2 Finance and Risk
Management Committee
Regular Meeting
March 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7 Items to be Withdrawn or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 February 19, 2026, Meeting
Minutes
10 Public Comment on Consent Calendar
11 Regular
Agenda
2. Treasurer’s Report for Six-Month Period Ending
December 31, 2025
3. Recommend Board Adoption of Resolution,
Approving the Rate Stabilization Reserve Policy
4. Recommend Board Adoption of Resolution,
Authorizing San Diego Community Power to Join the
California Community Choice Financing Authority as
a Founding Member
5. Update on 2026 Projected Community Power Rates
6. Announcement of Public Investment Grade Credit
Rating from S&P Global Ratings
12 Item No. 2
Treasurer’s Report for
Six-Month Period
Ending
December 31, 2025
Presenters:
Jeb Spengler, Senior Strategic Finance
Manager/Interim Treasurer
Dan Delaney, Chandler Asset Management
Recommendation: Receive and file
Community Power’s revisions to the existing
Net Energy Metering Tariff/Program (NEM)
and to the existing Net Billing Tariff (NBT) and
Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new
customers who elect this and who have
installed onsite generation on or after
February 15, 2024 that qualifies for the tariff
and for existing customers transitioning out of
the Virtual Net Energy Metering Tariff (VNEM)
or the Net Energy Metering Aggregation Tariff
(NEMA) following the conclusion and/or
termination of their 20-year VNEM or NEMA
legacy period.
Recommendation:
Receive and File Treasurer’s Report for Six-Month Period Ending December 31,2025 13 Results for the 6-month period ending
December 31, 2025:
• Operating Revenues = 0.7% below budget
• Operating Expenses = 10% below budget
Year-to-Date Totals for FY26:
• $762.9M in net operating revenues
• $586.5M in total expenses (including
energy costs of $550.9M)
• $176.5M change in YTD net position
Financial Statement Highlights
Summary of Actual Results vs. Amended Budget
YTD FY26 as of 12/31/25
(6 months) FY26 YTD Budget Budget Variance ($) Budget (%) Net Operating Revenues $ 762,964,670 $ 767,986,000 $ (5,021,330) 99.3% Total Expenses $ 586,467,012 $ 650,569,000 $ (64,101,988) 90% Change in Net Position $ 176,497,659 $ 117,417,000 $ 59,080,659 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
$900,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY26 Results v. Budget
YTD FY26 as of 12/31/25 (6 months) FY26 YTD Budget
14 FY Budget Net Position to Operating Income
-$10M
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 Operating Income $42.8M $33.8M $27.6M $62.4M $17.1M $4.2M Budget Net Position $40.9M $32.9M $21.3M $46.8M -$0.1M -$2.1M FY Budget Net Position to Operating Income
Operating Income Budget Net Position
15 Reserves
1/31/2025 2/28/2025 3/31/2025 4/30/2025 5/31/2025 6/30/2025 7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 DCOH 148 142 135 138 137 131 141 159 162 193 203 231
Maximum 270 270 270 270 270 270 270 270 270 270 270 270 Target 225 225 225 225 225 225 225 225 225 225 225 225
Minimum 180 180 180 180 180 180 180 180 180 180 180 180 Maximum, 270
Target, 225
Minimum, 180
-
50 100
150
200
250
300
Axis Title
Rolling 12-Months Days Cash on Hand (DCOH)
DCOH
Maximum
Target
Minimum
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
84%
$537,343,546.00
Investment
(Non-current) 1%
$5,876,399.00
Investment (current)
15%
$97,042,867.00
RESERVES
$ 640,262,812 $ 227,500,000
$M $200M $400M $600M $800M $1000M
12/31/2025
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
8,000,000
9,000,000
7/1/2025 8/1/2025 9/1/2025 10/1/2025 11/1/2025 12/1/2025 7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 Accumulated Investment Income 742,685 2,467,988 3,551,532 4,842,114 6,521,057 8,205,810 Monthly Investment Income 742,685 1,725,303 1,083,544 1,290,582 1,678,943 1,684,753
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
Axis Title
Prepay Bond Program Savings
19 Participation by Jurisdiction
20 INVESTMENT REPORT
San Diego Community Power | As of December 31, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. 21 ECONOMIC UPDATE
22 -400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
-1.0%
3.0%
7.0%
11.0%
15.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The December Nonfarm Payrolls report showed weaker-than-expected job growth, with payrolls rising by 50,000 compared with the consensus estimate of 70,000. This follows a downwardly revised gain of 56,000 in November. Employment declines were most pronounced in retail trade and construction, while leisure and hospitality posted the strongest gains. Notably, the unemployment rate edged down to 4.4% after increasing to 4.6% in November.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
23 10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator
YOY % Change
PCE Core Deflator
YOY % Change
Fed Target
YOY (%) Change
The Consumer Price Index (CPI) showed that inflation remained relatively subdued in December, with headline CPI and core CPI holding at
2.7% and 2.6% respectively year-over-year. Shelter has continued to play a central but gradually moderating role in services inflation.
December data keeps inflation close to the prior month’s pace and consistent with a trend of easing price pressures. The Personal Consumption Expenditures (PCE) Index for September, released on December 5, showed headline inflation up 0.3% from August and 2.8% year over year. Core PCE rose 0.2% on the month and 2.8% on an annual basis.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
24 Source: Federal Reserve Source: Bloomberg
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve lowered its benchmark interest rate by a quarter point to a target range of 3.50% to 3.75% at its December meeting, citing concerns about emerging weakness in the labor market. A few policymakers dissented, arguing that tighter monetary policy may still be warranted to ensure progress on price stability. Beginning December 1, the Fed also halted its balance sheet runoff, announcing that principal and interest payments from its holdings will be reinvested in Treasury securities to maintain ample reserves and support marketstability.
FEDERAL RESERVE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
25 Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Dec-25
Sep-25
Dec-24
Yield (%)
At the end of December, the 2-year yield was 77 basis points lower, and the 10-year yield was 40 basis points lower, year-over-year. The spread between the 2-year and 10-year Treasury yield points on the curve increased to +69 basis points at December month-end versus +52 basis points at November month-end. The prior 2-year/10-year yield curve inversion, which spanned from July 2022 to August 2024, was historically long. The average historical spread (since 2005) is about +95 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +54 basis points in December versus +21 basis points in November.
BOND YIELDS
26 ACCOUNT PROFILE
27 OBJECTIVES
Investment Objectives
The investment objectives of the San Diego Community Power are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio;second, to provide sufficient liquidity to meet all disbursement requirements; and third, to earn an acceptable rate of return afterfirst considering safety of principal and liquidity.
Chandler Asset Management Performance Objective
The performance objective forthe portfolio isto earn a totalrate of return through a market cycle that is equal to or above the return on the benchmark index.
Strategy
In orderto achieve this objective, the portfolio investsin high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 28 PORTFOLIO CHARACTERISTICS
San Diego Community Power ConsAgg | Account #11452 | As of December 31, 2025 12/31/2025
Portfolio
9/30/2025
Portfolio
Average Maturity (yrs) 0.48 0.66
Average Modified Duration 0.41 0.56
Average Purchase Yield 3.60% 3.16%
Average Market Yield 3.54% 3.09%
Average Quality** AA AA
TotalMarket Value 651,186,199 450,252,239
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg| Account #11452| As of December 31, 2025 RulesName Limit Actual Complianc e
Status
Notes
AGENCY MORTGAGE SECURITIES
Max% (MV) 100.0 1.6 Compliant
Max% Issuer (MV) 30.0 1.6 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
ASSET-BACKED SECURITIES (ABS)
Max% (MV; ABS& MBS) 20.0 3.1 Compliant
Max% Issuer (MV) 5.0 0.3 Compliant
Max Maturity (Years) 5.0 4.5 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max% (MV) 40.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
Max% (MV) 50.0 26.9 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
COLLATERALIZED BANK DEPOSITS
Max% (MV) 100.0 40.3 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-
NEGOTIABLE CD/TD)
Max% (MV) 30.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant
COMMERCIAL PAPER
Max% (MV) 25.0 0.0 Compliant
30 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg| Account #11452| As of December 31, 2025 RulesName Limit Actual Complianc e
Status
Notes
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270.0 0.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
CORPORATE MEDIUM TERM NOTES
Max% (MV) 30.0 4.3 Compliant
Max% Issuer (MV) 5.0 0.2 Compliant
Max Maturity (Years) 5.0 4.9 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max% (MV) 30.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
FEDERAL AGENCIES
Max% (MV) 100.0 0.1 Compliant
Max% Issuer (MV) 30.0 0.1 Compliant
Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 1.6 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
JOINT POWERS AUTHORITY (JPA)/
LOCAL GOVERNMENT INVESTMENT
POOL (LGIP)
Max% (MV) 100.0 0.0 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max% (MV) 100.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max% (MV) 20.0 0.1 Compliant
Max% Issuer (MV) 20.0 0.1 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
MORTGAGE-BACKED SECURITIES (NON-AGENCY)
31 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of December 31, 2025 RulesName Limit Actual Complianc
e
Status
Notes
Max % (MV; ABS & MBS) 20.0 3.1 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES
Max % (MV) 30.0 0.1 Compliant
Max % Issuer (MV) 5.0 0.1 Compliant
Max Maturity (Years) 5.0 3.8 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 or A- by 1) 0.0 0.0 Compliant
SRI PROHIBITED INVESTMENTS
Prohibited Investment - Fossil Fuels 0.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.2 Compliant
Max % Issuer (MV) 10.0 0.2 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 8.1 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
32 PORTFOLIO CHARACTERISTICS
San Diego Community Power | Account #11293 | As of December 31, 2025 Benchmark* 12/31/2025
Portfolio
9/30/2025
Portfolio
Average Maturity (yrs) 2.64 3.03 3.18
Average Modified Duration 2.47 2.55 2.69
Average Purchase Yield 4.16% 4.20%
Average Market Yield 3.55% 3.77% 3.86%
Average Quality** AA+ AA AA
TotalMarket Value 104,590,213 93,445,189
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 33 SECTOR DISTRIBUTION
San Diego Community Power | Account #11293 | As of December 31, 2025 Sector as a Percentage of Market Value
Sector 12/31/2025 09/30/2025
US Treasury 50.72% 52.31%
Corporate 26.66% 26.37%
Agency CMBS 10.19% 10.32%
ABS 9.38% 8.81%
Supras 0.95% --
Agency 0.87% 0.97%
Muni Bonds 0.86% 0.95%
Money Mkt Fd 0.38% 0.26%
34 QUALITY DISTRIBUTION
Rating 12/31/2025 09/30/2025
AAA 9.64% 7.95%
AA 65.07% 67.86%
A 20.29% 19.93%
BBB 1.83% 0.99%
A-1+ 0.95% --
NA 2.21% 3.28%
Rating 12/31/2025 09/30/2025
Aaa 7.74% 7.51%
Aa 65.28% 68.09%
A 20.42% 19.03%
P-1 0.95% --
NA 5.61% 5.37%
Rating 12/31/2025 09/30/2025
AAA 15.19% 14.08%
AA 62.72% 67.51%
A 9.31% 8.25%
F1+ 0.95% --
NA 11.82% 10.16%
San Diego Community Power | Account #11293 | As of December 31, 2025 S&P Rating Moody’sRating Fitch Rating
35 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 1.3% 0.8% 6.6% 26.2% 27.9% 24.7% 12.6% 0.0% 0.0% ICE BofA 1-5 YearUnsubordinated US Treasury
& Agency Index 0.0% 0.0% 2.5% 35.4% 28.7% 21.2% 12.3% 0.0% 0.0%
DURATION DISTRIBUTION
San Diego Community Power | Account #11293 | As of December 31, 2025 Portfolio Compared to the Benchmark
36 TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception San Diego Community Power 1.19% 6.17% 4.34%
Benchmark 1.11% 5.73% 3.92%
*Periods over 1 year are annualized.
Total rate of return: A measure of a portfolio’s performance over time. It isthe internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index
INVESTMENT PERFORMANCE
San Diego Community Power | Account #11293 | As of December 31, 2025 Total Rate of Return : Inception | 10/01/2024
37 PORTFOLIO CHARACTERISTICS
San Diego Community Power Reporting | Account #11451 | As of December 31, 2025 12/31/2025
Portfolio
9/30/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.50% 2.89%
Average Market Yield 3.50% 2.89%
Average Quality** NA NA
TotalMarket Value 546,595,985 356,807,050
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 38 SECTOR DISTRIBUTION
San Diego Community Power Reporting | Account #11451 | As of December 31, 2025 Sector as a Percentage of Market Value
Sector 12/31/2025 09/30/2025
Collateralized Bank Deposit 48.01% 42.51%
Placement Service Deposit 32.06% 43.57%
Cash 19.92% 13.92%
LAIF 0.02% --
39 Public Comment on
Item No. 2
40 Item No. 2
Committee Members
Comments or
Questions
Recommendation:
Receive and File Treasurer’s Report for
Six-Month Period Ending December
31,2025
41 Item No. 3
Recommend Board
Adoption of Resolution,
Approving the Rate
Stabilization
Reserve Policy
Presenters:
Jeb Spengler, Senior Strategic Finance
Manager/Interim Treasurer
Aaron Lu, Rates and Strategy Manager
Recommendation: Receive and file
Community Power’s revisions to the existing
Net Energy Metering Tariff/Program (NEM)
and to the existing Net Billing Tariff (NBT) and
Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new
customers who elect this and who have
installed onsite generation on or after
February 15, 2024 that qualifies for the tariff
and for existing customers transitioning out of
the Virtual Net Energy Metering Tariff (VNEM)
or the Net Energy Metering Aggregation Tariff
(NEMA) following the conclusion and/or
termination of their 20-year VNEM or NEMA
legacy period.
Recommendation:
Recommend Board Adoption of Resolution,
Approving the Rate Stabilization Reserve
Policy
42 Community Power
Rate Development
Policy Objectives Competitiveness
Rate Stability
Simplicity Equity
Reserves
Cost
Recovery
Cost of
Service
Avoid Cost-Shifting
Transparency
43 Rate Stabilization Reserve (RSR) Background
Community Power’s Financial Reserves Policy provides for the funding of a Rate Stabilization Reserve with the use of excess reserves.
• Core Purpose: Allows an entity to defer the recognition of revenues in good financial years and applying those revenues to periods where they are actually needed for stabilizing customer rates or other regulatory or financial metric objectives.
• Accounting Treatment: Government Accounting Standards Board Statement No. 62 (GASB 62) allows for deferring the accrual of surplus revenues to be realized in a later year. Deferred revenues reduce net position by an equal amount in the period deferred and increases net position by an equal amount in the period it is realized. • Treatment within Reserve Calculation: Reserves held as unrestricted cash and investments for rate stabilization purposes will continue to be included as a source of liquidity for reserve calculation purposes. • Board Approval and Policy: Establishing a Rate Stabilization Reserve under GASB 62 typically requires Board approval and a formal policy. The policy outlines when and how funds can be deferred or drawn down, often with specific targets.
44 How a Rate Stabilization Reserve Works
• Allows deferral of revenue recognition in a strong financial year for use in a weaker or stressed year. • Deferred revenue reduces Net Position in the deferral year; recognition increases Net Position in the year recognized.
Strong year
(consider deferral)
RSR balance
(tracked & reported)
Weak year / rate-setting
(consider recognition)
45 Rate Development and Financial Reserves Policies
• Rate Development Policy (Nov. 17, 2022): rate stability is a core objective; rate changes should be minimized with a preference for annual adjustments; references the creation of a Rate Stabilization Reserve as a potential to mitigate rate volatility.
• Financial Reserves Policy (Dec. 11, 2025): Board may designate Reserves between the Target and Maximum thresholds as Rate Stabilization Reserves (up to 45 days cash on hand, or approx. $125 million).
• Strategic Plan FY 2026–2028: includes developing a Rate Stabilization Reserve (target referenced as $70 million) to mitigate power cost fluctuations and economic downturns. • 2026 Rate-Setting: Board-approved rates noted a path toward maintaining reserves and establishing the Rate Stabilization Reserve.
46 Rate Stabilization Reserves at Community Choice Aggregators Ava Community
Energy
Clean Power
Alliance
Marin Clean
Energy
Orange County
Power Authority
Peninsula Clean
Energy
Sonoma Clean
Power
Deposits
Amount from any
surplus determined as
appropriate, based on
Board-approved Budget
When net position
exceeds 4% of revenues,
the amount above 4%
can be transferred
When projected addition
to Net Position is greater
than 5% of total
revenues, or after
reserve policy targets are
met, from excess net
revenues
Deferrals in years w/
strong financial results
When addition to Net
Position is in excess of
3% of revenues
Any excess revenues
above the Target
Reserve Balance (365
days of expenses).
Target
20% of operating
expenses
Balance is capped at
10% of annual revenues
Up to 10% of total
revenues for current
fiscal year
None Specified 15% of annual revenues None Specified
Withdrawal
Amounts determined
necessary to stabilize
rates, satisfy covenants,
etc.
When increases in net
position fall below 4% of
revenues in the
absences of a transfer
When net revenues are
projected negative of
needed for covenants
Used to minimize near-term impact on rates
and net revenues
When projected change
in Net Position is
negative, or needed to
meet covenants
Use of reserve funds
requires a vote of the
Board.
Replenishment
None Specified None Specified None Specified None Specified None Specified During periods when the Minimum Reserve (180
days) is not met, SCP
shall set rates in a
manner to reach the
required balance within
2 years
47 Sampling of CCA Rate Stabilization Sizes
Size of Rate Stabilization Fund
AVA Community Energy $57.6 million (as of 3.31.2025)
Clean Power Alliance $135 million (as of 6.30.2025)
Marin Clean Energy $70 million (as of 3.31.2025)
Orange County Power Authority $30 million (as of 6.30.2025) Peninsula Clean Energy $68 million (as of 3.31.2025)
Sonoma Clean Power $56 million (as of 7.31.2025)
48 Rate Stabilization
Reserve
Parameters
Use Case(s)
Target Balance
Trigger and Approval Mechanisms
Replenishment
Accounting Treatment
Proposed Timeline
1 2
3 4
5 6
49 Rate Stabilization Use Cases
• Stabilize Customer Rates when certain triggers occur:
o To mitigate rate volatility caused by Market Price Benchmark (MPB) and Power Charge Indifference Adjustment (PCIA) rate fluctuations, and/or
o To reduce year-over-year rate changes and/or maintain Community Power's rate competitiveness between rate-setting cycles. • Meet required financial covenants to maintain good standing with financial institutions, counterparties and credit rating agencies
50 Target RSR Balance:
• Policy allows designation up to 45 days cash on hand as the RSR (~ $125 million) • Coverage provides for:
o ~30% of modeled Market Price Benchmark volatility risk o ~10% of Operating Revenues
o ~12% of Operating Expenses
225 Days (Target) 45 Days (RSR)
RSR Target
(45 DCOH within total Reserves)
Total Reserve Parameters
(270 DCOH)
51 Decision Points, Triggers, and Approvals
Two key decisions each year govern transfers into and recognition from the RSR:
1) Fiscal year-end transfer (by June)
CEO may authorize transferring revenue into
the RSR before fiscal year close; reported to
the Board at the next regularly scheduled
meeting.
2) Rate-setting recognition (typically
January)
CEO recommends recognition from the RSR
to the Board for approval—typically alongside
annual rate recommendations; other
recognition requests may occur with Board
approval.
52 Replenishment Requirement and Guardrails
• Replenishment: when recognition from the RSR is approved, staff will present a plan to replenish the RSR within 2– 4 years, if feasible.
• Triggers to consider: projected Net Position, days cash and liquidity on hand, financial/bank covenants, and debt coverage; staff may also consider rate projections and year-over-year increases. • Transfers and recognitions may occur within the same fiscal year, provided criteria are met. • Goal: provide a tool to support rate stability while protecting Community Power’s financial standing. 53 Proposed Timeline
Board approved updated
Financial Reserves Policy.
December 11, 2025
Community Power staff draft Rate
Stabilization Reserves Policy.
December 2025 – January
2026
Board approved 2026 rates.
January 15, 2026
Community Power staff finalized
RSR Policy.
February 2026
Board approves RSR policy.
March 26, 2026
Community Power staff
determines whether to transfer
revenues to RSR prior to end of
FY; report to Board.
May – June 2026
During 2027 rate-setting
process, Community Power staff
decides whether to recognize
funds from RSR to mitigate rate
volatility, pending Board
approval.
November 2026 – January 2027
54 Public Comment on
Item No. 3
55 Item No. 3
Committee Members
Comments or
Questions
Recommendation:
Recommend Board Adoption of
Resolution, Approving the Rate
Stabilization Reserve Policy
56 Item No. 4
Recommend Board Adoption of
Resolution, Authorizing San Diego
Community Power to Join the
California Community Choice
Financing
Authority as a Founding Member
Presenter:
Jeb Spengler, Senior Strategic Finance
Manager/Interim Treasurer
Recommendation: Receive and file
Community Power’s revisions to the existing
Net Energy Metering Tariff/Program (NEM)
and to the existing Net Billing Tariff (NBT) and
Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new
customers who elect this and who have
installed onsite generation on or after
February 15, 2024 that qualifies for the tariff
and for existing customers transitioning out of
the Virtual Net Energy Metering Tariff (VNEM)
or the Net Energy Metering Aggregation Tariff
(NEMA) following the conclusion and/or
termination of their 20-year VNEM or NEMA
legacy period.
Recommendation:
Recommend Board adoption of Resolution,
authorizing San Diego Community Power
(Community Power) to participate as a
founding member of the California
Community Choice Financing Authority
(CCCFA) and approving execution of the
CCCFA Joint Powers Agreement
57 California Community Choice Financing Authority (“CCCFA”) Background
• Recommend authorization for Community Power to convert membership in the California Community Choice Financing Authority (CCCFA) to becoming a Founding Member • Founding Members receive direct Board governance; Associate Members do not • Community Power has completed three CCCFA clean energy prepay transactions totaling nearly $2.7 billion o $7.05M actual energy cost savings realized to date
• Community Power meets all eligibility criteria and expects frequent, long-term use of CCCFA financings • No incremental cost vs. Associate Membership
58 Public Comment on
Item No. 4
59 Item No. 4
Committee Members
Comments or
Questions
Recommendation:
Recommend Board adoption of Resolution,
authorizing San Diego Community Power
(Community Power) to participate as a
founding member of the California
Community Choice Financing Authority
(CCCFA) and approving execution of the
CCCFA Joint Powers Agreement
60 Item No. 5
Update on 2026 Projected
Community Power Rates
Presenter:
Aaron Lu, Rates and Strategy Manager
Recommendation:
Receive and File Update on 2026
Projected Community Power Rates
61 Rate Update Timeline
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 filed an advice letter
on its general Rate Case (GRC)
Phase 2 rate design changes.
March 2, 2026
Community Power staff brings
rate update recommendation to
the Board for adoption, to be
effective on April 1, 2026.
March 26, 2026
SDG&E and Community Power
implement rate changes.
April 1, 2026
62 Rate Development
Policy Objectives Competitiveness
Stability
Simplicity Equity
Reserves
Cost
Recovery
Cost of
Service
Avoid Cost-Shifting
Transparency
63 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.
TOU-DR-1
SDG&E
(41% RPS)
Community Power Service Options
Residential PowerBase
(45% RPS)
PowerOn
(53% RPS +
2% Carbon Free)
Power100
(100% RPS)
Generation ($) $41.80 $41.09 $44.55 $47.96
PCIA ($) $16.97 $12.13 $12.13 $12.13
Franchise Fees ($) $1.20 $1.20 $1.20 $1.20
Total Generation ($) $59.97 $54.42 $57.88 $61.29
Delivery ($) $104.72 $104.71 $104.71 $104.71
Average Monthly Bill ($) $164.69 $159.13 $162.59 $166.00 Assumptions:
• Rates as of January 1, 2026.
• Average monthly usage of 341 kWh.
• 2021 PCIA vintage.
• Renewable Portfolio Standards (RPS) content based on most recent 2024 Power Content Label. 64 Rate Trifurcation to Achieve Equity
• Community Power's Phase 1 and 2 customers
(vintage 2020), Phase 3 customers (vintage 2021),
and Phase 4 customers (vintage 2022) are all
charged a different PCIA by SDG&E because they
are assigned different vintage years.
• Due to the substantial deltas expected between
PCIA vintages 2020, 2021, and 2022, staff
continues to recommend trifurcation of three sets
of rates to the Board to ensure customer equity.
• This trifurcation of Community Power rates by
vintage maintains a fair, equitable and balanced
rate structure for all customers.
Illustrative Trifurcation Example
Competitive Factor (Discount) 4% 4% 4%
Rates ($/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
65 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 April 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.
66 SDG&E General Rate Case (GRC) Phase 2
• Additional changes include:
o Revenue allocation for each customer class update;
o Align low-income discount methodology for commercial customers with that for residential customers;
o Medical baseline discount adjustment;
o Annual increase to commercial monthly service fees;
o Distribution rates updated for various tariffs.
67 SDG&E Bundled Commodity/Generation Rate Change
• SDG&E’s system avg. commodity rates are projected to remain relatively unchanged. • Customer class specific changes are driven by the creation of a new medium commercial customer class and updating the revenue allocation between customer classes per SDG&E’s GRC Phase 2 settlement.
SDG&E Commodity Rate ($/kWh) SDG&E Avg. Commodity Rate
Change (%)
Customer Class 1/1/2026 4/1/2026 1/1/2026 - 4/1/2026
Residential 0.17532 0.17549 0.10%
Small Commercial 0.15391 0.15665 1.78%
Medium Commercial N/A 0.18251 N/A
Large Commercial & Industrial 0.19278 0.19193 -0.44%
Agricultural 0.13041 0.12009 -7.91%
Lighting 0.11994 0.11981 -0.11%
System Total 0.17676 0.17657 -0.11%
68 PCIA Rate Change
• SDG&E’s PCIA rates are projected to increase for Large Commercial and Industrial. • PCIA rates for Small Commercial and Agricultural customers are expected to decrease. • These changes are also driven by the creation of a new medium commercial customer class and updating the revenue allocation between customer classes per SDG&E’s GRC Phase 2 settlement. 2021 Vintage PCIA Rate ($/kWh) PCIA Change (%)
Customer Class 1/1/2026 4/1/2026 1/1/2026 - 4/1/2026
Residential 0.03557 0.03564 0.20%
Small Commercial 0.02787 0.01857 -33.37%
Medium Commercial N/A 0.03615 N/A
Large Commercial & Industrial 0.03245 0.03615 11.40%
Agricultural 0.03291 0.03032 -7.87%
Lighting 0.02646 0.02646 0.00%
69 SDG&E Delivery Rate Change
• SDG&E’s system avg. delivery rates are projected to increase by ~1.4%. • SDG&E's delivery rate increases are driven by $589 million in wildfire-related cost recovery.
SDG&E UDC Rate ($/kWh) SDG&E Total UDC Rate
Change (%)
Customer Class 1/1/2026 4/1/2026 1/1/2026 - 4/1/2026
Residential 0.25650 0.26302 2.54%
Small Commercial 0.23885 0.24665 3.27%
Medium Commercial N/A 0.20358 N/A
Large Commercial & Industrial 0.18903 0.18904 0.01%
Agricultural 0.14350 0.14288 -0.43%
Lighting 0.22940 0.14545 -36.60%
System Total 0.21647 0.21948 1.39%
70 Next Steps
• Staff continues to conduct rates analysis and will bring to the Board a rate update(s) recommendation on March 26, 2026.
• Due to variation in PCIA for vintage years, staff will continue to recommend trifurcated rates.
71 Public Comment on
Item No. 5
72 Item No. 5
Committee Members
Comments or
Questions
Recommendation:
Receive and File Update on 2026
Projected Community Power Rates
73 Item No. 6
Announcement of
Public Investment
Grade Credit Rating
from S&P Global
Ratings
Presenter:
Karin Burns, Chief Executive Officer
Recommendation: Receive and file
Community Power’s revisions to the existing
Net Energy Metering Tariff/Program (NEM)
and to the existing Net Billing Tariff (NBT) and
Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new
customers who elect this and who have
installed onsite generation on or after
February 15, 2024 that qualifies for the tariff
and for existing customers transitioning out of
the Virtual Net Energy Metering Tariff (VNEM)
or the Net Energy Metering Aggregation Tariff
(NEMA) following the conclusion and/or
termination of their 20-year VNEM or NEMA
legacy period.
Recommendation:
Receive and file staff report acknowledging
San Diego Community Power’s publicly issued
“A” Issuer Credit Rating with a Stable Outlook
from S&P Global Ratings.
74 Community Power Achieves Public ‘A’ (Stable Outlook) Credit Rating from S&P Global Ratings
Financial Milestone and Strategic Objective Achieved
o On March 9, Community Power was assigned an “A” Issuer Credit Rating with a Stable Outlook from S&P Global Ratings.
Reputation and Stability
o The Stable Outlook signals confidence in Community Power’s prudent management and ongoing operational stability.
Industry Leadership
o The credit rating places Community Power among the highest rated community choice aggregators. 75 Noted Credit Strengths
Diverse Customer Base
o Community Power serves about 950,000 accounts with no significant customer concentration, ensuring revenue stability.
Strong Governance & Management
o Robust governance with autonomous rate-setting and experienced leadership supports stability.
Sound Financial Profile
o Strong liquidity and prudent forecasting bolster credit-supportive financial health.
Low Operational & Climate Risk
o Community Power’s carbon-free power portfolio and no ownership of transmission assets reduce operational risks.
Strategic Renewable Vision
o Plan for 100% renewable energy by 2035 enhances resilience and market alignment. 76 Fiscal and Strategic Benefits of Public Investment Grade Rating Financial Negotiation Advantages
o The rating improves Community Power’s negotiating power with suppliers and banks, enabling better contract terms and less credit support.
Cost Savings from Credit Rating
o Potential reduction or removal of standby letters of credit leads to significant ongoing cost savings and fee elimination.
Strategic Market Access
o The rating broadens access to capital markets and financial partners, supporting future financing and lower customer energy costs.
Enhanced Transparency and Credibility
o Public rating fosters trust with customers, regulators, and stakeholders through regular financial reviews and transparency.
77 Public Comment on
Item No. 6
78 Item No. 6
Committee Members
Comments or
Questions
Recommendation:
Receive and file staff report acknowledging
San Diego Community Power’s publicly
issued “A” Issuer Credit Rating with a Stable
Outlook from S&P Global Ratings.
79 Committee Member Announcements
80 Adjournment
81 Next Regular Finance and
Risk Management
Committee Meeting
April 16, 2026
[email protected]