3 million)
Cost savings in the cost categories under the
direct control of Community Power.
Reserves
229-DCOH
Projected to meet reserve target to end
fiscal year 2026 at 229-days cash on hand
39 Proposed FY 2025-26 Amended Budget
Net Revenue
FY 2026
$1,199.6M
Total Expense
$1,016.7M
Net Position
+$182.9M
Net Revenue
$1,175.4M
FY 2026 Amended
Total Expense
$1,025.0M
Net Position
+$150.4M
40 Proposed FY 2025-26 Amended Budget
Net Revenue
FY 2026
$1,199.6M
Total Expense
$1,016.7M
Net Position
+$182.9M
Net Revenue
$1,175.4M
FY 2026 Amended
Total Expense
$1,025.0M
Net Position
+$150.4M
-$24.2 million
Approved rate change,
effective January 1, 2026
+$8.3 million
Higher energy costs, reduced
non-energy costs, and CIP
investment
($32.5 million)
Decrease to net position over
adopted budget
41 Reserves
148 148 142 135 138 137 131
141
159 162
193
203
229 232 228 232 233 231 229
-
50 100
150
200
250
300
12/1/2024
1/1/2025
2/1/2025
3/1/2025
4/1/2025
5/1/2025
6/1/2025
7/1/2025
8/1/2025
9/1/2025
10/1/2025
11/1/2025
12/1/2025
1/1/2026
2/1/2026
3/1/2026
4/1/2026
5/1/2026
6/1/2026
Actual Projected
42 Budget Amendment - Summary
(4.0%)
PowerOn
Discount
Approved 1/15/26
(10.0%)
PowerBase
Discount
Approved 1/15/26
($4.3M)
Non-Energy Decrease
($0.3M)
CIP Reduction
($32.5)
Net Position
Item FY 2025-2026
Adopted Budget, $M
FY 2025-2026
Amended Budget, $M
Gross Revenue 1,221.0 1,194.8
Less Uncollectible
Accounts (21.4) (19.4)
Net Revenue 1,199.6 1,175.4
Cost of Energy 956.7 969.9
Non-Energy Costs 54.3 50.0
Subtotal Operating
Expense 1,010.9 1,019.9
Interest Income (18.3) (18.3)
Debt Service 1.9 1.5
Capital Investment Plan 22.2 21.9
Total Expense 1,016.7 1,025.0
Net Position 182.9 150.4
+$13.2M
Cost of Energy Increase
43 Non-Energy Costs
($1.2M)
G&A
($1.5M)
Contract
Negotiations
Item FY 2026 Adopted
Budget, $M
FY 2026 Amended
Budget, $M
General and Administration $5,841,527 $4,647,195
Personnel Costs $21,115,541 $19,609,209
Professional Services $27,295,236 $25,730,841
Total Non-Energy $54,252,303 $49,987,246
44 Personnel
2022 2023
2026
2024 2025 Adopted
2026
Amendment
18 FTE
$4.0m
44 FTE
$7.6m
70 FTE
$11.6m
87 FTE
(6.3 FTE cost recoverable)
$18.6m
94 FTE
(8.0 FTE cost recoverable)
$21.1m
103 FTE
(12.0 FTE cost recoverable)
$19.6m
Community Power is proposing 9 additional FTEs, 4 are cost recoverable. Personnel Cost reduced by $1.5M, partly due to Section 218 Agreement. 45 Personnel - CCA Comparison
Department SDCP
Current
SDCP
Proposed MCE AVA CPA 3CE
Power Services 18 18 9 26 15 9
Data Analytics, IT & Customer
Ops. 17 20 26 20 17 11
Public Affairs 12 13 23 11 16 4
Programs 14 16 24 15 10 9
Finance 10 12 5 9 14 6
Legal/Regulatory and Legislative 9 9 14 12 9 7
Executive Team 5 5 3 4 5 4
Operations 5 6 6 2 5 4
Human Resources 4 4 8 4 4 2
Total 94 103 118 103 95 44
Large
Programs
Department
Similar
Customer
Load
46 Budget – CCA Comparison
Community Choice
Aggregator
Years Est.
(JPA eff.
Date)
Customer
Accounts*
Cost of
Energy, $M**
Non-Energy
Costs, $M
Net
Ratepayer
Revenue, $M
Clean Power Alliance Jun 2017 1,069,327 1,207.4 62.7 1,324.3 San Diego Community
Power Oct 2019 963,721 969.9 50.0 1,175.4
Ava Community Energy Dec 2016 748,600 837.0 62.4 895.8
Marin Clean Energy Dec 2008 601,163 765.5 50.3 826.7
Central Coast Community
Energy Mar 2018 514,937 534.8 53.6 578.0
Peninsula Clean Energy Feb 2016 314,174 337.6 54.3 381.1 Clean Energy Alliance Nov 2019 255,627 333.5 13.4 383.1 *Source: CalCCA as of December 2025. CEA includes recent Oceanside and Vista participation through 6/12/2024. **CPA from 6/5/25 Board FY26 approved budget and excludes Customer Programs. SDCP from proposed FY26 budget amendment. Ava from 6/18/25 Board FY26 approved budget. MCE from 3/20/25 Board FY26 approved budget. PCE from FY26 adopted budget. 3CE from FY26 adopted budget. CEA from 6/26/2025 Board approved budget. 47 Public Comment on
Item No. 5
48 Item No. 5
Committee Members
Comments or
Questions
Amendment of the FY
2025-26 Operating
Budget, the FY 2025-26
Capital Budget, and the FY
2026-30 Capital
Investment Plan
Recommendation:
Recommend Board Approval of Amendment
of the FY 2025-26 Operating Budget, the FY
2025-26 Capital Budget, and the FY 2026-
30 Capital Investment Plan.
49 Committee Member Announcements
50 Adjournment
51 Next Regular Finance and
Risk Management
Committee Meeting
March 19, 2026
[email protected]