AGENDA
Regular Meeting
Finance and Risk Management Committee
May 21, 2026, 4 p.m.
City of Chula Vista Council Chambers
276 Fourth Avenue, Chula Vista, CA
The meeting will be held in person at the above date, time, and location. Finance and Risk Management Committee (FRMC) members and members of the public can attend in person. Under certain circumstances, FRMC members may also attend and participate virtually in the meeting, pursuant to the Brown Act (Gov. Code § 54953). As a convenience, San Diego Community Power provides a Zoom teleconference option for members of the public to virtually observe and provide public comments at its meetings. Additional details on in-person and virtual public participation are below. Please note that in the event of a technical issue causing a disruption in the Zoom teleconference option, the meeting will continue unless otherwise required by law (such as when an FRMC member is virtually attending the meeting), pursuant to certain provisions of the Brown Act.
Note: Any member of the public may provide comments to the FRMC on any agenda item. When providing comments, it is requested that members of the public include their name and city of residence for the record. Members of the public are requested to address their comments to the FRMC as a whole through the chairperson. Comments may be provided in one of the following ways:
1. Oral comments during the meeting. Anyone attending in person who wishes to address the FRMC is asked to complete a speaker’s card and present it to the clerk of the Board. To provide remote comments during the meeting, join the Zoom meeting by computer, mobile phone or dial-in number. When participating in a Zoom video teleconference by computer or mobile phone, use the “Raise Hand” feature. This will notify the moderator that a member of the public wishes to address the FRMC during a specific item on the agenda or during the non-agenda public comment period. Members of the public will not be shown on video but will be able to address the FRMC when called upon. If joining the meeting using the Zoom dial-in number, members of the public can raise their hand by pressing *9. Comments will be limited to three minutes.
2. Written comments. Written public comments must be submitted prior to the start of the meeting to [email protected]. Members of the public are asked to indicate a specific agenda item when submitting comment. All written comments received prior to the meeting will be provided to the FRMC members. At the discretion of the chairperson, the first ten submitted comments shall be stated into the record of the meeting. Comments read at 1 the meeting will be limited to the first 400 words. Comments received after the start of the meeting will be collected, sent to the FRMC members, and become part of the public record.
If members of the public have any materials to be distributed to the FRMC, they should be sent to [email protected], who will distribute the information to FRMC members.
The public may participate using the following remote options:
Teleconference Meeting Webinar
https://sdcommunitypower-org.zoom.us/j/95148519712
Telephone (audio only): 669-900-6833 or 253-215-8782 | Webinar ID: 95148519712
WELCOME
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
LAND ACKNOWLEDGEMENT
SPECIAL PRESENTATIONS AND INTRODUCTIONS
- Introduction of New Community Power Chief Financial Officer, Jannies Burlingame
ITEMS TO BE ADDED, WITHDRAWN OR REORDERED ON THE AGENDA
PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
This is an opportunity for members of the public to address the FRMC on any items not on the agenda but within the jurisdiction of the FRMC. Members of the public may provide comments in any manner described above.
CONSENT CALENDAR
1. Approve March 19, 2026, Meeting Minutes
2 REGULAR AGENDA
2. Treasurer’s Report for Eight-Month Period Ending February 28, 2026 Recommendation: Receive and File Treasurer’s Report for Eight-Month Period Ending February 28, 2026.
3. Presentation of Draft FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan, and Quarterly Risk Oversight Committee Report Recommendation: Receive and File preliminary draft FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan, and Quarterly Risk Oversight Committee Report.
COMMITTEE MEMBER ANNOUNCEMENTS
FRMC members may briefly provide information to other members and the public. There is to be no discussion or action taken on comments made by FRMC members unless authorized by law.
ADJOURNMENT
The Finance and Risk Management Committee will adjourn until the next regular meeting scheduled for Thursday, June 18, 2026, at 4 p.m.
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
Community Power committee meetings comply with the Americans with Disabilities Act. Individuals with a disability who require a modification or accommodation, including auxiliary aids or services, to participate in a public meeting may contact [email protected]. Requests for disability-related modifications or accommodations require varying lead times and should be provided at least 72 hours in advance of the public meeting.
AVAILABILITY OF COMMITTEE DOCUMENTS
Copies of the agenda and related materials are available at https://sdcommunitypower.org/resources/meeting-notes/. Late-arriving documents related to an agenda item are distributed to the committee members prior to or during the committee meeting and are available for public review as required by law. Public records, including agenda-related documents, can be requested electronically from [email protected]. or by mailing San Diego Community Power, Attn: Clerk of the Board, P.O. Box 12716, San Diego, CA 92112. The documents may also be posted on Community Power’s website. Such public records are also available for inspection by contacting [email protected] to arrange an appointment.
3 SAN DIEGO COMMUNITY POWER
FINANCE AND RISK MANAGEMENT COMMITTEE
Regular Meeting Minutes
March 19, 2026
City of Chula Vista
276 Fourth Avenue, Chula Vista, CA 91910
__________________________________________________________________________
WELCOME
CALL TO ORDER
Chair Yamane called the Finance and Risk Management Committee meeting to order at 4:05 p.m.
ROLL CALL
PRESENT: Chair Yamane, City of National City; Vice Chair Suzuki, City of La Mesa; and Director Inzunza, City of Chula Vista
Absent: None
Staff Present: Chief Executive Officer Burns; Director of Finance Manglicmot; Senior Strategic Finance Manager/Interim Treasurer Spengler; Rates and Strategy Manager Lu; General Counsel Tyagi; Clerk of the Board Hernandez; and Assistant Clerk of the Board Vences
PLEDGE OF ALLEGIANCE
Director Inzunza led the Pledge of Allegiance.
LAND ACKNOWLEDGEMENT
Chair Yamane acknowledged the Kumeyaay Nation and all the original stewards of the land.
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA Assistant Clerk of the Board Vences announced that Item No. 6; Announcement of Public Investment Grade Credit Rating from S&P Global Ratings would be reordered to go before Item No. 2. 4 PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Rob provided public comment.
REGULAR AGENDA
Although Item No. 6 was scheduled to follow Item No. 1 on the agenda, the Chair called Item No. 6, and it was heard at this time.
6. Announcement of Public Investment Grade Credit Rating from S&P Global Ratings Ms. Burns announced Community Power’s public investment grade credit rating from S&P Global Ratings.
Rob provided public comment on Item No. 6.
After Committee Member comments, the staff report acknowledging San Diego Community Power’s publicly issued “A” Issuer Credit Rating with a Stable Outlook from S&P Global Ratings was received and filed.
CONSENT CALENDAR
1. Approve February 19, 2026, Meeting Minutes
There were no public comments on Consent Item No. 1.
Motioned by Director Inzunza and seconded by Vice Chair Suzuki to approve Consent Item No. 1. The motion carried 3/0 by Roll Call Vote as follows:
AYES: Chair Yamane, Vice Chair Suzuki and Director Inzunza NOES: None
ABSTAINED: None
ABSENT: None
REGULAR AGENDA (continued)
2. Treasurer’s Report for Six-Month Period Ending December 31, 2025 Messrs. Spengler and Dan Delaney, Chandler Asset Management representative, presented the Treasurer’s Report for Six-Month Period Ending December 31, 2025.
Rob provided public comment on Item No. 2.
5 After Committee Member comments, the Treasurer’s Report for Six-Month Period Ending December 31, 2025, was received and filed.
3. Recommend Board Adoption of Resolution, Approving the Rate Stabilization Reserve Policy Messrs. Spengler and Lu provided an overview of the proposed Rate Stabilization Reserve Policy.
Rob provided public comment on Item No. 3.
After Committee Member comments, motioned by Vice Chair Suzuki and seconded by Director Inzunza to recommend Board adoption of resolution, approving the Rate Stabilization Reserve Policy.
The motion carried 3/0 by Roll Call Vote as follows:
AYES: Chair Yamane, Vice Chair Suzuki, and Director Inzunza NOES: None
ABSTAINED: None
ABSENT: None
4. Recommend Board Adoption of Resolution, Authorizing San Diego Community Power to Join the California Community Choice Financing Authority as a Founding Member Mr. Spengler provided an overview of the proposed recommendation for Community Power to join the California Community Choice Financing Authority as a Founding Member.
Rob provided public comment on Item No. 4.
After Committee Member comments, motioned by Director Inzunza and seconded by Vice Chair Suzuki to 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. The motion carried 3/0 by Roll Call Vote as follows:
AYES: Chair Yamane, Vice Chair Suzuki, and Director Inzunza NOES: None
ABSTAINED: None
ABSENT: None
5. Update on 2026 Projected Community Power Rates
Mr. Lu provided an update of the 2026 Projected Community Power Rates. 6 Rob provided public comment.
After Committee Member comments, the 2026 Projected Community Power Rates update was received and filed.
COMMITTEE MEMBER ANNOUNCEMENTS
None.
ADJOURNMENT
The Finance and Risk Management Committee adjourned at 5:16 p.m. to the next regular meeting scheduled for Thursday, April 16, 2026, at 4 pm.
_____________________
Sandra Vences
Assistant Clerk of the Board
7 SAN DIEGO COMMUNITY POWER
Staff Report – Item 2
To: Finance and Risk Management Committee
From: Jeb Spengler, Associate Director of Strategic Finance and Procurement, Interim Treasurer
Via: Karin Burns, Chief Executive Officer
Subject: Treasurer’s Report for Eight-Month Period Ending February 28, 2026 Date: May 21, 2026
Recommendation
Receive and File Treasurer’s Report for Eight-Month Period Ending February 28, 2026.
Background
San Diego Community Power (Community Power) prepares its accounting records on a full accrual basis under Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. Year-to-date financial statements for the eight-month period ending February 28, 2026, include budget comparisons.
The Board adopted an Investment Policy on May 25, 2023, with subsequent revisions on June 27, 2024, and August 28, 2025, to ensure the safeguarding of principal, preservation of liquidity, generation of returns, and adherence to a high standard of fiduciary care. The policy requires regular reporting to the Finance and Risk Management Committee (FRMC) via the Treasurer’s Report. As of February 28, 2026, the investment portfolio was compliant with Community Power’s Investment Policy.
To enhance transparency, Community Power reports newly executed contracts between $50,000 and $150,000 in the Treasurer’s Report, per the Delegated Contract Authority Policy. Monthly operational metrics are presented at Board meetings, and key risk metrics are shared during FRMC meetings as part of the Treasurer’s Report. 8 On February 26, 2026, Community Power Board of Directors (Board) approved the Amended Fiscal Year 2025-26 Operating Budget, which serves as the basis for comparison in this report.
Analysis and Discussion
Actual financial results for the period ending February 28, 2026: $906.8 million in net operating revenues were reported compared to $899.9 million budgeted for the period.
Community Power’s change in net position of $199.9 million was reported year-to-date for Fiscal Year 2025-26. The following is a summary of the actual results through February 28, 2026, compared to the Fiscal Year 2025-26 Amended Budget:
• Operating revenues are $6.9 million, or 0.8% above budget assumptions primarily due to higher retail sales resulting from warmer temperatures. Uncollectable customer accounts are lower relative to budget.
• Cost of energy is $35.9 million, or 5.0% under budget, primarily due to lower energy costs resulting from lower renewable expenses.
• Professional Services and Consultants: $3.2 million below budget due to lower-than-expected utilization of outside professional services. • Personnel Costs: $0.4 million under budget, driven by vacancies and accrued vacation. • Non-Operating Revenues and Expenses:
• Total investment income of $12.9 million vs the budgeted $12.2 million. • $1.3 million in year-to-date interest and related expenses versus $1.0 million budgeted, in line with expectations.
The chart below shows the Budgeted Net Position as compared to actual operating income through the first eight months of FY26:
-$10M
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026 Operating Income $33.8M $27.6M $62.4M $17.1M $4.2M $12.1M $5.8M Budget Net Position $32.9M $21.3M $46.8M -$0.1M -$2.1M $8.2M -$2.7M Budget Net Position to Actual Operating Income
Operating Income Budget Net Position
9 Financial Reserves:
Under Resolution 2025-23, Community Power’s revised Financial Reserves Policy establishes a minimum reserve requirement of 180 days cash on hand and a reserve target of 225 days cash on hand. For Fiscal Year 2025-26, this target equates to approximately $623 million, based on projected operating expenses.
Community Power reserves at the end of the period totaled $634.9 million- or 227-days cash on hand, including $446.5 million in unrestricted cash and $188.3 million in investment holdings. Total available liquidity (including unrestricted cash, investment holdings, and available lines of credit) was $857.9 million.
Presented below are charts showing Community Power’s rolling 12-month financial reserves relative to Reserve Policy thresholds, along with the composition of reserves between unrestricted cash and investments.
Unrestricted
Cash
$ 446,539,605
71%
Investments
(Current),
$ 84,643,429
13%
Investments
(Non-Current)
$ 103,686,264
16%
RESERVES
10 Presented below are the Budget to Actual results for the eight months ending February 28, 2026. 11 Investment Portfolio Report
Chandler Asset Management manages Community Power’s investment portfolio.
As of February 28, 2026, the market value of the portfolio was $115.7M and in compliance with Community Power’s Investment Policy. Presented below is a summary of the investment portfolio’s overall characteristics.
The chart below presents monthly and year-to-date investment income for the first eight months of FY26.
Contract Execution between $50,000 and $150,000
To ensure transparency and comply with Community Power’s Non-Energy Procurement Policy, the table below lists contracts or amendments with not-to-exceed values between $50,000 and $150,000 that were executed under the CEO’s authority for the month of April. • San Diego350 for EBD Program Outreach - $78k
• Groundwork San Diego – Chollas Creek for EBD Program Outreach - $85k • Good For Others Foundation Funding Agreement - $50k
12 • Planet Bids - $59k
• San Diego Football Club - $115k
Capital Investment Program Fund
The FY 2026-30 Capital Investment Plan contains all the individual capital projects, major equipment purchases, and major programs for the agency that are intended to span multiple years and that are considered one-time projects rather than recurring projects.
The first year of the FY 2026-30 CIP is Community Power’s capital budget shown in the Budgetary Comparison Schedule. Unspent funds are kept within the CIP and carried forward to the subsequent fiscal year. The CIP includes funding for local development feasibility studies, customer program pilot projects, member agency grants, community grants, a customer education platform, and other community-focused areas. 13 Customer Participation Rates
The participation rate for Community Power reflects full enrollment of current member agencies. We are reporting on the opt outs and eligible accounts associated with the phase based on those accounts that we have noticed for enrollment on a rolling basis as of the reporting month.
Presented below are the customer participation rates by jurisdiction as of April 1, 2026. 14 Presented below is the state of Community Power arrearages. The arrearage data below includes Community Power’s receivables aged 120+ days as of April 1, 2026.
Presented below is a breakout of Community Power’s arrearages data by residential and commercial customer class as of April 1, 2026.
Fiscal Impact
N/A
Strategic Plan
Consistent with the Strategic Plan objective of implementing prudent fiscal strategies to support long-term organizational sustainability.
Attachments
A: FY 2026 Year-to-Date Period Ended February 28, 2026, Financial Statements. 15 ITEM 2
ATTACHMENT A
16 1
ACCOUNTANTS’ COMPILATION REPORT
Management
San Diego Community Power
Management is responsible for the accompanying financial statements of San Diego Community Power (a California Joint Powers Authority) which comprise the statement of net position as of February 28, 2026, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the eight months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. San Diego Community Power’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
April 7, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 17 Current assets
Cash and cash equivalents - unrestricted 446,539,605$
Cash and cash equivalents - restricted 33,257,761
Accounts receivable, net of allowance 96,865,860
Accrued revenue 46,178,107
Prepaid expenses 2,945,281
Other receivables 9,360,653
Deposits 8,806,441
Investments 84,643,429
Total current assets 728,597,137
Noncurrent assets
Cash and cash equivalents - restricted 11,856,402
Investments 103,686,264
Capital assets, net of depreciation and amortization 1,251,296 Total noncurrent assets 116,793,962
Total assets 845,391,099
Current liabilities
Accrued cost of electricity 92,503,469
Accounts payable 5,072,042
Other accrued liabilities 3,151,005
State surcharges payable 385,156
Deposits - energy suppliers 383,731
Lease liability 893,837
Advances from grantors 44,467,163
Total current liabilities 146,856,403
Noncurrent liabilities
Deposits - energy suppliers 3,867,810
Total noncurrent liabilities 3,867,810
Total liabilities 150,724,213
Net investment in capital assets 357,459
Restricted for security collateral 647,000
Unrestricted 693,662,427
Total net position 694,666,886$
NET POSITION
SAN DIEGO COMMUNITY POWER
STATEMENT OF NET POSITION
As of February 28, 2026
ASSETS
LIABILITIES
See accountants' compilation report. 2 18
OPERATING REVENUES
Electricity sales, net $ 904,413,396
Grant revenue 3,911,883
Liquidated damages revenue 2,348,023
Other income 44,283
Total operating revenues 910,717,585
OPERATING EXPENSES
Cost of electricity 667,189,615
Contract services 15,557,152
Staff compensation 13,565,564
Other operating expenses 8,107,460
Depreciation and amortization 619,786
Total operating expenses 705,039,577
Operating income 205,678,008
NON-OPERATING REVENUES (EXPENSES)
Investment income 12,911,528
Interest expense (154,814)
Nonoperating revenues (expenses), net 12,756,714
CHANGE IN NET POSITION 218,434,722
Net position at beginning of year 476,232,164
Net position at end of year 694,666,886$
SAN DIEGO COMMUNITY POWER
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Eight Months Ended February 28, 2026
See accountants' compilation report. 3 19
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 951,779,572$
Receipts from grantors 22,902,513
Receipts of supplier security deposits 21,855,240
Receipts from wholesale sales and other operating activities 7,292,280 Payments to suppliers for electricity (682,027,289)
Payments for other goods and services (21,981,211)
Payments for deposits and collateral (5,330,351)
Payments for staff compensation (13,601,686)
Payments of state surcharges (1,790,551)
Net cash provided by operating activities 279,098,517
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds from bank note 19,000,000
Principal payments - bank note (19,000,000)
Interest payments (89,170)
Net cash provided (used) by noncapital
financing activities (89,170)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Lease payments (623,856)
Purchases of capital assets (553,540)
Net cash used by capital and related financing activities (1,177,396)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 10,890,195
Proceeds from investment sales and maturities of investments 4,591,012 Purchase of investments (120,833,636)
Net cash provided (used) by investing activities (105,352,429) Net change in cash and cash equivalents 172,479,522
Cash and cash equivalents at beginning of year 319,174,246 Cash and cash equivalents at end of year 491,653,768$
Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents - current 446,539,605$ Restricted cash and cash equivalents - current 33,257,761 Restricted cash and cash equivalents - noncurrent 11,856,402 Cash and cash equivalents 491,653,768$
NONCASH INVESTING ACTIVITIES
Change in fair value of investments 1,024,429$
Change in interest income receivable 996,904$
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS
Eight Months Ended February 28, 2026
See accountants' compilation report. 4
20 Operating income 205,678,008$
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 619,786
(Increase) decrease in:
Accounts receivable, net 19,161,363
Accrued revenue 26,564,252
Prepaid expenses 20,856,854
Other receivables (4,263,758)
Deposits 2,287,770
Increase (decrease) in:
Accrued cost of electricity (9,698,697)
Accounts payable 1,261,070
Advances from grantors 19,211,449
Other accrued liabilities 991,050
State surcharges payable (149,990)
Deposits - energy suppliers (3,420,640)
Net cash provided by operating activities 279,098,517$
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Eight Months Ended February 28, 2026
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report. 5 21
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
San Diego Community Power
Management is responsible for the accompanying operating fund and capital investment program fund budgetary comparison schedules of San Diego Community Power (SDCP), a California Joint Powers Authority, for the eight months ended February 28, 2026 and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
These special purpose statements are prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of SDCP.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
SDCP’s annual audited financial statements will include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to SDCP because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
April 7, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 22 Amended
Budget Actual
Amended
Budget Variance
(Under) Over
Actual/
Amended
Budget %
Amended
Budget
Amended
Budget
Remaining
REVENUES AND OTHER SOURCES
Gross Ratepayer Revenues 914,709,000 918,186,189$ 3,477,189 100% 1,194,789,000 276,602,811$ Less: Uncollectible Customer Accounts (14,818,000) (13,772,793) 1,045,207 93% (19,370,000) (5,597,207) Other Income - 2,392,306 2,392,306 na - (2,392,306)
Total Revenues and Other Sources 899,891,000 906,805,702 6,914,702 1,175,419,000 268,613,298
OPERATING EXPENSES
Cost of Energy 703,159,000 667,189,615 (35,969,385) 95% 969,917,000 302,727,385 Professional Services and Consultants 15,609,000 12,443,317 (3,165,683) 80% 23,414,000 10,970,683 Personnel Costs 13,075,000 12,617,802 (457,198) 97% 19,612,000 6,994,198 Marketing and Outreach 1,545,000 1,555,062 10,062 101% 2,317,000 761,938 General & Administrative 3,098,000 2,825,196 (272,804) 91% 4,648,000 1,822,804 Total Operating Expenses 736,486,000 696,630,992 (39,855,008) 1,019,908,000 323,277,008 Operating Income (Loss) 163,405,000 210,174,709 46,769,709 155,511,000 (54,663,709)
NON-OPERATING REVENUES (EXPENSES)
Investment Income 12,197,000 12,911,528 714,528 106% 18,295,000 5,383,472 Interest and Related Expenses (1,010,000) (1,272,577) (262,577) 126% (1,515,000) (242,423) Transfer to Capital Investment Program (21,881,000) (21,881,000) - 100% (21,881,000) - Total Non-Operating Revenues (Expenses) (10,694,000) (10,242,049) 451,951 (5,101,000) 5,141,049 NET CHANGE 152,711,000$ 199,932,661$ 47,221,661$ 150,410,000$ (49,522,661)$
SAN DIEGO COMMUNITY POWER
BUDGETARY COMPARISON SCHEDULE
Eight Months Ended February 28, 2026
OPERATING FUND
Year-to-Date Annual
See accountants' compilation report. 23
Annual
Amended
Budget YTD Actual
Amended
Budget
Remaining
REVENUES AND OTHER SOURCES
Transfer in from Operating Fund 21,881,000$ 21,881,000$ -$ Grant Revenue - SDREN 31,868,547 3,290,520 (28,578,027) Grant Revenue - CDFA Efficient Refrigeration Pilot - 621,363 621,363 Grant Revenue - DAC 589,822 - (589,822)
Total Revenue and Other Sources 54,339,369 25,171,520 (29,167,849)
EXPENDITURES AND OTHER USES
Program Expenditures 54,628,369 7,262,008 (47,366,361)$ Net increase (decrease) in fund balance (289,000)$ 17,909,512 Fund balance at beginning of period 10,340,567
Fund balance at end of period 28,250,079$
BUDGETARY COMPARISON SCHEDULE
Eight Months Ended February 28, 2026
CAPITAL INVESTMENT PROGRAM FUND
See accountants' compilation report. 24
SAN DIEGO COMMUNITY POWER
Staff Report – Item 3
To: Finance and Risk Management Committee
From: Timothy Manglicmot, Senior Director of Finance and Risk Will Weisman, Associate Director of Finance
Mark Alfaro, Finance Manager
Chris Do, Senior Financial Analyst
Kevin Bateman, Financial Analyst
Julissa Mercedes, Financial Analyst
Via: Karin Burns, Chief Executive Officer
Subject: Presentation of Draft FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan, and Quarterly Risk Oversight Committee Report
Date: May 21, 2026
Recommendation
Receive and File preliminary draft FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan, and Quarterly Risk Oversight Committee Report.
Background
On October 1, 2019, the Founding Members of San Diego Community Power (Community Power) adopted the Joint Powers Agreement (JPA) which was amended and restated on December 16, 2021. Section 4.6.2 of the JPA specifies that the Community Power Board of Directors (Board) shall adopt an annual budget prior to the commencement of the fiscal year.
The JPA further provides that Community Power’s fiscal year runs from July 1 to June 30, unless changed by the Board.
Section 7.3.1 of the JPA requires that Community Power budgets be prepared and approved by the Board in accordance with its fiscal management policies that should include a deadline for approval.
25 On July 28, 2022, the Board adopted a budget development schedule as part of the Community Power Budget Policy consistent with Table 1. This development schedule includes an annual budget review in May by the Finance and Risk Management Committee (FRMC), which occurs prior to the Community Power Board of Directors (Board) previewing the budget in May and prior to the Board potentially adopting the budget in June.
Table 1. Current Budget Development Schedule
Table 2 illustrates the Draft FY 2026-2027 budget in comparison to Community Power’s budgets from prior years.
Table 2. Community Power Budget History
Operating Budget Net Revenues Total Expenses Net Position FY 2020-21 Amendment $26,286,909 $34,135,000 ($7,848,091) FY 2021-22 Amendment $378,053,506 $342,177,063 $35,876,443 FY 2022-23 Amendment $929,791,929 $772,078,709 $157,713,220 FY 2023-24 Amendment $1,304,274,067 $1,070,891,284 $233,382,783 FY 2024-25 Amendment $1,221,258,172 $1,187,090,169 $34,168,003 FY 2025-26 Amendment $1,175,418,913 $1,025,004,360 $150,414,553 FY 2026-27 Proposed $918,820,685 $915,734,166 $3,086,519 Additionally, Community Power traditionally adopts an annual 5-year Capital Investment Plan (CIP). Community Power’s first CIP was approved on June 22, 2023, under Resolution No. 2023-24. The CIP contains all the individual capital projects; major equipment purchases and major programs for the agency that are intended to span multiple years and that are considered one-time projects rather than recurring projects. Further, the first year of the CIP represents the capital budget appropriation for the upcoming fiscal year.
On January 15, 2021, the Community Power Board approved the most recent revision to the agency’s Energy Risk Management Policy. Pursuant to Section 7.3 of the policy, the Chief Executive Officer is required to establish a Risk Oversight Committee (ROC), which is charged with overseeing compliance with the policy and reporting, at least quarterly, to the Finance and Risk Management Committee (FRMC) regarding its activities, deliberations, and any identified areas of concern. Given the ROC’s role in enforcing the Energy Risk Management 26 Policy and its direct connection to the active management of energy costs and net revenue— the largest component of Community Power’s operating expenditures—the presentation of the Draft FY 2026–27 Operating Budget, FY 2026–27 Capital Budget, and FY 2027–2031 Capital Investment Plan includes the Quarterly Risk Oversight Committee Report.
Analysis and Discussion
The draft FY 2026-2027 operating budget includes net operating revenue of $918,820,685 and total expenses of $915,734,166, resulting in net position of $3,086,519.
The draft FY 2026-2027 capital budget includes $71,417,654 from a combination of internal and external sources to fund six projects. Including existing appropriations, a total of 19 active projects are proposed to be funded during the fiscal year.
The draft FY 2027-2031 capital investment plan includes 19 projects that are planned to receive funding during the five-year period, totaling $310,756,105 in investment. The first year of the FY 2027-2031 CIP reflects the draft FY 2026-2027 capital budget. Additionally, $21,418,314 in unspent continuing funds were appropriated by the Board in prior fiscal years and is represented as carryforward budget. Separately, the Board authorized the full appropriation of $124,000,000 for the San Diego Regional Energy network in 2025, of which $63,417,654 is included in the FY 2026-2027 capital budget.
The draft budget includes the key assumptions outlined below.
Operating Revenue
Community Power’s net operating revenue consists primarily of revenues from sales of electricity. Assumptions regarding net operating revenue include:
• Enrollment of customers is complete from member jurisdictions in Phases 1, 2, 3 and
4. • 95% participation rate across all jurisdictions.
• An uncollectible rate of 1.5%, as compared to 1.75% in the prior fiscal year. • Rates that were set and approved by the Board on April 23, 2026, for the period from July 1, 2026, to December 31, 2026.
• Power Charge Indifference Adjustment (PCIA) is consistent with SDG&E Partial Supplemental Advice Letter 4791-E-A filed on March 30, 2026, for the period from July 1, 2026, to December 31, 2026.
• Generation rates are projected to decrease between 15% to 20% between calendar years 2026 and 2027 and, within the FY27 Draft Budget, for the period from January 1, 2027, to June 30, 2027.
• PCIA is expected to increase between 25% to 55% between calendar year 2026 and 2027 and, within the FY27 Draft Budget, for the period from January 1, 2027, to June 30, 2027.
27 • Rates and PCIA for the period from January 1, 2027, to June 30, 2027, are forecasted based on Community Power’s latest forecasted energy, resource adequacy, and renewable energy prices through April 30, 2026.
• Power100 and Power100 Green-e Certified (Green-e Plus) will maintain premiums of $0.01/kWh and $0.02/kWh, respectively, compared to PowerOn. • Any further rate changes, including mid-year changes, are subject to Board discretion and approval.
Cost of Energy includes all the various services purchased from the power market through our counterparties to supply energy to Community Power’s customers. Assumptions regarding cost of energy include:
• Forecasts are based on contracts, long-term load, and energy forward prices through April 30, 2026.
• Open positions not yet under contract for energy are generally assumed to be closed based on the forecasted energy forward price for the period. • The Voluntary Allocation and Market Offer (VAMO) and Modified Cost Allocation Mechanism (MCAM) contracts with San Diego Gas & Electric (SDG&E) are based on Community Power’s latest forecasted energy, resource adequacy, and renewable energy prices through April 30, 2026.
Operating Expenses
Community Power’s non-energy operating expenses fall into four categories: “personnel costs”, “professional services and consultants”, “marketing and outreach”, and “general and administration.” Expense assumptions include the following:
• Personnel include salaries, payroll taxes, benefits, and excused absence and paid time off for staff. The recruitment strategy includes the addition of approximately five new staff members during the FY 2026-27 budget cycle, growing the agency to 108 total staff.
• Professional Services and Consultants include SDG&E fees, data management fees from Calpine, technical support (for rate setting, load analysis, energy scheduling, etc.), legal/regulatory services and other general contracts related to IT services, audits and accounting services.
• Marketing and Outreach includes expenses for mandatory notices, communication consultants, mailers, printing, sponsorships, and partnerships to inform the community of Community Power.
• General and Administration budget covers the cost of office space, equipment, membership dues, and other general operational costs.
28 Non-Operating Expenses
Community Power’s budget also includes non-operating expenses related to interest and related expenses used to finance its operations. These costs are comprised of associated interest costs as well as potential renewal fees on debt or letters of credit.
Capital Investment Plan (CIP)
In FY 2026-2027 Community Power is continuing its Capital Investment Plan (CIP) which contains all the individual capital projects, equipment purchases, and major programs for the agency that are intended to span multiple years. The draft FY 2026-2027 operating budget proposes a one-time transfer to the CIP as a continuing fund in which any unspent funds are kept within that fund and carried forward to the subsequent fiscal year to support internally funded programs. Operating budget contributions are funded through a combination of net operating revenues and non-operating investment income as appropriate based on program restrictions. The first year of the CIP is the draft FY 2026-2027 capital budget.
For FY 2026-2027, Community Power proposes a one-time investment of $8.0 million into the agency’s Capital Investment Plan to support internally funded programs. This proposed contribution is primarily supporting the following programs:
• Solar Battery Savings: $3.5 million will continue investment in Solar Battery Savings, which offers upfront and performance-based incentives for home battery systems that boost resilience and reduce grid demand.
• Customer Pilot Programs: $2.5 million will support Customer Pilot Programs which represent small-scale, short-duration projects that can provide Community Power and stakeholders data on program design, technology acceptance and other information helpful for broader program delivery.
• Distributed Energy Resources Management Systems Software Platform: $1.5 million will support the Distributed Energy Resources Management Systems Software Platform to support the organization’s Flexible Load Strategy Net Income
The draft FY 2026-2027 budget results in a net position of $3,086,519.
The following table illustrates Community Power’s draft FY 2026-27 operating budget compared to the amended budgets for FY 2024-25 and FY 2025-26. 29 Table 3. Draft FY 2026-2027 Budget compared to FY 2024-25 and FY 2025-26 Amended Budgets.
FY25 Amended FY26 Amended FY27 Draft
Gross Revenue 1,243.0 1,194.8 932.8
Less Uncollectible Accounts -21.8 -19.4 -14.0
Net Operating Revenues 1,221.3 1,175.4 918.8
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 56.5
Subtotal Operating Expense 1,167.6 1,019.9 928.9
Investment Income 0.0 18.3 23.1
Debt Service -1.3 -1.5 -1.9
Capital Investment Plan (Transfer Out) -18.2 -21.9 -8.0 Total Expenses 1,187.1 1,025.0 915.7
Net Position 34.2 150.4 3.1
Amounts displayed in millions, $
The next table illustrates Community Power’s draft FY 2027-2031 Capital Investment Plan.
The first year of the FY 2027-2031 Capital Investment Plan represents Community Power’s FY 2026-2027 Capital Budget.
30 Table 4. Community Power FY 2027-2031 Capital Investment Plan
Carry-forward FY27
Draft FY28 FY29 FY30 FY31 Total
External Funding
Regional Energy Network - 63.1 51.4 42 43.7 45.5 245.70 DAC-GT 0.3 0.3 - - - - 0.60
CDFA 0.7 - - - - - 0.70
Equitable Building
Decarbonization 1.4 - - - - - 1.40
Programs Evaluation 0.7 - 0.70
Total External Funding 3.1 63.4 51.4 42 43.7 45.5 249.10
Internal Funding
Solar Battery Savings 10.8 3.5 10.4 8.3 8.5 7.6 49.10
Pilot Programs 1.8 2.5 - - - 4.30
Grants 1.3 - - - - - 1.30
Flexible Load 0.5 1.5 - - - - 2.00
IT Projects 3.2 0.2 - - - - 3.40
Program Evaluation 0.3 0.3 - - - - 0.60
Application Assistance 0.3 - 0.3 - - 0.3 0.90
Total Internal Funding 17.8 8.0 10.7 8.3 8.5 7.9 60.9
Total CIP Expenses 21.3 71.40 62.10 50.30 52.20 53.40 310.70 Amounts displayed in millions, $
Carryforward amounts reflect a point in time estimate during the budget development process. These amounts are subject to change over the remainder of the fiscal year and will be updated for the adopted budget.
Reserves
Under Resolution No. 2025-23, Community Power’s revised Financial Reserves Policy established a minimum reserve requirement of 180 days cash on hand, a reserve target of 225 days cash on hand, and a maximum reserve of 270 days cash on hand.
Additionally, pursuant to Resolution No. 2026-07, Community Power established a Rate Stabilization Reserve (RSR). Under the resolution, the Target RSR Balance may be an amount up to or equivalent to 45 Days Cash on Hand, representing the Reserves between the Target 31 Reserve Balance and Maximum Reserve Balance of Community Power’s Financial Reserves, as defined in the Financial Reserves Policy.
Under the draft FY 2026-2027 operating budget, Community Power is projected to have an ending reserve balance of $707.1 million- or 278-days cash on hand based on the operating expenses projected in FY 2026-27. Staff note that based on operating expenses projected in FY 2025-26, the ending reserve balance would have been 255 days cash on hand. Pursuant to Community Power’s Reserve Policy, should fiscal year-end reserves exceed the maximum reserve balance of 270 days cash on hand, the Board may authorize excess reserve distributions at their discretion, including for Strategic Uses for a Programmatic Reserve. Staff recommend building reserves to 278-days cash on hand given the significant downside risk that staff project in calendar year 2027 and as discussed in the Risk Oversight Committee (ROC) Report discussed in the next section of the staff report.
Total projected ending liquidity (including unrestricted cash, investment holdings, and available lines of credit) for FY 2026-27 is 368 days liquidity on hand.
Risk Oversight Committee (ROC) Report
As discussed at Community Power’s Board meeting on December 11, 2025, the most significant financial risk facing the agency is volatility in Market Price Benchmarks (MPBs) as they flow through the Power Charge Indifference Adjustment (PCIA) and SDG&E bundled rates.
The PCIA is intended to ensure that departing load customers pay their proportionate share of above-market costs associated with investor-owned utility legacy resources, including SDG&E contracts, so that remaining bundled utility customers are not left bearing those costs. The PCIA is recalculated annually based on the difference between an Investment Owned Utility (IOU’s) actual portfolio costs and the estimated current market value of that portfolio. As a result, the PCIA materially influences Community Power’s rate competitiveness and budget planning and is highly sensitive to fluctuations in market prices. Each year, the California Public Utilities Commission (CPUC) establishes a Market Price Benchmark to estimate the market value of an IOU’s energy portfolio, which serves as the reference point for determining above-market costs embedded in the PCIA.
On October 1, 2025, the CPUC published SDG&E’s projected MPB values for 2026, including $39.90 per megawatt-hour for on-peak energy, $48.48 per megawatt-hour for off-peak energy, $11.53 per kilowatt-month for resource adequacy, and $62.45 per megawatt-hour for renewable portfolio standard attributes. As of April 30, 2026, Community Power’s projected market prices for on-peak energy, off-peak energy, and renewable resources for calendar years 2026 and 2027 are materially lower than those published benchmark values.
Declining market price benchmarks have a compounded financial impact on Community Power due to the timing mechanics of the PCIA and the Power Asset Benchmark Adjustment 32 (PABA). Lower MPB values increase calculated above-market costs and are reflected through the PABA true-up in 2026, which results in a higher PCIA applied to Community Power customers in 2027. At the same time, those same market conditions contribute to lower SDG&E bundled generation rates in 2027. Together, these effects place downward pressure on Community Power’s relative rate position by increasing PCIA charges while reducing the competing utility rate benchmark.
Community Power’s latest projections, which are incorporated into the Draft FY 2026-27 Operating Budget, therefore reflect significant downside risk to net revenue in calendar year 2027 attributable to Market Price Benchmark volatility, the single largest financial risk factor facing the agency. This downside risk is partially mitigated within the cost of energy through (1) open energy positions that can be closed at lower projected market prices and (2) lower projected renewable prices under the VAMO contract with SDG&E. These factors are the primary drivers of the reduction in overall operating expenses reflected in the FY 2026-27 Operating Budget.
However, energy forward price projections are still very preliminary with Community Power’s projections only being through April 30, 2026. The CPUC is expected to publish updated MPBs in late September, at which time staff expect to have a much better projection for the latter half of the fiscal year. Staff also, therefore, expect to have a recommendation to fund the RSR during this time period as well, once we have better information and data.
Fiscal Impact
The draft FY 2026-2027 budget is expected to result in a net position of $3.1 million, with a resulting ending reserve balance of $707.1 million- or 278-days cash on hand based on the operating expenses projected in FY 2026-27.
Community Power proposes a one-time investment of $8 million into the agency’s Capital Investment Plan, which is reflected in the operating budget.
Strategic Plan
This activity supports the strategic plan goal for Financial Stability and to practice fiscal strategies to promote long-term organizational stability. Specifically, this action supports the strategic goals of (1) obtaining a public investment grade credit rating by November 2027, and (2) building reserves by $150M to maintain a reserve target of at least 180 Days Cash On Hand by December 2027.
33 Attachments
A: Draft FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan
34 ITEM 3
ATTACHMENT A
35 FY 2026-2027 Operating Budget
FY 2026-2027 Capital Budget
FY 2027-2031 Capital Investment Plan
for the period
July 1, 2026
through
June 30, 2027
36 TABLE 1: DRAFT FY2026-2027 BUDGET
San Diego Community Power
Draft FY 2026-27 Budget
Supplemental Details
OPERATING REVENUES
FY 2024-25
Amended Budget
FY 2025-26
Amended Budget
FY 2026-27
Proposed Budget
% of Net
Revenues
Gross Ratepayer Revenues $ 1,243,010,863 $ 1,194,789,046 $ 932,812,878 (Less Uncollectible Customer Accounts) $ (21,752,690) $ (19,370,133) $ (13,992,193) Net Operating Revenues $ 1,221,258,172 $ 1,175,418,914 $ 918,820,685 100.0%
COST OF ENERGY
Cost of Energy $ 1,116,836,549 $ 969,916,628 $ 872,343,026 Total Cost of Energy $ 1,116,836,549 $ 969,916,628 $ 872,343,026 94.9% Gross Net Position $ 104,421,623 $ 205,502,285 $ 46,477,659 5.1%
OPERATING EXPENSES
Professional Services and Consultants
Data Management $ 14,569,264 $ 13,819,264 $ 12,912,595
SDG&E Fees $ 3,435,746 $ 3,835,746 $ 3,456,000
Technical Support $ 2,098,333 $ 2,264,333 $ 3,015,235
Legal/Regulatory $ 2,138,000 $ 1,226,200 $ 1,576,200
Other Services $ 2,104,999 $ 2,268,835 $ 2,915,831
Total Prof. Svcs. Costs $ 24,346,342 $ 23,414,378 $ 23,875,861 2.6% Personnel Costs
Salaries $ 14,988,227 $ 15,298,873 $ 19,284,224
Benefits (retirement/health) $ 2,549,522 $ 3,811,399 $ 4,210,527 Payroll Taxes $ 1,030,146 $ 498,938 $ 640,131
Total Personnel Costs $ 18,567,895 $ 19,609,209 $ 24,134,882 2.6% Strategic Communications and Community Outreach
Printing $ 1,107,143 $ 693,263 $ 640,865
Memberships $ 1,201,450 $ 1,000,700 $ 214,790
Strategic Communications and Community Outreach $ 670,000 $ 622,500 $ 1,577,500 Total Mrktg and Outreach Costs $ 2,978,593 $ 2,316,463 $ 2,433,155 0.3% General and Administration
Other G & A $ 3,637,905 $ 2,824,997 $ 4,223,983
Cal CCA Dues $ 460,000 $ 555,000 $ 555,000
Rent $ 744,264 $ 935,784 $ 935,784
Insurance $ 67,592 $ 331,414 $ 384,161
Total G & A Costs $ 4,909,761 $ 4,647,195 $ 6,098,928 0.7% Net Operating Expenses $ 50,802,591 $ 49,987,246 $ 56,542,826 6.2% Total Operating Expenses $ 1,167,639,140 $ 1,019,903,874 $ 928,885,852 101.1% Operating Income (Loss) $ 53,619,033 $ 155,515,040 $ (10,065,167) -1.1%
NON-OPERATING REVENUES (EXPENSES)
Investment income $ - $ 18,294,938 $ 23,101,021
Interest and Related Expenses $ (1,276,000) $ (1,514,825) $ (1,949,335) Transfer to Capital Investment Program $ (18,200,000) $ (21,880,600) $ (8,000,000) Total Non-Operating Revenues (Expenses) $ (19,476,000) $ (5,100,487) $ 13,151,686 1.4% CHANGE IN NET POSITION $ 34,143,033 $ 150,414,553 $ 3,086,519 0.3% 37 Proposed Budget Overview
Budget-in Brief
The Draft FY 2026-2027 Operating Budget continues full enrollment from Phases 1, 2, 3 and 4 for all ratepayers, inclusive of net-energy metering customers, from Community Power’s member jurisdictions within the San Diego region representing 8.3 million MWH of retail load in the fiscal year.
Energy costs represent the largest component of Community Power’s budget. Current projections reflect a year-over-year decline in energy costs driven by lower market price assumptions associated with Market Price Benchmark (MPB) volatility. The Draft FY 2026-2027 Operating Budget therefore reflects lower cost of energy assumptions due to the ability to close open energy positions at reduced prices and lower projected renewable prices under the VAMO contract with SDG&E.
At the same time, lower forward market prices are driving a more significant reduction in projected ratepayer revenue. As reflected through the Power Charge Indifference Adjustment (PCIA) and SDG&E bundled rates, MPB volatility remains the most significant financial risk to Community Power.
Recent declines in market prices are expected to reduce revenues year-over-year as higher PCIA charges coincide with lower competing utility rates. As a result, both revenues and energy costs are projected to decline year-over-year, with energy cost reductions only partially offsetting anticipated revenue pressure.
Because current market price projections are based on data available through April 30, 2026, and remain preliminary, updated Market Price Benchmarks from the California Public Utilities Commission (CPUC) later in the year are expected to provide greater clarity on secondhalf fiscal year impacts and inform future reserve funding recommendations.
The Draft FY 2026-2027 Operating Budget additionally contains prudently-managed and modest growth in non-energy operating budget categories. As Community Power has scaled to full enrollment, the agency is thoughtfully and prudently managing staffing levels by adding 5 staff to grow from 103 to 108 total staff. In FY 2026-2027, Community Power is expected to have a generally comparable operating budget and staffing levels compared to its peer Community Choice Aggregators (CCA) of similar customer and load size, while supporting a broader portfolio of customer programs and strategic initiatives.
By the end of FY 2026-2027, Community Power’s reserves are expected to grow to its maximum reserve level of 270 days cash on hand, mostly as a function of a lower operating expense base in FY 2026-2027. Based on operating expenses projected in FY 2025-2026, the ending reserve balance would have been 255 days cash on hand. Actual cash reserves are projected to remain at a consistent level with the prior fiscal year, which should allow Community Power to navigate the volatile energy market and maintain its investment-grade credit rating. 38 Lastly, this budget continues to include the Community Power Capital Investment Plan (CIP) that contains one-time revenue and one-time expenses for programs and projects over multi-year periods, including one-time investments from the operating budget to the CIP. The first year of the FY 2027-2031 CIP comprises the FY 2026-2027 capital budget, which proposes an investment of $8 million from the operating budget to support the CIP. This bolsters an overall project portfolio, including external funding sources, of $71.4 million for the fiscal year.
Draft Budget
The Community Power Draft FY 2026-2027 (FY2027) Budget is presented in further detail in the following pages. The table below summarizes the revenue and expense budgets proposed for FY2027 in comparison to the FY2025 and FY2026 Amended Budgets.
TABLE 2: OPERATING BUDGET OVERVIEW
FY25 Amended FY26 Amended FY27 Draft
Gross Revenue 1,243.0 1,194.8 932.8
Less Uncollectible Accounts -21.8 -19.4 -14.0
Net Operating Revenues 1,221.3 1,175.4 918.8
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 56.6
Subtotal Operating Expense 1,167.6 1,019.9 928.9
Interest Income 0.0 -18.3 -23.1
Debt Service 1.3 1.5 1.9
CIP 18.5 21.9 8.0
Total Expenses 1,187.4 1,025.0 915.7
Net Position 33.9 150.4 3.1
Amounts displayed in millions, $
39 Operating Revenue
Community Power’s main source of revenue is from the retail sale of electricity to its customers.
Revenue budgeted for FY 2026-2027 reflects a full fiscal cycle of retail sales to our commercial and industrial customer base and retail sales to our residential customer base. Generally, retail sales are calculated based on customer load (i.e. customer energy usage) multiplied by the associated rate class of the customer.
Additional assumptions for net operating revenue include:
• Enrollment of customers is complete from member jurisdictions in Phases 1, 2, 3 and 4. • 95% participation rate across all jurisdictions.
• An uncollectible rate of 1.5%, as compared to 1.75% in the prior fiscal year. • Rates that were set and approved by the Board on April 23, 2026, for the period from July 1, 2026, to December 31, 2026.
• Power Charge Indifference Adjustment (PCIA) is consistent with SDG&E Partial Supplemental Advice Letter 4791-E-A filed on March 30, 2026, for the period from July 1, 2026, to December 31, 2026.
• Generation rates are projected to decrease between 15% to 20% between calendar years 2026 and 2027 and, within the FY2027 Draft Budget, for the period from January 1, 2027, to June 30, 2027.
• PCIA is expected to increase between 25% to 55% between calendar year 2026 and 2027 and, within the FY2027 Draft Budget, for the period from January 1, 2027, to June 30, 2027. • Rates and PCIA for the period from January 1, 2027, to June 30, 2027, are forecasted based on Community Power’s latest forecasted energy, resource adequacy, and renewable energy prices through April 30, 2026.
a. Power100 and Power100Green+ (Green-e® certified) service plans will maintain premiums of $0.01/kWh and $0.02/kWh, respectively, compared to PowerOn. • Any further rate changes, including mid-year changes, are subject to Board discretion and approval.
The following table summarizes the revenues for FY2027 Draft Budget compared to the FY2025 and FY2026 Amended Budgets. Note that Gross Revenue and Less Uncollectible Accounts are based on projected numbers from rate setting that was approved by the Board on January 15, 2026.
TABLE 3: OPERATING REVENUE BY BUDGET LEVEL 2
FY25 Amended FY26 Amended FY27 Proposed
Gross Revenue 1,243.0 1,194.8 932.8
Less Uncollectible Accounts -21.8 -19.4 -14.0
Net Operating Revenues 1,221.3 1,175.4 918.8
Amounts displayed in millions, $
40 Operating Expenses
Expenses in the Community Power Operating Budget fall into five budget level 2 categories: cost of energy, personnel costs, professional services and consultants, marketing and outreach, and general and administration.
• Cost of Energy – Cost of Energy includes all the various services purchased from the power market through our suppliers. This includes purchased energy, capacity (Resource Adequacy), renewables, CAISO fees and other miscellaneous power market expenses. • Personnel – Personnel costs include salaries, payrolltaxes, benefits, and excused absence and paid time off for staff. In addition, costs include assumptions from the Board adopted compensation policy including potential merit and cost-of-living increases. • Professional services and consultants
o Legal/Regulatory Services – Community Power retains legal counsel to assist with the complex aspects of the regulatory, compliance, power supply contract negotiations and its general legal needs. This line item will also allow for the retention of both a state and federal lobbyist to support Community Power’s legislative and regulatory efforts.
o Technical Support – Community Power engages consultants to assist with rate setting, policies, joint-rate comparisons with SDG&E, load analysis, and a scheduling coordinator. After electric power is scheduled for delivery to customers and consumed by those customers, the actual electric consumption must be trued up against the forecasted and scheduled energy. This true-up occurs through the settlement process. Settlements also entail addressing several other market and regulatory requirements. As Community Power grows its internal staff, it will look to continue to in-house portions of this service.
o Other Services – Community Power contracts or plans to contract for Audit services (data and financial), Accounting services, and other services as needed. Community Power continues to examine if these services are more cost effective or efficient to bring in-house. As Community Power expands its in-house functions, Community Power expects a reduction in the related professional services support areas. o SDG&E Service Fees – Service fees paid to SDG&E consist of a charge of a fixed fee per account per month. The fees cover SDG&E’s costs associated with meter reading, additional data processing, and bill coordination as mandated and regulated by the CPUC. There are also numerous small fees associated with data requests. 41 o Data Management – Broad scope of services that includes all “back office” billing data validation, bill coordination with SDG&E, call center services and billing technical support, customer enrollment database management, move- in/move-out services, customer research for enrollment support, and many support functions related to data reporting.
• Strategic Communications and Community Outreach – Strategic Communications and Community Outreach involves promoting Community Power services and engaging with the community through campaigns, public relations, events, and educational programs to increase awareness, drive customer enrollment, and build positive relationships. It also includes outreach to underserved communities to ensure equitable access to Community Power’s clean, renewable energy services. • General and Administration – General and Administration costs include leasing office space, industry fees, or memberships (e.g., CalCCA dues), equipment and software, as well as other general operational costs including Board and Committee expenses, Board stipends, staff travel or professional development, team building, etc. 42 The table below summarizes the expenses for the FY2027 Draft Budget compared to the FY2025 and FY2026 Amended Budgets.
TABLE 4: OPERATING EXPENSES BY BUDGET LEVEL 2
FY25 Amended FY26 Amended FY27 Draft
Cost of Energy 1,116.8 969.9 872.3
Professional Services and Consultants 24.3 23.4 23.9
Personnel Costs 18.6 19.6 24.1
Strategic Communications and Community Outreach 3.0 2.3 2.4 General and Administration 4.9 4.7 6.1
Subtotal Operating Expenses 1,167.6 1,019.9 928.9
Interest Income 0.0 -18.3 -23.1
Debt Service 1.3 1.5 1.9
Capital Investment Program (Transfer Out) 18.2 21.9 8.0 Subtotal Non-Operating Expenses 19.5 5.1 13.2
Total Expenses 1,187.1 1,025.0 915.7
Amounts displayed in millions, $
Non-Operating Revenues (Expenses)
Non-operating revenue represents interest income earned on cash reserves. Non-operating expenses represent interest paid on borrowed funds under the bank credit facility maintained by Community Power used to finance a portion of its operations. Expenses also include other bank-related fees (i.e., letter of credit issuance fees, renewal fees, etc.).
43 Community Power Capital Investment Program (CIP)
The CIP for FY 2027-2031 outlines the individual capital projects, major equipment purchases, and major programs for the agency that are intended to span multiple years. Contributions are considered one-time in nature and do not reflect future funding commitments. The first year of the FY 2027-2031 CIP is Community Power’s proposed capital budget for the upcoming fiscal year.
The Draft FY 2026-2027 Capital Budget totals $71.4 million, and the Draft FY 2027-2031 CIP totals $310.7 million over the outlook period. The total CIP includes $21.3 million in unspent continuing funds which were appropriated by the Board in prior fiscal years and is reflected as carryforward budget.
Carryforward amounts are point-in-time estimates during the budget development process and will be updated for the adopted budget. In addition to carryforward funds, the Draft FY 2026-2027 Capital Budget includes $63.1 million for the San Diego Regional Energy Network, recoverable through the California Public Utilities Commission, which was authorized by the Board in January 2025. Specifically, in January 2025, the Board approved, accepted and appropriated $124.3 million in funds for the San Diego Regional Energy Network, and $63.1 million of those previously authorized funds are expected to be expended in FY 2026-2027.
The Draft FY 2026-2027 operating budget proposes an $8.0 million transfer from operations into the CIP. This transfer is funded by a combination of net-operating revenue and non-operating investment income based on the nature of the project or program being funded. In contrast to the operating budget, these contributions are carried forward to subsequent fiscal years within the CIP, where they remain until expended or reappropriated through subsequent action. The draft operating contribution primarily supports the following programs:
• $3.5 million, Solar Battery Savings: Community Power's Residential Solar Battery Savings Program is designed to help single-family homeowners in Community Power's service territory invest in clean energy and support the grid by installing solar and battery storage in their homes or complement an existing solar system with a new battery system. The program provides two financial incentives for participating customers: an upfront incentive to minimize the initial cost of the battery system and a performance incentive for a daily discharge of the battery (during a specified dispatch window during on-peak periods) to maximize benefits for the customer and the grid.
• $2.5 million, Customer Pilot Programs: Pilot programs are small-scale, short-duration projects (6–18 months) that can provide Community Power and stakeholders data on program design, technology acceptance and other information helpful for broader program delivery. Pilot programs support Community Power staff's ability to properly and efficiently design and implement programs. Additionally, pilot programs can cover all customer segments (e.g., commercial residential) and a variety of technologies or activities (e.g., managed charging for electric vehicles, energy efficiency).
44 • $1.5 million, Distributed Energy Resources Management Systems Software Platform: Central to Community Power's Flexible Load Strategy is the selection and implementation of a Distributed Energy Resource Management System (DERMS). A DERMS is a software platform that incorporates various data points, such as weather, market/price data and customer preferences, to optimize the operation of distributed energy resources (DERs) in support of various grid services. Once operational, this system will allow Community Power to help customers reduce usage during high-cost on-peak periods, while managing portfolio-wide power procurement and resource adequacy costs and risk.
TABLE 5: DRAFT FY 2026-2027 CAPITAL BUDGET
Carryforward FY27 Authorized
Budget
FY27 Draft
Appropriation
Operating Transfer In 18.2 8.0
Regional Energy Network - 63.1 -
DAC-GT 0.3 0.3 -
CDFA 0.7 - -
Equitable Building Decarbonization 1.4 - -
Other 0.7 -
Total 21.3 63.4 8.0
Amounts displayed in millions, $
45 TABLE 6: DRAFT FY 2026-2027 CAPITAL INVESTMENT PLAN
Carryforward [1] FY27 FY28 FY29 FY30 FY31 Total
External Funding
Regional Energy Network - 63.1 51.4 42.0 43.7 45.5 245.7 DAC-GT 0.3 0.3 - - - - 0.6
CDFA 0.7 - - - - - 0.7
Equitable Building Decarbonization 1.4 - - - - - 1.4
Programs Evaluation 0.7 - 0.7
Subtotal 3.1 63.4 51.4 42.0 43.7 45.5 249.1
Internal Funding
Solar Battery Savings 10.8 3.5 10.4 8.3 8.5 7.6 49.1
Pilot Programs 1.8 2.5 - - - 4.3
Grants 1.3 - - - - - 1.3
Flexible Load 0.5 1.5 - - - - 2.0
IT Projects 3.2 0.2 - - - - 3.4
Program Evaluation 0.3 0.3 - - - - 0.6
Application Assistance 0.3 - 0.3 - - 0.3 0.9
Subtotal 18.2 8.0 10.7 8.3 8.5 7.9 61.6
Total CIP Expenses 21.3 71.4 62.1 50.3 52.2 53.4 310.7
Amounts displayed in millions, $
[1] The carryforward amount reflects actual financial data through January 31, 2026.
Carryforward amounts will be updated for the adopted budget and will be reconciled until the close of fiscal year 2025-2026 46 Operating Expenses by Department
The table below summarizes the Draft FY2027 Operating Budget expenses by department. All personnel costs including fringe benefits are included in the Operations department. The Power Services department includes Cost of Energy in their Expenses.
TABLE 7: OPERATING EXPENSES BY DEPARTMENT
FY25 Amended FY26 Amended FY27 Draft
Power Services 1,118.9 972.0 875.3
Executive 0.2 0.1 0.4
Operations 20.7 20.9 24.3
Finance 2.1 2.8 5.0
Customer Operations 19.3 18.5 17.2
IT and Data Analytics 1.4 1.5 2.0
Public Affairs 1.8 1.7 1.8
Programs 0.0 0.0 0.0
Regulatory and Legislative Affairs 0.7 0.5 0.5
Human Resources and Administration 0.7 0.9 1.0
Legal 1.8 1.0 1.4
Total Operating Expenses 1,167.6 1,019.9 928.9
Amounts displayed in millions, $
47 Personnel by Department
The table below summarizes the projected personnel for the Draft FY2027 Operating Budget and the full-time equivalent (FTE) personnel in the FY2025 and FY2026 Amended Operating Budgets. While personnel may be authorized, they must be filled. Detailed information showing filled and proposed FTE transfers by department is included in the following personnel by department section below.
The personnel budget is included within the Operations department.
TABLE 8: PERSONNEL BY DEPARTMENT
FY25 Amended FY26 Amended FY27 Proposed
Power Services 16.0 15.0 16.0
Executive 5.0 5.0 5.0
Operations 5.0 6.0 6.0
Finance 9.0 13.0 13.0
Customer Operations 8.0 6.0 7.0
IT and Data Analytics 9.0 16.0 16.0
Public Affairs 12.0 11.0 13.0
Programs 12.0 16.0 17.0
Regulatory and Legislative Affairs 5.0 5.0 5.0
Human Resources and Administration 4.0 7.0 7.0
Legal 2.0 3.0 3.0
Total FTEs 87.0 103.0 108.0
48 Budget by Department
Power Services
Budget Highlights
• The cost of energy, the largest cost in Community Power’s budget, has decreased from $969.9 million to $872.3 million.
• The largest drivers reducing energy costs are market decreases to forward prices for energy which allows Community Power to close open energy positions at a lower cost. Additionally, lower forward prices for renewables drove down projected costs from Community Power’s Voluntary Allocation Market Offer (VAMO) contract with SDG&E. b. Open positions for energy, resource adequacy, and renewable energy for FY 2026- 2027 are priced at the forward energy curves as of April 30, 2026. c. The FY 2026-2027 figures include long-term power-purchase agreements that are online or expected to be online during the fiscal year. • The SDG&E VAMO contract is priced at Community Power’s latest CPUC Market Price Benchmark (MPB) projections as of April 30, 2026, which is markedly lower than the CPUC MPB from September 2026.
• The SDG&E Modified Cost Allocation Mechanism contract is similarly priced at Community Power’s latest CPUC MPB projection which has increased slightly since September 2026. • Power Services proposes adding one position for a Load Forecast Manager.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Power Services 16.0 15.0 16.0
TABLE 9: POWER SERVICES POSITIONS
Executive
Budget Highlights
• Executive budget has increased by $280,000 to support leadership and manager development, research projects, strategic planning and affordability efforts.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Executive 5.0 5.0 5.0
49 TABLE 10: EXECUTIVE POSITIONS
Operations
Budget Highlights
• The Operations department includes the Chief Executive Officer, Chief Operating Officer, Clerk of the Board, Office of Strategic Initiatives, and Project Management Office. • Decreased funding for travel costs across the agency. • Operations budget increases are largely due to personnel costs for proposed positions and for positions from last fiscal year being actualized over an entire fiscal year. • Healthcare costs increased as rates have increased since last year in addition to increased healthcare costs to support newly hired positions.
• Accrued PTO has increased as additional staff has been hired and as staff tenure has increased annual PTO earnings.
• Payroll taxes have increased as Community Power has completed Section 218 enrollment and has adjusted the resulting Federal Insurance Contributions Act (FICA) federal payroll tax. • Utilities for office space have increased consistent with recent burn rates and as Community Power has hired additional staff.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Operations 5.0 6.0 6.0
TABLE 11: OPERATIONS POSITIONS
Finance
Budget Highlights
• Bank service fees within Other G&A increased by approximately $1.4M, reflecting an updated utilization factor, higher transaction volume and program scale. d. Accounting services increased consistent with the annual escalation clause in the contract with Maher Accountancy, with additional pass-through costs as SDCP utilizes 50 more software resources, and with anticipated use of the contingency given usage in FY 2025-2026.
• Finance proposes to contribute an additional $217,500 into the Enterprise Resource Planning project and an additional $60,000 for ongoing operating costs to maintain the software. • Licenses for Microsoft Dynamics 365 were included as Community Power’s Enterprise Resource Planning project reaches substantial completion and ongoing licensing fees are included.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Finance 9.0 13.0 13.0
TABLE 12: FINANCE POSITIONS
51 Customer Operations
Budget Highlights
• Customer Operations manages contact center operations, supports key accounts and provides analytical insights to guide rate setting, forecasting and customer service enhancements.
• Calpine Energy Solutions budget saw a $0.9 million reduction to reflect per-account billing agreement consistent with the agreement approved by the Board on March 26, 2026. • The Calpine Energy Solutions professional services agreement remains Community Power’s largest non-energy contract and provides significant data management separate from the IT and Data Analytics department.
e. San Diego Gas and Electric Service Fees had nominal reduction consistent with burn rates from FY 2025-2026.
• The Neyenesch Printers contract was reduced as Community Power is pursuing more electronic delivery channels reducing paper mail volumes. • The Financial Credit Network budget had a small increase assuming a modest recovery for expected collections.
• Customer Operations proposes adding one position, Rates Analyst, to provide additional support needed for the shift to dynamic rates pursuant to SDG&E's 2026 Demand Flex Rate Application proceeding and Community Power’s California Energy Commission Load Management Standards plan, large load rate design, and other improvements and innovations in rate design to better serve our various customer classes. Positions between the FY2025 Amended budget and FY2026 Amended budget also included a reclassification of positions to the IT and Data Analytics department.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Customer Operations 8.0 6.0 7.0
TABLE 13: CUSTOMER OPERATIONS POSITIONS
52 IT and Data Analytics
Budget Highlights
• Budget has increased largely due to expenses associated with maintaining ongoing costs for the Enterprise Data Platform, Customer Relationship Management system and artificial intelligence exploration.
• AI Managed Services for AI enablement and implementation is included as an ask for this fiscal year.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
IT and Data Analytics 9.0 16.0 16.0
TABLE 14: IT AND DATA ANALYTICS
Public Affairs
Budget Highlights
• Continued outreach to educate the community of the benefits of community choice and to encourage awareness of our mission, our programs, our rates, and our community activities. f. Public Affairs proposes adding two positions, Outreach Manager and SDREN Outreach Associate, the latter which would be supported by the SDREN budget.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Public Affairs 12.0 11.0 13.0
TABLE 15: PUBLIC AFFAIRS POSITIONS
53 Programs
Budget Highlights
• An additional $8 million has been allocated to CIP projects including Solar Battery Savings, Distributed Energy Resource Management System, various pilot programs, Enterprise Resource Planning, and the EV Load Growth study.
• Programs proposes to add one position, a Senior Program Associate, to support the Distributed Energy Resource Management Systems (DERMS) as the technical lead.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Programs 12.0 16.0 17.0
TABLE 16: PROGRAMS POSITIONS
Regulatory and Legislative Affairs
Budget Highlights
• Budget remains the same as FY26 with a transition of Federal Lobbyist services to the Public Affairs budget as a part of the LEAN Membership.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Regulatory Affairs 5.0 5.0 5.0
TABLE 17: REGULATORY AND LEGISLATIVE AFFAIRS POSITIONS
Human Resources and Administration
Budget Highlights
• The budget had very nominal increases to account for talent acquisition and supporting employee professional development.
• Increased budget for a Human Resources Intern.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Human Resources 4.0 7.0 7.0
TABLE 18: HUMAN RESOURCES POSITIONS
54 Legal
Budget Highlights
• Budget increases to support necessary external counsel to bolster regulatory counsel and other outside counsel to support strategic initiatives and other internal goals. • Additional support for Legal staff to attend mandatory training and conferences.
Department Positions
FY25 Amended FY26 Amended FY27 Draft
Legal 2.0 3.0 3.0
TABLE 19: LEGAL POSITIONS
55 Significant Budget Adjustments
The following section summarizes the most significant changes between the FY 2025-2026 Amended Budget and the FY 2026- 2027 Draft Budget across the operating budget, capital budget, and Capital Investment Plan (CIP). These adjustments reflect the combined impact of evolving market conditions, including lower energy price assumptions and associated revenue changes, as well as targeted investments in staffing, programs, and strategic initiatives. The table below highlights key year-over-year changes in major revenue, expense, and capital categories to provide a consolidated view of the primary drivers shaping Community Power’s financial outlook for FY 2026-27.
Adjustment Description Department FTE
Increases Expenses Revenues
Operating Revenues
Gross Ratepayer Revenues
Decrease
Generation rates are projected to decrease
between 15% to 20% and PCIA is expected to
increase between 25% and 55% between
calendar years 2026 and 2027, driving down
operating revenue and resulting from lower
projected forward market prices.
Finance – – ($256,598,228)
Uncollectible Adjustment
Reduced uncollectible allowance assumptions
from 1.75% to 1.5% in alignment with
uncollectible data through April 30, 2026.
Finance – – +5,377,940
Operating Expenses
Professional Services and Consultants
Data Management Decrease
Calpine Energy Solutions budget saw a $0.9
million reduction to reflect per-account billing
agreement consistent with the agreement
approved by the Board on March 26, 2026.
Customer
Operations – ($906,669) –
SDG&E Fees Decrease
San Diego Gas and Electric Service Fees had
nominal reduction consistent with burn rates
from FY 2025-26 and pursuant to the SDG&E
fee schedule outlined in SDG&E Electric Rule 27
and Schedule CCA.
Customer
Operations – ($379,746) –
Scheduling Coordinator
Decrease
Lower usage anticipated with Tenaska Power
Services as Community Power unbundled
services and added new vendors for short-term
load forecasting and asset optimization.
Power
Services – ($131,000) –
Printing Decrease
Reduction in expected printing costs under the
professional services agreement with
Neyenesch Printers due to the optimization of
electronic delivery channels by reducing paper
mail volumes.
Customer
Operations – ($104,560) –
56 Incremental Load Forecast
Services Decrease Moved budget from Tenaska to Yes Energy. Power Services – ($100,000) –
Renewable Energy Storage
Optimization Increase
Pursuant to the master-services agreement with
Ascend Analytics approved by the Board in
December 2025, to deploy advanced battery
optimization software, ensuring clean energy
grid reliability during peak demand. This cost is
based on the number of online projects, which
increased by 8 (~1GW of capacity) in 2026.
Power
Services – +$695,000 –
Regulatory Counsel Increase
Increase in legal support
for regulatory proceedings before the
CPUC consistent with the contract approved by
the Board in April 2026.
Legal – +$250,000 -
AI Managed Services
Increase
AI Managed Services for AI enablement and
implementation to expand functionality and
potential productivity within the agency.
IT and Data
Analytics – +$200,000 -
Accounting Services
Increase
Accounting services increased consistent with
the annual escalation clause in the contract with
Maher Accountancy, approved by the Board in
January 2025, with additional pass-through
costs as SDCP utilizes more software resources,
and with anticipated use of the contingency
given prior usage in FY 2025-2026.
Finance – +$175,842 -
Direct Access Managed
Service Increase
Remaining not-to-exceed expected to be spent
in FY2027, pursuant to contract with Aspen
Environmental Group approved by the Board in
October 2025.
IT and Data
Analytics – +$160,00 -
Long-Term Load Forecasting
Increase
Remaining not-to-exceed expected to be spent
in FY2027, pursuant to contract with Aspen
Environmental Group approved by the Board in
October 2025.
Power
Services – +$125,000 -
Personnel Costs
Healthcare Increase
Updated with the most current premiums and
factors in inflation for the upcoming renewal
cycle. Also factors in additional hires.
Operations – +$557,478 -
Accrued PTO Increase PTO accrual has increased as staff tenure increases and as PTO balances increase.
Operations – +$520,648 -
Retirement Payout Increase
Retirement contributions have
increased pursuant to Community Power
retirement benefits as additional staff are hired.
Operations – +$294,406 -
FICA Increase
FICA payroll
taxes have increased as additional staff are
hired and in alignment with Community Power’s
Section 218 election.
Operations – +$149,000 -
57 Cost-Recoverable Salary
and Benefits
Updated salary budget for cost-recoverable
positions from mid-year review.
Operations – ($1,186,612) -
Lodging Reduced agency-wide staff travel in the
upcoming fiscal year. Operations – ($111,552) -
Community Engagement
Manager
Supports expansion of community partnerships
and engagement strategy.
Public
Affairs 1 +$159,000 -
Load Forecast Manager
Improves forecasting accuracy for procurement
and planning decisions.
Power
Services 1 +$159,000 -
Senior Program Associate
(DERMS Technical Lead)
Provides technical leadership for DERMS
implementation and grid integration.
Programs 1 +$110,400 -
SDREN Outreach Associate
(Cost Recoverable)
Expands outreach capacity tied to externally
funded SDREN programs.
Public
Affairs 1 +$110,400 -
Rates Analyst Strengthens rate design and financial
sustainability analysis.
Customer
Operations
1 +$110,400 -
Strategic Communications and Community Outreach
Strategic Communications
and Community
Outreach Increase
Consolidates previously separate
communications, marketing, outreach and
engagement functions into a single category to
better reflect how work is executed through
targeted activities that include customer
education campaigns, community events,
partnerships with community-based
organizations, media relations, digital
communications (e.g. website, social media,
newsletters), and multilingual outreach. The
increased year-over-year budget supplements
current budget activities and contracts to
improve customer awareness and participation
in Community Power's expanding portfolio of
programs, including new pilots.
Public
Affairs – +116,692 -
General Administration
Bank Service Fees Increase
Increase reflects an updated utilization factor for
unused credit, higher transaction volume and
program scale.
Finance – +$1,353,852 -
Non-Operating Revenues (Expenses)
Investment Income
Investment Income
Increase
Additional investment income is anticipated as
Community Power has grown its reserve
balance consistent with the reserve policy
adopted by the Board in December 2025.
Finance – ($4,806,083) –
Interest and Related Expenses
58 Interest and Related
Expenses Increase
Forecasted additional interest based on latest
projections for interest rates and assuming
$30.0 million usage of the Community Power
line-of-credit.
Finance – +$434,510 –
Capital Investment Plan (CIP)
CIP – DERMS Platform
Central to Community Power's Flexible
Load Strategy is the Distributed Energy
Resource Management System
(DERMS) platform. The DERMS platform
allows Community Power to help customers
reduce usage during high-cost on-peak periods,
while managing portfolio-wide power
procurement and resource adequacy costs and
risk. Funding supports annual platform fees and
service for the remainder of the Board-approved contract, including a 20% contingency.
Programs – +$1,500,000 –
CIP – Solar + Storage
Incentives
Community Power's Residential Solar Battery
Savings Program is designed to help our single-family homeowners and support the grid by installing solar and battery storage and
offset high-cost on-peak consumption. Funding
will support incentives for an additional ~675
program participants.
Programs – +$3,532,500 -
CIP – Customer Pilot
Programs
Provides dedicated funding for customer-facing
pilot initiatives that test new program concepts.
These pilots will primarily support customer
segments and technologies not targeted in
the initial tranche of Pilot Program
funds allocated in FY 2023-
2024 (e.g., Commercial, Non-Residential, Multi-Family, Renters, Commercial Fleets) and continue to focus on peak load shifting.
Programs – +$1,900,000 -
CIP – ERP System
The Enterprise Resource Planning (ERP)
project aims to implement an ERP system for
Community Power to streamline budgeting,
enhance reporting, manage procurement
and contracts and improve overall operational
efficiency. Additional funding is
an enhancement to the original ERP
contract with PS Hummingbird approved by the
Board in January 2026, and would allow Finance
to add a priority module for procurement and
contracts in the upcoming fiscal year.
Finance – +$217,500 -
CIP – BYOD Pilot
Funds the continuation of the Smart Home Flex
Pilot Project for an additional year. The
continuation of the pilot is expected to allow
an additional 5,000 participants. Funding is
primarily for participation
incentives, seasonal performance incentives and
device fees.
Programs – +$600,000 -
59 CIP – EV Load Study
Funds a study to assess electric vehicle (EV) load
growth potential and better understand how
increasing EV adoption may impact system
demand. This analysis will inform future
infrastructure planning and program design
by identifying expected load impacts and
helping the organization plan for evolving
customer energy needs.
Programs – +$250,000 -
CIP – Regional Energy
Network (External Funding)
The SDREN includes the rollout and execution
of 10 programs during FY2027 and will deliver a
portfolio of energy efficiency programs across
residential, commercial, and public sectors,
providing direct customer benefits through
technical assistance, incentives, and equipment
installations to reduce energy use, lower
customer bills, and improve building
performance. The program includes offerings
such as single-family and multifamily energy
upgrades, small-business support (including
efficient refrigeration and energy coaching), and
targeted outreach to underserved and Tribal
communities, alongside broader strategies that
support electrification, demand response, and
distributed energy resource deployment. All
activities will be cost-recoverable through CPUC
funds and include funding for nine staff and
overhead support.
Programs – - +$63,117,653.66
CIP – DAC-GT
(External Funding)
The Disadvantaged Communities Green Tariff
(DAC-GT) program enables income-qualified
residential customers in DACs who may be
unable to install solar panels on their roof
to benefit from utility-scale clean energy and
receive a 20% bill discount. Funding is
external, originates from state Greenhouse Gas
(GHG) Auction Proceeds and Public Purpose
Program funds, and funds program
administration for program year 2026.
Programs – - +$300,000
60 Glossary
AB – Assembly Bill: An Assembly Bill is a piece of legislation that is introduced in the Assembly. In other words, the Assembly (rather than the Senate) is the bill’s house of origin in the Legislature. In California, it is common for legislation to be referred to by its house of origin number even after it becomes law. However, because bill numbers “reset” and start again from 1 in each legislative session, it is less confusing to include chapter and statute information when referring to a bill that has become law; for example, SB 350 (Chapter 547, Statutes of 2015).
AL - Advice Letter: An Advice Letter is a request by a California Public Utilities Commission (CPUC) jurisdictional entity for Commission approval, authorization or other relief.
ALJ – Administrative Law Judge: ALJs preside over CPUC cases to develop the evidentiary record and draft proposed decisions for Commission action.
ARB – Air Resources Board: The California Air Resources Board (CARB or ARB) is the “clean air agency” in the state government of California. CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change.
AReM – Alliance for Retail Energy Markets: AReM is a not-for-profit corporation that advocates for continued development of successful customer choice in retail energy markets and provides a focused voice for competitive energy retailers and their customers in select public policy forums at the state level. It represents direct access providers such as Constellation NewEnergy and Direct Energy.
BayREN – Bay Area Regional Energy Network: BayREN offers regionwide energy programs, services and resources to members of the public by promoting energy efficient buildings, reducing carbon emissions and building government capacity.
CAISO – California Independent System Operator: CAISO is a nonprofit public benefit corporation that oversees the operation of the California bulk electric power system, transmission lines and electricity market generated and transmitted by its members (approximately 80% of California’s electric flow). Its stated mission is to “operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship and facilitate effective markets and promote infrastructure development.” CAISO is regulated by the Federal Energy Regulatory Commission (FERC) and governed by a five-member governing board appointed by the governor.
CalCCA – California Community Choice Association: CalCCA is a statewide association, made up of Community Choice Aggregators (CCAs), that represents the interests of California’s community choice electricity providers.
1 61
CALSEIA – California Solar Energy Industries Association: CALSEIA represents more than 200 companies doing solar-related business in California, including manufacturers, distributors, installation contractors, consultants and educators. Members’ annual dues support professional staff and a lobbyist who represents the common interests of California’s solar industry at the Legislature, Governor’s Office and state and local agencies.
CALSLA – California City-County Street Light Association: CALSLA is a statewide association representing cities, counties and towns before the CPUC that is committed to maintaining fair and equitable streetlight electricity rates and facilities charges and disseminating streetlight-related information.
CAM – Cost Allocation Mechanism: CAM is the cost recovery mechanism to cover procurement costs incurred in serving the central procurement function.
CARB – California Air Resources Board: The CARB is charged with protecting the public from the harmful effects of air pollution and developing programs and actions to fight climate change in California.
CARE – California Alternative Rates for Energy: CARE is a state program for low-income households that provides a 30% discount on monthly energy bills and a 20% discount on natural gas bills. It is funded through a rate surcharge paid by all other utility customers.
CBE – Communities for a Better Environment: CBE is an environmental justice organization that was founded in 1978. The mission of CBE is to build people’s power in California’s communities of color and low-income communities to achieve environmental health and justice by preventing and reducing pollution and building green, healthy and sustainable communities and environments.
CCA – Community Choice Aggregator: A community choice aggregator, sometimes referred to as community choice aggregation, is an entity of local governments that procure power on behalf of their residents, businesses and municipal accounts from an alternative supplier while still receiving transmission and distribution service from their existing utility provider. CCAs are an attractive option for communities that want more local control over their electricity sources, more green power than is offered by the default utility, and/or lower electricity prices. By aggregating demand, communities gain leverage to negotiate better rates with competitive suppliers and choose greener power sources.
CCSF – City and County of San Francisco: The City and County of San Francisco often engage in joint advocacy before the CPUC. San Francisco operates CleanPowerSF, a CCA.
CEC – California Energy Commission: The CEC is the primary energy policy and planning agency for California, whose core responsibilities include advancing state energy policy, achieving energy efficiency, investing in energy innovation, developing renewable energy, transforming transportation, overseeing energy infrastructure and preparing for energy emergencies.
CEE – Coalition for Energy Efficiency: CEE is a nonprofit composed of U.S. and Canadian energy-efficiency administrators working together to accelerate the development and availability of energy-efficient products and services.
2 62
CLECA – California Large Energy Consumers Association: CLECA is an organization of large, high-load factor industrial customers located throughout the state; its members are in the cement, steel, industrial gas, pipeline, beverage, cold storage, food packaging and mining industries and their electricity costs comprise a significant portion of their costs of production. Some members are bundled customers, others are Direct Access (DA) customers, and some are served by Community Choice Aggregators (CCAs); a few members have onsite renewable generation.
CPUC – California Public Utility Commission: The CPUC is a state agency that regulates privately owned electric, natural gas, telecommunications, water, railroad, rail transit and passenger transportation companies, in addition to authorizing video franchises.
C&I – Commercial and Industrial: C&I customers are business customers who generally consume much higher volumes of electricity and gas. Many utilities segment their C&I customers by energy consumption (small, medium and large).
CP – Compliance Period: A Compliance Period is the time period to become Renewables Portfolio Standard (RPS) compliant, set by the California Public Utilities Commission (CPUC).
DA – Direct Access: Direct Access is an option that allows eligible customers to purchase their electricity directly from third-party providers known as Electric Service Providers (ESPs).
DA Cap: The DA Cap is the maximum amount of electric usage that may be allocated to Direct Access customers in California or, more specifically, within an investor-owned utility service territory.
DACC – Direct Access Customer Coalition: DACC is a regulatory advocacy group composed of educational, governmental, commercial and industrial customers that utilize direct access for all or a portion of their electrical energy requirements.
DA Lottery: The DA Lottery is a random drawing by which DA waitlist customers become eligible to enroll in DA service under the currently applicable Direct Access Cap.
DA Waitlist: The DA Waitlist consists of customers that have officially registered their interest in becoming a DA customer but are not yet able to enroll in service because of DA cap limitations.
DAC – Disadvantaged Community: “Disadvantaged communities” refers to the areas throughout California that most suffer from a combination of economic, health and environmental burdens.
These burdens include poverty, high unemployment, air and water pollution and the presence of hazardous wastes as well as high incidences of asthma and heart disease. One way that the state identifies these areas is by collecting and analyzing information from communities statewide.
CalEnviroScreen, an analytical tool created by the California Environmental Protection Agency (CalEPA), combines different types of census tract-specific information into a score to determine which communities are the most burdened or “disadvantaged.” DASR – Direct Access Service Request: DASR is a request submitted by C&I customers to become direct access eligible.
3 63
Demand: Demand refers to the rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts (kW), megawatts (MW) or gigawatts (GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy.
DER – Distributed Energy Resource: A DER is a small-scale physical or virtual asset (e.g., EV charger, smart thermostat, behind-the-meter solar/storage, energy efficiency) that operates locally and is connected to a larger power grid at the distribution level.
Distribution: Distribution refers to the delivery of electricity to the retail customer’s home or business through low-voltage distribution lines.
DLAP – Default Load Aggregation Point: In the CAISO’s electricity optimization model, DLAP is the node at which all bids for demand should be submitted and settled.
DR – Demand Response: DR is an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.
DRP – Distributed Resource Plans: Distributed Resource Plans are required by statute and intended to identify optimal locations for the deployment of distributed resources.
DWR – Department of Water Resources: DWR is the state agency charged with managing California’s water resources, systems and infrastructure in a responsible, sustainable way.
ECR – Enhanced Community Renewable: ECR is an IOU (Investor-Owned Utility) program that reflects the “Community Solar” model of renewable energy purchasing. Customers sign up to purchase a portion of a local solar project directly from a developer at a level that meets at least 25% and up to 100% of their monthly electricity demand. The customer pays the developer for the subscribed output and receives a credit on their utility bill that reflects their enrollment level.
ED – Energy Division: The CPUC’s Energy Division develops and administers energy policy and programs to serve the public interest, advise the Commission and ensure compliance with Commission decisions and statutory Mandates.
EE – Energy Efficiency: Energy Efficiency refers to the use of less energy to perform the same task or produce the same result. Energy-efficient homes and buildings use less energy to heat and cool and run appliances and electronics, and energy-efficient manufacturing facilities use less energy.
ELCC – Effective Load Carrying Capacity: ELCC is the additional load met by an incremental generator while maintaining the same level of system reliability. For solar and wind resources, the ELCC is the amount of capacity that can be counted for Resource Adequacy purposes.
EPIC – Electric Program Investment Charge: The EPIC program was created by the CPUC to support investments in clean energy technologies that provide benefits to the electricity ratepayers of Pacific Gas and Electric (PG&E), San Diego Gas & Electric Company (SDG&E) and Southern California Edison Company (SCE).
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ERRA – Energy Resource Recovery Account: ERRA proceedings are used to determine fuel and purchased power costs that can be recovered in rates. The utilities do not earn a rate of return on these costs and recover only actual costs. The costs are forecast for the year ahead. If the actual costs are lower than forecast, then the utility gives money back, and vice versa.
ES – Energy Storage: Energy Storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production.
ESA – Energy Storage Agreement: An ESA refers to a battery services contract, a capacity contract, demand response contract or similar agreement.
ESP – Energy Service Provider: An Energy Service Provider is an energy entity that provides service to a retail or end-use customer.
EV – Electric Vehicle: An EV is a vehicle that uses one or more electric motors for propulsion.
FCR – Flexible Capacity Requirements: “Flexible capacity need” is defined as the quantity of resources needed by the CAISO to manage grid reliability during the greatest three-hour continuous ramp in each month. Resources will be considered as “flexible capacity” if they can sustain or increase output or reduce ramping needs during the hours of “flexible need.” FCR means the flexible capacity requirements established for LSEs by the CPUC pursuant to the CPUC decisions.
GHG – Greenhouse gas: Water vapor, carbon dioxide, tropospheric ozone, nitrous oxide, methane and chlorofluorocarbons (CFCs) are gases that cause the atmosphere to trap heat radiating from the earth. The most common GHG is carbon dioxide.
GRC – General Rate Case: General Rate Cases are proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. For California’s three large IOUs, the GRCs are parsed into two phases. Phase I of a GRC determines the total amount the utility is authorized to collect, while Phase II determines the share of the cost each customer class is responsible for and the rate schedules for each class. Each large electric utility files a GRC application every three years for review by the Public Advocate’s Office and interested parties and for approval by the CPUC.
GTSR – Green Tariff Shared Renewables: The GTSR program enables customers to receive 50 to 100 percent of their electricity demand from renewable sources. The GTSR program has two components:
the Green Tariff (GT) component and the Enhanced Community Renewables (ECR) component.
Through GT, a customer may pay the difference between their current generation charge and the cost of procuring 50 to 100 percent renewables. With ECR, a customer agrees to purchase a share of a community renewable (typically solar) project directly from a developer and in exchange will receive a credit from their utility for the customer’s avoided generation procurement.
GWh – Gigawatt-hour: This is the unit of energy equal to that expended in one hour at a rate of one billion watts. One GWh equals 1,000 megawatt-hours.
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ICA – Integration Capacity Analysis: The enhanced integrated capacity and locational net benefit analysis quantify the capability of the system to integrate Distributed Energy Resources (DERs) within the distribution system. Results are dependent on the most limiting element of the various power system criteria such as thermal ratings, power quality, system protection limits and safety standards of existing equipment.
IDER – Integrated Distributed Energy Resources: A CPUC proceeding that aims to more effectively coordinate the integration of demand-side resources in order to better meet customer and grid needs, while enabling California to attain its greenhouse gas reduction goals.
IDSM – Integrated Demand-Side Management: This is an approach that joins together all the resources utilities have at their disposal to plan, generate and supply electricity in the most efficient manner possible.
IEPA – Independent Energy Producers Association: IEPA is California’s oldest and leading nonprofit trade association, representing the interest of developers and operators of independent energy facilities and independent power marketers.
IMD – Independent Marketing Division: Under state law, IOUs are prohibited from lobbying or marketing on community choice unless the IOU forms an independent marketing division funded by shareholders rather than ratepayers. SDG&E and its parent company Sempra were permitted by the CPUC to create such an independent marketing division, which allowed SDG&E to lobby against plans to create a CCA program.
IOU – Investor-Owned Utility: An IOU is a private electricity and natural gas provider, such as SDG&E, PG&E or SCE, which are the three largest IOUs in California.
IRP – Integrated Resource Plan: An Integrated Resource Plan outlines an electric utility’s resource needs in order to meet expected electricity demand long-term. kW – Kilowatt: This is a measure of power where power (watts) = voltage (volts) x amperage (amps) and 1 kW = 1,000 watts.
kWh – Kilowatt-hour: This is a measure of consumption. It is the amount of electricity that is used over some period of time, typically a one-month period for billing purposes. Customers are charged a rate per kWh of electricity used.
LCE – Lancaster Choice Energy: LCE is the CCA that serves the City of Lancaster, California.
LCFS – Low Carbon Fuel Standard: This is a CARB program designed to encourage the use of cleaner low-carbon fuels in California, encourage the production of those fuels and, therefore, reduce greenhouse gas emissions.
LCR – Local (RA) Capacity Requirements: This is the amount of Resource Adequacy capacity required to be demonstrated in a specific location or zone.
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LMP – Locational Marginal Price: Each generator unit and load pocket is assigned a node in the CAISO optimization model. The model will assign a LMP to the node in both the day-ahead and real-time market as it balances the system using the least cost. The LMP is composed of three components: the marginal cost of energy, congestion and losses. The LMP is used to financially settle transactions in the CAISO.
LNBA – Locational Net Benefits Analysis: This is a cost-benefit analysis of distributed resources that incorporates location-specific net benefits to the electric grid.
Load: Load refers to an end-use device or customer that receives power from an energy delivery system. Load should not be confused with Demand, which is the measure of power that a load receives or requires. See Demand.
LSE – Load-serving Entity: Load-serving Entities have been granted authority by state, local law or regulation to serve their own load directly through wholesale energy purchases and have chosen to exercise that authority.
LTPP – Long-Term Procurement Rulemaking: This is an “umbrella” proceeding to consider, in an integrated fashion, all of the CPUC’s electric procurement policies and Programs.
MCE – Marin Clean Energy: MCE was the first CCA in California and began serving customers in 2010.
It serves customers in Contra Costa, Marin, Napa and Solano counties in Northern California.
MEO – Marketing Education and Outreach: This is a term generally used to describe various strategies to inform customers, such as to motivate consumers to take action on energy efficiency or conservation measures and change their behavior.
MW – Megawatt: A megawatt hour (Mwh) is equal to 1,000 Kilowatt hours (Kwh) or 1,000 kilowatts of electricity used continuously for one hour.
MWH – Megawatt-hour: This is a measure of energy.
NAESCO – National Association of Energy Service Companies: NAESCO is an advocacy and accreditation organization for energy service companies (ESCOs). Energy service companies contract with private and public-sector energy users to provide cost-effective energy efficiency retrofits across a wide spectrum of client facilities.
NBC – Non-Bypassable Charge: Non-Bypassable Charges are fees that are paid on every kilowatt-hour of electricity that is consumed from the grid. These charges can be used to fund things like energy assistance programs for low-income households and energy efficiency programs. These charges apply even if customers buy grid-supplied power from an outside power company such as a CCA.
NDA – Non-Disclosure Agreement: An NDA is a contract by which one or more parties agree not to disclose confidential information that they have shared with each other. 7 67
NEM – Net Energy Metering: NEM is a program in which solar customers receive credit for excess electricity generated by solar panels.
NRDC – Natural Resources Defense Council: NRDC is a nonprofit international environmental advocacy group.
NP-15 – North Path 15: NP-15 is a CAISO pricing zone usually used to approximate wholesale electricity prices in Northern California in PG&E’s service territory.
OIR – Order Instituting Rulemaking: An OIR is a procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five commissioners of the CPUC.
OSC – Order to Show Cause: OSC is an order requiring an individual or entity to explain, justify or prove something.
ORA – Office of Ratepayer Advocates: The ORA is an independent consumer advocate within the CPUC, now called the Public Advocates Office.
PA – Program Administrator (for EE Business Plans): IOUs and local government agencies can be authorized to implement CPUC-directed energy efficiency programs.
PCE – Peninsula Clean Energy Authority: PCE is the CCA serving San Mateo County and all 20 of its cities and towns as well as the City of Los Banos.
PCC1 – RPS Portfolio Content Category 1: RPS Portfolio Content Category 1 includes bundled renewables where the energy and Renewable Energy Certificate (REC) are dynamically scheduled into a California Balancing Authority (CBA) such as the CAISO, also known as “in-state” renewables.
PCC2 – RPS Portfolio Content Category 2: RPS Portfolio Content Category 2 includes bundled renewables where the energy and Renewable Energy Certificate (REC) are from out of state and not dynamically scheduled to a CBA.
PCC3 – RPS Portfolio Content Category 3: RPS Portfolio Content Category 3 includes Unbundled Renewable Energy Certificate (REC).
PCIA or “exit fee” – Power Charge Indifference Adjustment: The Power Charge Indifference Adjustment (PCIA) is an “exit fee” based on stranded costs of utility generation set by the California Public Utilities Commission. It is calculated annually and assessed to customers of CCAs and paid to the IOU that lost those customers as a result of the formation of a CCA.
PCL – Power Content Label: The PCL is a user-friendly way of displaying information to California consumers about the energy resources used to generate the electricity they sell, as required by AB 162 (Chapter 313, Statutes of 2009) and SB 1305 (Chapter 796, Statutes of 1997). 8 68
PD – Proposed Decision: A PD is a procedural document in a CPUC Rulemaking that is formally commented on by parties to the proceeding. A PD is a precursor to a final decision voted on by the five commissioners of the CPUC.
PG&E – Pacific Gas & Electric: PG&E is the IOU that serves 16 million people over a 70,000-square-mile service area in Northern California.
PHC – Prehearing Conference: A PHC is a CPUC hearing to discuss the scope of a proceeding, among other matters. Interested stakeholders can request party status during these conferences.
Pnode – Pricing Node: In the CAISO optimization model, this is a point where a physical injection or withdrawal of energy is modeled and for which an LMP is calculated.
PPA – Power Purchase Agreement: A PPA is a contract used to purchase the energy, capacity and attributes from a renewable resource project.
PRP – Priority Review Project: These are transportation electrification pilot projects approved by the CPUC pursuant to SB 350 (Chapter 547, Statutes of 2015).
PRRR – Progress on Residential Rate Reform: Pursuant to a CPUC decision, the IOUs must submit to the CPUC and other parties periodic updates on the progress of their efforts to assist customers with residential rate design changes related to rate reform, including tier collapse and transition to a default time of use rate.
PUC – Public Utilities Code: The PUC is a California statute that contains 33 divisions; the range of topics within this code includes natural gas restructuring, private energy producers, telecommunication services, and specific municipal utility districts and transit authorities; the primary statute for governance of utilities as well as CCAs in California.
PURPA – Public Utilities Regulatory Policy Act: The PURPA is a federal statute passed in 1978 by Congress in response to the 1973 energy crisis to encourage fuel diversity via alternative energy sources and to introduce competition into the electric sector. It was intended to promote energy conservation (reduce demand) and promote greater use of domestic energy and renewable energy (increase supply).
RA – Resource Adequacy: Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities — investor-owned utilities, electricity service providers and CCAs — to demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads.
RAM – Renewables Auction Mechanism: This is a procurement program the investor-owned utilities (IOUs) may use to procure RPS eligible generation. The IOUs may use RAM to satisfy authorized procurement needs, for example, system Resource Adequacy needs, local Resource Adequacy needs, RPS needs, reliability needs, Local Capacity Requirements, Green Tariff Shared Renewables needs and any need arising from commission or legislative mandates. 9 69
RE – Renewable Energy: Renewable energy is energy from a source that is not depleted when used, such as wind or solar power.
REC - Renewable Energy Certificate: A REC is the property right to the environmental benefits associated with generating renewable electricity. For instance, homeowners who generate solar electricity are credited with 1 solar REC for every megawatt-hour of electricity they produce. Utilities obligated to fulfill an RPS requirement can purchase these RECs on the open market.
RES-BCT – Renewables Energy Self-Generation Bill Credit Transfer: This program enables local governments and universities to share generation credits from a system located on one government-owned property with billing accounts at other government-owned properties. The system size limit under RES-BCT is 5 MW, and bill credits are applied at the generation-only portion of a customer’s retail rate.
RFO – Request for Offers: This is a competitive procurement process used by organizations to solicit the submission of proposals from interested parties in response to a scope of services.
RPS - Renewable Portfolio Standard: RPS is a law that requires California utilities and other load-serving entities (including CCAs) to provide an escalating percentage of California qualified renewable power (culminating at 33% by 2020) in their annual energy portfolio.
SB – Senate Bill: A Senate Bill is a piece of legislation that is introduced in the Senate. In other words, the Senate, rather than the Assembly, is the house of origin in the Legislature for the Legislation.
SBP – Solar Billing Plan: The Solar Billing Plan, also known as the Net Billing Tariff or NEM 3.0, is the new method of compensating customer-sited renewable energy self-generation, intended to promote grid reliability and incentivize solar and battery storage.
SCE – Southern California Edison: SCE is the large IOU that serves the Los Angeles and Orange County area.
SCP – Sonoma Clean Power Authority: SCP is the CCA serving Sonoma County and surrounding areas in Northern California.
SDG&E – San Diego Gas & Electric: SDG&E is the IOU that serves San Diego County and owns the infrastructure that delivers Community Power energy to our customers.
SGIP – Self-Generation Incentive Program: SGIP is a program that provides incentives to support existing, new and emerging distributed energy resources (storage, wind turbines, waste heat to power technologies, etc.).
SUE – Super User Electric: This is an electric surcharge intended to penalize consumers for excessive energy use.
SVCE – Silicon Valley Clean Energy: SVCE is the CCA serving the communities in Santa Clara County. 10 70
TCR EPS Protocol – The Climate Registry Electric Power Sector Protocol: This refers to online tools and resources provided by The Climate Registry to assist organizations to measure, report and reduce carbon emissions.
TE – Transportation Electrification: For the transportation sector, electrification means replacing fossil fuels with electricity as the means of powering light-duty vehicles and medium- and heavy-duty trucks and buses. The primary goal is to reduce greenhouse gas (GHG) emissions and, ultimately, contribute to mitigating the effects of climate change on the planet.
Time-of-Use (TOU) Rates: TOU Rates refers to the pricing of delivered electricity based on the estimated cost of electricity during a particular time block. Time-of-use rates are usually divided into three or four time blocks per 24 hour period (on-peak, mid-peak, off-peak and sometimes super off-peak) and by seasons of the year (summer and winter). Real-time pricing differs from TOU rates in that it is based on actual (as opposed to forecasted) prices that may fluctuate many times a day and are weather sensitive, rather than varying with a fixed schedule.
TM – Tree Mortality: This is a term that refers to the death of forest trees and provides a measure of forest health. In the context of energy, as part of the Governor’s Tree Mortality Emergency Proclamation, the CPUC is tasked with utilizing its authority to extend contracts and take actions to authorize new contracts on bioenergy facilities that receive feedstock from high hazard zones.
TURN – The Utility Reform Network: TURN is a ratepayer advocacy group charged with ensuring that California IOUs implement just and reasonable rates.
Unbundled RECs: Unbundled RECs are renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are “unbundled” and sold to different buyers.
VPP – Virtual Power Plant: A Virtual Power Plant is a cloud-based network that leverages an aggregation of distributed energy resources (DERs) to shift energy demand or provide services to the grid. For example, thousands of EV chargers could charge at a slower speed and hundreds of home batteries could discharge to the grid during a demand peak to significantly reduce the procurement of traditional supply resources.
VAMO – Voluntary Allocation, Market Offer: VAMO is the process for SDG&E to allocate a proportional share of its renewable portfolio to Community Power and other LSEs within the service territory.
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