Agenda packet — San Diego Community Power Finance and Risk Management Committee, June 18, 2026 (part 1 of 2)

AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER AGENDA
Regular Meeting
Finance and Risk Management Committee
June 18, 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 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER the meeting will be limited to the first 400 words. Comments received after the start of the meeting will be collected, sent to the FRMC members, and become part of the public record.

If members of the public have any materials to be distributed to the FRMC, they should be sent to [email protected], who will distribute the information to FRMC members.

The public may participate using the following remote options:

Teleconference Meeting Webinar
https://sdcommunitypower-org.zoom.us/j/95148519712
Telephone (audio only): 669-900-6833 or 253-215-8782 | Webinar ID: 95148519712

WELCOME

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

LAND ACKNOWLEDGEMENT

ITEMS TO BE ADDED, WITHDRAWN OR REORDERED ON THE AGENDA

PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
This is an opportunity for members of the public to address the FRMC on any items not on the agenda but within the jurisdiction of the FRMC. Members of the public may provide comments in any manner described above.

CONSENT CALENDAR

1. Approve May 21, 2026, Meeting Minutes

REGULAR AGENDA

2. Treasurer’s Report for Nine-Month Period Ending March 31, 2026 Recommendation: Receive and File Treasurer’s Report for Nine-Month Period Ending March 31, 2026.
2 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER

3. Public Hearing on AB 2561 (McKinnor) – Status of Vacancies, Recruitment and Retention Recommendation: Recommend the Board hold a public hearing, receive comments, and accept a report on the status of Community Power employee vacancy rates and recruitment and retention efforts.

4. Recommend Board Approval of Resolution, Adopting FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan Recommendation: Recommend Board Approval of Resolution, Adopting FY 2026-27 Operating Budget, FY 2026-27 Capital Budget, and FY 2027-2031 Capital Investment Plan

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, August 20, 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 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– MAY 21, 2026

SAN DIEGO COMMUNITY POWER

FINANCE AND RISK MANAGEMENT COMMITTEE
Regular Meeting Minutes
May 21, 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 4:09 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; Chief Financial Officer Burlingame; General Counsel Tyiagi; Senior Director of Finance and Risk Manglicmot; Senior Financial Analyst Do; Senior Strategic Finance Manager/Interim Treasurer Spengler; 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.

SPECIAL PRESENTATIONS AND INTRODUCTIONS
- Introduction of New Community Power Chief Financial Officer, Jannies Burlingame 4 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– MAY 21, 2026 Ms. Burns welcomed Ms. Burlingame and invited her to introduce herself. Ms. Burlingame shared her finance experience. She expressed her enthusiasm for joining Community Power and looks forward to contributing to its mission and working with everyone.

ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA None.

PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Robert provided public comment.

CONSENT CALENDAR

1. Approve March 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

2. Treasurer’s Report for Eight-Month Period Ending February 28, 2026 Mr. Spengler presented the Treasurer’s Report for Eight-Month Period Ending February 28, 2026.

Robert provided public comment on Item No. 2.

The Treasurer’s Report for Eight-Month Period Ending February 28, 2026, was received and filed.

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 Ms. Burns introduced the item and turned it over to Messrs. Manglicmot; Do; Weisman; Samuel; Utouh; Welch; Santulli; and Ms. Lebron to provide an overview of Draft FY 2026-27 Operating Budget, FY 2026- 5 27 Capital Budget, and FY 2027-2031 Capital Investment Plan, and Quarterly Risk Oversight Committee Report.

Chair Yamane thanked staff for their presentation.

Robert provided public comment.

After Committee member discussion, comments and questions, the 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 was received and filed.

COMMITTEE MEMBER ANNOUNCEMENTS
Chair Yamane wished everyone a Happy Memorial Day.

ADJOURNMENT
The Finance and Risk Management Committee adjourned at 5:20 p.m. to the next regular meeting scheduled for Thursday, June 18, 2026, at 4 pm.
_____________________
Maricela Hernandez
Clerk of the Board
MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– MAY 21, 2026 6 SAN DIEGO COMMUNITY POWER
Staff Report – Item 2
To: Finance and Risk Management Committee
From: Jannies Burlingame Chief Financial Officer and Treasurer Via: Karin Burns, Chief Executive Officer
Subject: Treasurer’s Report for 9-Month Period Ending March 31, 2026 Date: June 18, 2026
Recommendation
Receive and File Treasurer’s Report for 9-Month Period Ending March 31, 2026.

Background
San Diego Community Power (Community Power) prepares its accounting records on a full accrual basis under GAAP for governmental enterprise funds. Year-to-date financial statements for the 9-month period ending March 31, 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 March 31, 2026, the investment portfolio was compliant with the Community Power 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. 7 On February 26, 2026, the 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 March 31, 2026: $981.2 million in net operating revenues were reported compared to $967.1 million budgeted for the period. Community Power’s change in net position of $208.5 million was reported year-to-date for Fiscal Year 2025-26. The following is a summary of the actual results through March 31, 2026, compared to the Fiscal Year 2025-26 Amended Budget:
• Operating revenues are $14.2 million, or 1.5% 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 $37.4 million, or 5.0% under budget, primarily due to lower energy costs resulting from lower load serving costs and lower renewable costs. • Professional Services and Consultants: $3.5 million below budget due to lower-than-expected utilization of outside professional services. • Personnel Costs: $0.6 million under budget, driven by vacancies and accrued vacation. • Non-Operating Revenues and Expenses:
• Total investment income of $13.3 million vs the budgeted $13.7 million. • $1.4 million in year-to-date interest and related expenses versus $1.1 million budgeted, in line with expectations.

The chart below shows the Budgeted Net Position as compared to actual operating income through the first 9 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 3/31/2026 Operating Income $33.8M $27.6M $62.4M $17.1M $4.2M $12.1M $5.8M $7.5M Budget Net Position $32.9M $21.3M $46.8M -$0.1M -$2.1M $8.2M -$2.7M $0.1M FY Budget Net Position to Operating Income
Operating Income
Budget Net Position
8 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 $664.3 million, or 238 days cash on hand, including $468.1 million in unrestricted cash and $196.2 million in investment holdings. Total available liquidity (including unrestricted cash, investment holdings, and available lines of credit) was $887.3 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.
9 Presented below are the Budget to Actual results for the 9 months ending March 31, 2026. 10 Investment Portfolio Report
Chandler Asset Management manages Community Power’s investment portfolio. As of March 31, 2026, the market value of the portfolio was $124.9M 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 nine months of FY26.
11 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 May. • Agreement 2026-27 - Keyes and Fox LLP
• Engagement letter for legal services - Not-to-Exceed $50,000 • Agreement 2026-18 - The Urban Collective Project
• Marketing, Education and Outreach for the Equitable Building Decarbonization Direct Install Program, Southern Region – Not-to-Exceed $85,000 • Agreement 2026-11 - Aurora Energy Research LLC
• Subscription for Analytics Services, Advisory Services, and Software Solutions Not-to-Exceed $130,000
Capital Investment Program Fund
The FY 2026-30 Capital Investment Plan (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.

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. 12 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 enrollment 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 May 1, 2026. 14 Presented below is the state of Community Power arrearages. The below arrearage data includes Community Power’s receivables aged 120+ days as of May 1, 2026. Community Power’s arrearages have increased since December 2025, consistent with the agency’s typical arrearage cycle, as higher summer 2025 bills have matured into the 120-day aging category.

Presented below is a breakout of Community Power’s arrearages data by residential and commercial customer class as of May 1, 2026. Additionally, on April 23, 2026, the Board approved a rate adjustment effective May 1, 2026, that included the creation of a new Medium Commercial customer class from the existing Small and Large Commercial and Industrial customer classes. As a result, starting in May, staff are reflecting only the Large Commercial customer class.

Fiscal Impact
N/A
Strategic Plan
Consistent with the Strategic Plan objective of implementing prudent fiscal strategies to support long-term organizational sustainability.
15 Attachments
A: FY 2026 Year-to-Date Period Ended March 31, 2026, Financial Statements B. Quarterly Investment Report for Period Ending March 31, 2026 16 ITEM 2

ATTACHMENT A
17 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 March 31, 2026, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the nine 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
May 8, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 18 Current assets
Cash and cash equivalents - unrestricted 468,121,901$
Cash and cash equivalents - restricted 33,257,761
Accounts receivable, net of allowance 95,036,245
Accrued revenue 41,669,537
Prepaid expenses 2,960,961
Other receivables 6,495,114
Deposits 981,712
Investments 85,172,937
Total current assets 733,696,168
Noncurrent assets
Cash and cash equivalents - restricted 10,414,994
Investments 111,046,243
Capital assets, net of depreciation and amortization 1,185,626 Total noncurrent assets 122,646,863
Total assets 856,343,031
Current liabilities
Accrued cost of electricity 95,926,366
Accounts payable 5,442,533
Other accrued liabilities 3,749,428
State surcharges payable 580,448
Deposits - energy suppliers 383,731
Lease liability 820,500
Advances from grantors 43,025,755
Total current liabilities 149,928,761
Noncurrent liabilities
Deposits - energy suppliers 3,867,810
Total noncurrent liabilities 3,867,810
Total liabilities 153,796,571
Net investment in capital assets 365,126
Restricted for security collateral 647,000
Unrestricted 701,534,334
Total net position 702,546,460$

NET POSITION

SAN DIEGO COMMUNITY POWER

STATEMENT OF NET POSITION
As of March 31, 2026
ASSETS

LIABILITIES
See accountants' compilation report. 2
19 OPERATING REVENUES
Electricity sales, net $ 978,185,279
Grant revenue 5,516,620
Liquidated damages revenue 2,348,023
Other income 704,173
Total operating revenues 986,754,095

OPERATING EXPENSES
Cost of electricity 729,660,805
Contract services 18,317,479
Staff compensation 15,544,629
Other operating expenses 9,325,319
Depreciation and amortization 685,456
Total operating expenses 773,533,688
Operating income 213,220,407

NON-OPERATING REVENUES (EXPENSES)
Investment income 13,253,348
Interest expense (159,459)
Nonoperating revenues (expenses), net 13,093,889
CHANGE IN NET POSITION 226,314,296
Net position at beginning of year 476,232,164
Net position at end of year $ 702,546,460

SAN DIEGO COMMUNITY POWER

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
Nine Months Ended March 31, 2026
See accountants' compilation report. 3
20 CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 1,032,084,932
Receipts from grantors 23,213,460
Receipts of supplier security deposits 29,860,990
Receipts from wholesale sales and other operating activities 6,186,454 Payments to suppliers for electricity (737,632,210)
Payments for other goods and services (24,884,591)
Payments for deposits and collateral (5,330,351)
Payments for staff compensation (15,579,717)
Payments of state surcharges (1,790,551)
Net cash provided by operating activities 306,128,416

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds from bank note 19,000,000
Principal payments - bank note (19,000,000)
Interest payments (89,171)
Net cash provided (used) by noncapital
financing activities (89,171)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Lease payments (701,838)
Purchases of capital assets (553,539)
Net cash used by capital and related financing activities (1,255,377)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 13,382,686
Proceeds from investment sales and maturities of investments 5,201,815 Purchase of investments (130,747,959)
Net cash provided (used) by investing activities (112,163,458) Net change in cash and cash equivalents 192,620,410
Cash and cash equivalents at beginning of year 319,174,246 Cash and cash equivalents at end of year $ 511,794,656
Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents - current $ 468,121,901 Restricted cash and cash equivalents - current 33,257,761 Restricted cash and cash equivalents - noncurrent 10,414,994 Cash and cash equivalents $ 511,794,656

NONCASH INVESTING ACTIVITIES
Change in fair value of investments $ (389,604)
Change in interest income receivable $ 260,266

SAN DIEGO COMMUNITY POWER

STATEMENT OF CASH FLOWS
Nine Months Ended March 31, 2026
See accountants' compilation report. 4
21 Operating income $ 213,220,407
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 685,456
(Increase) decrease in:

Accounts receivable, net 20,990,978
Accrued revenue 31,072,822
Prepaid expenses 20,841,174
Other receivables (2,134,857)
Deposits 10,112,499
Increase (decrease) in:

Accrued cost of electricity (6,275,800)
Accounts payable 1,631,561
Advances from grantors 17,770,041
Other accrued liabilities 1,589,473
State surcharges payable 45,302
Deposits - energy suppliers (3,420,640)
Net cash provided by operating activities $ 306,128,416

SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Nine Months Ended March 31, 2026

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report.
22 5
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 nine months ended March 31, 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
May 8, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 23 Amended
Budget Actual
Amended
Budget Variance
(Under) Over
Actual/
Amended
Budget %
Amended
Budget
Amended
Budget
Remaining

REVENUES AND OTHER SOURCES
Gross Ratepayer Revenues $ 982,981,000 $ 993,081,502 $ 10,100,502 101% 1,194,789,000 $ $ 201,707,498 Less: Uncollectible Customer Accounts (15,924,000) (14,896,223) 1,027,777 94% (19,370,000) (4,473,777) Other Income 3,052,196 - 3,052,196 na (3,052,196) - Total Revenues and Other Sources 967,057,000 981,237,475 14,180,475 1,175,419,000 194,181,525

OPERATING EXPENSES
Cost of Energy 767,036,000 729,660,805 (37,375,195) 95% 969,917,000 240,256,195 Professional Services and Consultants 17,560,000 14,078,430 (3,481,570) 80% 23,414,000 9,335,570 Personnel Costs 14,709,000 14,071,273 (637,727) 96% 19,612,000 5,540,727 Marketing and Outreach 1,738,000 1,651,754 (86,246) 95% 2,317,000 665,246 General & Administrative 3,486,000 3,249,569 (236,431) 93% 4,648,000 1,398,431 Total Operating Expenses 804,529,000 762,711,831 (41,817,169) 1,019,908,000 257,196,169 Operating Income (Loss) 162,528,000 218,525,645 55,997,645 155,511,000 (63,014,645)

NON-OPERATING REVENUES (EXPENSES)
Investment Income 13,721,000 13,253,348 (467,652) 97% 18,295,000 5,041,652 Interest and Related Expenses (1,136,000) (1,406,130) (270,130) 124% (1,515,000) (108,870) Transfer to Capital Investment Program (21,881,000) (21,881,000) 100% (21,881,000) - - Total Non-Operating Revenues (Expenses) (9,296,000) (10,033,782) (737,782) (5,101,000) 4,932,782 NET CHANGE $ 153,232,000 $ 208,491,863 $ 55,259,863 $ 150,410,000 $ (58,081,863)

SAN DIEGO COMMUNITY POWER

BUDGETARY COMPARISON SCHEDULE
Nine Months Ended March 31, 2026

OPERATING FUND
Year-to-Date Annual
See accountants' compilation report.
24 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 4,822,057 (27,046,490) Grant Revenue - CDFA Efficient Refrigeration Pilot 694,563 - 694,563 Grant Revenue - DAC 589,822 (589,822) -
Total Revenue and Other Sources 54,339,369 26,703,057 (27,636,312)

EXPENDITURES AND OTHER USES
Program Expenditures 54,628,369 9,566,206 $ (45,062,163) Net increase (decrease) in fund balance $ (289,000) 17,136,851 Fund balance at beginning of period 10,340,567
Fund balance at end of period $ 27,477,418

BUDGETARY COMPARISON SCHEDULE
Nine Months Ended March 31, 2026

CAPITAL INVESTMENT PROGRAM FUND
See accountants' compilation report.
25 ITEM 2

ATTACHMENT B
26 INVESTMENT REPORT
San Diego Community Power | As of March 31, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from 27 your qualified custodian. Please see Important Disclosures at the end of the statement.

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
28 1

ECONOMIC UPDATE
29 2
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March payrolls rebounded by 178,000 after February’s revised 133,000 decline, but the war in Iran and its disruption of the Strait of Hormuz have pushed crude oil above $112, injecting a potential inflationary shock into an economy contending with sticky core prices above 3%.

The Federal Reserve has held the funds rate at 3.50–3.75% and is signaling a cautionary stance, keeping open the option of delaying cuts if oil‑related inflation proves persistent rather than transitory. As the data flow normalizes, the Chandler team anticipates additional yield curve steepening as the Federal Reserve gradually guides the policy rate toward a more neutral range. The Federal Reserve’s March dot plot still projects one cut this year, yet the Iran-driven energy shock has narrowed the path toward easing.

The Federal Reserve’s March 2026 FOMC meeting ended with policymakers again holding the target range at 3.50%–3.75%, as the Committee maintained its pause following three late‑2025 rate cuts. Governor Stephen Miran dissented in favor of an additional quarter‑point reduction, while Christopher Waller joined the majority, tipping the vote 11–1 to leave the benchmark rate unchanged.

Meanwhile, President Trump’s nomination of Kevin Warsh to succeed Jerome Powell as chair has hit a roadblock after a Republican senator vowed to block Warsh’s confirmation amid the Justice Department’s ongoing probe of the central bank.

Treasury yields exhibited considerable first-quarter volatility as the Iran conflict injected energy-driven inflation fears into a market grappling with sticky core prices. At March month-end, the 2-year yield stood at 3.79%, up 32 basis points year-to-date, the 10-year at

4.32%, and the 30-year at 4.86%. The 2-year to 10-year spread narrowed to 52 basis points, reflecting pronounced flattening as short rates rose faster than longer maturities. One year ago, that spread stood near 32 basis points, providing context on normalization since the 2022 through 2024 yield curve inversion. The 3-month to 10-year spread was approximately 64 basis points at March month-end.

ECONOMIC UPDATE
30 3
-400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
March nonfarm payrolls rose by 178,000, a decisive reversal from February’s revised 133,000 decline that had been distorted by a Kaiser Permanente strike affecting over 30,000 healthcare workers and severe winter weather. Healthcare contributed 76,000 positions as striking nurses returned, while construction and leisure rebounded from weather-induced troughs. The unemployment rate edged lower to 4.3%, though partly from a labor force reduction rather than a hiring acceleration. Meanwhile, the underemployment rate edged up to 8.0% from

7.9% in February. Average hourly earnings rose 0.2% over the month and 3.5% year over year—the slowest annual pace since May 2021.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
31 4
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average In Thousands (000's)
Job openings fell to 6.9 million in February from a revised 7.2 million in January, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. The ratio of openings to unemployed workers slipped to 0.9, reinforcing the gradual rebalancing of demand and supply. Hires decreased to 4.8 million, the lowest since April 2020, suggesting employers have grown selective about adding headcount.

Quits were little changed at 3 million. The data reflects a labor market consistent with the Federal Reserve’s characterization of a no-hire, no-fire environment.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
32 5

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Retail gasoline prices climbed steeply in March following the escalation of the U.S.-Iran conflict and the closure of the Strait of Hormuz.

According to AAA, the national average reached $4.06 per gallon by month-end, an increase exceeding a dollar from $2.98 on February 26.

Diesel prices reached $5.49 as tight global distillate supplies compounded the disruption. Cushing WTI crude settled at $101.38 per barrel on March 31, while Dated Brent closed at $126.97, producing a spread of roughly $25.60, the widest in more than five years. The gap reflects the disproportionate impact of shipping disruptions on internationally benchmarked crude relative to domestic supply bolstered by Strategic Petroleum Reserve releases.
33 6

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator
YOY % Change
PCE Core Deflator
YOY % Change
Fed Target
YOY (%) Change
Consumer Price Index (CPI) for March surged 0.9%, the highest monthly rate since June 2022, and was up 3.3% on an annual basis primarily due to spikes in energy and airfare prices. Notably, Core CPI was little changed with a monthly increase of 0.2% and an annual rise of 2.6% as costs for services and other goods remained subdued. Personal Consumption Expenditures (PCE) were little changed in February, with the headline PCE Price Index up 0.4% month-over-month and 2.8% year-over-year. The Fed’s preferred metric, Core PCE, which excludes food and energy, rose 0.4% during the month and 3.0% from February of 2025.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
34 7

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
The Conference Board’s Consumer Confidence Index edged up to 91.8 in March from 91.0 in February, a second consecutive gain that nonetheless sits well below the all-time peak of 144.7 from early 2000. The Present Situation component rose 4.6 points to 123.3 on favorable assessments of business and labor conditions, while the Expectations Index slipped 1.7 points to 70.9. Inflation expectations climbed to their highest since August 2025, reflecting tariff passthrough and elevated gasoline prices. February retail sales rebounded 0.6% from January, with stronger auto and broad-based discretionary spending offsetting January’s weather- and vehicle-related weakness; the control group also advanced 0.5%, signaling firmer underlying consumer demand. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
35 8
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Chicago Fed National Activity Index (CFNAI) fell to ‑0.11 in February, following a positive revision to 0.20 in January. The index’s three‑month moving average edged up to ‑0.01 from ‑0.02 the prior month. Production and employment related indicators turned negative in February, while sales, orders, and inventories also remained in negative territory. The personal consumption and housing categories slipped modestly but stayed in positive territory. The Conference Board’s Leading Economic Index (LEI) declined 0.1% in January, an improvement from ‑0.2% in December, with consumer expectations and building permits the largest drags on the index. On a year‑over‑year basis, the LEI fell 3.8%, continuing to signal slower economic growth heading into 2026. Notably, the latest LEI data do not yet reflect the impact of the war in Iran.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
36 9
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts rose 7.2% in January to an annualized pace of 1.487 million units, including 935,000 single-family and 552,000 multifamily starts. The January S&P Cotality Case-Shiller 20-City Composite posted a 1.18% year-over-year gain, continuing deceleration from December’s revised 1.43% annual increase. Inflation again outpaced home price appreciation, extending the erosion of real housing returns that began in the second half of 2025. The Freddie Mac 30-year fixed mortgage rate climbed to 6.46% as of April 2, its fifth consecutive weekly rise, reversing progress made when rates dipped below 6% in February. Higher borrowing costs and elevated prices continue to constrain affordability.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
37 10
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management’s Manufacturing Index rose to 52.7 in March from 52.4, the fastest factory expansion since August 2022 and a third consecutive month above 50. Production accelerated to 55.1 from 53.5, though new orders decelerated to 53.5 from 55.8.

The prices subindex leaped to 78.3 from 70.5, reflecting elevated energy costs, metals tariffs, and Iran-related supply disruptions.

Employment remained in contraction at 48.7. The Services Index eased to 54.0 in March from 56.1 in February but still posted its 21st consecutive month of expansion. The expansion was mainly from an increase in prices, amid higher oil and fuel costs. With both measures above the 50 threshold, ISM data point toward a resilient if cost-pressured economy.

Source: Institute for Supply Management

SURVEY BASED MEASURES
38 11
Components of GDP 3/25 6/25 9/25 12/25

0.4% 1.7% 2.3% 1.3%

3.8% -2.7% 0.0% 0.4%
-4.7% 4.8% 1.6% -0.2%
-0.4% -0.4% 0.2% -1.2%

0.2% 0.3% 0.2% 0.2%
-0.6% 3.8% 4.4% 0.5%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment) -2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce The third and final estimate of real gross domestic product (GDP) showed fourth-quarter growth revised down to 0.5% from the initial 1.4% estimate. The slowdown from 4.4% in the third quarter primarily reflected a sharp pullback in government spending, as the federal government shutdown weighed on activity. The Bureau of Labor Statistics expects statistical distortions will persist into the spring due to data collection disruptions. Personal Consumption Expenditures also declined across both goods and services.

GROSS DOMESTIC PRODUCT (GDP)
39 12
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve left its benchmark interest rate unchanged in March, keeping the target range at 3.50% to 3.75% following three late‑2025 rate cuts that were justified by signs of softening in the labor market. The Federal Open Market Committee minutes showed some participants supported two-sided language on future rate direction given the upside risks to inflation and downside risks to employment being elevated. However, policymakers have grown wary of potential inflationary pressures stemming from tariffs, the war in Iran, and the ensuing spike in commodity prices. The Federal Reserve now projects just one rate cut in 2026, even as inflation expectations rise. The Committee also reaffirmed its December decision to halt balance sheet runoff and to reinvest principal and interest payments from its securities holdings, signaling a continued emphasis on maintaining ample reserves and supporting orderly market functioning.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
40 13
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Mar-26
Dec-25
Mar-25
Yield (%)
At March month-end, the 2-year Treasury yield stood at 3.79%, down approximately 9 basis points from one year ago, while the 10-year finished at 4.32%, roughly 11 basis points higher year-over-year. The spread between the two narrowed to 52 basis points, wider by 20 basis points year-over-year. The prior 2-year to 10-year inversion from July 2022 through August 2024 was historically long. The average spread since 2005 is approximately 95 basis points, suggesting the current slope sits well below its long-run norm. The 3-month to 10-year spread stood near 64 basis points at March month-end.

BOND YIELDS
41 14

ACCOUNT PROFILE
42 15

OBJECTIVES
Investment Objectives
The investment objectives of the San Diego Community Power are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all disbursement requirements; and third, to earn an acceptable rate of return after first considering safety of principal and liquidity.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 43 16

PORTFOLIO CHARACTERISTICS
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 0.55 0.46
Average Modified Duration 0.47 0.39
Average Purchase Yield 3.73% 3.47%
Average Market Yield 3.79% 3.41%
Average Quality** AA+ AA+
Total Market Value 662,161,715 676,186,199
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 44 17

STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 2.0 Compliant
Max % Issuer (MV) 30.0 2.0 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; ABS & MBS) 20.0 3.4 Compliant
Max % Issuer (MV) 5.0 0.3 Compliant
Max Maturity (Years) 5.0 4.1 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
Max % (MV) 50.0 26.8 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant

COLLATERALIZED BANK DEPOSITS
Max % (MV) 100.0 35.2 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE CD/TD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
45 18

STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 4.4 Compliant
Max % Issuer (MV) 5.0 0.2 Compliant
Max Maturity (Years) 5.0 5.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 0.1 Compliant
Max % Issuer (MV) 30.0 0.1 Compliant
Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 1.3 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant

JOINT POWERS AUTHORITY (JPA) / LOCAL

GOVERNMENT INVESTMENT POOL (LGIP)
Max % (MV) 100.0 1.5 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max % (MV) 100.0 11.3 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.3 Compliant
Max % Issuer (MV) 20.0 0.3 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
46 19

STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Max % (MV; ABS & MBS) 20.0 3.4 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES
Max % (MV) 30.0 0.1 Compliant
Max % Issuer (MV) 5.0 0.1 Compliant
Max Maturity (Years) 5.0 3.5 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 or A- by 1) 0.0 0.0 Compliant

SRI PROHIBITED INVESTMENTS
Prohibited Investment - Fossil Fuels 0.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.1 Compliant
Max % Issuer (MV) 10.0 0.1 Compliant
Max Maturity (Years) 5.0 4.6 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 10.4 Compliant
Max Maturity (Years) 5.0 4.9 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
47 20

PORTFOLIO CHARACTERISTICS
San Diego Community Power | Account #11293 | As of March 31, 2026 Benchmark* 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 2.65 2.93 3.03
Average Modified Duration 2.47 2.51 2.55
Average Purchase Yield 4.09% 4.16%
Average Market Yield 3.84% 4.02% 3.77%
Average Quality** AA+ AA+ AA
Total Market Value 124,884,349 104,590,213
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 48 21

SECTOR DISTRIBUTION
San Diego Community Power | Account #11293 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
US Treasury 55.09% 50.72%
Corporate 23.42% 26.66%
Agency CMBS 10.38% 10.19%
ABS 7.46% 9.38%
Money Mkt Fd 1.43% 0.38%
Supras 0.79% 0.95%
Agency 0.72% 0.87%
Muni Bonds 0.71% 0.86%
49 22

QUALITY DISTRIBUTION
Rating 03/31/2026 12/31/2025
AAA 8.11% 9.64%
AA 69.51% 65.07%
A 16.12% 20.29%
BBB 2.06% 1.83%
A-1+ 2.39% 0.95%
NA 1.81% 2.21%
Rating 03/31/2026 12/31/2025
Aaa 6.65% 7.74%
Aa 69.16% 65.28%
A 17.28% 20.42%
P-1 2.39% 0.95%
NA 4.52% 5.61%
Rating 03/31/2026 12/31/2025
AAA 15.32% 15.19%
AA 63.22% 62.72%
A 8.73% 9.31%
F1+ 2.39% 0.95%
NA 10.33% 11.82%
San Diego Community Power | Account #11293 | As of March 31, 2026 S&P Rating Moody’s Rating Fitch Rating
50 23
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 3.5% 1.4% 8.0% 22.9% 26.5% 22.8% 14.8% 0.0% 0.0% ICE BofA 1-5 Year Unsubordinated US Treasury &
Agency Index 0.0% 0.0% 2.5% 35.8% 29.1% 20.5% 12.1% 0.0% 0.0%

DURATION DISTRIBUTION
San Diego Community Power | Account #11293 | As of March 31, 2026 Portfolio Compared to the Benchmark
51 24

INVESTMENT PERFORMANCE
San Diego Community Power | Account #11293 | As of March 31, 2026 Total Rate of Return: Inception | 10/01/2024
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception San Diego Community Power 0.25% 4.25% 3.79%
Benchmark 0.20% 3.87% 3.40%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 52 25

PORTFOLIO CHARACTERISTICS
San Diego Community Power Reporting | Account #11451 | As of March 31, 2026 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.65% 3.34%
Average Market Yield 3.73% 3.34%
Average Quality** AAA AAA
Total Market Value 537,277,366 571,595,985
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 53 26

SECTOR DISTRIBUTION
San Diego Community Power Reporting | Account #11451 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
Collateralized Bank Deposit 43.36% 45.91%
Placement Service Deposit 32.97% 30.66%
LAIF 13.97% 0.02%
Cash 7.84% 23.42%
LGIP 1.86% --
54 27

PORTFOLIO HOLDINGS
55 28

HOLDINGS REPORT
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
36269WAD1 GMALT 2024-2 A3 5.39
07/20/2027 233,006.72 --4.65%
235,852.91
233,531.36
100.23

4.22%
233,531.22
383.75

0.04%
(0.14)
NA/AAA
AAA

1.30 0.18
02582JJZ4 AMXCA 2023-1 A 4.87 05/15/2026 150,000.00 09/12/2024

4.24%
151,617.19
150,116.84
100.10

4.09%
150,149.25
324.67

0.02%

32.41 NA/AAA
AAA

0.12 0.12
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 285,000.00 05/20/20254.84%
284,995.27
284,996.60
100.47

4.11%
286,352.61
398.84

0.04%
1,356.01
NA/AAA
AAA

2.14 0.92
096912AD2 BMWLT 2025-1 A3 4.43
06/26/2028 630,000.00 11/14/20253.99%
633,912.89
633,095.18
100.33

4.16%
632,083.41
465.15

0.10%
(1,011.77)
NA/AAA
AAA

2.24 1.06
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 163,135.44 07/30/2024

4.82%
163,772.69
163,451.20
100.58

4.15%
164,086.85
359.62

0.02%
635.65
Aaa/NA
AAA

2.63 0.67
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 118,535.06 07/19/20244.94%
119,539.83
119,056.36
100.76

4.16%
119,438.89
225.58

0.02%
382.53
NA/AAA
AAA

2.64 0.65
89237NAD9 TAOT 2024-B A3 5.33 01/16/2029 124,111.38 07/19/2024

4.94%
125,391.29
124,797.46
100.88

4.21%
125,202.32
294.01

0.02%
404.87
Aaa/AAA
NA

2.80 0.75
161571HV9 CHAIT 241 A 4.6 01/16/2029 225,000.00 --

4.61%
225,167.97
224,892.88
100.45

4.05%
226,019.48
460.00

0.03%
1,126.60
NA/AAA
AAA

2.80 0.76
92970QAA3 WFCIT 2024-1 A 4.94 02/15/2029 500,000.00 07/30/2025

4.31%
504,980.47
502,829.61
100.81

4.03%
504,058.50
1,097.78

0.08%
1,228.89
Aaa/AAA
AAA

2.88 0.84
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 119,228.32 07/19/20244.86%
120,043.35
119,666.35
100.66

4.30%
120,013.79
102.93

0.02%
347.44
Aaa/AAA
NA

2.91 0.70
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 149,437.78 08/09/20244.66%
149,414.30
149,422.55
100.36

4.13%
149,970.97
189.70

0.02%
548.42
Aaa/NA
AAA

2.97 0.72
34531QAD1 FORDO 2024-B A3 5.1 04/15/2029 144,650.75 07/18/2024

4.79%
145,690.43
145,212.37
100.78

4.17%
145,774.25
327.88

0.02%
561.88
Aaa/AAA
NA

3.04 0.79
587918AD5 MBART 2024-1 A3 4.8 04/16/2029 202,213.42 --

4.58%
203,323.23
202,816.96
100.45

4.14%
203,129.65
431.39

0.03%
312.69
Aaa/AAA
NA

3.04 0.64
58768YAD7 MBALT 2025-A A3 4.61
04/16/2029 310,000.00 05/14/20254.66%
309,962.21
309,970.56
100.72

4.21%
312,245.64
635.16

0.05%
2,275.08
NA/AAA
AAA

3.04 1.61
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 193,000.00 07/30/2024

4.58%
194,771.68
193,711.80
101.03

4.02%
194,996.39
422.88

0.03%
1,284.59
Aaa/AAA
NA

3.12 1.07
477911AD3 JDOT 2024-C A3 4.06 06/15/2029 500,000.00 01/22/2025

4.72%
493,320.31
495,123.49
100.01

4.09%
500,026.00
902.22

0.08%
4,902.51
Aaa/NA
AAA

3.21 1.09
56 29

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
02589BAE0 AMXCA 2024-3 A 4.65 07/15/2027 400,000.00 --

2.88%
400,535.16
400,275.55
100.75

4.09%
402,991.20
826.67

0.06%
2,715.65
NA/AAA
AAA

1.29 1.23
34535VAD6 FORDO 2024-D A3 4.61
08/15/2029 210,000.00 11/19/20244.66%
209,993.26
209,995.19
100.61

4.14%
211,290.24
430.27

0.03%
1,295.05
Aaa/NA
AAA

3.38 1.19
89240JAD3 TAOT 2025-A A3 4.64 08/15/2029 300,000.00 01/22/2025

4.69%
299,987.97
299,991.07
100.65

4.10%
301,939.20
618.67

0.05%
1,948.13
Aaa/NA
AAA

3.38 1.10
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 245,000.00 03/04/2025

5.09%
244,984.59
244,988.19
100.28

4.08%
245,684.53
460.60

0.04%
696.34
Aaa/NA
AAA

3.47 1.49
44935CAD3 HART 2025-A A3 4.32 10/15/2029 310,000.00 03/04/2025

4.84%
309,954.27
309,964.76
100.23

4.17%
310,724.78
595.20

0.05%
760.02
NA/AAA
AAA

3.54 1.25
437921AD1 HAROT 252 A3 4.15 10/15/2029 190,000.00 04/29/2025

4.15%
189,978.78
189,983.07
100.07

4.14%
190,124.26
350.44

0.03%
141.19
Aaa/NA
AAA

3.54 1.43
89231HAD8 TAOT 2025-B A3 4.34 11/15/2029 190,000.00 04/24/2025

4.82%
189,989.11
189,991.31
100.37

4.12%
190,710.79
366.49

0.03%
719.48
NA/AAA
AAA

3.63 1.42
362955AD8 GMCAR 2025-1 A3 4.62
12/17/2029 200,000.00 01/09/20255.03%
199,985.14
199,988.79
100.55

4.09%
201,105.80
385.00

0.03%
1,117.01
Aaa/NA
AAA

3.71 0.97
58773DAD6 MBART 2025-1 A3 4.78
12/17/2029 290,000.00 01/14/20254.84%
289,938.32
289,953.25
100.78

4.16%
292,258.23
616.09

0.04%
2,304.98
Aaa/NA
AAA

3.71 1.17
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 505,000.00 05/06/2025

4.28%
504,990.86
504,992.50
100.35

4.14%
506,748.31
960.62

0.08%
1,755.81
NA/AAA
AAA

4.04 1.91
362549AD9 GMCAR 2025-2 A3 4.28
04/16/2030 150,000.00 05/06/20254.71%
149,977.92
149,981.87
100.19

4.17%
150,278.25
267.50

0.02%
296.38
Aaa/AAA
NA

4.04 1.28
92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 750,000.00 09/03/2025

3.90%
759,023.44
757,106.88
100.52

4.12%
753,895.50
1,446.67

0.11%
(3,211.38)
NA/AAA
AAA

4.12 1.99
161571HZ0 CHAIT 2025-1 A 4.16 07/15/2030 1,500,000.00 --

3.83%
1,513,632.81
1,511,295.98
100.25

4.08%
1,503,816.00
2,773.33

0.23%
(7,479.98)
NA/AAA
AAA

4.29 2.14
Total ABS 9,287,318.87 4.34%
9,324,727.64
9,311,200.00
100.45

4.12%
9,328,646.31
17,119.10

1.41%
17,446.31

3.23 1.32
AGENCY
3133ERKR1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.625 07/10/2026 200,000.00 07/23/20244.51% 200,424.00
200,059.22
100.23

3.74%
200,458.40
2,081.25

0.03%
399.18
Aa1/AA+
AA+

0.28 0.27
57 30

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3130B2PJ8 FEDERAL HOME LOAN BANKS

3.625 09/04/2026 500,000.00 09/12/20243.70%
499,335.00
499,856.12

99.94 3.76%
499,688.00
1,359.38

0.08%
(168.12)
Aa1/AA+
AA+

0.43 0.42
3133ERMB4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 07/23/2027 200,000.00 07/18/20244.26% 199,938.00
199,972.94
100.63

3.75%
201,265.40
1,605.56

0.03%
1,292.46
Aa1/AA+
AA+

1.31 1.26
Total Agency 900,000.00 4.00%
899,697.00
899,888.27
100.16

3.76%
901,411.80
5,046.18

0.14%
1,523.53

0.59 0.57

AGENCY CMBS
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 200,000.00 07/18/2024

4.54%
195,093.75
197,153.04

99.41 4.08%
198,824.60
650.00

0.03%
1,671.56
Aa1/AA+
AAA

2.40 2.22
3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 413,000.00 08/29/2024

4.07%
410,096.09
411,239.33

99.45 4.08%
410,730.57
1,349.13

0.06%
(508.77)
Aa1/AA+
AAA

2.49 2.25
3137FJZ93 FHMS K-084 A2 3.78 10/25/2028 400,000.00 --

4.29%
391,750.00
395,049.42

99.11 4.08%
396,442.40
1,260.00

0.06%
1,392.98
Aaa/AA+
AA+

2.57 2.35
3137FK4M5 FHMS K-085 A2 4.06 10/25/2028 700,000.00 07/30/2025

4.17%
696,472.66
697,215.90

99.76 4.08%
698,293.40
2,368.33

0.11%
1,077.50
Aaa/AA+
AA+

2.57 2.36
3137FKSH0 FHMS K-086 A2 3.859 11/25/2028 400,000.00 --

4.29%
392,882.81
395,675.27

99.27 4.09%
397,088.00
1,286.33

0.06%
1,412.73
Aaa/AA+
AA+

2.65 2.43
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 580,857.42 12/11/2024

4.39%
567,402.40
571,785.05

99.06 4.09%
575,406.65
1,825.34

0.09%
3,621.60
Aa1/AAA
AA+

2.74 2.44
3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 303,000.00 --

4.34%
294,821.25
297,916.47

98.82 4.09%
299,416.42
931.73

0.05%
1,499.95
Aaa/AA+
AA+

2.82 2.56
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 500,000.00 08/26/2024

4.07%
464,140.62
477,254.39

95.16 4.12%
475,778.50
941.67

0.07%
(1,475.89)
Aa1/AA+
AAA

2.82 2.59
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 200,000.00 07/29/2024

4.46%
191,414.06
194,594.04

98.08 4.09%
196,158.00
570.33

0.03%
1,563.96
Aa1/AAA
AA+

2.91 2.66
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 486,000.00 01/14/2025

4.85%
461,889.84
468,927.31

98.28 4.09%
477,643.23
1,419.53

0.07%
8,715.92
Aa1/AAA
AA+

2.98 2.68
3137FLYV0 FHMS K-092 A2 3.298 04/25/2029 500,000.00 08/07/2024

4.20%
480,722.66
487,520.40

97.64 4.09%
488,215.50
1,374.17

0.07%
695.10
Aa1/AA+
AAA

3.07 2.80
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 540,295.11 12/19/2024

4.70%
504,817.14
515,154.65

96.84 4.09%
523,196.93
1,342.63

0.08%
8,042.28
Aa1/AA+
AAA

3.15 2.76
58 31

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 200,000.00 07/17/2024

4.47%
185,398.44
190,503.65

96.08 4.10%
192,154.20
464.17

0.03%
1,650.55
Aa1/AA+
AAA

3.24 2.93
3137FNX54 FHMS K-097 A2 2.508 07/25/2029 425,000.00 12/19/2024

4.70%
386,982.42
397,650.38

95.03 4.11%
403,874.95
888.25

0.06%
6,224.57
Aaa/AA+
AA+

3.32 3.09
3137H9D71 FHMS K-750 A2 3.0 09/25/2029 600,000.00 11/05/2024

4.55%
562,218.75
573,157.69

96.62 4.14%
579,726.00
1,500.00

0.09%
6,568.31
Aa1/AA+
AAA

3.49 2.88
3137FQ3Z4 FHMS K-101 A2 2.524 10/25/2029 495,000.00 12/20/2024

4.69%
449,560.55
461,599.39

94.74 4.12%
468,974.39
1,041.15

0.07%
7,374.99
Aa1/AA+
AA+

3.57 3.28
3137FQKC6 FHMS K-102 A2 2.537 10/25/2029 750,000.00 09/03/2025

3.94%
710,537.11
715,988.52

94.83 4.12%
711,248.25
1,585.63

0.11%
(4,740.27)
Aa1/AA+
AAA

3.57 3.25
3137FQKN2 FHMS K-103 A2 2.651 11/25/2029 453,000.00 12/20/2024

4.69%
413,344.81
423,667.25

95.05 4.13%
430,570.61
1,000.75

0.07%
6,903.36
Aa1/AA+
AAA

3.65 3.34
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 750,000.00 06/17/2025

4.27%
682,089.84
693,675.24

92.74 4.14%
695,547.00
1,293.13

0.11%
1,871.76
Aa1/AA+
AAA

3.82 3.56
3137HA4B9 FHMS K-751 A2 4.412 03/25/2030 600,000.00 03/24/2025

4.40%
599,578.13
599,664.85
100.60

4.18%
603,595.20
2,206.00

0.09%
3,930.35
Aaa/AA+
AA+

3.98 3.29
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 344,000.00 06/23/2025

4.23%
300,547.97
307,279.30

89.32 4.18%
307,258.74
396.46

0.05%
(20.56)
Aa1/AA+
AAA

4.24 3.98
3137FVNG3 FHMS K-114 A2 1.366 06/25/2030 750,000.00 01/28/2026

4.02%
670,546.88
673,608.56

89.21 4.18%
669,092.25
853.75

0.10%
(4,516.31)
Aa1/AA+
AAA

4.24 4.00
3137F62M8 FHMS K-118 A2 1.493 09/25/2030 700,000.00 --

4.02%
624,394.53
629,312.73

89.20 4.19%
624,434.30
870.92

0.09%
(4,878.43)
Aa1/AA+
AAA

4.49 4.17
3137F72P9 FHMS K-120 A2 1.5 10/25/2030 600,000.00 12/15/2025

3.98%
535,054.69
538,918.71

88.88 4.21%
533,261.40
750.00

0.08%
(5,657.31)
Aa1/AA+
AAA

4.57 4.29
3137F8ZV8 FHMS K-123 A2 1.621 12/25/2030 750,000.00 01/29/2026

4.05%
670,839.85
673,574.15

89.15 4.22%
668,594.25
1,013.13

0.10%
(4,979.90)
Aa1/AA+
AAA

4.74 4.36
3137F9Z79 FHMS K-125 A2 1.846 01/25/2031 300,000.00 01/23/2026

4.12%
269,707.03
270,767.87

89.80 4.22%
269,408.40
461.50

0.04%
(1,359.47)
Aa1/AA+
AAA

4.82 4.45
3137FXZ35 FHMS K-127 A2 2.108 01/25/2031 750,000.00 01/29/2026

4.06%
684,550.78
686,772.48

90.82 4.24%
681,183.00
1,317.50

0.10%
(5,589.48)
Aa1/AA+
AAA

4.82 4.45
Total Agency CMBS 13,690,152.53 4.28%
12,796,855.06
12,945,626.05

94.95 4.14%
12,976,117.13
30,961.52

1.96%
30,491.09

3.56 3.24
59 32

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
90RCBB$01 RCB Lock Box x0584 12,915,405.99 --

0.00%
12,915,405.99
12,915,405.99

1.00 0.00%
12,915,405.99

0.00 1.95%

0.00 NA/NA
NA

0.00 0.00
90RCBB$02 RCB Operating x7892 26,867,218.63 --

0.00%
26,867,218.63
26,867,218.63

1.00 0.00%
26,867,218.63

0.00 4.06%

0.00 NA/NA
NA

0.00 0.00
90JPMC$10 Chase Checking x9617 2,280,057.77 --

1.15%
2,280,057.77
2,280,057.77

1.00 1.15%
2,280,057.77

0.00 0.34%

0.00 NA/NA
NA

0.00 0.00
CCYUSD Payable (993,786.91) -- (993,786.91)
(993,786.91)

1.00 (993,786.91)

0.00 (0.15%)

0.00 Aaa/AAA
AAA

0.00 0.00
CCYUSD Receivable 4,887.88 -- 4,887.88
4,887.88

1.00 4,887.88

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
CCYUSD Receivable 478,757.79 -- 478,757.79
478,757.79

1.00 478,757.79

0.00 0.07%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 41,552,541.15 0.06%
41,552,541.15
41,552,541.15

1.00 0.06%
41,552,541.15

0.00 6.28%

0.00 0.00

0.00 COLLATERALIZED

BANK DEPOSIT
90RCBB$03 RCB MMKT 232,745,315.34 --

3.96%
232,745,315.34
232,745,315.34

1.00 3.89%
232,745,315.34

0.00 35.20%

0.00 NA/NA
NA

0.00 0.00
Total Collateralized
Bank Deposit 232,745,315.34 3.96%
232,745,315.34
232,745,315.34

1.00 3.89%
232,745,315.34

0.00 35.20%

0.00 0.00

0.00 CORPORATE
69371RT30 PACCAR FINANCIAL CORP 4.45
08/06/2027 255,000.00 08/01/20244.50%
254,660.85
254,847.61
100.56

4.01%
256,437.44
1,733.65

0.04%
1,589.82
A1/A+
NA

1.35 1.29
89236TKQ7 TOYOTA MOTOR CREDIT CORP

4.625 01/12/2028 150,000.00 07/18/20244.65%
149,856.00
149,926.30
100.91

4.09%
151,368.15
1,522.40

0.02%
1,441.85
A1/A+
A+

1.79 1.68
95000U3R2 WELLS FARGO & CO 4.9
01/24/2028 500,000.00 01/16/20254.90%
500,000.00
500,000.00
100.36

4.43%
501,813.50
4,559.72

0.08%
1,813.50
A1/BBB+
A+

1.82 0.78
89115A3E0 TORONTO-DOMINION BANK 4.861
01/31/2028 335,000.00 01/28/20254.86%
335,000.00
335,000.00
100.80

4.40%
337,695.75
2,759.29

0.05%
2,695.75
A2/A-AA-1.84

1.72 60 33

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
74460WAD9 PUBLIC STORAGE OPERATING CO

1.85 05/01/2028 300,000.00 --4.61%
271,762.50
284,307.04

95.27 4.25%
285,806.40
2,312.50

0.04%
1,499.36
A2/A
NA

2.08 1.99
64952WFD0 NEW YORK LIFE GLOBAL FUNDING

4.9 06/13/2028 750,000.00 07/30/20254.24%
763,215.00
760,138.23
101.24

4.30%
759,288.75
11,025.00

0.11%
(849.48)
Aa1/AA+
AAA

2.20 2.04
87612EBU9 TARGET CORP 4.35 06/15/2028 230,000.00 06/05/2025

4.35%
229,997.70
229,998.32
100.47

4.12%
231,070.19
2,945.92

0.03%
1,071.87
A2/A
A

2.21 1.98
06406RBX4 BANK OF NEW YORK MELLON
CORP 4.89 07/21/2028 500,000.00 --4.67%
502,804.00
501,301.78
100.78

4.36%
503,902.00
4,754.17

0.08%
2,600.22
Aa3/A
AA-2.311.24
46647PEL6 JPMORGAN CHASE & CO 4.979
07/22/2028 300,000.00 --4.80%
301,428.00
300,630.56
100.67

4.50%
302,016.30
2,862.93

0.05%
1,385.74
A1/A
AA-2.311.24
06051GKW8 BANK OF AMERICA CORP 4.948
07/22/2028 300,000.00 --4.88%
300,574.50
300,254.84
100.65

4.97%
301,937.40
2,845.10

0.05%
1,682.56
A1/A-AA-2.31

1.25 61744YAK4 MORGAN STANLEY 3.591
07/22/2028 300,000.00 --4.66%
288,472.50
293,317.39

98.82 4.14%
296,473.50
2,064.83

0.04%
3,156.11
A1/A-A+2.31

1.25 40139LBM4 GUARDIAN LIFE GLOBAL FUNDING

4.066 09/05/2028 750,000.00 09/03/20253.98%
751,785.00
751,446.24

99.26 4.39%
744,446.25
2,202.42

0.11%
(6,999.99)
Aa1/AA+
NA

2.43 2.28
756109BS2 REALTY INCOME CORP 4.7
12/15/2028 750,000.00 --4.59%
752,505.50
751,883.60
100.56

4.47%
754,215.75
10,379.17

0.11%
2,332.15
A3/A-NA2.71

2.41 61690DK72 MORGAN STANLEY BANK NA

5.016 01/12/2029 300,000.00 01/16/20254.99%
300,258.00
300,154.66
101.07

4.44%
303,210.90
3,302.20

0.05%
3,056.24
Aa3/A+
AA-2.791.67
58989V2M5 MET TOWER GLOBAL FUNDING

4.0 01/14/2029 660,000.00 01/07/20264.05%
659,148.60
659,208.42

98.95 4.40%
653,081.22
5,646.67

0.10%
(6,127.20)
Aa3/AA-AA-2.79

2.59 91324PEU2 UNITEDHEALTH GROUP INC 4.25
01/15/2029 300,000.00 --4.42%
297,930.00
298,713.91

99.82 4.32%
299,466.90
2,691.67

0.05%
752.99
A2/A+
A

2.79 2.58
78017DAA6 ROYAL BANK OF CANADA 4.965
01/24/2029 450,000.00 01/21/20255.46%
450,000.00
450,000.00
100.93

4.44%
454,190.40
4,158.19

0.07%
4,190.40
A1/A
AA-2.821.71
69371RS80 PACCAR FINANCIAL CORP 4.6
01/31/2029 150,000.00 07/18/20244.64%
149,755.50
149,847.13
101.46

4.05%
152,191.50
1,169.17

0.02%
2,344.37
A1/A+
NA

2.84 2.62
74340XBL4 PROLOGIS LP 4.375 02/01/2029 300,000.00 --

4.55%
297,844.50
298,648.95
100.05

4.35%
300,163.20
2,187.50

0.05%
1,514.25
A2/A
NA

2.84 2.62
61747YFD2 MORGAN STANLEY 5.164
04/20/2029 300,000.00 11/07/20244.78%
303,570.00
302,126.69
101.15

4.78%
303,455.40
6,928.37

0.05%
1,328.71
A1/A-A+3.05

1.89 025816ED7 AMERICAN EXPRESS CO 4.731
04/25/2029 750,000.00 --4.64%
751,898.75
751,347.88
100.63

4.57%
754,740.75
15,375.75

0.11%
3,392.87
A2/A-A3.07

1.91 61 34

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
437076DC3 HOME DEPOT INC 4.75
06/25/2029 750,000.00 --4.41%
759,603.00
757,209.46
101.54

4.23%
761,526.75
9,500.00

0.12%
4,317.29
A2/A
A

3.24 2.87
713448FX1 PEPSICO INC 4.5 07/17/2029 300,000.00 --

4.24%
303,396.00
302,251.98
100.96

4.18%
302,883.30
2,775.00

0.05%
631.32
A1/A+
NA

3.30 2.94
06051GHM4 BANK OF AMERICA CORP 4.271
07/23/2029 600,000.00 --4.73%
591,312.00
594,160.94

99.59 4.69%
597,554.40
4,840.47

0.09%
3,393.46
A1/A-AA-3.31

2.16 46647PAV8 JPMORGAN CHASE & CO 4.203
07/23/2029 300,000.00 11/07/20244.77%
294,291.00
296,438.73

99.43 4.68%
298,275.30
2,381.70

0.05%
1,836.57
A1/A
AA-3.312.16
89236TMK8 TOYOTA MOTOR CREDIT CORP

4.55 08/09/2029 250,000.00 08/07/20244.57%
249,790.00
249,859.00
100.59

4.36%
251,485.25
1,643.06

0.04%
1,626.25
A1/A+
A+

3.36 3.06
532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 300,000.00 --

4.19%
300,181.75
300,119.56
100.09

4.17%
300,284.10
1,645.00

0.05%
164.54
Aa3/A+
NA

3.37 3.10
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 400,000.00 --4.53%
401,978.29
401,355.61
101.12

4.29%
404,497.20
2,376.67

0.06%
3,141.59
A2/A
A

3.38 3.01
30303M8S4 META PLATFORMS INC 4.3
08/15/2029 300,000.00 --4.28%
300,268.23
300,177.81
100.45

4.16%
301,338.30
1,648.33

0.05%
1,160.49
Aa3/AA-NA3.38

3.02 02665WFQ9 AMERICAN HONDA FINANCE
CORP 4.4 09/05/2029 250,000.00 10/02/20244.29%
251,157.50
250,806.64

99.10 4.69%
247,743.25
794.44

0.04%
(3,063.39)
A3/BBB+
NA

3.43 3.14
38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 970,000.00 --4.25%
970,195.00
970,166.63

99.07 4.54%
960,948.93
17,904.04

0.15%
(9,217.70)
A2/BBB+
A

3.56 2.35
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 300,000.00 11/14/20244.74%
299,523.00
299,654.14
101.37

4.28%
304,124.70
5,326.67

0.05%
4,470.56
A2/A
A+

3.63 3.25
00287YBX6 ABBVIE INC 3.2 11/21/2029 750,000.00 10/23/2025

3.99%
727,957.50
730,311.27

96.41 4.28%
723,049.50
8,666.67

0.11%
(7,261.77)
A2/A-NA3.64

3.35 89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 430,000.00 01/06/20255.00%
429,079.80
429,305.06
101.62

4.48%
436,973.31
4,848.25

0.07%
7,668.25
A1/A+
A+

3.78 3.38
46647PEB8 JPMORGAN CHASE & CO 5.012
01/23/2030 250,000.00 01/21/20255.02%
249,937.50
249,956.02
101.40

4.60%
253,497.75
2,366.78

0.04%
3,541.73
A1/A
AA-3.822.58
95000U3J0 WELLS FARGO & CO 5.198
01/23/2030 400,000.00 01/22/20255.13%
400,988.00
400,695.18
101.57

4.73%
406,270.00
3,927.38

0.06%
5,574.82
A1/BBB+
A+

3.82 2.57
02665WFY2 AMERICAN HONDA FINANCE
CORP 4.8 03/05/2030 425,000.00 03/03/20254.82%
424,626.00
424,706.29

99.95 4.81%
424,791.33
1,473.33

0.06%

85.04 A3/BBB+
NA

3.93 3.53
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 750,000.00 --4.66%
749,787.00
749,844.25
100.71

4.45%
755,349.00
1,550.00

0.11%
5,504.75
A3/A-A-3.96

3.50 62 35

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
59217GEG0 METROPOLITAN LIFE GLOBAL
FUNDING I 2.95 04/09/2030 750,000.00 09/03/20254.27%
709,170.00
714,255.50

93.92 4.62%
704,395.50
10,570.83

0.11%
(9,860.00)
Aa3/AA-AA-4.02

3.67 57629TBX4 MASSMUTUAL GLOBAL FUNDING
II 4.55 05/07/2030 750,000.00 07/30/20254.51%
751,192.50
751,025.37

99.67 4.64%
747,561.00
13,650.00

0.11%
(3,464.37)
Aa3/AA+
AA+

4.10 3.63
69371RT71 PACCAR FINANCIAL CORP 4.55
05/08/2030 680,000.00 05/05/20254.59%
678,946.00
679,135.33
100.67

4.37%
684,561.44
12,290.06

0.10%
5,426.11
A1/A+
NA

4.10 3.64
747525BU6 QUALCOMM INC 4.5 05/20/2030 750,000.00 06/17/2025

4.45%
751,582.50
751,325.47
100.58

4.34%
754,373.25
12,281.25

0.11%
3,047.78
A2/A
NA

4.14 3.61
74153WCW7 PRICOA GLOBAL FUNDING I 4.7
05/28/2030 750,000.00 07/30/20254.55%
754,680.00
754,031.92
100.26

4.63%
751,964.25
12,043.75

0.11%
(2,067.67)
Aa3/AA-AA-4.16

3.68 74464AAC5 PUBLIC STORAGE OPERATING CO

4.375 07/01/2030 500,000.00 07/01/20254.44%
498,665.00
498,864.70

99.87 4.41%
499,334.00
5,468.75

0.08%
469.30
A2/A
NA

4.25 3.80
828807DK0 SIMON PROPERTYGROUP LP 2.65
07/15/2030 750,000.00 07/30/20254.46%
690,165.00
698,231.15

92.87 4.50%
696,502.50
4,195.83

0.11%
(1,728.65)
A3/A
NA

4.29 3.96
713448GH5 PEPSICO INC 4.3 07/23/2030 500,000.00 07/30/2025

4.36%
498,710.00
498,883.14
100.25

4.23%
501,268.50
4,061.11

0.08%
2,385.36
A1/A+
NA

4.31 3.80
437076DJ8 HOME DEPOT INC 3.95
09/15/2030 685,000.00 09/08/20254.03%
682,540.85
682,807.50

98.70 4.27%
676,080.62
1,202.56

0.10%
(6,726.89)
A2/A
A

4.46 4.03
40139LBN2 GUARDIAN LIFE GLOBAL FUNDING

4.327 10/06/2030 750,000.00 09/30/20254.33%
750,000.00
750,000.00

98.86 4.61%
741,426.75
15,775.52

0.11%
(8,573.25)
Aa1/AA+
NA

4.52 3.97
24422EYF0 JOHN DEERE CAPITAL CORP 4.375
10/15/2030 1,000,000.00 11/04/20254.22%
1,006,920.00
1,006,356.43

99.85 4.41%
998,526.00
20,173.61

0.15%
(7,830.43)
A1/A
A+

4.54 4.00
141781CF9 CARGILL INC 4.125 10/23/2030 750,000.00 --

4.14%
749,433.50
749,483.04

98.55 4.48%
739,135.50
13,578.13

0.11%
(10,347.54)
A2/A
NA

4.56 4.04
717081FD0 PFIZER INC 4.2 11/15/2030 700,000.00 12/08/2025

4.18%
700,518.00
700,484.95

99.31 4.37%
695,137.10
10,616.67

0.11%
(5,347.85)
A2/A
NA

4.63 4.10
14913UBH2 CATERPILLAR FINANCIAL SERVICES
CORP 4.15 01/08/2031 1,010,000.00 01/05/20264.16%
1,009,636.40
1,009,652.93

99.06 4.37%
1,000,541.35
9,663.74

0.15%
(9,111.58)
A2/A
A+

4.77 4.24
89236TPH2 TOYOTA MOTOR CREDIT CORP 4.2
01/10/2031 545,000.00 01/07/20264.21%
544,831.05
544,838.37

98.62 4.52%
537,490.99
5,023.08

0.08%
(7,347.38)
A1/A+
A+

4.78 4.24
66815L2Z1 NORTHWESTERNMUTUAL
GLOBAL FUNDING 4.3 01/13/2031 685,000.00 01/06/20264.30% 684,938.35
684,940.98

98.59 4.63%
675,352.46
6,381.92

0.10%
(9,588.52)
Aa1/AA+
AAA

4.79 4.23
92826CAZ5 VISA INC 4.1 02/12/2031 745,000.00 02/03/2026

4.13%
744,001.70
744,027.94

99.90 4.12%
744,263.20
4,157.51

0.11%
235.25
Aa3/AA-NA4.87

4.35 63 36

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
743315BC6 PROGRESSIVE CORP 4.6
03/26/2031 750,000.00 03/26/20264.67%
747,682.50
747,688.85
100.23

4.55%
751,713.00
479.17

0.11%
4,024.15
A2/A
A

4.99 4.34
Total Corporate 29,405,000.00 4.45%
29,270,151.82
29,296,151.70

99.60 4.44%
29,277,191.41
328,707.84

4.43%
(18,960.29)

3.64 3.08
LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 74,999,195.70 --3.82%
74,999,195.70
74,999,195.70

1.00 3.82%
74,999,195.70

0.00 11.34%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 74,999,195.70 3.82%
74,999,195.70
74,999,195.70

1.00 3.82%
74,999,195.70

0.00 11.34%

0.00 0.00

0.00 LOCAL GOV

INVESTMENT POOL
90CALFT$0 CalFIT 10,006,211.07 --

3.76%
10,006,211.07
10,006,211.07

1.00 3.76%
10,006,211.07

0.00 1.51%

0.00 NA/NA
NA

0.00 0.00
Total Local Gov
Investment Pool 10,006,211.07 3.76%
10,006,211.07
10,006,211.07

1.00 3.76%
10,006,211.07

0.00 1.51%

0.00 0.00

0.00 MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 1,783,616.90 --

3.28%
1,783,616.90
1,783,616.90

1.00 3.28%
1,783,616.90

0.00 0.27%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 1,783,616.90 3.28%
1,783,616.90
1,783,616.90

1.00 3.28%
1,783,616.90

0.00 0.27%

0.00 0.00

0.00 MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 400,000.00 11/05/2024

4.38%
402,056.00
401,450.03
101.76

3.93%
407,050.80
3,000.00

0.06%
5,600.77
Aa2/AA-AA3.34

3.05 13063DRE0 CALIFORNIA ST 2.5 10/01/2029 500,000.00 03/24/2025

4.33%
462,780.00
471,166.34

95.34 3.94%
476,692.50
6,250.00

0.07%
5,526.16
Aa2/AA-AA3.50

3.30 Total Municipal
Bonds 900,000.00 4.35%
864,836.00
872,616.37

98.30 3.93%
883,743.30
9,250.00

0.13%
11,126.93

3.43 3.19
64 37

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

PLACEMENT

SERVICE DEPOSIT
90RCBB$04 RCB ICS 176,985,203.21 --

4.01%
176,985,203.21
176,985,203.21

1.00 4.36%
176,985,203.21

0.00 26.76%

0.00 NA/NA
NA

0.00 0.00
Total Placement
Service Deposit 176,985,203.21 4.01%
176,985,203.21
176,985,203.21

1.00 4.36%
176,985,203.21

0.00 26.76%

0.00 0.00

0.00 SUPRANATIONAL
459058LY7

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.5 10/28/2030
1,000,000.00
10/28/2025

3.68%
991,720.00
992,418.70

98.18 3.94%
981,814.00
14,875.00

0.15%
(10,604.70)
Aaa/AAA
NA

4.58 4.12
Total Supranational 1,000,000.00 3.68%
991,720.00
992,418.70

98.18 3.94%
981,814.00
14,875.00

0.15%
(10,604.70)

4.58 4.12

US TREASURY
912797SD0 UNITED STATES TREASURY
04/02/2026 1,000,000.00 01/29/20263.67%
993,796.73
999,899.95

99.99 3.69%
999,899.00

0.00 0.15%
(0.95)
P-1/A-1+
F1+

0.01 0.00
912797TL1 UNITED STATES TREASURY
05/05/2026 1,000,000.00 01/29/20263.65%
990,581.81
996,629.28

99.66 3.69%
996,577.00

0.00 0.15%
(52.28)
P-1/A-1+
F1+

0.10 0.09
912797TU1 UNITED STATES TREASURY
06/02/2026 1,000,000.00 03/31/20263.68%
993,786.91
993,786.91

99.38 3.68%
993,780.00

0.00 0.15%
(6.91)
P-1/A-1+
F1+

0.17 0.17
91282CKY6 UNITED STATES TREASURY 4.625
06/30/2026 250,000.00 --4.22%
251,818.36
250,235.73
100.22

3.71%
250,539.00
2,906.60

0.04%
303.27
Aa1/AA+
AA+

0.25 0.25
91282CHU8 UNITED STATES TREASURY 4.375
08/15/2026 500,000.00 --4.21%
501,574.22
500,293.91
100.21

3.78%
501,066.50
2,719.27

0.08%
772.59
Aa1/AA+
AA+

0.38 0.37
91282CHY0 UNITED STATES TREASURY 4.625
09/15/2026 500,000.00 --4.23%
503,902.35
500,853.39
100.39

3.75%
501,942.00
1,068.27

0.08%
1,088.61
Aa1/AA+
AA+

0.46 0.45
91282CLS8 UNITED STATES TREASURY 4.125
10/31/2026 1,000,000.00 11/12/20244.34%
995,937.50
998,793.15
100.18

3.81%
1,001,758.00
17,320.44

0.15%
2,964.85
Aa1/AA+
AA+

0.59 0.56
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 1,000,000.00 --4.17%
1,004,296.88
1,001,345.66
100.43

3.75%
1,004,287.00
12,860.58

0.15%
2,941.34
Aa1/AA+
AA+

0.71 0.68
65 38

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CME8 UNITED STATES TREASURY 4.25
12/31/2026 1,000,000.00 01/07/20254.30%
999,101.56
999,659.04
100.35

3.76%
1,003,508.00
10,683.70

0.15%
3,848.96
Aa1/AA+
AA+

0.75 0.72
91282CMH1 UNITED STATES TREASURY 4.125
01/31/2027 1,000,000.00 01/28/20254.21%
998,476.56
999,363.49
100.31

3.74%
1,003,086.00
6,837.02

0.15%
3,722.51
Aa1/AA+
AA+

0.84 0.81
91282CKA8 UNITED STATES TREASURY 4.125
02/15/2027 500,000.00 --4.10%
500,269.54
500,098.98
100.31

3.76%
501,554.50
2,563.88

0.08%
1,455.52
Aa1/AA+
AA+

0.88 0.85
91282CMP3 UNITED STATES TREASURY 4.125
02/28/2027 1,500,000.00 08/14/20253.81%
1,507,031.25
1,504,166.20
100.33

3.75%
1,504,899.00
5,380.43

0.23%
732.80
Aa1/AA+
AA+

0.91 0.89
91282CKE0 UNITED STATES TREASURY 4.25
03/15/2027 1,200,000.00 --3.85%
1,209,515.63
1,204,366.31
100.48

3.73%
1,205,793.60
2,355.98

0.18%
1,427.29
Aa1/AA+
AA+

0.96 0.93
91282CEN7 UNITED STATES TREASURY 2.75
04/30/2027 500,000.00 09/11/20243.52%
490,390.63
496,056.15

98.92 3.78%
494,584.50
5,773.48

0.07%
(1,471.65)
Aa1/AA+
AA+

1.08 1.04
91282CET4 UNITED STATES TREASURY 2.625
05/31/2027 1,000,000.00 --3.74%
976,054.69
987,636.76

98.64 3.82%
986,445.00
8,798.08

0.15%
(1,191.76)
Aa1/AA+
AA+

1.17 1.12
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027 1,200,000.00 03/27/20253.99%
1,180,828.13
1,189,413.59

99.30 3.82%
1,191,656.40
9,803.87

0.18%
2,242.81
Aa1/AA+
AA+

1.25 1.20
91282CKZ3 UNITED STATES TREASURY 4.375
07/15/2027 500,000.00 --3.94%
505,843.75
502,596.63
100.68

3.83%
503,398.50
4,592.54

0.08%
801.87
Aa1/AA+
AA+

1.29 1.23
91282CNP2 UNITED STATES TREASURY 3.875
07/31/2027 1,000,000.00 07/30/20253.92%
999,101.56
999,401.86
100.04

3.84%
1,000,391.00
6,422.65

0.15%
989.14
Aa1/AA+
AA+

1.33 1.28
91282CLG4 UNITED STATES TREASURY 3.75
08/15/2027 2,000,000.00 06/23/20253.81%
1,997,343.75
1,998,298.23

99.88 3.84%
1,997,500.00
9,323.20

0.30%
(798.23)
Aa1/AA+
AA+

1.38 1.32
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 1,200,000.00 03/27/20254.00%
1,203,656.25
1,202,183.37
100.41

3.84%
1,204,922.40
135.25

0.18%
2,739.03
Aa1/AA+
AA+

1.50 1.44
91282CLQ2 UNITED STATES TREASURY 3.875
10/15/2027 1,000,000.00 11/12/20244.31%
988,164.06
993,760.04
100.06

3.83%
1,000,625.00
17,884.62

0.15%
6,864.96
Aa1/AA+
AA+

1.54 1.45
91282CPE5 UNITED STATES TREASURY 3.5
10/31/2027 1,000,000.00 11/13/20253.60%
998,203.13
998,549.45

99.46 3.85%
994,648.00
14,696.13

0.15%
(3,901.45)
Aa1/AA+
AA+

1.59 1.50
91282CLX7 UNITED STATES TREASURY 4.125
11/15/2027 1,000,000.00 11/06/20244.25%
996,484.38
998,096.11
100.43

3.85%
1,004,297.00
15,611.19

0.15%
6,200.89
Aa1/AA+
AA+

1.63 1.53
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 1,000,000.00 --4.11%
993,000.01
996,211.45
100.07

3.83%
1,000,703.00
9,741.02

0.15%
4,491.55
Aa1/AA+
AA+

1.75 1.66
91282CMF5 UNITED STATES TREASURY 4.25
01/15/2028 1,000,000.00 01/07/20254.37%
996,718.75
998,040.24
100.71

3.83%
1,007,070.00
8,922.65

0.15%
9,029.76
Aa1/AA+
AA+

1.79 1.70
66 39

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 1,000,000.00 01/28/20263.59%
998,359.38
998,498.34

99.43 3.82%
994,297.00
5,801.11

0.15%
(4,201.34)
Aa1/AA+
AA+

1.84 1.75
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 1,000,000.00 12/30/20244.31%
990,820.31
994,444.50
100.33

3.82%
1,003,281.00
3,478.26

0.15%
8,836.50
Aa1/AA+
AA+

1.92 1.82
91282CMS7 UNITED STATES TREASURY 3.875
03/15/2028 2,000,000.00 03/25/20263.88%
1,999,609.38
1,999,612.64
100.11

3.81%
2,002,266.00
3,580.16

0.30%
2,653.36
Aa1/AA+
AA+

1.96 1.86
91282CGT2 UNITED STATES TREASURY 3.625
03/31/2028 1,200,000.00 --3.84%
1,191,730.48
1,195,263.22

99.64 3.82%
1,195,640.40
118.85

0.18%
377.18
Aa1/AA+
AA+

2.00 1.91
91282CHA2 UNITED STATES TREASURY 3.5
04/30/2028 1,000,000.00 --3.71%
994,277.34
995,846.02

99.37 3.82%
993,672.00
14,696.13

0.15%
(2,174.02)
Aa1/AA+
AA+

2.08 1.96
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 1,000,000.00 03/27/20254.03%
988,085.94
991,875.84

99.61 3.81%
996,055.00
12,149.73

0.15%
4,179.16
Aa1/AA+
AA+

2.17 2.04
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 500,000.00 --3.96%
500,628.91
500,370.93
100.42

3.80%
502,090.00
5,027.62

0.08%
1,719.07
Aa1/AA+
AA+

2.25 2.11
91282CHQ7 UNITED STATES TREASURY 4.125
07/31/2028 2,000,000.00 06/23/20253.80%
2,018,984.38
2,014,275.99
100.69

3.81%
2,013,750.00
13,674.03

0.30%
(525.99)
Aa1/AA+
AA+

2.33 2.19
91282CNU1 UNITED STATES TREASURY 3.625
08/15/2028 1,500,000.00 08/14/20253.70%
1,496,777.34
1,497,450.69

99.57 3.81%
1,493,613.00
6,759.32

0.23%
(3,837.69)
Aa1/AA+
AA+

2.38 2.25
91282CJA0 UNITED STATES TREASURY 4.625
09/30/2028 500,000.00 --3.90%
513,722.66
508,339.84
101.91

3.81%
509,570.50

63.18 0.08%
1,230.66
Aa1/AA+
AA+

2.50 2.34
91282CPC9 UNITED STATES TREASURY 3.5
10/15/2028 1,000,000.00 11/13/20253.60%
997,343.75
997,687.62

99.22 3.82%
992,227.00
16,153.85

0.15%
(5,460.62)
Aa1/AA+
AA+

2.54 2.37
9128285M8 UNITED STATES TREASURY 3.125
11/15/2028 2,000,000.00 09/03/20253.60%
1,971,406.25
1,976,522.77

98.26 3.83%
1,965,156.00
23,653.31

0.30%
(11,366.77)
Aa1/AA+
AA+

2.63 2.46
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 1,000,000.00 --4.11%
986,164.07
991,014.28

99.80 3.83%
998,008.00
9,426.80

0.15%
6,993.72
Aa1/AA+
AA+

2.75 2.56
91282CPT2 UNITED STATES TREASURY 3.5
01/15/2029 1,000,000.00 01/28/20263.66%
995,507.81
995,765.22

99.15 3.82%
991,484.00
7,348.07

0.15%
(4,281.22)
Aa1/AA+
AA+

2.79 2.61
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 1,000,000.00 01/28/20254.32%
988,281.25
991,701.56
100.45

3.83%
1,004,531.00
6,629.83

0.15%
12,829.45
Aa1/AA+
AA+

2.84 2.64
91282CQA2 UNITED STATES TREASURY 3.5
02/15/2029 1,300,000.00 03/10/20263.58%
1,296,953.14
1,297,012.82

99.13 3.82%
1,288,726.40
5,656.08

0.19%
(8,286.42)
Aa1/AA+
AA+

2.88 2.70
91282CQE4 UNITED STATES TREASURY 3.5
03/15/2029 2,000,000.00 03/25/20263.87%
1,979,218.75
1,979,333.67

99.12 3.82%
1,982,344.00
3,233.70

0.30%
3,010.33
Aa1/AA+
AA+

2.96 2.77
67 40

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 500,000.00 --3.87%
505,238.28
503,427.54
100.83

3.83%
504,160.00

56.35 0.08%
732.46
Aa1/AA+
AA+

3.00 2.80
91282CES6 UNITED STATES TREASURY 2.75
05/31/2029 2,000,000.00 03/25/20263.89%
1,932,343.75
1,932,693.09

96.76 3.85%
1,935,156.00
18,434.07

0.29%
2,462.91
Aa1/AA+
AA+

3.17 2.97
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 1,000,000.00 --3.90%
1,014,421.88
1,010,354.47
101.21

3.85%
1,012,109.00
10,683.70

0.15%
1,754.53
Aa1/AA+
AA+

3.25 2.98
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 1,000,000.00 --3.84%
990,937.50
993,487.25

99.23 3.87%
992,344.00
3,152.17

0.15%
(1,143.25)
Aa1/AA+
AA+

3.42 3.17
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 2,400,000.00 09/16/20253.54%
2,396,250.00
2,396,748.64

98.80 3.87%
2,371,125.60
229.51

0.36%
(25,623.04)
Aa1/AA+
AA+

3.50 3.26
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 1,000,000.00 11/12/20244.32%
991,562.50
993,908.06
100.82

3.88%
1,008,203.00
17,320.44

0.15%
14,294.94
Aa1/AA+
AA+

3.59 3.25
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 1,000,000.00 01/23/20254.46%
985,664.07
989,161.03
100.83

3.88%
1,008,281.00
13,825.55

0.15%
19,119.97
Aa1/AA+
AA+

3.67 3.33
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 1,000,000.00 01/10/20254.53%
993,242.19
994,893.44
101.69

3.88%
1,016,914.00
10,997.93

0.15%
22,020.56
Aa1/AA+
AA+

3.75 3.40
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 1,200,000.00 04/08/20253.92%
1,204,031.25
1,203,225.45
100.38

3.89%
1,204,546.80
4,173.91

0.18%
1,321.35
Aa1/AA+
AA+

3.91 3.58
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 1,500,000.00 --3.82%
1,512,304.69
1,509,937.43
100.36

3.90%
1,505,391.00
163.93

0.23%
(4,546.43)
Aa1/AA+
AA+

4.00 3.66
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 1,550,000.00 --3.94%
1,554,279.30
1,553,588.81
100.34

3.91%
1,555,266.90
20,780.22

0.24%
1,678.09
Aa1/AA+
AA+

4.17 3.75
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 1,200,000.00 08/14/20253.81%
1,203,421.88
1,202,989.19

99.83 3.92%
1,197,984.00
7,707.18

0.18%
(5,005.19)
Aa1/AA+
AA+

4.33 3.93
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 2,400,000.00 09/16/20253.58%
2,404,500.00
2,404,012.44

98.77 3.93%
2,370,561.60
7,565.22

0.36%
(33,450.84)
Aa1/AA+
AA+

4.42 4.02
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 1,500,000.00 01/29/20263.78%
1,490,156.25
1,490,508.64

98.75 3.93%
1,481,308.50
148.57

0.22%
(9,200.14)
Aa1/AA+
AA+

4.50 4.11
91282CPD7 UNITED STATES TREASURY 3.625
10/31/2030 1,000,000.00 11/05/20253.76%
994,023.44
994,502.88

98.71 3.94%
987,070.00
15,220.99

0.15%
(7,432.88)
Aa1/AA+
AA+

4.59 4.11
91282CPR6 UNITED STATES TREASURY 3.625
12/31/2030 2,000,000.00 01/29/20263.80%
1,984,453.13
1,984,981.17

98.64 3.94%
1,972,812.00
18,225.14

0.30%
(12,169.17)
Aa1/AA+
AA+

4.75 4.28
91282CQD6 UNITED STATES TREASURY 3.5
02/28/2031 2,000,000.00 03/25/20263.97%
1,958,515.63
1,958,653.91

98.06 3.94%
1,961,250.00
6,086.96

0.30%
2,596.09
Aa1/AA+
AA+

4.91 4.45
68 41

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total US Treasury 69,100,000.00 3.90%
68,799,095.27
68,851,825.25

99.67 3.84%
68,866,125.10
468,622.72

10.41%
14,299.85

2.50 2.32
Total Portfolio 662,354,554.77 3.73%
661,019,166.16
661,241,809.70

19.30 3.79%
661,287,132.42
874,582.36
100.00%
45,322.72

0.55 0.47
Total Market Value +
Accrued 662,161,714.78
69 42

TRANSACTIONS
70 43

ACQUISITIONS
Purchase 01/08/2026 14913UBH2 1,010,000.00

CATERPILLAR

FINANCIAL SERVICES
CORP 4.15 01/08/2031

99.964 4.16% (1,009,636.40) 0.00 (1,009,636.40) 0.00
Purchase 01/12/2026 89236TPH2 545,000.00

TOYOTA MOTOR
CREDIT CORP 4.2
01/10/2031

99.969 4.21% (544,831.05) 0.00 (544,831.05) 0.00
Purchase 01/13/2026 66815L2Z1 685,000.00

NORTHWESTERN

MUTUAL GLOBAL
FUNDING 4.3
01/13/2031

99.991 4.30% (684,938.35) 0.00 (684,938.35) 0.00
Purchase 01/14/2026 58989V2M5 660,000.00

MET TOWER GLOBAL
FUNDING 4.0
01/14/2029

99.871 4.05% (659,148.60) 0.00 (659,148.60) 0.00
Purchase 01/15/2026 90LAIF$00 195.70
Local Agency
Investment Fund State
Pool

1.000 3.93% (195.70) 0.00 (195.70) 0.00
Purchase 01/28/2026 3137F9Z79 300,000.00 FHMS K-125 A2 1.846 01/25/2031 89.902 4.12% (269,707.03) (415.35) (270,122.38) 0.00 Purchase 01/29/2026 91282CGH8 1,000,000.00

UNITED STATES
TREASURY 3.5
01/31/2028

99.836 3.59% (998,359.38) (17,309.78) (1,015,669.16) 0.00 Purchase 01/29/2026 91282CPT2 1,000,000.00

UNITED STATES
TREASURY 3.5
01/15/2029

99.551 3.66% (995,507.81) (1,353.59) (996,861.40) 0.00
Purchase 01/30/2026 3137F62M8 200,000.00 FHMS K-118 A2 1.493 09/25/2030 89.453 4.03% (178,906.25) (240.54) (179,146.79) 0.00 Purchase 01/30/2026 3137FVNG3 750,000.00 FHMS K-114 A2 1.366 06/25/2030 89.406 4.02% (670,546.88) (825.29) (671,372.17) 0.00 Purchase 01/30/2026 3137F8ZV8 750,000.00 FHMS K-123 A2 1.621 12/25/2030 89.445 4.05% (670,839.85) (979.36) (671,819.21) 0.00 Purchase 01/30/2026 3137FXZ35 750,000.00 FHMS K-127 A2 2.108 01/25/2031 91.273 4.06% (684,550.78) (1,273.58) (685,824.36) 0.00 Purchase 01/30/2026 91282CPA3 1,500,000.00

UNITED STATES
TREASURY 3.625
09/30/2030

99.344 3.78% (1,490,156.25) (18,224.59) (1,508,380.84) 0.00 71 44

TRANSACTION LEDGER
San Diego Community Power ConsAgg | Account #11452|01/01/2026 Through 03/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss Purchase 01/30/2026 912797SD0 1,000,000.00 UNITED STATES TREASURY 04/02/2026 99.380 3.67% (993,796.73) 0.00 (993,796.73) 0.00 Purchase 01/30/2026 91282CPR6 2,000,000.00

UNITED STATES
TREASURY 3.625
12/31/2030

99.223 3.80% (1,984,453.13) (6,008.29) (1,990,461.42) 0.00 Purchase 01/30/2026 912797TL1 1,000,000.00 UNITED STATES TREASURY 05/05/2026 99.058 3.65% (990,581.81) 0.00 (990,581.81) 0.00 Purchase 01/31/2026 90LAIF$00 74,899,000.00
Local Agency
Investment Fund State
Pool

1.000 3.91% (74,899,000.00) 0.00 (74,899,000.00) 0.00
Purchase 01/31/2026 90RCBB$04 610,964.28 RCB ICS 1.000 4.18% (610,964.28) 0.00 (610,964.28) 0.00 Purchase 02/12/2026 92826CAZ5 745,000.00 VISA INC 4.1
02/12/2031 99.866 4.13% (744,001.70) 0.00 (744,001.70) 0.00 Purchase 02/28/2026 90RCBB$03 38,668,439.19 RCB MMKT 1.000 4.04% (38,668,439.19) 0.00 (38,668,439.19) 0.00 Purchase 02/28/2026 90RCBB$04 542,043.09 RCB ICS 1.000 4.09% (542,043.09) 0.00 (542,043.09) 0.00 Purchase 03/11/2026 91282CQA2 1,300,000.00

UNITED STATES
TREASURY 3.5
02/15/2029

99.766 3.58% (1,296,953.14) (3,016.57) (1,299,969.71) 0.00 Purchase 03/26/2026 90CALFT$0 10,000,000.00 CalFIT 1.000 3.76% (10,000,000.00) 0.00 (10,000,000.00) 0.00 Purchase 03/26/2026 91282CES6 2,000,000.00

UNITED STATES
TREASURY 2.75
05/31/2029

96.617 3.89% (1,932,343.75) (17,527.47) (1,949,871.22) 0.00 Purchase 03/26/2026 91282CMS7 2,000,000.00

UNITED STATES
TREASURY 3.875
03/15/2028

99.980 3.88% (1,999,609.38) (2,316.58) (2,001,925.96) 0.00 Purchase 03/26/2026 91282CQD6 2,000,000.00

UNITED STATES
TREASURY 3.5
02/28/2031

97.926 3.97% (1,958,515.63) (4,945.65) (1,963,461.28) 0.00 Purchase 03/26/2026 91282CQE4 2,000,000.00

UNITED STATES
TREASURY 3.5
03/15/2029

98.961 3.87% (1,979,218.75) (2,092.39) (1,981,311.14) 0.00 Purchase 03/27/2026 743315BC6 750,000.00 PROGRESSIVE CORP

4.6 03/26/2031 99.691 4.67% (747,682.50) (95.83) (747,778.33) 0.00 Purchase 03/31/2026 90RCBB$03 897,393.99 RCB MMKT 1.000 3.96% (897,393.99) 0.00 (897,393.99) 0.00 Purchase 03/31/2026 90CALFT$0 6,211.07 CalFIT 1.000 3.76% (6,211.07) 0.00 (6,211.07) 0.00 Purchase 03/31/2026 90RCBB$04 589,672.73 RCB ICS 1.000 4.01% (589,672.73) 0.00 (589,672.73) 0.00 72 45

TRANSACTION LEDGER
San Diego Community Power ConsAgg | Account #11452|01/01/2026 Through 03/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss Purchase 04/01/2026 912797TU1 1,000,000.00 UNITED STATES TREASURY 06/02/2026 99.379 3.68% (993,786.91) 0.00 (993,786.91) 0.00 Total Purchase 151,158,920.05 (150,691,992.11) (76,624.86) (150,768,616.97) 0.00 TOTAL
ACQUISITIONS 151,158,920.05 (150,691,992.11) (76,624.86) (150,768,616.97) 0.00

DISPOSITIONS
Maturity 02/03/2026 912797SJ7 (500,000.00) UNITED STATES TREASURY 02/03/2026 100.000 3.86% 500,000.00 0.00 500,000.00 0.00 Maturity 03/03/2026 912797ST5 (500,000.00) UNITED STATES TREASURY 03/03/2026 100.000 3.87% 500,000.00 0.00 500,000.00 0.00 Total Maturity (1,000,000.00) 1,000,000.00 0.00 1,000,000.00 0.00 Sale 01/08/2026 438516CX2 (300,000.00)

HONEYWELL

INTERNATIONAL INC

4.65 07/30/2027
101.291 4.47% 303,873.00 6,122.50 309,995.50 3,146.96
Sale 01/08/2026 89115A3A8 (300,000.00)

TORONTO-DOMINION
BANK 4.568
12/17/2026
100.659 4.70% 301,977.00 799.40 302,776.40 2,322.97
Sale 01/08/2026 14913UAR1 (300,000.00)

CATERPILLAR

FINANCIAL SERVICES
CORP 4.4 10/15/2027
101.221 4.29% 303,663.00 3,043.33 306,706.33 3,093.39
Sale 01/08/2026 06368L8K5 (500,000.00) BANK OF MONTREAL

4.567 09/10/2027 100.370 4.47% 501,850.00 7,484.81 509,334.81 1,638.93 Sale 01/09/2026 24422EXZ7 (425,000.00) JOHN DEERE CAPITAL CORP 4.65 01/07/2028 101.775 4.66% 432,543.75 109.79 432,653.54 7,628.67 Sale 01/09/2026 857477CU5 (625,000.00) STATE STREET CORP

4.536 02/28/2028 101.508 4.51% 634,425.00 10,316.25 644,741.25 9,425.00 Sale 01/31/2026 90RCBB$03 (69,216,360.42) RCB MMKT 1.000 4.13% 69,216,360.42 0.00 69,216,360.42 0.00 Total Sale (71,666,360.42) 71,694,692.17 27,876.08 71,722,568.25 27,255.92 TOTAL
DISPOSITIONS (72,666,360.42) 72,694,692.17 27,876.08 72,722,568.25 27,255.92 73 46

IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

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SAN DIEGO COMMUNITY POWER
Staff Report – Item 3
To: Finance and Risk Management Committee
From: Chandra Pugh, Senior Director of People Operations and Administration Via: Karin Burns, Chief Executive Officer
Subject: Public Hearing on AB 2561 (McKinnor) – Status of Vacancies, Recruitment and Retention
Date: June 18, 2026
Recommendation
Recommend the Board hold a public hearing, receive comments, and accept report on the status of Community Power employee vacancy rates and recruitment and retention efforts.

Background
Assembly Bill (AB) 2561 (McKinnor) amended the Myers-Milias-Brown Act (MMBA) to add Government Code Section 3502.3, which created a new obligation for public agencies to present the status of vacancies and recruitment and retention efforts. The public hearing must be held at least once per fiscal year prior to adopting an annual budget. During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. The law also allows recognized employee organizations, which Community Power does not have, an opportunity to present at the public hearing. The new law took effect on January 1, 2025, and applies to all public agencies.

Analysis and Discussion
Status of Job Vacancies
For the Fiscal Year 2026, there were twenty-eight vacancies, twenty employees have been hired, two were filled by internal candidates, four positions are currently open, and four positions have not been posted. As shown in Table 1 below, the three current vacancies are:
76 Program Associate – SDREN, Data Engineer, and Marketing and Communications Associate - SDREN.

Community Power has been highly successful in recruiting vacant positions this past fiscal year, including fulfillment of critical Chief Commercial Officer, Chief Financial Officer, and Associate Director of Finance roles. Outside recruitment firms were utilized to minimize length of vacancy and disruption to the organization.

Table 1
Recruitment and Retention Efforts
The recruitment process involves three interview stages including a virtual and two in-person panel interviews.

Employee turnover at Community Power this past fiscal year stood at 3.16%, and employee retention stood at 97%, as shown in Table 2 below. Of the twenty-eight vacancies, twenty-three were new positions; four positions were backfilled, and one position being backfilled was split into two part-time hires. Community Power’s retention efforts include offering competitive wages, 10% of base pay employer contribution to employee Money Purchase 77 Plan retirement account, generous vacation and sick time, 11 paid holidays including a winter break, and a professional development stipend. Because Community Power has been highly successful in filling vacant positions this past fiscal year and retaining its employees, no changes are being recommended to its recruitment process and retention efforts.

Table 2:

Fiscal Impact
N/A
Strategic Plan
Hire top talent according to plan and budget.

Attachments
N/A
78 SAN DIEGO COMMUNITY POWER
Staff Report – Item 4
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: Recommend Board Approval of Resolution, Adopting the FY 2026-2027 Operating Budget, FY 2026-2027 Capital Budget, and FY 2027-2031 Capital Investment Plan
Date: June 18, 2026
Recommendation
Recommend Board Approval of Resolution, Adopting the FY 2026-2027 Operating Budget, FY 2026-2027 Capital Budget, and FY 2027-2031 Capital Investment Plan.

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.
79 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 Proposed 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 2020-2021 Amendment $26,286,909 $34,135,000 ($7,848,091) FY 2021-2022 Amendment $378,053,506 $342,177,063 $35,876,443 FY 2022-2023 Amendment $929,791,929 $772,078,709 $157,713,220 FY 2023-2024 Amendment $1,304,274,067 $1,070,891,284 $233,382,783 FY 2024-2025 Amendment $1,221,258,172 $1,187,090,169 $34,168,003 FY 2025-2026 Amendment $1,175,418,913 $1,025,004,360 $150,414,553 FY 2026-2027 Proposed $918,820,685 $914,910,136 $3,910,549 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 May 21, 2026, the FRMC received a presentation and provided feedback on the draft FY 2026-2027 Operating Budget, FY 2026-2027 Capital Budget, and FY 2027-2031 Capital Investment Plan. The presentation additionally included a Quarterly Risk Oversight Committee Report, pursuant to Section 7.3 of the agency’s Energy Risk Management Policy, 80 which reviewed the significant financial risks facing the agency most notably from the Power Charge Indifference Adjustment (PCIA).

Subsequently, on May 28, 2026, the Board received a similar presentation and provided feedback on the draft FY 2026-2027 Operating Budget, FY 2026-2027 Capital Budget, and FY 2027-2031 Capital Investment Plan, and the Quarterly Risk Oversight Committee Report.

Analysis and Discussion
The proposed FY 2026-2027 operating budget includes net operating revenue of $918,820,685 and total expenses of $914,910,136, resulting in net position of $3,910,549.

The proposed 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 proposed FY 2027-2031 capital investment plan includes 19 projects that are planned to receive funding during the five-year period, totaling $310,265,290in investment. The first year of the FY 2027-2031 CIP reflects the proposed FY 2026-2027 capital budget. Additionally, $20,727,469 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 $124,274,206for the San Diego Regional Energy network in 2025, of which $63,417,654 is included in the FY 2026-2027 capital budget.

The proposed 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 May 1, 2026, to December 31, 2026.
81 • 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 May 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 Proposed 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 Proposed 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.
• 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 106 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.), 82 legal/regulatory services and other general contracts related to IT services, audits and accounting services.
• Strategic Communications and Outreach includes expenses for mandatory notices and mailers, printing and outreach materials, communication consultants, and events and partnerships to increase awareness, drive customer enrollment, and build positive relationships.
• General and Administration budget covers the cost of office space, equipment, membership dues, and other general operational costs.

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 proposed 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 proposed 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. 83 • EV Load Growth Study: $0.3 million will evaluate how increasing EV adoption will affect electricity demand across Community Power’s service territory, including impacts from different charging behaviors on load shape, peak demand, and system risk.
• IT Projects: $0.2 million will fund the optimization and expanded rollout of the agency’s central Enterprise Resource Planning (ERP) platform. While Phase 1 successfully established core budgeting functionalities, Phase 2 is being considered for strategic rescoping to prioritize immediate agency-wide operational controls and financial efficiencies. Once deployed, this phase will streamline cross-departmental workflows, enhance internal financial controls, and automate routine processes. This targeted optimization ensures the finance, non-energy procurement team and broader agency possess the scalable infrastructure required to support expanding community programs and minimize administrative overhead.

Net Income
The proposed FY 2026-2027 budget results in a net position of $3,910,549.

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 Reserve Balance and Maximum Reserve Balance of Community Power’s Financial Reserves, as defined in the Financial Reserves Policy.

Under the proposed FY 2026-2027 operating budget, Community Power is projected to have an ending reserve balance of $711.6 million- or 280-days cash on hand based on the operating expenses projected in FY 2026-2027. Staff note that based on operating expenses projected in FY 2025-2026, the ending reserve balance would only 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 280-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 in May 2026. Total projected ending liquidity (including unrestricted cash, investment holdings, and available lines of credit) for FY 2026-2027 is 370 days liquidity on hand. The following table illustrates Community Power’s proposed FY 2026-2027 operating budget compared to the amended budgets for FY 2024-2025 and FY 2025-2026. Staff note 84 certain figures presented in the associated attachments to the staff report may vary slightly due solely to rounding.

Table 3. Proposed FY 2026-2027 Budget compared to FY 2024-2025 and FY 2025-2026 Amended Budgets.

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
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 55.7
Subtotal Operating Expense 1,167.6 1,019.9 928.1
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 1,025.0 914.9
Net Position 34.2 150.4 3.9
Amounts displayed in millions, $
85 The next table illustrates Community Power’s proposed 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.

Table 4. Community Power FY 2027-2031 Capital Investment Plan Carryforward FY27
Proposed FY28 FY29 FY30 FY31 Total
External Funding
Regional Energy Network - 63.1 51.4 42 43.7 45.5 245.7
DAC-GT 0.3 0.3 - - - - 0.6
Equitable Building
Decarbonization 1.4 - - - - - 1.4
Planning and Studies 0.7 - 0.7
Total External Funding 2.4 63.4 51.4 42 43.7 45.5 248.4 Internal Funding
Solar Battery Savings 10.8 3.5 10.4 8.3 8.5 7.6 49.1
Pilot Programs 2.0 2.5 - - - 4.5
Grants 1.3 - - - - - 1.3
Flexible Load 0.5 1.5 - - - - 2.0
IT Projects 3.2 0.2 - - - - 3.4
Planning and Studies 0.3 0.3 - - - - 0.6
Application Assistance 0.3 - 0.3 - - 0.3 0.9
Total Internal Funding 18.4 8.0 10.7 8.3 8.5 7.9 61.8
Total CIP Expenses 20.8 71.4 62.1 50.3 52.2 53.4 310.2
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.
86 Since the Board meeting on May 28, 2026, staff further reviewed Community Power’s non-energy budget and are proposing to further reduce the non-energy budget by $0.8 million.

The majority of the reductions were from decreasing total proposed staffing from 108 full-time employees to 106 full-time employees by removing positions within the Programs and IT and Data Analytics departments.

Table 5. Community Power FY 2026-2027 Budget Draft vs Proposed FY27 Draft
May 28, 2026
FY27 Proposed
June 18, 2026 FY27 Difference
Gross Revenue 932.8 932.8 -
Less Uncollectible Accounts -14.0 -14.0 -
Net Operating Revenues 918.8 918.8 -
Cost of Energy 872.3 872.3 -
Non-Energy Costs 56.5 55.7 -0.8
Subtotal Operating Expense 928.9 928.1 -0.8
Investment Income -23.1 -23.1 -
Debt Service 1.9 1.9 -
Capital Investment Plan (Transfer Out) 8.0 8.0 -
Total Expenses 915.7 914.9 -0.8
Net Position 3.1 3.9 +0.8
Amounts displayed in millions, $
Fiscal Impact
The proposed FY 2026-2027 budget is expected to result in a net position of $3.9 million, with an ending reserve balance of $711.6 million or 280-days cash on hand based on the operating expenses projected in FY 2026-2027.

Community Power proposes a one-time investment of $8.0 million in the agency’s Capital Investment Plan, which is reflected in the operating budget. 87 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.

Attachments
A: Proposed FY 2026-2027 Operating Budget, FY 2026-2027 Capital Budget, and FY 2027- 2031 Capital Investment Plan (June 18 redlined).

B: Proposed FY 2026-2027 Operating Budget, FY 2026-2027 Capital Budget, and FY 2027- 2031 Capital Investment Plan (Clean)
C: Proposed FY 2026-2027 Operating Budget Book
D: Proposed FY 2027-2031 Capital Investment Plan
E: A Resolution of the Board of Directors of San Diego Community Power Adopting the Fiscal Year 2026-2027 Operating Budget, the Fiscal Year 2026-2027 Capital Budget (Exhibit A), and the Fiscal Year 2027-2031 Capital Investment Plan (Exhibit B) 88 ITEM 4

ATTACHMENT A
89 1
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
90 2
TABLE 1: PROPOSED FY2026-2027 BUDGET
San Diego Community Power
Draft Proposed FY 2026-27 Budget
Supplemental Details

OPERATING REVENUES
FY 2024-25
Amended Budget
FY 2025-26
Amended Budget
Gross Ratepayer Revenues $ 1,243,010,863 $ 1,194,789,046 (Less Uncollectible Customer Accounts) $ (21,752,690) $ (19,370,133) Net Operating Revenues $ 1,221,258,172 $ 1,175,418,914

COST OF ENERGY
Cost of Energy $ 1,116,836,549 $ 969,916,628
Total Cost of Energy $ 1,116,836,549 $ 969,916,628
Gross Net Position $ 104,421,623 $ 205,502,285

OPERATING EXPENSES
Professional Services and Consultants
Data Management $ 14,569,264 $ 13,819,264
SDG&E Fees $ 3,435,746 $ 3,835,746
Technical Support $ 2,098,333 $ 2,264,333
Legal/Regulatory $ 2,138,000 $ 1,226,200 $ 1,576,200 $ 1,501,200 Other Services $ 2,104,999 $ 2,268,835 $ 2,915,831 $ 2,912,081 Total Prof. Svcs. Costs $ 24,346,342 $ 23,414,378 $ 23,875,861 $ 23,797,111 Personnel Costs
Salaries $ 14,988,227 $ 15,298,873 $ 19,284,224 $ 18,676,333 Benefits (retirement/health) $ 2,549,522 $ 3,811,399 $ 4,210,527 $ 4,114,909 Payroll Taxes $ 1,030,146 $ 498,938 $ 640,131 $ 621,460 Total Personnel Costs $ 18,567,895 $ 19,609,209 $ 24,134,882 $ 23,412,702 2.6% 2.5% Strategic Communications and Community Outreach
Printing $ 1,107,143 $ 693,263 $ 640,865 $ 640,015
Memberships $ 1,201,450 $ 1,000,700 $ 214,790 $ 197,790 Strategic Communications and Community Outreach $ 670,000 $ 622,500 Total Strat Comm and Outreach Costs $ 2,978,593 $ 2,316,463 $ 2,433,155 $ 2,415,305 General and Administration
Other G & A $ 3,637,905 $ 2,824,997 $ 4,223,983 $ 4,218,733 Cal CCA Dues $ 460,000 $ 555,000
Rent $ 744,264 $ 935,784
Insurance $ 67,592 $ 331,414
Total G & A Costs $ 4,909,761 $ 4,647,195 $ 6,098,928 $ 6,093,678 Net Operating Expenses $ 50,802,591 $ 49,987,246 $ 56,542,826 $ 55,718,796 6.2% 6.1% Total Operating Expenses $ 1,167,639,140 $ 1,019,903,874 $ 928,885,852 $ 928,061,822 101.1% 101.0% Operating Income (Loss) $ 53,619,033 $ 155,515,040 $ (10,065,167) $ (9,241,136) -1.1% -1.0%

NON-OPERATING REVENUES (EXPENSES)
Investment income $ - $ 18,294,938
Interest and Related Expenses $ (1,276,000) $ (1,514,825) Transfer to Capital Investment Program $ (18,200,000) $ (21,880,600) Total Non-Operating Revenues (Expenses) $ (19,476,000) $ (5,100,487) CHANGE IN NET POSITION $ 34,143,033 $ 150,414,553 $ 3,086,519 $ 3,910,549 0.3% 0.4% $ 13,151,686
% of Net
Revenues
100.0%

94.9%

5.1%

2.6%

0.3%

0.7%

1.4%
$ 935,784
$ 384,161
$ 23,101,021
$ (1,949,335)
$ (8,000,000)
$ 46,477,659
$ 12,912,595
$ 3,456,000
$ 3,015,235
$ 1,577,500
$ 555,000
FY 2026-27
Proposed Budget
$ 932,812,878
$ (13,992,193)
$ 918,820,685
$ 872,343,026
$ 872,343,026
91 3
Proposed Budget Overview
Budget-in Brief
The Proposed 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 Proposed 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 second half fiscal year impacts and inform future reserve funding recommendations.

The Proposed 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 3 staff to grow from 103 to 106 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.
92 4
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 Proposed Budget
The Community Power Draft Proposed 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 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
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 56.6 55.7
Subtotal Operating Expense 1,167.6 1,019.9 928.9 928.1
Interest Income 0.0 -18.3 -23.1
Debt Service 1.3 1.5 1.9
CIP 18.5 18.2 21.9 8.0
Total Expenses 1,197.4 1,187.1 1,025.0 915.7 914.9
Net Position 33.9 34.2 150.4 3.1 3.9
Amounts displayed in millions, $
93 5
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. a. Rates that were set and approved by the Board on April 23, 2026, for the period from July May 1, 2026, to December 31, 2026.
b. 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 May 1, 2026, to December 31, 2026.
c. Generation rates are projected to decrease between 15% to 20% between calendar years 2026 and 2027 and, within the FY2027 Draft Proposed Budget, for the period from January 1, 2027, to June 30, 2027.
d. PCIA is expected to increase between 25% to 55% between calendar year 2026 and 2027 and, within the FY2027 Draft Proposed 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.
e. 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 Proposed 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, $
94 6
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 costsinclude 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 outside 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. 95 7
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.
f. Strategic Communications and Outreach – Strategic Communications and 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. 96 8
The table below summarizes the expenses for the FY2027 Draft Proposed Budget compared to the FY2025 and FY2026 Amended Budgets.

TABLE 4: OPERATING EXPENSES BY BUDGET LEVEL 2
FY25 Amended FY26 Amended FY27 Draft
Proposed
Cost of Energy 1,116.8 969.9 872.3
Professional Services and Consultants 24.3 23.4 23.9 23.8 Personnel Costs 18.6 19.6 24.1 23.4
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 1,019.9 928.9 928.1 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 1,025.0 915.7 914.9
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.).
97 9
Community Power Capital Investment Program Plan (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 Proposed FY 2026-2027 Capital Budget totals $71.4 million, and the Draft Proposed 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 Proposed 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 Proposed 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 proposed 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.
g. $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 and a variety of technologies or activities, including managed charging for electric vehicles and energy efficiency.
98 10
h. $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. i. $0.3 million, EV Load Growth Study: The Regional EV Load Analysis will forecast how growing EV adoption can impact electricity demand across Community Power’s service territory, including hourly load profiles, adoption scenarios and geographic variation. It will evaluate how different charging behaviors — especially unmanaged vs. managed charging — affect load shape, peak demand and system risks, with a focus on strategies (for example, time-of-use rates or managed charging) that can shift or mitigate EV-related peaks. Overall, the study aims to provide insights that support long-term planning, helping Community Power understand both the risks and opportunities of transportation electrification for load forecasting, Resource Adequacy and program design. j. $0.2 million, IT Projects: Focus on Community Power’s commitment to fiscal stewardship and operational scaling, this project funds the optimization and expanded rollout of the agency’s central Enterprise Resource Planning (ERP) platform. While Phase 1 successfully established core budgeting functionalities, Phase 2 is being considered for strategic rescoping to prioritize immediate agency-wide operational controls and financial efficiencies. Once deployed, this phase will streamline cross-departmental workflows, enhance internal financial controls, and automate routine processes. This targeted optimization ensures the finance, non-energy procurement team and broader agency possess the scalable infrastructure required to support expanding community programs and minimize administrative overhead.

TABLE 5: DRAFT PROPOSED FY 2026-2027 CAPITAL BUDGET
Carryforward FY27 Authorized
Budget
FY27 Draft
Proposed
Appropriation
Operating Transfer In 18.2 18.4 - 8.0
Regional Energy Network - 63.1 -
DAC-GT 0.3 0.3 -
CDFA 0.7 - -
Equitable Building Decarbonization 1.4 - -
Other Planning and Studies 0.7 -
99 11
Total 21.3 20.8 63.4 8.0
Amounts displayed in millions, $
TABLE 6: DRAFT PROPOSED 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 Planning and
Studies 0.7 - - - - - 0.7
Subtotal 3.1 2.4 63.4 51.4 42.0 43.7 45.5 249.1 248.4
Internal Funding
Solar Battery Savings 10.8 3.5 10.4 8.3 8.5 7.6 49.1
Pilot Programs 1.8 2.0 2.5 - - - - 4.3 4.5
Grants 1.3 - - - - - 1.3
Flexible Load 0.5 1.5 - - - - 2.0
IT Projects 3.2 0.2 - - - - 3.4
Programs Evaluation Planning and
Studies 0.3 0.3 - - - - 0.6
Application Assistance 0.3 - 0.3 - - 0.3 0.9
Subtotal 18.2 18.4 8.0 10.7 8.3 8.5 7.9 61.6 61.8
Total CIP Expenses 21.3 20.8 71.4 62.1 50.3 52.2 53.4 310.7 310.2 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 100
12 Operating Expenses by Department
The table below summarizes the Draft Proposed 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
Proposed
Power Services 1,118.9 972.0 875.3
Executive 0.2 0.1 0.4
Operations 20.7 20.9 24.3 23.6
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 1.3
Total Operating Expenses 1,167.6 1,019.9 928.9 928.1
Amounts displayed in millions, $
101
13 Personnel by Department
The table below summarizes the projected personnel for the Draft Proposed 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 5.0
Finance 9.0 13.0 13.0
Customer Operations 8.0 6.0 7.0 8.0
IT and Data Analytics 9.0 16.0 16.0 13.0
Public Affairs 12.0 11.0 13.0 14.0
Programs 12.0 16.0 17.0 16.0
Regulatory and Legislative Affairs 5.0 5.0 5.0
Human Resources and Administration 4.0 7.0 7.0 8.0
Legal 2.0 3.0 3.0
Total FTEs 87.0 103.0 108.0 106.0
102
14 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. k. 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. l. 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 Proposed
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 Proposed
Executive 5.0 5.0 5.0
103
15 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 Proposed
Operations 5.0 6.0 6.0 5.0
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. m. Accounting services increased consistent with the annual escalation clause in the contract with Maher Accountancy, with additional pass-through costs as SDCP utilizes 104
16 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 Proposed
Finance 9.0 13.0 13.0
TABLE 12: FINANCE POSITIONS
105
17 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.
n. 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 Proposed
Customer Operations 8.0 6.0 7.0 8.0
TABLE 13: CUSTOMER OPERATIONS POSITIONS
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
106
18 FY25 Amended FY26 Amended FY27 Draft Proposed
IT and Data Analytics 9.0 16.0 16.0 13.0
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. o. 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 Proposed
Public Affairs 12.0 11.0 13.0 14.0
TABLE 15: PUBLIC AFFAIRS POSITIONS
107
19 Programs
Budget Highlights
p. An additional $8 million has been allocated to CIP projects including Solar Battery Savings, Distributed Energy Resource Management System (DERMS), various pilot programs, Enterprise Resource Planning, and the EV Load Growth study. q. Programs proposes to add one position, a Senior Program Associate, to support the DERMS as the technical lead.

Department Positions
FY25 Amended FY26 Amended FY27 Draft
Proposed
Programs 12.0 16.0 17.0 16.0
TABLE 16: PROGRAMS POSITIONS
Regulatory and Legislative Affairs
Budget Highlights
r. Budget remains the same as FY2026 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 Proposed
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 which is not included in department positions.

Department Positions
FY25 Amended FY26 Amended FY27 Draft Proposed
Human Resources 4.0 7.0 7.0 8.0
108
20 TABLE 18: HUMAN RESOURCES POSITIONS
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 Proposed
Legal 2.0 3.0 3.0
TABLE 19: LEGAL POSITIONS
109
21 Significant Budget Adjustments
The following section summarizes the most significant changes between the FY 2025-2026 Amended Budget and the FY 2026- 2027 Draft Proposed 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
Customer
Operations – ($104,560) –
110
22 electronic delivery channels by reducing paper
mail volumes.

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
+214,396 -
111
23 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
+122,522 -
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
+$132,500 -
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
+98,842 -
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
Finance – ($4,806,083) –
112
24 balance consistent with the reserve policy
adopted by the Board in December 2025.

Interest and Related Expenses
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
Programs – +$600,000 -
113
25 an additional 5,000 participants. Funding is
primarily for participation
incentives, seasonal performance incentives and
device fees.

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
114
ITEM 4

ATTACHMENT B
115
1 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
116
2 TABLE 1: PROPOSED FY2026-2027 BUDGET
San Diego Community Power
Proposed 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 $ 1,501,200
Other Services $ 2,104,999 $ 2,268,835 $ 2,912,081
Total Prof. Svcs. Costs $ 24,346,342 $ 23,414,378 $ 23,797,111 2.6% Personnel Costs
Salaries $ 14,988,227 $ 15,298,873 $ 18,676,333
Benefits (retirement/health) $ 2,549,522 $ 3,811,399 $ 4,114,909 Payroll Taxes $ 1,030,146 $ 498,938 $ 621,460
Total Personnel Costs $ 18,567,895 $ 19,609,209 $ 23,412,702 2.5% Strategic Communications and Outreach
Printing $ 1,107,143 $ 693,263 $ 640,015
Memberships $ 1,201,450 $ 1,000,700 $ 197,790
Strategic Communications and Outreach $ 670,000 $ 622,500 $ 1,577,500 Total Strat Comm and Outreach Costs $ 2,978,593 $ 2,316,463 $ 2,415,305 0.3% General and Administration
Other G & A $ 3,637,905 $ 2,824,997 $ 4,218,733
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 $ 6,093,678 0.7% Net Operating Expenses $ 50,802,591 $ 49,987,246 $ 55,718,796 6.1% Total Operating Expenses $ 1,167,639,140 $ 1,019,903,874 $ 928,061,822 101.0% Operating Income (Loss) $ 53,619,033 $ 155,515,040 $ (9,241,136) -1.0%

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 $ 3,910,549 0.4% 117
3 Proposed Budget Overview
Budget-in Brief
The Proposed 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.

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.
118
4 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.

Proposed Budget
The Community Power Proposed 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 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
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 55.7
Subtotal Operating Expense 1,167.6 1,019.9 928.1
Interest Income 0.0 -18.3 -23.1
Debt Service 1.3 1.5 1.9
CIP 18.2 21.9 8.0
Total Expenses 1,187.1 1,025.0 914.9
Net Position 34.2 150.4 3.9
Amounts displayed in millions, $
119
5 Operating Revenue
Community Power’s main source of revenue is from the retail sale of electricity to its customers.

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 May 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 May 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 Proposed 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 Proposed 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 Proposed 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, $
120
6 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 costsinclude 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. 121
7 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.
b. Strategic Communications and Outreach – Strategic Communications and 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. 122
8 The table below summarizes the expenses for the FY2027 Proposed Budget compared to the FY2025 and FY2026 Amended Budgets.

TABLE 4: OPERATING EXPENSES BY BUDGET LEVEL 2
FY25 Amended FY26 Amended FY27 Proposed
Cost of Energy 1,116.8 969.9 872.3
Professional Services and Consultants 24.3 23.4 23.8
Personnel Costs 18.6 19.6 23.4
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 1,019.9 928.1
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 1,025.0 914.9
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.).
123
9 Community Power Capital Investment Plan (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 Proposed FY 2026-2027 Capital Budget totals $71.4 million, and the Proposed 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 Proposed 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 Proposed 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 proposed 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 and a variety of technologies or activities, including managed charging for electric vehicles and energy efficiency.
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10 c. $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. d. $0.3 million, EV Load Growth Study: The Regional EV Load Analysis will forecast how growing EV adoption can impact electricity demand across Community Power’s service territory, including hourly load profiles, adoption scenarios and geographic variation. It will evaluate how different charging behaviors — especially unmanaged vs. managed charging — affect load shape, peak demand and system risks, with a focus on strategies (for example, time-of-use rates or managed charging) that can shift or mitigate EV-related peaks. Overall, the study aimsto provide insights that support long-term planning, helping Community Power understand both the risks and opportunities of transportation electrification for load forecasting, Resource Adequacy and program design. e. $0.2 million, IT Projects: Focus on Community Power’s commitment to fiscal stewardship and operational scaling, this project funds the optimization and expanded rollout of the agency’s central Enterprise Resource Planning (ERP) platform. While Phase 1 successfully established core budgeting functionalities, Phase 2 is being considered for strategic rescoping to prioritize immediate agency-wide operational controls and financial efficiencies. Once deployed, this phase will streamline cross-departmental workflows, enhance internal financial controls, and automate routine processes. This targeted optimization ensures the finance, non-energy procurement team and broader agency possess the scalable infrastructure required to support expanding community programs and minimize administrative overhead.

TABLE 5: PROPOSED FY 2026-2027 CAPITAL BUDGET
Carryforward FY27 Authorized
Budget
FY27 Proposed
Appropriation
Operating Transfer In 18.4 - 8.0
Regional Energy Network - 63.1 -
DAC-GT 0.3 0.3 -
Equitable Building Decarbonization 1.4 - -
Planning and Studies 0.7 - -
125
11 Total 20.8 63.4 8.0
Amounts displayed in millions, $
TABLE 6: PROPOSED 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
Equitable Building Decarbonization 1.4 - - - - - 1.4
Planning and Studies 0.7 - - - - - 0.7
Subtotal 2.4 63.4 51.4 42.0 43.7 45.5 248.4
Internal Funding
Solar Battery Savings 10.8 3.5 10.4 8.3 8.5 7.6 49.1
Pilot Programs 2.0 2.5 - - - - 4.5
Grants 1.3 - - - - - 1.3
Flexible Load 0.5 1.5 - - - - 2.0
IT Projects 3.2 0.2 - - - - 3.4
Planning and Studies 0.3 0.3 - - - - 0.6
Application Assistance 0.3 - 0.3 - - 0.3 0.9
Subtotal 18.4 8.0 10.7 8.3 8.5 7.9 61.8
Total CIP Expenses 20.8 71.4 62.1 50.3 52.2 53.4 310.2
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 126
12 Operating Expenses by Department
The table below summarizes the Proposed 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 Proposed
Power Services 1,118.9 972.0 875.3
Executive 0.2 0.1 0.4
Operations 20.7 20.9 23.6
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 1.3
Total Operating Expenses 1,167.6 1,019.9 928.1
Amounts displayed in millions, $
127
13 Personnel by Department
The table below summarizes the projected personnel for the Proposed 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 5.0
Finance 9.0 13.0 13.0
Customer Operations 8.0 6.0 8.0
IT and Data Analytics 9.0 16.0 13.0
Public Affairs 12.0 11.0 14.0
Programs 12.0 16.0 16.0
Regulatory and Legislative Affairs 5.0 5.0 5.0
Human Resources and Administration 4.0 7.0 8.0
Legal 2.0 3.0 3.0
Total FTEs 87.0 103.0 106.0
128
14 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. f. 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. g. 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 Proposed
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 Proposed
129
15 Executive 5.0 5.0 5.0
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 Proposed
Operations 5.0 6.0 5.0
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. h. Accounting services increased consistent with the annual escalation clause in the contract with Maher Accountancy, with additional pass-through costs as SDCP utilizes 130
16 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 Proposed
Finance 9.0 13.0 13.0
TABLE 12: FINANCE POSITIONS
131
17 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.
i. 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 Proposed
Customer Operations 8.0 6.0 8.0
TABLE 13: CUSTOMER OPERATIONS POSITIONS
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18 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 Proposed
IT and Data Analytics 9.0 16.0 13.0
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. j. 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 Proposed
Public Affairs 12.0 11.0 14.0
TABLE 15: PUBLIC AFFAIRS POSITIONS
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19 Programs
Budget Highlights
k. An additional $8 million has been allocated to CIP projects including Solar Battery Savings, Distributed Energy Resource Management System (DERMS), various pilot programs, Enterprise Resource Planning, and the EV Load Growth study. l. Programs proposes to add one position, a Senior Program Associate, to support the DERMS as the technical lead.

Department Positions
FY25 Amended FY26 Amended FY27 Proposed
Programs 12.0 16.0 16.0
TABLE 16: PROGRAMS POSITIONS
Regulatory and Legislative Affairs
Budget Highlights
m. Budget remains the same as FY2026 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 Proposed
Regulatory Affairs 5.0 5.0 5.0
TABLE 17: REGULATORY AND LEGISLATIVE AFFAIRS POSITIONS
134
20 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 which is not included in department positions.

Department Positions
FY25 Amended FY26 Amended FY27 Proposed
Human Resources 4.0 7.0 8.0
TABLE 18: HUMAN RESOURCES POSITIONS
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 Proposed
Legal 2.0 3.0 3.0
TABLE 19: LEGAL POSITIONS
135
21 Significant Budget Adjustments
The following section summarizes the most significant changes between the FY 2025-2026 Amended Budget and the FY 2026- 2027 Proposed 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.

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.

Power
Services – ($131,000) –
Printing Decrease
Reduction in expected printing costs under the
professional services agreement with
Neyenesch Printers due to the optimization of
Customer
Operations – ($104,560) –
136
22 electronic delivery channels by reducing paper
mail volumes.

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.

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 – +$214,396 -
FICA payroll
taxes have increased as additional staff are
Operations – +$122,522 -
137
23 FICA Increase hired and in alignment with Community Power’s Section 218 election.

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 +$132,500 - 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 Outreach
Strategic Communications
and 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 – +98,842 -
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
Finance – ($4,806,083) –
138
24 balance consistent with the reserve policy
adopted by the Board in December 2025.

Programs – +$3,532,500 -
CIP – Customer Pilot
Programs
Provides dedicated funding for customer-facing
pilot initiatives that test new program concepts.

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
Programs – +$600,000 -
139
25 an additional 5,000 participants. Funding is
primarily for participation
incentives, seasonal performance incentives and
device fees.

Programs – - +$300,000
140
ITEM 4

ATTACHMENT C
141

SAN DIEGO COMMUNITY POWER
Resolution 2026–XX Proposed: June 2026
Operating Budget
Fiscal Year
2026–2027
142
Contents
How to Use This Book 6
A Letter from the Chief Executive Officer7
Overview of San Diego Community Power 10
Who We Are 10
Our Story 10
How It Works 11
Serviced Communities 13
Service Area Map 13
Organizational Structure 16
Executive Team 16
Budget Process 18
Annual Budget Cycle 18
Budget Calendar 19
Strategic Planning 19
Core Strategic Goals 20
Community Outreach Strategy 21
Budget Guidelines 23
Joint Powers Agreement 23
Budget Policy 23
Budget Structure 24
Department Hierarchy 24
Budget Level Hierarchy 24
Fund Structure 27
FY 2026–2027 Budget Principles 28
Budget Overview 30
Budget in Brief 30
Proposed Operating Budget 31
Operating Revenue 32
Operating Expenses 33
Personnel by Department 34
Capital Budget 35
About the CIP 38
CIP Development Process 39
Operational Impact of Capital Projects 39
Multiyear Trends 41
Long-Range Operating Financial Plan 43
143
Budget by Department 46
Executive 46
Operations 47
Power Services 48
Finance 50
Customer Operations 51
IT and Data Analytics 52
Public Affairs 54
Programs 56
Regulatory and Legislative Affairs 58
Human Resources and Administration 60
Legal 61
Budget by Level 2 and Level 3 63
Operating Revenue 63
Cost of Energy 64
Professional Services and Consultants 65
Personnel Costs 66
Strategic Communications and Outreach 66
General and Administration 67
Debt Financing 69
Credit Facility 69
Debt Considerations 69
Financial Policies 72
Glossary of Terms 75
Budget Resolution 83
Acknowledgments 85
Financial Policies (Attachment 1) 87
Budget Policy 87
Financial Reserves Policy 89
Rate Stabilization Reserve Policy 91
Non-Energy Procurement Policy 93
Debt Policy 98
Investment Policy 106
Rate Development Policy 116
144
List of Figures
FIGURE 1. CCAS IN CALIFORNIA 11
FIGURE 2. SERVICE AREA MAP 13
FIGURE 3. SAN DIEGO COUNTY POPULATION 14
FIGURE 4. PARTICIPATION BY JURISDICTION 15
FIGURE 5. PARTICIPATION RATES ACROSS CCAS 15
FIGURE 6. MEMBER AGENCIES 15
FIGURE 7. ORGANIZATIONAL STRUCTURE 16
FIGURE 8. EXECUTIVE TEAM 16
FIGURE 9. TYPICAL ANNUAL BUDGET PROCESS 18
FIGURE 10. BUDGET CALENDAR 19
FIGURE 11. KEY DOCUMENTS PAGE ON WEBSITE 23
FIGURE 12. BUDGET STRUCTURE — DEPARTMENT HIERARCHY 24
FIGURE 13. BUDGET STRUCTURE — BUDGET LEVEL HIERARCHY 26 FIGURE 14. RATE PRODUCTS 28
FIGURE 15. BUDGET PRINCIPLES 28
FIGURE 16. PROPOSED OPERATING BUDGET OVERVIEW 31
FIGURE 17. OPERATING REVENUE BY BUDGET LEVEL 2 32
FIGURE 18. OPERATING EXPENSES BY BUDGET LEVEL 2 33
FIGURE 19. OPERATING EXPENSES BY DEPARTMENT 33
FIGURE 20. PERSONNEL BY DEPARTMENT 34
FIGURE 21. COMMUNITY POWER DEPARTMENTS 34
FIGURE 22. FY 2026–2027 CAPITAL BUDGET OVERVIEW 35
FIGURE 23. FY 2027–2031 CIP PROGRAMS AND PROJECTS 36
FIGURE 24. CIP DEVELOPMENT PROCESS 39
FIGURE 25. OPERATING REVENUES VS. EXPENDITURES 41
FIGURE 26. OPERATING BUDGET 42
FIGURE 27. RESERVE PROJECTIONS 44
FIGURE 28. EXECUTIVE ORGANIZATIONAL STRUCTURE 46
FIGURE 29. OPERATIONS POSITIONS 47
FIGURE 30. OPERATIONS ORGANIZATIONAL STRUCTURE 47
FIGURE 31: POWER SERVICES POSITIONS 49
FIGURE 32. POWER SERVICES ORGANIZATIONAL STRUCTURE 49
FIGURE 33. FINANCE POSITIONS 50
FIGURE 34. FINANCE ORGANIZATIONAL STRUCTURE 50
FIGURE 35. CUSTOMER OPERATIONS POSITIONS 51
FIGURE 36. CUSTOMER OPERATIONS ORGANIZATIONAL STRUCTURE 51 FIGURE 37. IT AND DATA ANALYTICS POSITIONS 53
FIGURE 38. IT AND DATA ANALYTICS ORGANIZATIONAL STRUCTURE 53 FIGURE 39. PUBLIC AFFAIRS POSITIONS 55
FIGURE 40. PUBLIC AFFAIRS ORGANIZATIONAL STRUCTURE 55
FIGURE 41. PROGRAMS POSITIONS 57
FIGURE 42. PROGRAMS ORGANIZATIONAL STRUCTURE 57
FIGURE 43. REGULATORY AND LEGISLATIVE AFFAIRS POSITIONS 59 145
FIGURE 44. REGULATORY AND LEGISLATIVE AFFAIRS ORGANIZATIONAL STRUCTURE 59 FIGURE 45. HUMAN RESOURCES AND ADMINISTRATION POSITIONS 60 FIGURE 46. HUMAN RESOURCES AND ADMINISTRATION ORGANIZATIONAL STRUCTURE 60 FIGURE 47. LEGAL POSITIONS 61
FIGURE 48. LEGAL ORGANIZATIONAL STRUCTURE 61
FIGURE 49. OPERATING REVENUE BY BUDGET LEVEL 2 AND LEVEL 3 63 FIGURE 50. COST OF ENERGY BY BUDGET LEVEL 2 AND LEVEL 3 64 FIGURE 51. PROFESSIONAL SERVICES AND CONSULTANTS BY BUDGET LEVEL 2 AND LEVEL 3 65 FIGURE 52. PERSONNEL COSTS BY BUDGET LEVEL 2 AND LEVEL 3 66 FIGURE 53. STRATEGIC COMMUNICATION AND OUTREACH BY BUDGET LEVEL 2 AND LEVEL 3 66 FIGURE 54. GENERAL AND ADMINISTRATION BY BUDGET LEVEL 2 AND LEVEL 3 67 FIGURE 55. DEBT PAYMENTS 69
FIGURE 56. DEBT FY 2021–2025 70
FIGURE 57. DEBT BY MONTH 70
FIGURE 58. EXAMPLE: EXPENSE TRANSFERS WITHIN BUDGET LEVEL 2 CATEGORIES 88 FIGURE 59. EXAMPLE: EXPENSE TRANSFERS BETWEEN BUDGET LEVEL 2 CATEGORIES 88 146
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 How to Use This Book 6 How to Use This Book
The San Diego Community Power (Community Power) Fiscal Year (FY) 2026–2027 operating budget contains agency budgetary and fiscal policy information as well as detailed operating budgets for agency divisions. The operating budget is organized into the following sections:

Executive Summary
Overview
Budget Overview Operational Budgets
Budget Information
and Summary Figures
Budget Process Additional Resources
Includes the Chief Executive
Officer’s Letter and the Executive
Summary of the adopted operating
budget and provides a high-level
overview of the agency’s budget,
the changes from the prior year
and other high-level details on
specific highlights and changes in
the adopted operating budget.

Provides a high-level overview of
Community Power’s governance,
structure and agency values and
priorities.

Describes the budget in brief,
financial data summarizing
Community Power’s adopted
budget, the Capital Investment
Plan and the agency’s five-year
financial plan.

Provides budgetary information
and operational priorities for each of
Community Power’s departments.

Department information includes
the following information:
• Mission and Services
• Department Highlights
• Professional Services Agreement
• Objective Key Results
• Department Positions
• Organizational Chart — depicts
the department’s organizational
structure
• Budget Data Summary — shows
a summary of total expenditures
and funded positions
Provides technical information
on the structure, policies and
processes that govern Community
Power’s budget development and
implementation as well as high-level financial data summarizing Community Power’s proposed
budget. The figures detail changes
over a two-year period: the
FY 2025–2026 Amended Budget
and the proposed FY 2026–2027
Operational Budget. The variance
column measures the dollar and
position differences between
fiscal years.

Describes the various financial
planning and budgeting processes
and reports that inform the
budget process.

Provides additional information,
including applicable Community
Power policies as well as a glossary
of commonly used terms.

SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 How to Use This Book 6 147
A Letter from the Chief Executive Officer 7
A Letter from the
Chief Executive Officer
This year, San Diego Community Power proudly delivered the most competitive electricity generation rates in our history, helping our neighbors save money while expanding access to cleaner energy.

As a community choice energy provider and not-for-profit public agency, every decision we make is centered on delivering the best long-term value for our customers and supporting the communities we serve to advance a more equitable and sustainable future.

Despite uncertainty in the world around us, we remain focused on maintaining long-term stability.

We continue to be disciplined about how we invest our resources and plan carefully for an uncertain future. We stay focused on keeping energy costs as low as possible while we advance toward 100% renewable energy by 2035.

Affordability is at the forefront of all we do. In January 2026, we offered the largest discount — compared with San Diego Gas & Electric’s generation rates — in our agency’s history. PowerBase, our lowest-cost service plan, now provides a 10% discount over the competition while still meeting California’s clean energy standards. Meanwhile, we continue to deliver choice for customers who want 100% renewable energy today through our Power100 service plan, for only a few dollars more per month for the average residential customer.

Our strong financial footing allows us to offer such competitive prices. We achieved a significant agency milestone in March 2026 when we earned our first investment-grade issuer credit rating: an “A” with a stable outlook from S&P Global Ratings. This enhances our ability to secure better energy contract terms, which ultimately helps keep rates steady and competitive for our customers.

We are also strategically using “green bonds” issued by the California Community Choice Financing Authority to prepay long term Power Purchase Agreements (PPAs) at a lower interest rate. These financial tools support a disciplined, long-term approach to managing costs and strengthening financial stability. This fiscal year, we completed two prepay agreements that are expected to save customers a combined $97.3 million over the next nine years.

As we expand our renewable energy portfolio, we continue to invest in local projects that increase grid reliability and help keep power affordable for customers. During the fiscal year, we welcomed the completion of three battery storage facilities in the San Diego region, the construction of which supported hundreds of local jobs. These investments enhance reliability while supporting local jobs and economic development.

We continue to expand our program portfolio through the San Diego Regional Energy Network (SDREN) and have procured all implementers necessary to open 10 new energy efficiency programs for enrollment by the end of 2026. These programs will expand access to energy-saving solutions across the region.

Solar Battery Savings is one of our most successful programs and has earned national recognition as a model for customer-focused program design. By helping customers work with local contractors to install home batteries, it strengthens grid reliability while supporting workforce development across the San Diego region. This program reflects our broader commitments to build a more resilient grid, strengthen the local workforce and partner with industry leaders to deliver innovative, customer-centered solutions.

SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 148
A Letter from the Chief Executive Officer 8
Chief Executive Officer
San Diego Community Power
The FY 2026–2027 budget builds on this progress and reflects our continued commitment to delivering value, stability and long-term impact. It ensures we remain financially strong while continuing to invest in what matters most to our communities. Key priorities include:
• Keeping rates competitive and stable
• Expanding access to cleaner, reliable energy
• Strengthening long-term financial stability
• Investing in local programs and workforce development • Delivering measurable value to our communities
As Community Power’s impact grows, so too will our reach. Community Power is currently the second-largest organization of its kind in the nation, serving nearly 1 million municipal, business and residential power customers in the cities of San Diego, Chula Vista, Encinitas, Imperial Beach, La Mesa and National City as well as the unincorporated communities of San Diego County. This year, the Coronado City Council voted unanimously to join Community Power and could begin receiving service as soon as 2028. This growth reflects the trust that local communities place in us to deliver reliable, affordable service.

With continued leadership from our Board of Directors, Community Advisory Committee and dedicated staff, San Diego Community Power is proud to deliver more affordable energy, strengthen our communities and build a cleaner, more resilient future for the San Diego region.

We thank our community for its continued trust and partnership.

SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 149
01 Overview of San Diego
Community Power
150
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Overview of San Diego Community Power 10 Overview of San Diego Community Power
Who We Are
San Diego Community Power is a Community Choice
Aggregator (CCA) that gives customers an option to power their homes and businesses with significantly higher levels of renewable power at competitive rates. Since 2021, Community Power has grown to serve nearly 1 million residential, business and municipal power customers in the cities of San Diego, Chula Vista, Encinitas, Imperial Beach, La Mesa and National City as well as the unincorporated communities of San Diego County.

Community Power is a not-for-profit public agency that
provides affordable clean energy and invests in its local communities to create an equitable and sustainable future for the San Diego region.

Learn more at - SDCommunityPower.org.

Our Story
1 2 3
With support from local
communities, Community Power
was established as a Joint Powers
Authority by five cities in the San
Diego region. Community Power
submitted an implementation
plan to the California Public
Utilities Commission, outlining the
intended organizational structure,
operations and funding. Once
approved, our Board of Directors
began meeting regularly, and
implementation activities began. In
2020, a sixth municipality, National
City, and the County of San Diego
elected to join Community Power.

Through phased enrollment from
2021 through 2023, Community
Power gradually became the
official clean energy provider for
our member agencies. Customers
were automatically enrolled in our
service and received two notices
before and two notices after
enrollment.

Community Power is now the
second-largest CCA in the nation,
serving nearly 1 million customers
with competitively priced clean
energy; we are beginning to offer
customer programs and rebates as
well as continuing to support San
Diego County’s energy efficiency
goals through the San Diego
Regional Energy Network (SDREN).

FORMATION ENROLLMENT
2021–2023
TODAY
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2025–2026 Overview of San Diego Community Power 10 151
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Overview of San Diego Community Power 11 How It Works
About Community Choice
San Diego Community Power is one of 25 Community Choice Aggregators (CCAs) that serve a total of more than 15 million customers in California. The first CCA began service in 2010, and 25 CCAs are operating today.

Communities that participate in a CCA work together to
purchase clean energy and create local clean energy projects and programs for residents and businesses by pooling,
or aggregating, their electricity loads. CCAs work with the investor-owned utility that serves the community to deliver power and maintain the grid. For Community Power, this
means partnering with SDG&E.

FIGURE 1. CCAS IN CALIFORNIA
CCAs are making good on their commitments to invest in new renewable energy facilities throughout California.

To date, CCAs have contracted for more than 21,000
megawatts (MW) of new clean generation capacity through long-term power purchase agreements (PPAs) with terms of 10 years or more. CCA PPAs equate to:
• More than 21 gigawatts (GW) of new solar, wind, energy storage, geothermal and demand response resources
• Projects totaling more than 9,700 MW that are already operational and serving CCA customers
• Over $48.4 billion committed by CCAs to build and operate clean energy resources
• Support for more than 48,000 construction jobs
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2025–2026 Overview of San Diego Community Power 11 152
02 Serviced Communities
153
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Serviced Communities 13 Serviced Communities
County Population
San Diego County is the southernmost major metropolitan area in California and boasts a diverse and vibrant population.

According to the State of California Department of Finance, on January 1, 2026, San Diego County’s estimated population was 3.3 million. This figure represents an increase of 0.1% (approximately 5,000 individuals) from the January 1, 2025, estimate. By population, San Diego County ranks as the
second-largest county in California and the fifth-largest county nationwide. These rankings are based on data from the U.S.

Census Bureau, which relies on the 2021 population estimate.

Looking ahead, population estimates from the San Diego
Association of Governments (SANDAG) are projected to level off and slightly decline by mid-century. The San Diego regional population is expected to reach approximately 3.43 million by 2040, reflecting a substantial 21% increase compared with the year 2000, or a 30% increase compared with the year 2024.

FIGURE 2. SERVICE AREA MAP
Service Area Map
San Diego Community Power
Service Area Map
Roadways
Serviced jurisdictions
Unserviced jurisdictions
N
S
W E

7.5 15
Miles

3.75 LEGEND
76 78
78 56
52 54
67 54
94 78
78 79
79 5 76
5 5
8 8
8 5
15 15
15 805
805
94 94
125
905
125
163
163

COUNTY OF SAN DIEGO

ENCINITAS

SAN DIEGO

LA MESA

NATIONAL CITY CHULA VISTA

IMPERIAL BEACH
154
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Serviced Communities 14 FIGURE 3. SAN DIEGO COUNTY POPULATION
San Diego County Population
COUNTY/CITY Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025 Jan. 2026 Carlsbad 115,033 115,045 114,319 116,022 115,867
Chula Vista 275,427 276,813 278,247 281,850 282,999
Coronado 22,082 22,272 21,589 22,687 23,796
Del Mar 3,909 3,918 3,919 3,937 3,917
El Cajon 105,171 104,804 104,180 105,449 104,932
Encinitas 61,283 61,254 61,028 62,392 62,193
Escondido 150,419 150,571 150,002 151,932 152,196
Imperial Beach 26,163 26,109 26,096 26,362 26,066
La Mesa 60,412 60,753 60,620 61,863 61,707
Lemon Grove 27,109 27,517 27,568 28,445 28,233
National City 58,545 58,374 58,555 58,863 58,701
Oceanside 172,463 172,186 171,483 175,193 174,027
Poway 48,515 48,620 49,273 50,699 50,263
San Diego 1,375,687 1,383,623 1,385,379 1,409,429 1,419,531 San Marcos 93,851 94,823 95,998 97,647 97,554
Santee 58,886 59,574 59,195 60,044 59,812
Solana Beach 12,792 12,831 12,887 13,060 12,941
Vista 99,997 100,113 99,723 101,934 101,365
Balance of County 510,986 511,223 511,040 511,798 508,222 Incorporated 2,767,744 2,779,200 2,780,061 2,827,594 2,836,100 County Total 3,278,730 3,290,423 3,291,101 3,339,392 3,344,322 Source: U.S. Census, 2020 data; California Department of Finance 2026, estimates as of May 1, 2026 155
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Serviced Communities 15 100%

95.6%
City of
Chula Vista
City of
Encinitas
City of
Imperial
Beach
City of
La Mesa

96.0% 95.4%
City of
San Diego

96.6%
County of
San Diego

91.7%
City of
National
City

98.2%

93.3%
90%
80%
Participation by Jurisdiction
Participation Rates Across CCAs

JURISDICTION SERVICE
OPTION

DEFAULT

ELIGIBLE

ACCOUNTS

ENROLLED

ACCOUNTS

PARTICIPATION
RATE
City of Chula Vista PowerOn 100,404 96,029 95.6%
City of Encinitas Power100 29,071 27,130 93.3%
City of Imperial Beach PowerOn 10,826 10,395 96.0%
City of La Mesa PowerOn 29,620 28,245 95.4%
City of National City PowerOn 19,681 19,334 98.2%
City of San Diego PowerOn 634,403 613,139 96.6%
County of San Diego PowerOn 191,436 175,522 91.7%
Total 1,015,441 969,794 95.5%
FIGURE 5. PARTICIPATION RATES ACROSS CCAS
FIGURE 6. MEMBER AGENCIES
100%
95%
90%
85%
80%
75%
70%
98% 97% 96% 96% 96% 95% 95% 94% 94%
93% 93% 93% 91% 91% 91%
89% 89%
87% 87% 87%
85% 84% 83%
79%
San Jose Clean Energy
Peninsula Clean Energy
Ava Community Energy
Rancho Mirage Energy Authority
Silicon Valley Clean Energy
San Diego Community Power
Clean Power SF
Pico Rivera Innovative Municipal Energy
Central Coast Community Energy
Clean Power Alliance
Clean Energy Alliance
Lancaster Energy
Redwood Coast Energy Authority
San Jacinto Power
Energy for Palmdale’s Independent Choice
Pomona Choice Energy
MCE
Sonoma Clean Power
Valley Clean Energy
Apple Valley Choice Energy
Pioneer Community Energy
Desert Community Energy
Orange County Power Authority
Santa Barbara Clean Energy
Source: CalCCA, as of December 2025
*As of May 26, 2026
Governance and
Structure
In September 2019, the cities
of San Diego, Chula Vista,
Encinitas, Imperial Beach and La
Mesa adopted an ordinance and
resolution to form San Diego
Community Power, a California
Joint Powers Authority (JPA).

National City and the County
of San Diego voted to join
Community Power in 2020.

Community Power’s Board of
Directors is composed of an
elected representative from each
member jurisdiction, with each
member selecting an alternate
from the agency they represent.

The Board is publicly accountable
to Community Power ratepayers
and hosts monthly Board
meetings, where it establishes
policy, sets rates, determines
power purchase options and
maintains fiscal oversight.

As a public agency, Community
Power is designed to be fully
transparent with all official
meetings and information open
or available to the public.

FIGURE 4. PARTICIPATION BY JURISDICTION*
156
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Serviced Communities 16 Organizational Structure
Executive Team
FIGURE 7. ORGANIZATIONAL STRUCTURE
FIGURE 8. EXECUTIVE TEAM
Chief Executive
Officer
Karin
Burns
Chief Commercial
Officer
Gordon
Samuel
Chief Operating
Officer
Jack
Clark
General Counsel
Veera
Tyagi
Chief Financial
Officer and Treasurer
Jannies
Burlingame

BOARD OF DIRECTORS
Supervisor Terra Lawson-Remer
Chair
Sean Elo-Rivera
Councilmember
Michael Inzunza
Councilmember
Genevieve Suzuki
Councilmember
Councilmember Ditas Yamane
Vice Chair
Jack Fisher
Councilmember
Marco San Antonio
Councilmember

CHIEF EXECUTIVE OFFICER
Karin Burns
LEGAL
General Counsel

OPERATIONS
Chief Operating Officer

FINANCE
Chief Financial Officer/
Treasurer
POWER

SERVICES
Chief Commercial
Officer Customer Operations
IT and Data Analytics
Public Affairs
Programs
Regulatory and Legislative Affairs
Human Resources and Administration
Clerk of the Board
Finance and Risk
Management Committee
Community Advisory Committee
157
03 Budget Process
158
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Process 18 Budget Process
Annual Budget Cycle
On October 1, 2019, the Founding Members of San Diego
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 before 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 additionally specifies that the Board may revise the budget from time to time as may be reasonably necessary to address contingencies and unexpected expenses.

The Community Power Board adopted the Community Power
Budget Policy on July 28, 2022, which formally outlined the agency’s budget preparation steps and timeline. The Chief Financial Officer (CFO) begins the annual budget process in February of each year. The Finance Department develops
initial revenue and expense estimates and updates its short-term financial plan. In March and April, Community Power staff develop and refine budget proposals to develop an initial budget baseline for the agency’s upcoming budget year. The budget is further refined through strategic planning sessions and through the Community Power Finance and Risk Management Committee (FRMC).

The CFO is then required to prepare and submit to the Board a draft budget for the following fiscal year in May or no later than the second month immediately preceding the start of the fiscal year. The budget shall be aligned with established goals and shall reflect all activities, including operating programs, revenues and expenditures. The budget shall be approved by the Board at a public meeting in June or no later than the month immediately preceding the start of the respective fiscal year.

FIGURE 9. TYPICAL ANNUAL BUDGET PROCESS
• Develop Operating
Revenue and
Expense Estimates
• Draft Operational
Budget
• Finance and Risk
Management
Committee
Preview
• Community Power
Board Preview
and Public Budget
Hearing
• Community
Advisory
Committee Review
• Finance and Risk
Management
Committee Review
• Community Power
Board Approval
• Budget
Implemented
FEBRUARY MAY JUNE JULY 1
MARCH
-
APRIL
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2025–2026 Budget Process 18 159
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Process 19 Strategic Planning
San Diego Community Power’s budgeting process is directly informed by its Strategic Plan — a document co-created by the Board, Community Advisory Committee, executive leadership and staff — that translates community priorities into actionable goals. The Strategic Plan serves as a critical management tool, aligning resources, guiding operational decisions and driving long-term organizational focus across all departments and initiatives.

Community Power is sharpening its focus on delivering long-term value to the communities it serves through affordability, transparency and disciplined growth. The next chapter of the agency’s work will be defined by measurable outcomes, including maintaining competitive rates, strengthening financial resilience and advancing a cleaner, more renewable energy portfolio.

Central to this approach is a commitment to aligning fiscal decisions with community priorities. This budget reflects customer expectations, including rate stability, incentives that support grid reliability and continued progress toward sustainable, locally beneficial energy procurement. This is achieved by prioritizing the following items.

Budget Calendar
FIGURE 10. BUDGET CALENDAR

DATE MILESTONE
January 2026 Finance Department prepares for February launch of the annual budget cycle.

February 2026 Budget process begins. Initial revenue and expense estimates are developed.

March to April 2026 Departments propose unconstrained expense requests for review.

April 2026 Staff set initial budget baseline.

May 21, 2026 The Draft FY 2026–2027 budget is presented to the Finance and Risk Management Committee (FRMC) for feedback.

May 28, 2026 The Draft FY 2026–2027 budget is presented to the Board of Directors for feedback.

June 2026 The Proposed FY 2026–2027 budget is presented to the Community Advisory Committee and the FRMC.

June 25, 2026 The Board of Directors potentially adopts the FY 2026–2027 budget as an action item.

July 1, 2026 The FY 2026–2027 budget is implemented.

Affordability
All decisions are
evaluated with a
focus on customer
impact. Community
Power prioritizes
competitive rates,
minimizes volatility
and expands
programs that help
households and
businesses manage
energy costs.

By reinvesting
locally, Community
Power strengthens
regional economies,
supports workforce
development and
expands access
to programs,
with a focus on
benefiting historically
underserved
communities.

Financial
Strength and
Stability
Advancement
to 100%
Renewable
Energy Maintaining strong
reserves, actively
managing risk and
implementing
innovative financial
strategies position
the agency to
navigate market
uncertainty while
safeguarding long-term affordability
and organizational
resilience.

Community Power
expands access to
clean, renewable
energy through a
balanced approach
that prioritizes
reliability and cost
stability, supports local
project development
and ensures the
benefits are broadly
shared across the
communities it serves.

Strategic
Infrastructure
Local Impact
As a public agency,
Community Power
operates with
transparency and
is guided by public
input, ensuring
accountability to
ratepayers and
consistent delivery
on commitments.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Process 20 Core Strategic Goals

1. Fiscal Sustainability
• Maintain fiscal strategies to promote long-term
organizational sustainability.
• Execute at least six clean prepayment transactions over the next three years to generate $30 million in annual
power cost savings.
• Obtain a public investment-grade credit rating by
November 2027.
• Grow reserves by $150 million to maintain 180 days cash on hand by December 2027.
• Build a $70 million Rate Stabilization Reserve to mitigate cost volatility.
• Strengthen financial controls across contracting, risk management and procurement.

2. Energy Portfolio Development
• Provide sufficient, affordable and clean electricity to our customers.
• Achieve 100% renewable energy by 2035 with interim
targets of 75% by 2027 and 85% by 2030.
• Support development of 1 gigawatt of new local clean
energy capacity by 2035, including 300 MW of infill and distributed energy resources (DERs).
• Ensure reliable and cost-effective compliance with all regulatory requirements.
• Create good-paying local jobs in clean energy sectors.

3. Community Program Delivery
• Implement programs that reduce greenhouse gas
emissions, align energy supply and demand, and benefit
our diverse communities.
• Deliver 150 MW of local DER capacity (of the 300 MW
total goal) by 2035 through programs like Solar Battery Savings.
• Launch all San Diego Regional Energy Network (SDREN)
programs in 2026.
• Implement a robust program evaluation framework in
2026.
• Expand external funding for clean energy programs.

4. Legislative and Regulatory Advocacy
• Advance policies that support Community Power’s
mission and customer goals.
• Educate policymakers and regulators to influence
outcomes consistent with our policy platform.
• Support and sponsor legislation aligned with our values and needs.
• Remain an active participant in coalitions such as CalCCA to amplify our voice.
• Strategically pursue public funding aligned with
agency goals.

5. Trusted Brand Building
• Build a trusted brand that supports engagement,
participation and program success.
• Position Community Power as a collaborative public
agency rooted in transparency.
• Grow the Power Network of nonprofit and community-based partners to expand community reach. • Elevate brand awareness through education and outreach. • Empower customers to take advantage of savings and
services through awareness, education and ongoing
communication programs.

6. Customer Care
• Ensure high customer satisfaction and retention.
• Refine rate structures to balance affordability, clean energy and fiscal prudence.
• Resolve SDG&E billing issues and improve customer
experience.
• Explore options for a best-in-class customer service
model.
• Address arrearages and connect customers to available resources.

7. Organizational Excellence
• Foster an innovative, inclusive and resilient workplace. • Transition into a learning organization by late 2026 with robust staff development.
• Maintain a high level of employee satisfaction through engagement and continuous feedback.
• Launch a new internship program for local college
students by FY 2027.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Process 21 Community Outreach Strategy
San Diego Community Power is a not-for-profit public
agency that integrates community engagement directly into its decision-making and views outreach as a core function of governance. Through ongoing dialogue with customers, local leaders and regional partners, the agency ensures its budgeting reflects real-world priorities and evolving community needs.

This approach reinforces our commitment to affordability while maintaining strong accountability for how public funds are managed. By grounding financial planning in community input, Community Power strengthens organizational stability, supports local economic opportunities and accelerates the transition to cleaner energy while delivering benefits to the communities it serves.

Public Meetings and Oversight
Transparency and public oversight are built into Community Power’s operations. Consistent with its Rate Development Policy, rate setting occurs in an open, deliberative process led by staff and approved by the Board of Directors at publicly noticed meetings. This ensures the public has direct visibility into and input on decisions that shape costs, programs and long-term strategy.

Board decisions are informed and shaped by a subset of
members on the Finance and Risk Management Committee
(FRMC). The Community Advisory Committee (CAC) also
advises the Board and provides a venue for ongoing citizen support and engagement in Community Power. These regular meetings offer meaningful opportunities for community input on agency decisions.

Customer Information and Transparency
Clear, accessible information is essential in building trust with customers and supporting informed decision-making about service options. Community Power publishes an annual Joint Rate Comparison in coordination with SDG&E that allows
customers to easily evaluate pricing. The Power Content Label further reinforces transparency by providing a detailed look at the sources used for each service plan. In addition, Community Power’s website serves as a central resource for information, rebates, incentives and self-service tools.

Community Engagement
Staff regularly provide updates to member agencies and their elected bodies on Community Power’s performance, priorities and initiatives. Community Power also continues to expand its presence through events, partnerships and targeted outreach to reach a broad and diverse audience.

In FY 2025–2026, Community Power participated in 183 community events, resulting in 16,000 unique interactions and nearly 650,000 impressions. These in-person efforts are enhanced by strategic partnerships, sponsorships and targeted media outreach, including an ongoing partnership with CBS 8’s “Working for Our Communities” campaign, which highlights available services and opportunities for customers to save money. Regular newsletters also provide subscribers with updates on new initiatives and energy-saving tips.

These efforts create a strong, continuous feedback loop between the agency and the public, strengthening transparency, informing budget decisions and ensuring Community Power remains responsive, accountable and focused on delivering affordable, reliable and increasingly renewable energy solutions. 183 16,000 650,000 community events
unique
interactions impressions
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2025–2026 Budget Process 21 162
04 Budget Guidelines
163
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Guidelines 23 Joint Powers Agreement
On October 1, 2019, the founding members of Community
Power adopted the Joint Powers Agreement (JPA), which
was amended and restated on December 16, 2021. Several
sections of the JPA guide the development and management of the budget.

Section 4.6 Specific Responsibilities of the Board
The specific responsibilities of the Board of Directors (Board) shall be as follows:

4.6.2 Formulate and adopt an annual budget prior to the commencement of the fiscal year.

Section 7.2 Depository

7.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its policies and procedures.

Section 7.3 Budget and Recovery Costs

7.3.1 Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets of
Community Power shall be prepared and approved by the
Board in accordance with its fiscal management policies that should include a deadline for approval. Section 4.6.2 of the JPA specifies that the Community Power Board shall adopt an annual budget with a fiscal year that runs from July 1 to June 30.

On July 28, 2022, the Community Power Board adopted the Community Power Budget Policy, which outlined the timeline for annual budget preparation and for discretionary budget adjustments. This Policy was adopted pursuant to Government Code Section 6508 et seq.

Budget Policy
Discretionary Budget Adjustments. The CEO or CFO will
have the discretion to authorize expense transfers from line items between and within Community Power’s Budget Level 2 categories as established and approved in the annual budget process by the Community Power Board, provided that net transfers total $150,000 or less from the budget category.

The CEO, under his or her discretion, may still require the Board’s approval for any budget changes that may fall under the discretion of the Policy. Amendments to the annual budget as approved by the Board will reset the original appropriation (revenue or expense) for the fiscal year for the purposes of the Policy.

A budget amendment is expected to occur in February of each calendar year to adjust the original appropriation as necessary and in alignment with Community Power’s rate-setting policy, in which Community Power’s rates are expected to be adjusted in January, the month prior.

Balanced Budget. A balanced budget shall exist when the total projected revenues are greater than or equal to the total projected expenses. Total revenues shall include all revenues from retail and wholesale sales of electricity. Total expenses shall include all operating expenses, program expenses and contributions to reserve funds. Any year-end surplus will be used to maintain reserve levels. Any decrease in revenues and/ or increase in expenditures that causes the budget to become imbalanced will require an amended budget. The CFO shall prepare a proposed amended budget and submit it to the
Board for approval.

Community Power also maintains several policies posted to its Key Documents page on its website that provide further fiscal guidance.
• Budget Policy
• Financial Reserves Policy
• Rate Stabilization Reserve Policy
• Non-Energy Procurement Policy
• Debt Policy
• Investment Policy
• Rate Development Policy
Other related policies that may directly affect Community Power’s finances include:
• Energy Risk Management Policy
• Delegated Contract and Signature Authority Policy
• Total Compensation Policy
• Board and Committee Compensation and
Reimbursement Policy
• Net Energy Metering (NEM) Policy
• Net Billing Tariff Aggregation Policy
• Sponsorship Policy
• Renewable Energy Self-Generation Bill Credit Transfer (RES-BCT) Tariff
• Collections and Delinquent Accounts Handling Policy
• Community Clean Energy Grant Program Policy
• Net Billing Tariff Policy
Budget Guidelines
FIGURE 11. KEY DOCUMENTS

PAGE ON WEBSITE
164
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Guidelines 24 Budget Structure
Community Power’s basis for budgeting is the accrual method.

This means planning that includes revenues and expenses in the budget of the year in which the underlying economic events are expected to occur, not necessarily in the year in which the related cash is expected to be received or paid.

Community Power’s basis of accounting, similarly, in its financial statements, is as an enterprise fund under the economic resources measurement focus and accrual basis of accounting, in accordance with Generally Accepted Accounting Principles (GAAP) for proprietary funds, as prescribed by the Governmental Accounting Standards Board (GASB).

Department Hierarchy
Community Power’s budget is developed as a line-item budget and is organized by department to indicate the agency’s organizational responsibility.

Budget Level Hierarchy
Additionally, and separately, the budget is organized by budget levels to sort expenses into relevant, related categories.

1. Operating Revenues
Allow for revenues from completed sales of electricity to customers. Assumptions include an overall 5% opt-out rate.

2. Operating Expenses
Fall into five Budget Level 2 categories: cost of energy, personnel costs, professional services and consultants, strategic communications and community outreach, and
general and administration.

I. 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.

II. Personnel — Includes salaries, payroll taxes, benefits, and excused absences 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.

III. Professional Services and Consultants — Includes
the following:
a. Legal/Regulatory Services — Community Power
retains outside legal counsel to assist with
complex legal and regulatory matters. This line
item will also allow for the retention of a state
lobbyist to support Community Power’s legislative
and regulatory efforts.
b. Technical Support — Community Power engages
consultants to assist with policies, load analysis
and a scheduling coordinator. After electric
power is scheduled for delivery to customers
and consumed by these 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 performing portions of this
service in-house.
c. 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 whether these services are more
cost-effective or efficient to bring in-house. As
in-house functions are expanded, Community
FIGURE 12. BUDGET STRUCTURE — DEPARTMENT HIERARCHY

DEPARTMENT
Executive
Finance
Power Services
Legal
Operations
Customer Operations
IT and Data Analytics
Public Affairs
Programs
Regulatory and Legislative Affairs
Human Resources and Administration
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Guidelines 25 Power expects a reduction in the related
professional services support areas.
d. SDG&E Service Fees — These fees paid to
SDG&E consist of a fixed fee charge 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. Numerous small
fees are also associated with data requests.
e. Data Management — This broad scope of
services 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.

IV. Strategic Communications and 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.

V. General and Administration — Includes leasing office space, industry fees or memberships (for example,
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.

3. Non-Operating Expenses
Represents 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 (such as letter of credit issuance fees, renewal fees, etc.). Non-operating revenue included in this category represents interest
income earned on cash reserves.

4. Capital Investment Plan (CIP)
Community Power’s budget also includes non-operating
expenses related to the 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.
166
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Guidelines 26 FIGURE 13. BUDGET STRUCTURE — BUDGET LEVEL HIERARCHY
FUNDS BUDGET LEVEL 1 BUDGET LEVEL 2 BUDGET LEVEL 3
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Operating Fund
Transfer Out
Revenue
Revenue
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Operating Expenses
Non-Operating Expenses
CIP
Gross Ratepayer
Revenues
(Less 1.5% Uncollectible
Customer Accounts)
Cost of Energy
Personnel Costs
Personnel Costs
Personnel Costs
Personnel Costs
Professional Services
and Consultants
Professional Services
and Consultants
Professional Services
and Consultants
Professional Services
and Consultants
Professional Services
and Consultants
Professional Services
and Consultants
Professional Service
and Consultants
Strategic Communications
and Outreach
Strategic Communications
and Outreach
Strategic Communications
and Outreach
General and
Administration
General and
Administration
General and
Administration
General and
Administration
Programs
Debt Service
CIP
Gross Ratepayer
Revenues
(Less 1.5% Uncollectible
Customer Accounts)
Cost of Energy
Salaries
Benefits (retirement/
health)
Payroll Taxes
Accrued PTO
Legal/Regulatory
Technical Support
Programs Consultant
Other Services
SDG&E Fees
Data Management
Contingency
Communications
Consultants
Printing
Sponsorships/Local
Memberships
CalCCA Dues
Insurance
Rent
Other General and
Administration
Programs
Interest and Related
Expenses
CIP
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Guidelines 27 Fund Structure
A fund is defined as a separate accounting entity with a self-balancing set of accounts recording cash and other financial resources together with related liabilities. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions or limitations. Community Power has two types of funds:

1. Operating Fund — Accounts for activities that are
supported by ratepayer funds. All of Community Power’s
general operating activities are included in the Operating Fund, which functions very similarly to the enterprise fund of a city or county. The Operating Fund is Community
Power’s primary fund and is considered an annual fund in which all unused funds at the end of a fiscal year revert to the agency’s fund balance.

The Operating Fund’s primary source of funding is
from ratepayers and may also include nonoperating
investment income. Community Power strongly believes
in maintaining a structurally balanced budget in which all ongoing operating activities are supported only by stable, ongoing revenue, such as ratepayer funding.

Community Power offers four service levels to its
customers that, taken together, ultimately comprise the source of ratepayer funds for the agency:

1. PowerBase, our most affordable service option, with a renewable content that is intended to meet or exceed
SDG&E’s whenever possible and provides customers
with a 10% discount compared with SDG&E’s rates.

2. PowerOn, our standard service offering that provides 53% renewable power and offers a 4% discount
compared with SDG&E’s rates.

3. Power100, our premium service that provides
customers with 100% renewable energy. It is currently
priced at an additional $0.01/kWh more than
PowerOn.

4. Powe100 Green+, is our stand-alone 100% renewable
and carbon-free service that is Green-e® Certified,
available only to commercial and industrial customers.

It is currently priced at $0.02/kWh more than
PowerOn.

2. Continuing Fund — accounts for one-time
activities in Community Power’s Capital Investment Plan and is supported by one-time funds. As a continuing fund, all unused funds at the end of the fiscal year continue to the next fiscal year. This fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for governmental capital assets or other one-time efforts.

Community Power’s Continuing Fund is composed of
these revenue sources:
• Community Power Operating Transfers — Through the
annual budget process, the Community Power Board
may approve an appropriation of funds to be transferred out of the operating budget and transferred into the
CIP. These funds will remain in a Community Power
continuing fund for use across multiple fiscal years, since CIP projects generally last longer than one year.
• California Public Utilities Commission (CPUC)
DAC-GT — The Disadvantaged Communities Green
Tariff (DAC-GT) program enables income-qualified
residential customers in DACs who may be unable to
install solar on their roof to benefit from utility-scale clean energy and receive a 20% bill discount. Funding
originates from state Greenhouse Gas (GHG) Auction
Proceeds and Public Purpose Program funds.
• CPUC Regional Energy Network (REN) — Public Purpose
Program Surcharge funds are available for RENs. On
August 7, 2024, the CPUC issued Decision 24-08-003,
approving and authorizing Community Power’s San Diego
Regional Energy Network (SDREN) as a new Energy
Efficiency Portfolio Administrator. This decision approved Community Power’s application in its entirety, including 2024–2027 energy savings goals and funding, as well as
a 2024–2031 Strategic Business Plan. SDREN will offer
10 energy-efficiency programs across San Diego County.

These programs will be available regardless of service
provider and will focus on achieving energy savings,
reducing emissions, enhancing grid reliability and educating customers on how to reduce energy usage.
• California Energy Commission (CEC) Equitable
Building Decarbonization — The Equitable Building
Decarbonization (EBD) Direct Install program is a
statewide initiative that offers no-cost installation of electric appliances, energy efficiency measures, basic
health and safety improvements and electrical panel
upgrades to income-qualified customers in identified
communities. It is overseen by the CEC and administered by the County of Los Angeles in the Southern California region.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Guidelines 28 FIGURE 14. COMMUNITY POWER’S RATE PRODUCTS
FY 2026–2027
Budget Principles
FIGURE 15. BUDGET PRINCIPLES Fiscal Responsibility
Maintain a fiscally responsible budget in accordance with Community Power Budget Policy.

Sufficient Funding
Ensure sufficient funding to meet procurement needs,
sustain operational needs and support sustained growth
while delivering clean energy to the communities we serve.

Build Community Power Reserves
Build Community Power reserves and develop policies that consider future economic conditions.

Understandable and Transparent
Provide an understandable and transparent operating
budget for internal and external users.

People and Community
Develop a budget that will ultimately prioritize people and our communities.

Informed
Keep the Community Power Board of Directors and staff
informed of Community Power’s fiscal condition.

Budget Guidelines 28
169
05 Budget Overview
170
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 30 Budget in Brief
The Proposed 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 in 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 Proposed FY 2026–2027 Operating Budget, therefore, reflects the lower cost of energy assumptions due to the ability to close open energy positions at reduced prices and lower projected renewable prices under the Voluntary Allocation, Market Offer (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 MPB from the California Public Utilities Commission (CPUC) later in the year are expected to provide greater clarity on second-half fiscal year impacts and inform future reserve funding recommendations.

The 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 managing staffing levels. In FY 2026–2027, Community Power is expected to have a generally comparable operating budget and staffing levels compared with its peer Community Choice Aggregators (CCAs) 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.

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 multiyear 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.

Budget Overview

8.3M MWh $71.4M
Retail load
represented in
FY 2026–2027
Full enrollment,
Phases 1–4
Includes external
funding sources
Overall CIP project
portfolio for the
fiscal year
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 31 Proposed Operating Budget
The Community Power Proposed FY 2026–2027 Budget is presented in further detail in the following pages. The figure below summarizes the revenue and expense budgets proposed for FY 2026–2027 in comparison with the FY 2024–2025 and FY 2025–2026 Amended Budgets.

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
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 55.7
Subtotal Operating Expense 1,167.6 1,019.9 928.1
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 Total Expenses 1,187.1 1,025.0 914.9
Net Position 34.2 150.4 3.9
FIGURE 16. PROPOSED OPERATING BUDGET OVERVIEW*
*Amounts displayed in millions of dollars
172
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 32 Operating Revenue
San Diego Community Power operates as a Joint Powers
Authority (JPA), providing clean energy to residents and businesses in its service area. Revenue is generated primarily through electricity sales, with a core financial principle of maintaining a balanced budget. This requires electricity sales revenue to cover power generation costs — especially from renewable sources — and operational expenses. Financial sustainability is also pursued through strategies like
building reserves.

As a JPA, Community Power functions under distinct governing principles, unlike investor-owned utilities. Its primary goal is to deliver affordable, renewable power to diverse customers, ranging from large commercial and industrial entities to individual residential customers, including those with financial constraints. Affordability for our communities is highly valued, significantly shaping operational and rate-setting decisions.

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 (that is to say, 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 with 1.75% in the prior fiscal year.
• Rates that were set and approved by the Board on
April 23, 2026, for the period from May 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 May 1, 2026, to December 31, 2026.
• Generation rates are projected to decrease 15% to 20% between calendar years 2026 and 2027 and, in the FY
2026–2027 Draft Budget, for the period from January 1,
2027, to June 30, 2027.
• PCIA is expected to increase 25% to 55% between
calendar year 2026 and 2027 and, in the FY 2026–2027
Proposed 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 with PowerOn.
• Any further rate changes, including mid-year changes, are subject to Board discretion and approval.

The following table summarizes the revenues for FY 2026– 2027 Proposed Budget compared with the FY 2024–2025 and FY 2025–2026 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.

Figure 17 summarizes the revenues for the FY 2024–2025
Amended Budget, FY 2025–2026 Amended Budget and
Proposed FY 2026–2027 Proposed Operating Budget.

FIGURE 17. OPERATING REVENUE BY BUDGET LEVEL 2*
FY25 Amended FY26 Amended FY27 Proposed
Gross Ratepayer Revenues 1,243.0 1,194.8 932.8
(Uncollectible Customer Accounts; FY25
and FY26 Less 1.75%, FY27 Less 1.5%)
(21.8) (19.4) (14.0)
Net Operating Revenues 1,221.3 1,175.4 918.8
*Amounts displayed in millions of dollars
173
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 33 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, strategic communication and outreach, and general and administration.

Figure 18, below, summarizes the expenses for the FY 2024–2025 Amended Budget, FY 2025–2026 Amended Operating Budget and Proposed FY 2026–2027 Proposed Operating Budget.

Operating Expenses by Department
Figure 19, below, summarizes the Proposed FY 2026–2027 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 its expenses.

FIGURE 18. OPERATING EXPENSES BY BUDGET LEVEL 2*
FY25 Amended FY26 Amended FY27 Proposed
Cost of Energy 1,116.8 969.9 872.3
Professional Services and Consultants 24.3 23.4 23.8
Personnel Costs 18.6 19.6 23.4
Strategic Communications and Outreach 3.0 2.3 2.4
General and Administration 4.9 4.7 6.1
Programs 0.0 0.0 0.0
Subtotal Operating Expenses 1,167.6 1,019.9 928.1
Interest Income 0.0 (18.3) (23.1)
Interest and Related Expenses 1.3 1.5 1.9
Capital Investment Program (Transfer Out) 18.2 21.9 8.0 Total Expenses 1,187.1 1,025.0 914.9
*Amounts displayed in millions of dollars
FIGURE 19. OPERATING EXPENSES BY DEPARTMENT*
FY25 Amended FY26 Amended FY27 Proposed
Power Services 1,118.9 972.0 875.2
Operations 20.6 20.9 23.6
Customer Operations 19.3 18.5 17.2
Finance 2.1 2.8 5.0
Public Affairs 1.8 1.7 1.8
IT and Data Analytics 1.4 1.5 2.0
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 1.3
Programs 0 0 0
Executive Team 0.2 0.1 0.4
Total Expenses 1,167.6 1,019.9 928.1
*Amounts displayed in millions of dollars
174
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 34 Personnel by Department
Figure 20 below summarizes the projected personnel for the Proposed FY 2026–2027 Operating Budget and the full-time equivalent (FTE) personnel in the FY 2024–2025 and FY 2025–2026 Amended Operating Budgets. While personnel may be authorized, the positions may not be filled. Detailed information showing filled positions and proposed FTE transfers by department is included in the following personnel by department section below. The personnel budget is included within Operations.

FIGURE 20. PERSONNEL BY DEPARTMENT
FY25 Amended FY26 Amended FY27 Proposed
Operating Fund
Power Services 16 15 16
Executive 5 5 5
Public Affairs 12 11 14
Programs 12 16 16
Finance 9 13 13
Customer Operations 8 6 8
Operations 5 6 5
IT and Data Analytics 9 16 13
Regulatory and Legislative Affairs 5 5 5
Human Resources and Administration 4 7 8
Legal 2 3 3
Total FTEs 87 103 106
External Funding (CIP)
Programs 3.8 5 7
Regulatory Affairs 0.5 0.7 0.7
Finance 1 1 2
Public Affairs 1 1 3
Power Services - 0.3 0.3
Subtotal External Funding FTEs 6.3 8 13
Net Operating FTEs 80.7 95 93
FIGURE 21. COMMUNITY POWER DEPARTMENTS
Executive
Team
Power
Services
Legal
Operations
Programs
IT and Data
Analytics
Human Resources
and Administration
Regulatory
and Legislative
Customer
Operations
Finance
Public
Affairs
175
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 35 Capital Budget
The CIP for FYs 2027–2031 outlines the agency’s individual capital projects, major equipment purchases and major
programs 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 Proposed FY 2026–2027 Capital Budget totals $71.4
million, and the Proposed 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 a 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 Proposed FY 2026–2027 Capital Budget includes $63.1 million for the San Diego Regional Energy Network (SDREN), recoverable through the California Public Utilities Commission, that was authorized by the Board in January 2025. Specifically, in January 2025, the Board approved, accepted and appropriated $124.3 million in funds for SDREN, and $63.1 million of these previously authorized funds are expected to be expended in FY 2026–2027, as noted in the figure below.

FIGURE 22. FY 2026–2027 CAPITAL BUDGET OVERVIEW*
Carryforward1 FY27 Authorized Budget FY27 Proposed
Appropriation
Operating Transfer Out 18.4 - 8.0
Regional Energy Network2 - 63.1 -
DAC-GT 0.3 0.3 -
Equitable Building Decarbonization 1.4 - -
Planning and Studies 0.7 - -
CIP Revenue 20.6 63.4 8.0
*Amounts displayed in millions of dollars
1 The carryforward amount reflects actual financial data through February 28, 2026.

Carryforward amounts will be updated for the adopted budget and will be reconciled until the close of fiscal year 2025–2026. 2 The Regional Energy Network was fully appropriated for $124M in January 2025 for Calendar Years 2024–2027. It is reflected in this table as anticipated spending by fiscal year.
176
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget Overview 36 FIGURE 23. FY 2027–2031 CIP PROGRAMS AND PROJECTS*
*Amounts displayed in millions of dollars
1 The carryforward amount reflects actual financial data through February 28, 2026.

Beginning
Balance
Expenses Carryforward1 5-Year Budget
FY26 FY26 FY26 FY27 FY28 FY29 FY30 FY31 Total
External Funding
Regional Energy
Network[2]

15.9 15.9 - 63.1 51.4 42.0 43.7 45.5 245.7
DAC-GT 0.5 0.2 0.3 0.3 - - - - 0.6
Equitable Building
Decarbonization

1.4 - 1.4 - - - - - 1.4
Planning and Studies 0.7 - 0.7 - - - - - 0.7
Subtotal 18.5 16.1 2.4 63.4 51.4 42.0 43.7 45.5 248.4
Internal Funding
Solar Battery Savings 21.9 11.1 10.8 3.5 10.4 8.3 8.5 7.6 49.1 Pilot Programs 2.3 0.5 2.0 2.5 - - - - 4.5
Grants 1.5 0.2 1.3 - - - - - 1.3
Flexible Load 0.6 0.1 0.5 1.5 - - - - 2.0
IT Projects 3.7 0.5 3.2 0.2 - - - - 3.4
Planning and Studies 0.3 - 0.3 0.3 - - - - 0.6
Application Assistance 0.3 - 0.3 - 0.3 - - 0.3 0.9
Subtotal 30.6 12.4 18.4 8.0 10.7 8.3 8.5 7.9 61.8
CIP Expense Total 49.1 28.5 20.8 71.4 62.1 50.3 52.2 53.4 310.2 177
06 Capital Investment Plan
178
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 38 About the CIP
The Community Power Fiscal Year 2027–2031 Capital
Investment Plan (CIP) includes 10 investment categories that will receive funding during the five-year period, totaling $310.8 million in investments across San Diego County. More detail can be found in the companion FY 2027–2031 Capital Investment Plan book.

The Proposed 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. The draft operating contribution supports the following investments:
$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 participating in battery discharges during on-peak dispatch windows to maximize benefits for the customer and the grid.
$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. $0.3 million, EV Load Growth Study — The Regional EV Load Analysis will forecast how growing EV adoption can impact electricity demand across Community Power’s service territory, including hourly load profiles, adoption scenarios and geographic variation. It will evaluate how different charging behaviors — especially unmanaged vs. managed charging — affect load shape, peak demand and system risks, with a focus on strategies (for example, time-of-use rates or managed charging) that can shift or mitigate EV-related peaks.

Overall, the study aims to provide insights that support long-term planning, helping Community Power understand both the risks and opportunities of transportation electrification for load forecasting, Resource Adequacy and program design.
$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 design and implement programs properly and efficiently. Additionally, pilot programs can cover all customer segments and a variety of technologies or activities, including managed charging for electric vehicles and energy efficiency. 179
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 39 $0.2 million, IT Projects — Focused on Community Power’s commitment to fiscal stewardship and operational scaling, this project funds the optimization and expanded rollout of the agency’s central Enterprise Resource Planning (ERP) platform. While Phase 1 successfully established core budgeting functionalities, Phase 2 is being considered for strategic rescoping to prioritize immediate agency-wide operational controls and financial efficiencies. Once deployed, this phase will streamline cross-departmental workflows, enhance internal financial controls and automate routine processes. This targeted optimization ensures the finance, non-energy procurement team and broader agency possess the scalable infrastructure required to support expanding community programs and minimize administrative overhead.

This CIP continues Community Power’s commitment to plan and finance programs and projects that align with community and organizational priorities. The programs and projects compose a list that gives Community Power the confidence to target a core set of investment types that focus on community needs. It also provides Community Power the flexibility to co-design programs with community partners and to be
responsive to external funding opportunities as they emerge.

This plan is not a final or absolute list of funded projects, and projects may not have funding identified. Each funded and partially funded project identifies a potential source of funding, but this does not necessarily indicate that the project has been funded. As design requirements, budgets and priorities change, the planned projects may also move within the plan or drop out entirely.

Likewise, this list is not all-inclusive. Unexpected requirements often require adjustments in the design and execution process.

Projects, programs and funding are also subject to Board approval, consistent with the JPA and the agency’s internal policies and programs.

CIP Development Process
Community Power will update the CIP annually during its budget development process. Programs and projects are
included in the CIP based on community engagement and
alignment with Community Power’s strategic goals.

The capital budget and the CIP undergo a public outreach process comprising a wide range of stakeholder groups.

Additionally, the CIP is a dynamic document intended to be updated regularly as needs shift or fund availability changes.

All subsequent updates to the CIP will be brought to the Community Power Board for approval.

FIGURE 24. CIP DEVELOPMENT PROCESS
Operational Impact of Capital Projects
Projects outlined in Community Power’s CIP and Budget are generally designed to address the needs of existing assets while enabling the organization to scale its operational capabilities. These investments are not expected to significantly increase ongoing operating costs. However, when a project has a significant operational impact, associated costs are incorporated into Community Power’s Five-Year Financial Plan and reflected in the annual budget process. Additionally, staffing, facility operations, equipment maintenance and other related costs are reviewed and approved through the annual budget process and are reflected in the “Budget by Department” section under the sponsoring department.

Capital improvements represent strategic investments to enhance Community Power’s technology, systems and organizational infrastructure. While these improvements continue to support upgrades to physical assets and equipment, they are increasingly focused on strengthening the organization’s internal systems and processes to support long-term operational efficiency. As Community Power continues to mature, capital projects are shifting from building foundational capabilities to integrating and optimizing those systems across the organization for the long term. 180
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 40 Several projects led by the IT and Data Analytics Department, in coordination with Finance, Power Services and Customer Operations, are central to these efforts. These investments support a more connected and data-driven operating environment while also improving efficiency, reducing manual processes and enabling the organization to scale its operations. Key areas of operational impact include the following:

Enterprise Data Integration and Accessibility — Community Power continues to expand its enterprise data platform by integrating data from internal systems and external partners.

This includes critical operational and financial data used across forecasting, rate design, customer programs and accounting.

By consolidating these data sources into a centralized
platform, the organization can improve data accessibility, reduce duplication of effort and support more consistent decision-making across departments.

Advanced Analytics and Insights — Building on its data
infrastructure, Community Power is expanding its use of advanced analytics and platforms to enhance operational performance. These capabilities support improved load
forecasting, financial planning and program evaluation while enabling staff to identify trends and proactively address operational challenges. By increasing automation and
analytical capacity, these investments reduce reliance on manual processes and improve overall efficiency.

Energy Trading and Risk Management Systems — Capital
investments in energy trading and risk management
systems strengthen the organization’s ability to monitor and manage its financial and market positions. These
systems support improved project tracking, coordination and visibility into project timelines, helping to strengthen project implementation across the agency. As a result, Community Power can improve risk management practices, reduce
operational complexity and support more informed financial decision-making.

Customer Operations and Billing System Enhancements —
Investments in customer operations systems focus on
improving billing accuracy, customer communication and
overall service delivery. These enhancements streamline customer-facing processes, reduce the need for manual
corrections and support greater operational efficiency. In addition, improvements in system integration help reduce reliance on external vendors, resulting in ongoing cost savings while enhancing the customer experience.

Project Management and Workflow Optimization —
Implementing project management and workflow tools
allows for more effective coordination across departments and improves project tracking and execution. These systems provide greater transparency into project timelines, resource allocation and performance, helping to standardize processes and reduce inefficiencies. As the organization continues to grow, these tools enable more consistent execution of strategic initiatives and strengthen overall organizational effectiveness.

Cybersecurity and System Resilience — As Community
Power’s reliance on digital systems continues to increase, capital investments in cybersecurity and IT infrastructure are essential to maintaining secure and reliable operations. These investments protect critical data and improve the security and reliability of critical systems as the organization continues to expand its digital infrastructure.

SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2025–2026 Capital Investment Plan 40 181
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 41 Multiyear Trends
This section presents a multiyear financial trend report for Community Power, reviewing the actuals from FYs 2022–
2023, 2023–2024 and 2024–2025 and the FY 2025–2026
Amended Budget. The report includes visualizations that illustrate key financial trends and variances, providing a clear and comprehensive picture of the organization’s fiscal trajectory over the past three years. By examining these figures, Community Power can gain insights into revenue patterns, expenditure changes and overall financial stability.

This analysis is essential for understanding how past financial outcomes align with future budgetary goals, ensuring effective financial planning and management.

Community Power has experienced substantial growth in
both operating revenues and expenditures since the agency’s inception in October 2019 through FY 2023–2024. In FY
2021–2022, Community Power’s operating revenues were
$386 million, increasing to $891 million in FY 2022–2023, and further rising to $1.2 billion in FY 2023–2024. This growth was primarily driven by expanding electricity sales and an increased customer base as Community Power finished
enrollment of customers from its member jurisdictions.

Concurrently, operating expenses have also escalated,
from $329 million in FY 2021–2022 to $746 million in FY 2022–2023, and reaching $1.083 billion in FY 2023–2024, reflecting higher costs associated with electricity procurement and use of contract services, similarly fueled by expanding electricity sales and an increased customer base. Despite these rising costs, Community Power has consistently maintained a positive operating income, indicating effective financial management and strategic planning. The FY 2025–2026
Amended Budget continued growth and stability, ensuring Community Power’s ability to meet its operational goals and effectively serve the community. Since FY 2023–2024, Community Power has had stable electricity sales and a stable customer base as enrollment of customers from Community Power’s member jurisdictions has been completed. As a result, Community Power’s revenues and expenditures have similarly stabilized since FY 2023–2024.

Total operating revenues Total operating expenses
FY 2022/23
$1,264,369,520
$1,082,692,389
$1,555,213,375
$891,178,064
$746,131,125
FY 2023/24 FY 2024/25
$1,243,031,946
FIGURE 25. OPERATING REVENUES VS. EXPENDITURES
FY 2022/23 FY 2023/24 FY 2024/25

OPERATING REVENUES
Electricity sales, net $891,178,064 $1,252,787,768 $1,239,973,471 Grant revenue $0 $983,500 $1,780,217
Liquidated damages $0 $0 $0
Other income $0 $10,598,252 $ 1,278,258
Total operating revenues $891,178,064 $1,264,369,520 $1,243,031,946

OPERATING EXPENSES
Cost of electricity $720,327,704 $1,047,553,476 $1,101,545,238 Contract services $15,957,376 $19,750,534 $19,487,406
Staff compensation $6,726,270 $11,399,388 $17,159,242
Other operating expense $2,866,222 $3,261,424 $16,295,134 Depreciation and amortization $253,553 $727,567 $726,355 Total operating expenses $746,131,125 $1,082,692,389 $1,155,213,375 NET POSITION $145,046,939 $181,677,131 $87,818,571
182
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 42 Community Power’s FY 2024–2025 Amended Budget reflects
the organization’s strong financial growth and stability observed in past fiscal years. The budget included total operating revenues of $1.22 billion and total expenses of $1.18 billion, maintaining a balanced approach similar to previous years.

Revenue growth, driven by expanding electricity sales and an increasing customer base, aligns with the upward trend seen from FY 2021–2022 to FY 2023–2024. Increased costs in FY 2024–2025 are primarily due to higher electricity procurement expenses and investments in the CIP. Despite these rising costs, the positive net operating income highlights effective financial management and strategic planning.

FIGURE 26. OPERATING BUDGET*
Total operating budget expenses
Total operating budget revenues
$1,025M
$1,175M
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
Cost of Energy 1,116.8 969.9 872.3
Non-Energy Costs 50.8 50.0 55.7
Subtotal Operating Expense 1,167.6 1,019.9 928.1
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 Total Expenses 1,187.1 1,025.0 914.9
Net Position 34.2 150.4 3.9
*Amounts displayed in millions of dollars
183
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 43 Community Power uses a multiyear financial planning
framework to evaluate the sustainability of the annual budget and to support decisions related to rates, reserves, liquidity, and enterprise risk. Because certain forward-looking inputs — such as power market conditions, procurement strategies, contracting positions and customer load assumptions — are commercially sensitive, the budget document presents the agency’s financial outlook at a high level rather than as detailed line-item forecasts.

As part of the annual budget process, management reviews updated revenue, expenditure, load, regulatory and market assumptions; evaluates multiple planning scenarios; and performs financial stress testing to assess financial resilience under changing conditions. This analysis informs budget development, reserve adequacy and risk management
decisions and helps support alignment with Board-adopted financial policies and strategic objectives.

Key Assumptions and Financial Framework
The financial framework is based on a defined and regularly updated set of assumptions, including:
• Wholesale energy, capacity and renewable market
conditions
• Customer load forecasts, including large-load growth
• Power supply portfolio composition and procurement
strategy
• Retail rate competitiveness relative to incumbent utilities • Regulatory frameworks, including Power Charge Indifference Adjustment (PCIA) and CPUC market benchmarks
• Board-adopted reserve and risk management policies
Community Power’s financial framework is anchored by its Financial Reserves Policy (Resolution No. 2025-23), which establishes:
• A minimum reserve threshold of 180 days cash on hand
• A target reserve level of 225 days cash on hand
• A maximum reserve level of 270 days cash on hand
In addition, the Board established a Rate Stabilization Reserve (RSR) (Resolution No. 2026-07) to manage rate volatility. The RSR represents up to 45 days cash on hand above the target reserve level and provides a dedicated mechanism to mitigate near-term financial and rate impacts.

Long-Range Operating Financial Plan
Community Power evaluates long-range financial performance under multiple scenarios, including base-case conditions and Potential Future Exposure (PFE) stress-test scenarios, which assess reasonably foreseeable risks such as:
• Lower-than-forecast load
• Customer participation
• Volatility in wholesale energy markets and benchmark pricing Across these scenarios, the financial framework is designed to maintain cost recovery, protect existing customers from cost shifting, and ensure compliance with reserve targets.

Relationship to Strategic Goals, Risk
Management and the Budget Process
The multiyear financial planning framework is a central component of Community Power’s budget development,
rate-setting and risk management processes. It ensures that near-term decisions are consistent with long-term financial sustainability and strategic objectives, including:
• Maintaining rate competitiveness relative to SDG&E
bundled service
• Ensuring customer indifference and full cost recovery • Preserving financial resilience through policy-compliant reserves and liquidity
• Supporting a disciplined and diversified power
procurement strategy
As identified in the Community Power’s Quarterly Risk
Oversight Committee (ROC) reports to the Finance and Risk Management Committee and as stated in the Board meeting in December 2025, the most significant financial risk to Community Power is volatility in Market Price Benchmarks (MPBs) and its direct impact on the PCIA. Changes in MPBs can materially affect both:
• PCIA charges applied to customers, and
• Competitive benchmark rates of the incumbent utility
Declining market price benchmarks can increase PCIA
obligations while simultaneously lowering utility generation rates, creating downward pressure on net revenues and rate competitiveness. Community Power’s long-range financial plan explicitly incorporates this risk by modeling PFE stress-test scenarios that reflect benchmark volatility and its potential lagged impacts through PCIA true-ups.
184
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Capital Investment Plan 44 $1400.0M
$1200.0M
$1000.0M
$800.0M
$600.0M
$400.0M
$200.0M
$0.0M
01/01/26
02/01/26
03/01/26
04/01/26
05/01/26
06/01/26
07/01/26
08/01/26
10/01/26
11/01/26
12/01/26
01/01/27
02/01/27
03/01/27
04/01/27
05/01/27
06/01/27
07/01/27
08/01/27
09/01/27
10/01/27
01/01/27
12/01/27
09/01/26
Reserve Projections Low Price High Price
156-DCOH
Low-Price CYE 27
Reserve Balance
455-DCOH
High-Price CYE 27
Reserve Balance
FIGURE 27. RESERVE PROJECTIONS*
*Calendar Year End (CYE) 2027 Days Cash On Hand (DCOH)
To mitigate this exposure, Community Power integrates:
• Portfolio management strategies
(including energy position optimization)
• Contract structures that provide cost stability
• Reserve policies, including use of the RSR to smooth
rate impacts
This forward-looking approach allows Community Power to proactively manage financial risk while maintaining flexibility in a dynamic wholesale energy market.
185
07 Budget by Department
186
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 46 Executive
The Executive team provides strategic leadership and direction for Community Power. Led by the chief executive officer and supported by the executive team, the department ensures alignment across departments, fosters an accountable and inclusive culture and drives implementation of the agency’s strategic plan.

The Executive team represents Community Power in public forums, strengthens partnerships with member agencies, stakeholders and industry leaders, and guides internal systems that support effective operations. Through ongoing engagement with the Board of Directors, Community Advisory Committee and regional coalitions, the team builds trust and positions Community Power as a leading voice in California’s clean energy transition.

The Executive budget includes funding for special projects to work with organizations on research, strategic planning and affordability efforts. These initiatives support policy development, advance organizational priorities and ensure Community Power remains responsive to emerging issues and opportunities. • Advanced implementation of the Strategic Plan by aligning organizational and departmental priorities, resources and performance expectations
• Strengthened Community Power’s leadership position
through continued engagement with CalCCA, industry
boards and state policy forums
• Supported development of internal systems, training and culture initiatives to reinforce accountability, collaboration and performance
• Increased Community Power’s visibility and thought
leadership through external engagement with member
agencies, policymakers and regional stakeholders
• Strategic goals aligned across departments (target: seven) • Annual rate setting via public process
(target: effective February 1)
• Reserve balance and days cash on hand
(target: 180 days by FY 2028)
• Number of external events attended by executive staff (target: 60)
Department Description: Mission and Services
Department Organizational Structure
FY 2025–2026 Department Highlights Key Performance Indicators (KPIs) Budget by Department
FIGURE 28. EXECUTIVE ORGANIZATIONAL STRUCTURE
Karin Burns
Chief Executive
Officer
Jack Clark
Chief Operating
Officer
Jannies
Burlingame
Chief Financial
Officer and
Treasurer
Gordon
Samuel
Chief Commercial
Officer
Veera Tyagi
General Counsel
187
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 47 Operations
Improving internal operations and alignment to support strategic execution Operations is composed of several departments and divisions that ensure Community Power functions effectively and efficiently while advancing the agency’s strategic priorities. Led by the chief operating officer and supported by senior directors and project management staff, Operations drives internal coordination, strengthens alignment and operationalizes the strategic plan.

The group includes essential governance and organizational functions, including the Office of the Clerk of the Board, which manages Board and committee administration, agenda development, public meetings and records in accordance with applicable laws and transparency requirements. It also provides leadership for Human Resources and Administration, aligning workforce planning, organizational policies and day-to-day operations.

Operations includes the Office of Strategic Initiatives that advances cross-functional priorities tied to growth and long-term objectives. This work includes advancing local development, potential expansion into new member cities, coordination with local governments and oversight of the project management office.

Through these efforts, the group strengthens internal infrastructure, processes and governance to support efficient scaling, improve accountability and ensure alignment between agency priorities, departmental workplans and available resources.

Department Description: Mission and Services
• Advanced the Project Management Office (PMO) by
implementing standardized project charters, templates and governance processes, improving consistency, coordination and accountability across the organization
• Expanded agency-wide project tracking and utilization tools to improve transparency and understanding of
staff capacity, timelines and cross-functional priorities, supporting more effective resource planning and execution • Established the Office of Strategic Initiatives function in December to lead cross-functional efforts, which include shaping a local development strategy
• Continue to fully develop the PMO by strengthening project intake, prioritization, reporting and governance to improve execution and accountability across departments
• Advance strategic initiatives in support of local development efforts, potential expansion into new member communities and coordination with local governments
• Strengthen organizational alignment and efficiency by coordinating across departments, aligning workplans and resources with agency priorities and enhancing systems and processes to reduce manual work and support data-driven decisions
• Enhance governance and transparency through continued improvements in Board and committee processes,
documentation and public engagement
FY 2025–2026 Operations Highlights
FY 2026–2027 Priorities
• Compliance with governance and public meeting
requirements (target: 100% compliance)
• Centralized, cross-functional project schedule and tracking systems (target: update quarterly)
• Project reviews with the Executive team to ensure strategic alignment (target: quarterly reviews)
• Utilization and capacity planning framework to support resource allocation and workload management
(target: continuous improvement with annual assessment) Key Performance Indicators (KPIs)
Department Organizational Structure
FIGURE 29. OPERATIONS POSITIONS
FIGURE 30. OPERATIONS ORGANIZATIONAL STRUCTURE

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Operations 5.0 5.0
Operations
Chief Operating Officer
Clerk of the Board
Associate Director of Strategic Initiatives
Local Government Affairs Manager
Project Management Office Manager
Assistant Clerk of the Board
188
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 48 Power Services
Developing a clean energy portfolio that is reliable, affordable and increasingly renewable The Power Services Department is responsible for managing Community Power’s energy procurement and delivery portfolio, ensuring that customers receive clean, reliable and competitively priced electricity. This includes all long- and short-term energy contracting, load forecasting, power scheduling, wholesale market participation, energy risk management and compliance with state regulatory mandates.

Under the leadership of the chief commercial officer, Power Services oversees competitive solicitations and negotiation of power purchase agreements (PPAs) and Energy Storage Service Agreements (ESSAs), working to meet state mandates and voluntary goals related to the Renewable Portfolio Standard (RPS) and Resource Adequacy (RA). The department also plays a key role in diversifying supply, expanding clean energy development and accelerating the build-out of local energy infrastructure, including distributed energy resources (DERs).

Department Description: Mission and Services
• Implemented Energy Trading Risk Management (ETRM)
system and portfolio analytics partners to maximize the value of data and portfolio optimization
• Maintained energy hedging strategy to mitigate cost
volatility and market exposure in FY 2026–2027 and beyond • Remained nimble and engaged in a dynamic environment
to maximize the value and viability of developing resources and to continue procurement of additional resources to
ensure portfolio breadth and depth
• Marked the onboarding of several local projects, including Arrowleaf Solar and Storage project in Imperial County, the Border Hybrid Energy Center, Chula Vista Energy Center
2 and North Johnson Energy Center projects across San
Diego County as well as the nation’s largest clean energy infrastructure project, the Sunzia wind project in New Mexico • Continued contracting for and managing the development of long-term clean energy resources to meet Community
Power’s 100% renewable energy goals
• Developed new workforce standards for new renewable
energy and battery storage procurement agreements
• Supported two prepayment transactions to save customers a combined $97.3 million over the next nine years
FY 2025–2026 Department Highlights
• Advance toward a 100% renewable energy portfolio by
2035 through the submission of the Integrated Resource
Plan (IRP) filing, the Mid-Term Reliability (MTR) update and issuance of the 2026 All-Source Request for Offers (RFO) with a clear focus on Clean-Firm resources, and completion of long-term procurement scenario modeling to inform a
phased and evolving strategy
• Bring online eight PPA/ESSAs for a total of 840 MW of generation and 668 MW of battery energy storage
systems (BESS)
• Optimize portfolio to manage risk, cost and reliability objectives through risk management tools, sufficient
staffing and staff training
• Clear focus and progress toward Power Service's 150MW DER goal
• Gain deeper knowledge of SDG&E interconnection/
deliverability viability and proactively engage in DER
policy advocacy
• Ensure cost-effective compliance with RA and RPS
requirements and all other state regulatory obligations • Prioritize projects and partnerships that help create high-quality local jobs in the clean energy economy FY 2026–2027 Priorities
189
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 49 • Maintain alignment with Community Power's energy risk management policy
• Ensure timely filing of all resource adequacy month-ahead filings as well as the year-ahead filing due in October 2026 • Submit IRP, RPS and Mid-Term Reliability updates
• Successfully on-board and implement new vendor tools:

YES — ST load forecast; Ascend — asset optimization; Aspen — LT load forecast
• Launch the behind-the-meter (BTM) procurement initiative by December 31, 2026, in support of 150MW DER goal
Key Performance Indicators (KPIs)
FIGURE 31. POWER SERVICES POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Power Services 15.0 16.0
Department Organizational Structure
FIGURE 32. POWER SERVICES ORGANIZATIONAL STRUCTURE
Power Services
Chief Commercial Officer
Senior Director of Power Contracts
Director of Origination
Director of Portfolio Management
Associate Director of Settlements
Portfolio Analyst
Power Contract and Compliance Manager
Principal I — Portfolio Manager
Quantitative Energy Manager
Senior Local Development Manager
Load Forecast Manager*
Senior Portfolio Manager
Senior Portfolio Manager
Senior Settlements Analyst
Senior Origination Associate
Contract Management Associate
Power Contract Coordinator
*Positions proposed in FY 2026–2027
190
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 50 Finance
Promoting long-term organizational sustainability through sound fiscal management and strategic investment The Finance Department ensures the long-term fiscal health of Community Power through sound financial planning, risk management and transparency. The department manages budgeting, accounting, cash flow, reserves, audits, financial policy implementation and debt financing, including clean prepayment financing and fiscal compliance.

Finance supports the organization’s mission by maintaining strong financial controls, enabling informed decision-making and positioning the agency to invest in programs, infrastructure and operations that advance clean energy access and community benefits.

Department Description: Mission and Services
• Achieved an ”A” rating from S&P in March 2026, placing Community Power among the top-rated Community Choice
Aggregators in California
• Executed two prepayment bonds in FY 2025–2026
• Met the 180-day cash-on-hand goal in October 2025
• Built out risk management in FY 2025–2026 to actively develop and manage risk mitigation functions and processes • Developed effective vendor management processes and
brought consistency and visibility to solicitations through a centralized platform, PlanetBids, in May 2026
• Contributed $80M toward Community Power’s reserve goal by end of FY 2025–2026
FY 2025–2026 Department Highlights
• Obtain authorization and execute (if feasible) three
additional prepayment bond transactions to continue
generating power cost savings
• Fund the Rate Stabilization Reserve for strategic use in maintaining cost competitiveness through market volatility • Formalize and implement financial controls, policies
and procedures across the organization
• Continue risk management enhancements with
load forecasting capabilities and enterprise risk
management framework
• Advance SDREN and Capital Improvement Program
investments to support infrastructure growth
• Support fiscal stability through disciplined financial management during organizational expansion into
new communities
• Complete Enterprise Resource Planning (ERP) system
rollout, implementation milestones and performance
dashboard deployment
• Strengthen cost controls across budgeting, cost
management and procurement
• Establish procurement goals for local investment and vendor outreach to deliver local benefits to the San Diego region FY 2026–2027 Priorities
• Achieve reserve balance and days cash-on-hand goal
(target: 225 days by FY 2026–2027)
• Achieve rate stabilization reserve balance and days cash-on-hand goal (target: 45 days by FY 2026–2027) • Number of clean energy prepay transactions executed and savings achieved
• Identify financial efficiencies by reviewing budget-to-actuals to maintain investment-grade credit rating
Key Performance Indicators (KPIs)
FIGURE 33. FINANCE POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Finance 13.0 13.0
Department Organizational Structure
FIGURE 34. FINANCE ORGANIZATIONAL STRUCTURE
Finance
Chief Financial Officer
Senior Director of Finance and Risk
Associate Director of Strategic Finance and
Procurement
Associate Director of Finance
Finance Manager
Procurement Manager
Procurement Manager
Risk Manager
Senior Financial Analyst
Senior Financial Analyst
Financial Analyst
Financial Analyst
Procurement Analyst
Procurement Analyst
191
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 51 Customer Operations
Ensuring high customer satisfaction and retention through responsive service, affordability and clear communication The Customer Operations Department supports customer satisfaction and retention by ensuring clear, timely and accurate billing, analyzing usage trends and delivering exceptional account management services. Under the guidance of the chief operating officer and leadership of the senior director of data analytics and customer operations, the team manages contact center operations, supports key accounts and provides analytical insights to guide revenue recognition, rate strategy, load forecasting, arrearage management and customer service enhancements.

The department plays a central role in delivering Community Power’s promise of clean, affordable energy through customer-focused strategies. It leads ongoing efforts to evolve rate strategy to ensure competitiveness, affordability and long-term fiscal sustainability while developing targeted customer strategies to increase retention and engagement.

The department also supports interagency coordination with SDG&E and Calpine to resolve billing issues that cause customer confusion and complaints, mitigate errors and improve the overall customer experience. In parallel, the team is evaluating opportunities to develop best-in-class customer service capabilities, including exploration of a potential energy advisor center, while maintaining the tools and insights that drive high customer retention, satisfaction and service engagement.

Department Description: Mission and Services
• Proactively developed 2026 rates to mitigate risk, offering Community Power customers the largest discount
compared with SDG&E’s generation rates
• Collaborated with SDG&E to improve bill presentment and safeguard against split billing through My Energy Center updates • Partnered with SDG&E and Calpine to improve billing
accuracy and address customer concerns
• Oversaw more than $20 million in vendor service contracts, including Calpine and SDG&E in 2025
• Continued enhancements to internal data tools to track opt actions, revenues and customer engagement
• Maintained a customer participation rate of more than 95% over the past three years
FY 2025–2026 Department Highlights
• Evolve rate strategy to ensure competitiveness, affordability and fiscal sustainability, including the exploration of demand flexibility rate design and an internal rates database
• Maintain high levels of customer satisfaction and education through Key Accounts and Customer Service Center
• Launch the Commercial Energy Assistance Program (CEAP) through Key Accounts
• Resolve outstanding billing and communication issues with SDG&E and continue to advocate against split billing as a threat to customer satisfaction
• Develop a large load and data center framework and tariff • Implement measures to reduce customer arrearages and
improve long-term account health
• Support contact center training and performance
monitoring for consistent, high-quality service
FY 2026–2027 Priorities
• Customer retention rate (target: 90%+)
• Billing accuracy and timeliness (target: 99.99%)
• Customer satisfaction score via surveys (target: score 9/10) • Successful roll-out of the Commercial Energy Assistance Program (CEAP) (target: $5M+ in possible customer savings) • Number of service enhancements implemented or piloted (target: 2–3 new initiatives in FY 2026–2027)
Key Performance Indicators (KPIs)
FIGURE 35. CUSTOMER OPERATIONS POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Customer Operations 7.0 8.0
Department Organizational Structure
FIGURE 36. CUSTOMER OPERATIONS ORGANIZATIONAL STRUCTURE Customer Operations
Senior Director of Data Analytics and Customer
Operations
Account Services Manager
Key Account Services Manager
Rates and Strategy Manager
Senior Rates Analyst
Account Services Analyst
Key Account Services Analyst
Rates Analyst*
*Positions proposed in FY 2026–2027
192
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 52 IT and Data Analytics
Creating a secure and efficient environment that supports collaboration and innovation The IT and Data Analytics Department empowers Community Power through secure, scalable and modern digital infrastructure. Led by the associate director of IT and Data Analytics, the department manages enterprise systems, data, analytics and cybersecurity.

The department ensures system reliability and operational continuity through secure, resilient and well-governed technology environments. It standardizes enterprise platforms and workflows to reduce fragmentation, improve efficiency and mitigate operational risk.

IT and Data Analytics develops centralized, cloud-based tools and governed data environments that enable real-time, data-informed decision-making across rate development, customer programs, communications and operations. These capabilities support performance tracking, planning and execution at all levels of the organization.

Through strong governance and accountability, the department establishes policies and controls for data, AI, cybersecurity and technology use. These efforts balance innovation with compliance and public trust while positioning the organization to scale effectively as programs expand and complexity increases.

Department Description: Mission and Services
• Strengthened system reliability, cybersecurity and vendor oversight through improved monitoring, incident response and standardized controls
• Standardized enterprise platforms and workflows, reducing duplicative tools and manual processes across departments • Expanded enterprise analytics and reporting by advancing data platform integration and delivering consistent
dashboards aligned to organizational KPIs
• Established data and AI governance frameworks, including data classification, defined ownership and accountability and policy guardrails
FY 2025–2026 Department Highlights
• Expand analytics capabilities to support strategic decision-making, including self-service analytics, predictive insights and executive reporting
• Strengthen cybersecurity and enterprise risk management through measurable, repeatable programs, training and
compliance validation
• Modernize and integrate core systems to improve
interoperability, reduce manual processes and support
organizational scale
• Advance data governance and technology standards to
ensure consistent, secure and compliant use of data, AI and enterprise tools
• Position IT and Data Analytics as a strategic enabler by supporting long-range planning, operational scalability and organizational readiness
FY 2026–2027 Priorities
193
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 53 • Percentage of critical enterprise systems meeting uptime and availability targets (target: ≥ 99.9%)
• Percentage of IT incidents resolved within service level agreement (SLA) (target: ≥ 98%)
• Percentage of critical vulnerabilities remediated within target timeframe (target: ≥ 95%)
• Percentage of critical retail operations data systems integrated into the enterprise data platform (target: ≥ 98%) • Percentage of enterprise reports and dashboards sourced from governed data sets (target: ≥ 90%)
• Number of departments supported with internal analytics and reporting solutions (target: ≥ 4)
• Monthly active usage of priority dashboards and self-service analytics tools (target: year-over-year growth)
• Percentage reduction in duplicative tools and manual
workflows in targeted business processes (target: annual improvement)
• Percentage of critical systems, data domains, and
technology policies with assigned ownership and approved governance controls (target: ≥ 90%)
Key Performance Indicators (KPIs)
FIGURE 37. IT AND DATA ANALYTICS POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
IT and Data Analytics 13.0 13.0
Department Organizational Structure
FIGURE 38. IT AND DATA ANALYTICS ORGANIZATIONAL STRUCTURE IT and Data Analytics
Associate Director of IT and Data Analytics
Senior Data Analytics Manager
Senior Data Engineer
Senior Data Scientist
Information Systems Manager
IT Manager
Senior Cybersecurity Analyst
IT Systems Analyst
IT Systems Analyst
IT Systems Engineer
IT Systems Engineer
Data Engineer
Data Analyst
194
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 54 Public Affairs
Building a trusted public agency through strategic outreach, education and engagement The Public Affairs Department connects Community Power with the people and communities it serves. Through strategic communications and engagement, the team builds awareness of Community Power’s mission, programs and benefits while supporting transparency and trust in all public-facing materials.

Led by the senior director of public affairs and reporting to the chief operating officer, the department's community engagement and strategic communications and marketing teams work together to inform, educate and engage customers, stakeholders and community partners across the region.

Community engagement focuses on building relationships with residents, community-based organizations and local partners through direct outreach, events and programs. Strategic communications and marketing advances the agency’s brand, messaging and public presence through marketing, media relations, partnerships and sponsorships, ensuring communication is clear, consistent and accessible.

The department also supports customer education, promotes participation in programs that help customers save energy and reduce costs, and provides communications support across the organization. It also manages the Community Advisory Committee (CAC) to ensure community perspectives and local priorities inform agency decisions.

Department Description: Mission and Services
• Completed a community-informed rebuild of the
Community Power website, improving clarity for customers reviewing bills and service plans or seeking resources and programs
• Implemented a comprehensive brand refresh guided by
community feedback, strengthening consistency and
making Community Power more accessible and relatable for customers
• Developed the San Diego Regional Energy Network
(SDREN) brand and website, establishing a unified identity and leading portfolio-wide marketing and communications for regional energy efficiency programs
• Expanded the Power Network of local nonprofits to support program outreach, strengthen community relationships and reinvest in the community
• Maintained strategic relationships with local governments, JPAs, trade associations, the energy industry ecosystem and key businesses through sponsorships, presence and
collaborative projects
• Enhanced collaborative ties with the CAC and encouraged active participation through monthly meetings, tabling at events and networking activities
• Participated in 183 community outreach events in
FY 2025–2026, resulting in approximately 16,000 unique
interactions and nearly 650,000 impressions
FY 2025–2026 Department Highlights
• Develop and execute a targeted PowerBase campaign and general time-of-use rates education to increase customer awareness of service plans and opportunities to reduce
energy costs
• Advance customer education efforts to improve
understanding of electricity usage, rate structures and the availability of rebates, incentives and offers
• Expand community engagement initiatives, including the Power Network and the Community Clean Energy Grants,
to deepen relationships with community-based
organizations and local stakeholders
• Ensure consistency and alignment across all communications by continuing to transition materials to the updated brand and content standards
• Support agency-wide priorities by providing strategic communications, marketing and outreach support for
programs, initiatives and policy efforts, including all SDREN programs
• Strengthen media relations and earned media opportunities to increase awareness of Community Power’s impact,
programs and progress
FY 2026–2027 Priorities
195
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 55 • Number of public events attended, hosted or sponsored (target: 200 annually)
• Information on PowerBase and Time-of-Use provided to
CARE/FERA customers (target: 100% by the end of calendar year 2026)
• Enroll eligible customers in energy-reducing Flex Load programs (target: 75% by 2028)
• Number of press releases or earned media opportunities and placements (target: 12 annually)
• External-facing materials in alignment with updated brand and content standards (target: full alignment across public materials)
Key Performance Indicators (KPIs)
FIGURE 39. PUBLIC AFFAIRS POSITIONS*

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Public Affairs 12.0 14.0
Department Organizational Structure
FIGURE 40. PUBLIC AFFAIRS ORGANIZATIONAL STRUCTURE
Public Affairs
Senior Director of Public Affairs
Associate Director of Strategic Communications and
Marketing
Senior Community Engagement Manager
Marketing and Communications Projects Manager
Marketing Manager
SDREN Marketing Manager
Community Engagement Manager*
Communications Associate
Communications Associate
SDREN Communications Associate
SDREN Outreach Associate*
Community Engagement Associate
Community Engagement Coordinator
Community Outreach Representative (0.5 FTE)
Community Outreach Representative (0.5 FTE) *3.0 positions will be externally funded in FY 2026–2027 *Positions proposed in FY 2026–2027
196
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 56 Programs
Implementing energy projects and programs that reduce emissions, align supply and demand, and deliver community benefits
The Programs Department designs and implements initiatives that reduce customer bills, increase energy resilience and expand access to clean energy. Under the guidance of the chief operating officer and the leadership of the senior director of programs, the team manages incentive programs, pilots and partnerships that serve residential, commercial and public agency customers across the region.

Program area focus and design are guided by Community Power’s Community Power Plan (CPP), Climate Action Plans from member agencies, and state and federal policy. From residential battery incentives to electric vehicle-charging management, the department supports scalable, equitable decarbonization across sectors. The department works closely with community-based organizations, industry stakeholders and internal departments to ensure program design is equitable, effective and scalable.

The department also leads the launch and administration of the San Diego Regional Energy Network (SDREN) in partnership with the County of San Diego, a transformative, multiyear effort to deliver energy-efficiency and demand-side management programs across San Diego County.

Department Description: Mission and Services
• Oversaw full program launch for Solar Battery Savings residential program
• Secured implementors for all 10 SDREN programs and
Equitable Building Decarbonization community partners
• Administered pilot projects to reduce peak load
consumption via aggregated management of enrolled
behind-the-meter customer devices, including smart
thermostats and managed EV charging
• Released Request for Offers for Solar Advantage and
continued work toward a Power Purchase Agreement
• Built the Distributed Energy Resources Management System (DERMS) platform and supported program infrastructure to scale the Virtual Power Plant (VPP) through Virtual Peaker FY 2025–2026 Department Highlights
• Enhance and expand the Solar Battery Savings program
• Develop and launch the nonresidential Solar Battery Savings pilot program for commercial and other nonresidential customers • Begin enrolling Solar Advantage customers and apply California Public Utility Commission-funded 20% bill discounts
• Continue demonstrating leadership and expertise in customer programs in and beyond Community Power’s territory
• Develop a framework to evaluate the success of all programs and pilots
• Ensure customer access to SDREN programs and continue supporting program implementation
FY 2026–2027 Priorities
197
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 57 • Add additional capacity toward the 150 MW goal
(target: 15 MW in 2026)
• Create a process to enroll at least 75% of eligible
incentivized measures (target: enrollment by 2028)
• Achieve annual KPIs for the 10 SDREN programs
(target: 2026)
• Direct funding to Communities of Concern (target: 50%) Key Performance Indicators (KPIs)
FIGURE 41. PROGRAMS POSITIONS*

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Programs 15.0 16.0
*7.0 positions will be externally funded in FY 2026–2027 Department Organizational Structure
FIGURE 42. PROGRAMS ORGANIZATIONAL STRUCTURE
Programs
Senior Director of Programs
Associate Director of Programs — SDREN
Associate Director of Programs — Flex Load
Senior Program Manager
Senior Program Manager
Senior Program Manager
Senior Program Manager
Program Manager
Program Manager
Program Manager
Program Manager
Senior Program Associate
Senior Program Associate
Senior Program Associate*
Program Associate
Program Associate
*Positions proposed in FY 2026–2027
198
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 58 Regulatory and Legislative Affairs
Advocating for policies that advance Community Power’s mission and protect local decision-making The Legislative and Regulatory Affairs Department monitors and engages in regulatory proceedings and legislation that directly or indirectly impact Community Power’s operations and customers. Under the guidance of the chief operating officer and leadership of the senior director of Regulatory and Legislative Affairs, the department represents Community Power’s interests before the California Public Utilities Commission (CPUC), California Energy Commission (CEC), California Air Resources Board (CARB), California Independent System Operator (CAISO), the state Legislature and Congress. As needed, the department also supports engagement with relevant federal agencies, including but not limited to the U.S. Department of Energy and Federal Energy Regulatory Commission (FERC).

The department also supports compliance requirements across multiple state agencies, assists with agency-wide understanding of policy impacts and informs strategies for securing external funding and favorable regulatory outcomes. Community Power participates in trade associations such as the California Community Choice Association (CalCCA) and works collaboratively with member agencies, industry partners and stakeholders across the state to ensure community choice remains a resilient and effective tool for climate action, energy equity, grid reliability and customer affordability.

The department’s work is guided by Community Power’s Board-approved Regulatory and Legislative Platform, which outlines the agency’s values-based approach to policy and advocacy, anchored in accelerating deep decarbonization, promoting local development and stabilizing community choice energy. The platform provides clear guidance for consistent engagement at the local, state and federal levels and ensures that policy advocacy reflects Community Power’s mission and customer priorities. View the platform here.

Department Description: Mission and Services
• Actively supported legislation at the state level that will reduce wholesale power costs, increase reliability, reduce transmission costs and help keep down costs for distributed solar
• Supported efforts to obtain or sustain external funding for customer programs, including $700,000 to support the
Charging Harmonization and Analysis for Resilient, Grid-Efficient Utilization and Planning (CHARGE UP) pilot and Public Purpose Program funding for the San Diego Regional Energy Network
• Provided analysis for three legislative proposals that affect all Community Choice Aggregators, issued 11 letters of
support on legislation, as well as two letters of opposition to bills that would have had negative consequences for
operations and customers (all legislative letters issued by Community Power can be viewed here)
• Coordinated with other CCAs to educate key members of Congress about renewable energy cost impacts in their
districts from H.R. 1 and assisted the Community Choice Energy Alliance, a new national trade association of CCAs, in forming its first Federal Affairs Committee; developed its initial policy platform to help nationwide CCAs increase our federal policy presence
• Co-led a coalition of 39 organizations to educate state lawmakers and their staff about the importance of energy efficiency program funding and to successfully oppose
legislation that would have undermined the funding
• Advanced SDREN’s regulatory position by leading and
coordinating joint REN filings in the CPUC’s energy
efficiency oversight proceeding, successfully elevating equity, non-energy benefits, and funding continuity
considerations in the Commission’s policy framework
• Intervened in Energy Resource Recovery Account
(ERRA) proceedings to reduce cost pressure on Power
Charge Indifference Adjustment (PCIA) rates that impact Community Power customers
FY 2025–2026 Department Highlights
199
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 59 • Advance policy solutions that focus on affordability, including the advancement of legislation and regulations that protect customers, reduce PCIA volatility, create market efficiencies in the CPUC’s resource adequacy framework and re-establish customer tax credits
• Support state and federal legislation that reduces barriers to reliable renewable and clean energy deployment, including equitable deployment of local clean energy that enables an affordable path to 100% renewable energy
• Advance regulatory and legislative outcomes that uphold procurement and rate-making authority for Community Power • Identify applicable grant and funding opportunities that benefit customers and member agencies
• Actively participate in trade associations and multiagency coalitions to shape the policy landscape
• Track and manage participation in regulatory proceedings to ensure timely and accurate engagement
FY 2026–2027 Priorities
• Number of regulatory proceedings tracked (target: 40+) • Number of bills analyzed (target: 100+)
• Legislative positions advanced in alignment with platform (target: 10+)
• Number of unique interactions with state and federal
policymakers (target: 50+)
Key Performance Indicators (KPIs)
FIGURE 43. REGULATORY AND LEGISLATIVE AFFAIRS POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Regulatory and
Legislative Affairs

5.0 5.0
Department Organizational Structure
FIGURE 44. REGULATORY AND LEGISLATIVE AFFAIRS

ORGANIZATIONAL STRUCTURE
Regulatory and Legislative Affairs
Senior Director of Regulatory and Legislative Affairs
Associate Director of Legislative Affairs
Senior Policy Manager
Senior Strategic Policy Manager
Regulatory Manager
200
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 60 Human Resources and Administration
Fostering a high-performing, inclusive workplace through strategic talent development and operational excellence The Human Resources and Administration Department serves as a strategic partner for leadership and staff, building the internal systems needed to support a high-performing, mission-aligned organization. The department integrates human resources and administrative operations into a unified function that enables employee success and ensures consistency and efficiency across the agency.

Human Resources leads compensation, recruitment, onboarding, benefits administration, compliance, professional development and performance management, aligning workforce strategies with Community Power’s mission, values and organizational priorities.

The administrative team supports agency-wide operations through coordination of internal processes, executive support, facilities and scheduling. Together, these functions ensure organizational effectiveness, reinforce accountability and support the agency’s ability to scale and operate efficiently.

Department Description: Mission and Services
• Trained all employees in workplace violence prevention and emergency preparedness and held additional safety
meetings
• Hired top talent in accordance with plan and budget
• Evolved into a learning organization, emphasizing
professional development for staff and people leaders
• Measured and ensured high employee engagement through consistent improvement, onboarding survey metrics and
annual baseline surveys with Nash Consulting
• Designed and launched a summer intern program for local college students interested in the clean energy industry • Integrated Administration into the larger People Operations team and developed a cadence for internal and external
team events and activities
FY 2025–2026 Department Highlights
• Align workforce planning, hiring, onboarding and succession planning with agency priorities
• Strengthen employee engagement, development and
leadership capacity
• Institutionalize HR programs and administrative processes to support performance, compliance and consistency
• Continue implementation of employee safety and
emergency preparedness programs
• Standardize administrative systems and processes to
improve efficiency
• Strengthen internal communication to support alignment and coordination
FY 2026–2027 Priorities
• Headcount: 95
• Hired: 19 FTE FY 2025–2026 and an additional 4 Interns for a total of 23
• Departed: 3 FY 2025–2026
• Turnover Rate (target 3.16%)
• Time-to-fill for key positions (target: 60 days)
Key Performance Indicators (KPIs)
FIGURE 45. HUMAN RESOURCES AND ADMINISTRATION POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Human Resources
and Administration

8.0 8.0
Department Organizational Structure
FIGURE 46. HUMAN RESOURCES AND ADMINISTRATION

ORGANIZATIONAL STRUCTURE
Human Resources and Administration
Senior Director of People Operations and
Administration
Senior Human Resources Manager
Senior Executive Assistant
Talent Acquisition and Learning Specialist
Human Resources Analyst
Executive Assistant
Executive Assistant
Facilities Manager
201
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Department 61 Legal
Providing legal guidance, ensuring compliance, transparency and accountability to support organizational integrity The Legal Department is led by Community Power’s general counsel, who reports directly to the Board of Directors and serves as a member of the Executive team. Under the leadership of the general counsel, the department provides legal guidance across a range of areas, including public agency governance, regulatory compliance, contract law, employment law and risk management.

The department plays a critical role in supporting internal policy development, mitigating organizational risk and maintaining transparency in all agency actions. As Community Power expands in scale and complexity, the department ensures the agency’s decisions and operations remain aligned with local, state and federal legal requirements and uphold public trust.

Department Description: Mission and Services
• Supported the execution of two bond prepayment
agreements, which generated continued power cost savings • Provided legal guidance on long-term Power Purchase
Agreements (PPAs) and related procurement efforts
• Provided legal support for the launch of major customer programs, including Solar Battery Savings and the San
Diego Regional Energy Network (SDREN)
• Reviewed and updated nine Board and two internal policies FY 2025–2026 Department Highlights
• Continue to support the execution of three to five clean energy prepay transactions and associated legal review
• Continue to provide legal guidance on long-term PPAs and related procurement efforts
• Continue to develop new and revised Community Power
policies and provide legal support for procedures
• Update and improve on Community Power contract forms, including provisions for insurance, cybersecurity and
intellectual property
• Provide legal support for Community Power Initiatives, including tribal projects, Community Power-owned assets and data centers
• Develop and provide a regular cadence of training to
committees and agency staff on public agency governance (including the Brown Act and Public Records Act)
FY 2026–2027 Priorities
FIGURE 47. LEGAL POSITIONS

DEPARTMENT

POSITIONS
FY26 Amended FY27 Proposed
Legal 3.0 3.0
Department Organizational Structure
FIGURE 48. LEGAL ORGANIZATIONAL STRUCTURE
Legal
General Counsel
Assistant General Counsel
Senior Counsel
Paralegal
202
08 Budget by Level 2
and Level 3
203
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Level 2 and Level 3 63 Budget by Level 2 and Level 3
Operating Revenue
Community Power’s sole source of revenue currently is 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, as well as the majority of the residential customer base.

Generally, operating revenue through the retail sale of electricity is derived by: 1) estimating Community Power’s energy load for the upcoming fiscal year; 2) applying the Board-approved generation rates to the energy load; and 3) applying a 1.5% uncollectible rate based on revenue that Community Power does not expect to collect — the result is Community Power’s operating revenue for the fiscal year.

Community Power offers four service levels to its customers, which, taken together, ultimately comprise the source of ratepayer funds for the agency:
• PowerBase, our most affordable service option, with a renewable content that is intended to meet or exceed
SDG&E’s whenever possible and provides customers with a 10% discount compared with SDG&E’s rates.
• PowerOn, our standard service offering that provides 53% renewable power and offers a 4% discount compared with
SDG&E’s rates.
• Power100, our premium service that provides customers with 100% renewable energy. It is currently priced at an additional $0.01/kWh more than PowerOn.
• Power100 Green+ is our stand-alone 100% renewable and carbon-free service that is Green-e® Certified, available only to commercial and industrial customers. It is currently priced at $0.02/kWh more than PowerOn.

Additional assumptions for net operating revenue include:
• Enrollment of customers is complete for all member
jurisdictions
• A 95% participation rate across all jurisdictions
• A 1.5% uncollectible rate that is a decrease from the 1.75% uncollectible rate assumed in the prior year budget
• Trifurcation of rates continues to ensure a fair, equitable and balanced rate structure across customers with differing vintage years
• Rates remain at the levels adopted by the Board on May 1, 2026. Any rate changes are subject to Board approval
FY25 Amended FY26 Amended FY27 Proposed
Gross Ratepayer Revenues 1,243.0 1,194.8 932.8
Uncollectible Customer Accounts; FY25 and
FY26 Less 1.75%, FY27 Less 1.5%
(21.8) (19.4) (14.0)
Net Operating Revenues 1,221.2 1,175.4 918.8
*Amounts displayed in millions of dollars
FIGURE 49. OPERATING REVENUE BY BUDGET LEVEL 2 AND LEVEL 3* 204
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Level 2 and Level 3 64 Cost of Energy
The cost of energy is Community Power’s largest expense.

Generally, the cost of energy is derived by: 1) estimating Community Power’s energy load for the upcoming fiscal year; 2) applying energy already contracted for to the projected energy load; and 3) applying forward market prices to the remaining energy load that Community Power has not yet
contracted for — the result is Community Power’s cost of energy for the fiscal year.

Community Power prioritizes purchasing electricity that is generated from renewable sources like solar or wind. The agency purchases enough electricity to cover the needs of our customers. SDG&E delivers this electricity through its existing power lines and continues to provide meter reading, billing and line maintenance to customers.

While Community Power emphasizes its commitment to clean energy, various factors can influence the cost of this energy for Community Power, impacting the overall cost of energy for the agency. The following factors are key considerations:
• Market Fluctuations — Unlike traditional energy sources with more stable pricing, renewable energy sources like solar and wind are subject to fluctuations in the electricity market.

This means that during periods of lower renewable energy production or higher demand, Community Power may need
to purchase additional power from the market, potentially at a higher cost. These costs can then be passed on to customers. • Seasonal Variations — San Diego could experience
significant heat waves in the summer months. During these periods, peak electricity demand rises due to increased air conditioning use. This can put a strain on renewable energy sources, forcing Community Power to supplement with
power from the market, potentially at a premium, similar to the impact of market fluctuations.
• Increased Load — Community Power’s customer base is
projected to remain steady; however, the overall electricity demand (load) is projected to increase as California
transitions to sourcing from more renewable energy. To
maintain grid reliability, Community Power may need to
secure additional power sources, potentially impacting the cost of energy.

Beyond market-driven factors, regulations such as Resource Adequacy (RA) requirements play a role in Community Power’s energy costs. The California Public Utilities Commission (CPUC) mandates RA requirements. These require Community Power to procure a predetermined amount of electricity based on its projected load. This ensures a consistently reliable grid with sufficient energy available. Meeting these RA requirements might necessitate purchasing additional power, especially during peak demand periods, potentially at higher costs.

The potential for cost increases due to these factors is a trade-off inherent in pursuing renewable energy. While costs may fluctuate, Community Power’s commitment to clean energy aligns with California’s sustainability goals.

It’s important to note Community Power strives to offer competitive rates compared with traditional energy providers.

The agency achieves this through various strategies, including long-term power purchase agreements and a diverse
renewable energy portfolio to mitigate market fluctuations.

FY25 Amended FY26 Amended FY27 Proposed
Cost of Energy 1,116.8 969.9 872.3
*Amounts displayed in millions of dollars
FIGURE 50. COST OF ENERGY BY BUDGET LEVEL 2 AND LEVEL 3* 205
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Level 2 and Level 3 65 Professional Services and Consultants
Professional Services and Consultants includes SDG&E fees, data management fees from Calpine, technical support, legal/ regulatory services and other general contracts related to IT services, audits and accounting services.
• Legal/Regulatory Services – Community Power retains
outside legal counsel to assist with complex legal and
regulatory matters. 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.
• 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 performing portions of this service in-house.
• 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 whether these services are more cost-effective or efficient to bring in-house. As Community Power expands its in-house functions, it expects a reduction in the related professional services support areas.
• 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. Numerous small fees are also associated with data requests.
• Data Management – This is a 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.

FY25 Amended FY26 Amended FY27 Proposed
Data Management 14.6 13.8 12.9
SDG&E Fees 3.4 3.8 3.5
Legal/Regulatory 2.1 1.2 1.5
Other Services 2.1 2.3 2.9
Technical Support 2.1 2.3 3.0
Professional Services and Consultants 24.3 23.4 23.8
*Amounts displayed in millions of dollars
FIGURE 51. PROFESSIONAL SERVICES AND CONSULTANTS BY BUDGET LEVEL 2 AND LEVEL 3* 206
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Level 2 and Level 3 66 Personnel Costs
Personnel costs include salaries, payroll taxes, 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.

The recruitment strategy includes adding approximately five new staff members during the FY 2026–2027 budget cycle, growing the agency to 106 FTE.

FY25 Amended FY26 Amended FY27 Proposed
Salaries 14.1 14.4 17.2
Benefits (retirement/health) 2.6 3.8 4.1
Payroll Taxes 1.0 0.5 0.6
Accrued PTO 0.9 0.9 1.5
Personnel Costs Total 18.6 19.6 23.4
FY25 Amended FY26 Amended FY27 Proposed
Printing 1.1 0.7 0.6
Partnerships/Sponsorships/Local Memberships 1.2 1.0 0.0 Marketing and Communications 0.7 0.6 0.0
Strategic Communications and Outreach 0.0 0.0 1.6
Memberships 0.0 0.0 0.2
Strategic Communications and Outreach Total 3.0 2.3 2.4 *Amounts displayed in millions of dollars
*Amounts displayed in millions of dollars
FIGURE 52. PERSONNEL COSTS BY BUDGET LEVEL 2 AND LEVEL 3* FIGURE 53. STRATEGIC COMMUNICATION AND OUTREACH BY BUDGET LEVEL 2 AND LEVEL 3* Strategic Communications and Outreach
Strategic Communications and Outreach includes expenses for mandatory rate mailers, communication consultants,
mailers, printing, sponsorships, and partnerships to inform the community of Community Power. Strategic communication
and outreach are further broken down into the following Budget Level 3 categories:
• Printing — The agency is periodically required to send mailers to its customers notifying the community about
several aspects of rates, including changes to rates through Joint Rate Comparisons.
• Strategic Communications and Outreach — An important
focus of Community Power is ensuring the community
is informed about Community Power, that we build
professional-level name recognition and trust and provide education. This also covers the design of all required
notifications sent to customers, including opt-out procedures and rate comparisons, as well as other notices or educational or marketing information.
• Partnerships/Sponsorships/Local Memberships —
This legacy category has been folded into the Strategic Communications and Outreach section to better reflect
the interconnected work of the department. In addition to required noticing, Community Power engages with local
stakeholder groups to educate the community on the
benefits of community choice and to encourage awareness of our mission. This comes in the form of media advertising, sponsorships of community events and organizations, and mailers, as well as targeted customer communications.
• Memberships – These local, regional and statewide
memberships support community Power’s objectives
related to legislative and regulatory engagement, workforce development, sector leadership, and external visibility. 207
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Budget by Level 2 and Level 3 67 General and Administration
General and Administration includes costs needed to conduct daily business. These expenses are divided into four categories:

1. CalCCA membership dues

2. Rent for leased office space

3. Agency insurance

4. Other, which reflects the cost of daily business operations. This includes office supplies, banking fees, IT equipment, human resources infrastructure, subscriptions to technical platforms and payroll services. The category also encompasses regulatory fees and the cost of governance-related activities, such as Board and committee expenses and Board stipends.

FY25 Amended FY26 Amended FY27 Proposed
Other General and Administration 3.6 2.8 4.3
CalCCA Dues 0.5 0.6 0.6
Rent 0.7 0.9 0.9
Insurance 0.1 0.3 0.4
General and Administration Total 4.9 4.6 6.1
*Amounts displayed in millions of dollars
FIGURE 54. GENERAL AND ADMINISTRATION BY BUDGET LEVEL 2 AND LEVEL 3* 208
09 Debt Financing
209
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Debt Financing 69 Debt Financing
Credit Facility
On January 23, 2023, the Community Power Board approved a new credit agreement to establish a $150 million line of credit under a JPMorgan credit facility. Subsequently, on October 25, 2024, the Community Power Board approved an amendment
to increase the credit facility to $250 million.

The credit agreement with JPMorgan provides for a $250
million multiuse revolving line of credit. This credit facility includes a term of up to five years from the date of renewal.

The funds are available for general corporate purposes, including line-of-credit draws, collateral postings and postings for the provider of last resort collateral requirements.

Debt Considerations
The Community Power Board has taken several important
steps to achieve an investment-grade credit rating that includes among many items:
• Developing and updating a Reserve Policy in December
2025 to increase liquidity by establishing 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.
• Establishing a Rate Stabilization Reserve (RSR) that
includes a Target RSR Balance that may be an amount
up to or equivalent to 45 days cash on hand
• Approving rates effective April 1, 2026, that allowed Community Power to achieve its 225 days cash on hand
reserve target in calendar year 2026
Ultimately, on March 9, 2026, Community Power earned its first public credit rating from S&P Global Ratings, receiving an investment-grade “A” issuer credit rating with a stable outlook; a milestone that positions the agency to negotiate more favorable energy contracts and credit terms that can reduce costs for customers.

Community Power does not anticipate needing to use its
credit facility to finance operations in FY 2026–2027 but may periodically access the credit facility for one-time needs. In FY 2024–2025, Community Power accessed $47.0 million from
the credit facility and satisfied the loan payment in December 2024. Currently, Community Power has zero debt. However, Community Power still pays debt service fees to maintain its $250 million credit facility and to satisfy fees related to standby letters of credit.

With this investment-grade credit rating, Community Power has an enhanced ability to issue tax-exempt or taxable bonds to finance ownership in energy generation or energy-storage assets. Direct asset ownership may provide the opportunity to control energy costs.

Community Power’s ability to issue tax-exempt debt to
finance an ownership interest in a generating or storage facility is a distinct advantage over investor-owned utilities and direct access providers. No specific asset purchases are currently under consideration by staff.

The Debt Policy enables Community Power to issue bonds
that will ultimately be subject to Board approval as a separate action. The Debt Policy will help Community Power take
advantage of ownership opportunities that may arise,
especially in conjunction with state or federal funding that might be available. To date, Community Power has not issued debt.

FIGURE 55. DEBT PAYMENTS*
Year ended June 30, 2025 Beginnings Additions Payments Ending Bank note payable - 47.0 47.0 -
Loans payable - - - -
Total - 47.0 47.0 -
*Amounts displayed in millions of dollars
210
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Debt Financing 70 The Debt Policy articulates:
• The situations and steps necessary for the issuance of debt • The types of debt that may be issued
• How the debt fits into Community Power’s strategic plan and potential capital investment program
The Debt Policy also includes sections to:
• Facilitate decision making
• Establish basic parameters and principles
• Articulate and clarify other related aspects to guide future Boards, staff and consultants
FIGURE 56. DEBT FY 2021–2025 FIGURE 57. DEBT BY MONTH
2025
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
$5,000,000
2021
$31,340,082
2022
$35,730,080
2023 2024
NOV-24 DEC-24 JAN-25
$40,000,000
$45,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
$8,500,000$8,500,000$8,500,000
JUL-24 AUG-24 SEP-24
$47,000,000
OCT-24
• Green Bonds — To the extent possible, Community Power bond issuances shall be green bonds. A green bond is a type of fixed-income instrument specifically earmarked to raise money for climate and environmental projects. • 1.5x Max Annual Debt Service — While the specific formulation of the Additional Bonds Test may vary depending on the type of bonds being contemplated, Community Power will utilize an Additional Bonds Test that establishes a limitation on new issuances such that the pledged revenues are no less than one and a half times (1.5x) the maximum annual principal and interest and debt service for the aggregate outstanding senior lien bonds, including the debt service for the new issuance. • 5% Annual Debt Service Limit — Community Power will also seek to maintain aggregate annual debt service on long-term debt at a level not to exceed 5% of Community Power’s annual total operating expenses. The actual terms and conditions specific to each debt issue will be controlled by the applicable documents.

The Community Power Debt Policy also includes additional requirements as follows:
211
10 Financial Policies
212
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies 72 Financial Policies
San Diego Community Power’s financial policies establish the long-term framework for prudent fiscal management, financial stability and accountability. These policies are intended to protect the agency’s financial position and ratepayer interests by guiding key budgetary and financial decisions, including reserves, rate stabilization, investments, debt and overall financial oversight. A balanced budget is defined as one in which ongoing revenues and other available resources are sufficient to fund planned expenditures. The FY 2026- 2027 Budget has been developed in accordance with these policies and reflects the agency’s commitment to disciplined, transparent and sustainable financial management. These policies are summarized below and the full Board-approved policies can be found in Financial Policies – Attachment 1.

Budget Policy
The Budget Policy establishes a transparent and structured framework for the development, approval and management
of the agency’s annual budget, ensuring alignment with the Joint Powers Agreement and Board governance requirements.

It requires the preparation of a comprehensive annual budget that reflects all anticipated revenues, expenditures and program activities, and mandates that the Board of Directors review and adopt the budget in a public meeting prior to the start of each fiscal year. It additionally requires a balanced budget whereby the total projected revenues are greater than or equal to total projected expenditures.

The policy outlines a defined annual budget development process led by the chief financial officer, including preparing financial forecasts, coordinating with staff and leadership to develop budget proposals and refining the budget through internal review and Board committee input to ensure alignment with organizational goals and financial planning. It further establishes that all expenditures must be made in accordance with the adopted budget and authorized approvals, reinforcing strong fiscal controls and accountability.

The policy provides controlled flexibility, allowing the Board to revise the budget as needed to address contingencies, and authorizes limited administrative adjustments within defined thresholds to support operational efficiency. This approach maintains a transparent, Board-approved budgeting process, ensuring all financial activities are governed by adopted budget parameters and upholding responsible stewardship of public funds.

Financial Reserves Policy
Community Power’s Financial Reserves Policy defines an
approach for accumulating and managing reserves to support long-term financial stability, maintain liquidity and ensure the agency can meet its financial obligations. The policy is designed to support strategic objectives, maintain creditworthiness, satisfy contractual requirements, provide working capital and respond to unanticipated expenses while supporting rate stability.

The policy establishes a target reserve level based on days cash on hand, with contributions determined through the annual budget and rate-setting processes. Reserve levels are reviewed regularly through the budget cycle and annual audit to ensure alignment with financial conditions, operational needs and organizational priorities.

The policy also defines how reserves may be used and
managed, including clear conditions for use and Board oversight.

When reserves exceed target levels, funds may be strategically allocated for capital investments, program funding, debt reduction or rate stabilization, and may be designated for specific purposes such as stabilization or programmatic reserves to address cost variability and unforeseen needs.

This approach ensures reserve levels are maintained, integrated into financial processes and managed in a transparent and disciplined manner.

Rate Stabilization Reserve Policy
This policy governs the use of reserves to mitigate the impact on rates and the budget caused by short-term market and operational variability. It reflects the agency’s exposure to wholesale energy market volatility, including fluctuations in power and capacity prices, weather-driven demand and regulatory changes, and is designed to support stable and predictable customer rates over time.

The policy defines the purpose and structure of a Rate
Stabilization Reserve, providing a Board-adopted mechanism to maintain adequate liquidity and support financial
commitments while smoothing the financial effects of
changing market conditions. It establishes guidelines for how reserves are funded and incorporated into the agency’s rate-setting process, ensuring alignment with broader financial planning and reserve policies.
213
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies 73 The policy also outlines parameters for the use and governance of the reserve, including Board oversight, approval requirements and reporting expectations. These provisions ensure that the use of stabilization reserves is transparent, controlled and aligned with the agency’s financial objectives while preserving long-term fiscal stability.

Non-Energy Procurement Policy
The Non-Energy Procurement Policy outlines procedures for procuring goods and services and establishes competitive requirements based on contract value. Allowable exceptions are defined, including noncompetitive procurement, emergency procurements and sole-source awards, each with clear criteria and approval requirements.

The policy authorizes cooperative and piggyback procurement methods to improve efficiency and reduce costs. It also establishes evaluation criteria for solicitations, including qualifications, cost competitiveness and alignment with workforce and supplier diversity policies.

The policy further defines requirements for contract
amendments, written agreements and delegated authority
as well as ethical standards, protest procedures and
nondiscrimination provisions. These ensure procurement
activities are conducted with integrity and in accordance with regulatory and reporting requirements.

Debt Policy
The Debt Policy guides the issuance and management of
debt to support capital investments and strategic objectives.

It defines the circumstances in which debt may be issued, the types of debt permitted and how debt aligns with the agency’s capital investment program and long-term financial strategy.

The policy is designed to ensure prudent financial management by maintaining cost-effective access to capital markets, managing financial risk and preserving future financial flexibility.

It emphasizes the use of debt to finance capital projects, acquisitions and improvements in a timely and efficient manner while supporting the agency’s broader financial planning goals.

The policy also establishes guiding principles for debt management, including maintaining strong credit ratings, fostering positive investor relations and adhering to all applicable legal, disclosure and reporting requirements.

It reinforces the agency’s commitment to full and timely repayment of obligations and responsible stewardship of borrowed funds.

The policy incorporates governance and oversight provisions for debt issuance and administration, including Board approval requirements and integration with the agency’s budget and rate-setting processes to ensure sufficient revenues are available to meet operating costs and debt service obligations.

Investment Policy
Investment activities, including cash reserves, deposits and investments, are guided by objectives and priorities for managing the agency’s funds as outlined in the Investment Policy to ensure assets are protected while producing a reasonable rate of return.

The policy defines the objectives and priorities for investment activities, consistent with California Government Code
requirements, and establishes the types of permitted and prohibited investments along with the controls needed to safeguard funds.

The policy is guided by core investment objectives, including preservation of principal, maintenance of sufficient liquidity to meet operational needs and attainment of an appropriate return on invested funds. Safety of principal is the foremost priority, followed by liquidity, return on investment, and standard of care, with all investments managed under a prudent standard of care.

The policy also establishes oversight and governance
for investment activities, including Board authority and coordination with financial and risk management functions, to ensure funds are managed in accordance with established controls and regulatory requirements.

Rate Development Policy
The Rate Development Policy governs the design, development and implementation of customer rates, ensuring the process remains transparent, fiscally responsible and centered on customer value. Rates must recover all costs associated with power procurement, operations and debt service
while supporting the development of prudent reserves and maintaining long-term financial sustainability.

Rate-setting decisions are based on requirements for cost recovery, reserve development, competitiveness, stability and equitable treatment of customers. The policy emphasizes the need for simple, understandable rate structures and allows for the development of pilot rates to support evolving programs and customer needs.

Customer value considerations are also incorporated, which include providing competitive alternatives to the incumbent utility and supporting higher renewable energy offerings.

The policy recognizes the role of reserves and stabilization mechanisms in mitigating rate volatility over time.

Transparency is maintained through Board review and approval of rates in publicly noticed meetings, ensuring accountability and consistent engagement with customers and stakeholders. 214
11 Glossary of Terms
215
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Glossary of Terms 75 Glossary of Terms
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:

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. AReM 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: 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: A statewide association, made up of
Community Choice Aggregators (CCAs), that represents the interests of California’s community choice electricity providers.

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: 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: 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:

A state program for low-income households that provides a 30% discount on monthly energy bills and a 20% discount on natural gas bills. CARE is funded through a rate surcharge paid by all other utility customers.

CBE – Communities for a Better Environment: 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.
216
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Glossary of Terms 76 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.

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.

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. 217
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Glossary of Terms 77 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).

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.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Glossary of Terms 78 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.

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.

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.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Glossary of Terms 79 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.

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.
220
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).

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.

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.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Glossary of Terms 81 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: 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.

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 in the service territory.
222
12 Budget Resolution
223
Budget Resolution
FPO
224
13 Acknowledgments
225
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Acknowledgments 85 Acknowledgments
Finance Department
San Diego Community Power’s Finance Department works to maintain a fiscally responsible budget in accordance with Community Power’s Budget Policy. The department ensures sufficient funding to meet procurement needs, sustain operational needs and support sustained growth while delivering clean energy to the communities we serve. In addition, the team actively works to build Community Power’s reserves and develop policies that consider future economic conditions, provides an understandable and transparent operating budget for internal and external users, strives to keep the Community Power Board, committees and staff informed of Community Power’s fiscal condition and develops a budget that will ultimately prioritize people, transparency and our communities.

Board of Directors
Supervisor Terra Lawson-Remer, Chair
Councilmember Ditas Yamane, Vice Chair
Councilmember Sean Elo-Rivera, Director
Councilmember Jack Fisher, Director
Councilmember Michael Inzunza, Director
Councilmember Marco San Antonio, Director
Councilmember Genevieve Suzuki, Director
Finance and Risk Management Committee
Councilmember Ditas Yamane, Chair
Councilmember Genevieve Suzuki, Vice Chair
Councilmember Michael Inzunza, Director
Community Advisory Committee

CHULA VISTA
• Anthony Sclafani
• Alonso Gonzalez

COUNTY OF SAN DIEGO
• Peter Andersen
• Ross Pike

ENCINITAS
• Tara Hammond
• Molly Hintlian

IMPERIAL BEACH
• Vacant
• Kenneth Hoyt

LA MESA
• David Harris
• Shaun Sumner

NATIONAL CITY
• Sorayda Santos
• Larry Emerson

SAN DIEGO
• Luis Montero-Adams
• Matthew Vasilakis
Community Power Executive Team
Karin Burns, Chief Executive Officer
Veera Tyagi, General Counsel
Jack Clark, Chief Operating Officer
Gordon Samuel, Chief Commercial Officer
Jannies Burlingame, Chief Financial Officer and Treasurer Finance Department
Jannies Burlingame, Chief Financial Officer and Treasurer Tim Manglicmot, Senior Director of Finance and Risk
Jeb Spengler, Associate Director of Finance and Procurement William Weisman, Associate Director of Finance
Christopher Stephens, Procurement Manager
Krystal Carranza, Procurement Manager
Diana Gonzalez, Risk Manager
Mark Alfaro, Finance Manager
Christopher Do, Senior Financial Analyst
Michelle Phillips, Senior Financial Analyst
Julissa Mercedes, Financial Analyst
Kevin Bateman, Financial Analyst
Paige Spounias-Flynn, Procurement Analyst
Angad Kapoor, Procurement Analyst
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14 Financial Policies
Attachment 1
227
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 87 Financial Policies
Budget Policy
Purpose
This policy (“Policy”) establishes San Diego Community
Power’s (SDCP’s) timeline for annual budget preparation and for discretionary budget adjustments. This Policy is adopted pursuant to Government Code Section 6508 et seq. and must be adopted or amended by resolution.

Budget Guidelines
On October 1, 2019, the Founding Members of SDCP adopted the Joint Powers Agreement (JPA), which was amended and restated on December 16, 2021. There are several sections of the JPA that guide the development and management of the budget.
• Section 4.6 Specific Responsibilities of the Board.

4.6.2 Formulate and adopt an annual budget prior to the commencement of the fiscal year.
• Section 7.2 Depository. 7.2.3 All expenditures shall be made in accordance with the approved budget and upon
the approval of any officer so authorized by the Board in accordance with its policies and procedures.
• Section 7.3 Budget and Recovery Costs. 7.3.1 Budget.

The initial budget shall be approved by the Board. The
Board may revise the budget from time to time as may
be reasonably necessary to address contingencies
and unexpected expenses. All subsequent budgets of
SDCP shall be prepared and approved by the Board
in accordance with its fiscal management policies that
should include a deadline for approval. Section 4.6.2
of the JPA specifies that the SDCP Board of Directors
(Board) shall adopt an annual budget with a fiscal year that runs from July 1 to June 30.

Budget Preparation
The Chief Financial Officer (CFO) begins the annual budget process in February of any given year. The Finance department develops initial revenue and expense estimates and updates its short-term financial plan. In March and April, SDCP staff develop and refine budget proposals to develop an initial budget baseline for the Agency for the upcoming budget
year. The budget is further refined through strategic planning sessions and through the SDCP Finance and Risk Committee.

The CFO shall then prepare and submit to the CEO (who
further submits to the Board) a draft proposed budget for the next following fiscal year in May, or no later than the second month immediately preceding the start of the respective fiscal year. The budget shall be in alignment with established goals and shall reflect all activities including operating programs, revenues, and expenditures. The budget shall be approved by the Board at a public meeting in June, or no later than the month immediately preceding the start of the respective fiscal year.

CEO and CFO Authority
CEO and CFO Authority: The Chief Executive Officer (CEO) or CFO will have the discretion to authorize expense transfers from line items between and within SDCP’s Budget Level 2 categories as established and approved in the annual budget process by the SDCP Board, provided that net transfers total $150,000 or less from the budget category. For example, within the Professional Services and Consultants Budget Level 2 category, the CFO may authorize that $150,000 move from the Data Management to the Technical Support Budget Level 3 categories, provided that the total Professional Services and Consultants budget level 2 category remains the same.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 88 FIGURE 58. EXAMPLE: EXPENSE TRANSFERS WITHIN BUDGET LEVEL 2 CATEGORIES Professional Services and
Consultants
FY23 Original Budget FY23 Amended Budget Change
Data Management $10,541,810 $10,391,810 $(150,000)
Legal/Regulatory $1,330,000 $1,330,000 $ -
Other Services $1,111,000 $1,111,000 $ -
SDG&E Fees $2,563,226 $2,563,226 $ -
Technical Support $1,335,000 $1,485,000 $150,000
Total Professional Services Expenses $16,881,036 $16,881,036 $ - Additionally, for example, the CEO may authorize that $150,000 move from the Professional Services and Consultants to the General Administration Budget Level 2 categories.

FIGURE 59. EXAMPLE: EXPENSE TRANSFERS BETWEEN BUDGET LEVEL 2 CATEGORIES Budget Level 2 FY23 Original Budget FY23 Amended Budget Change Cost of Energy $661,638,828 $661,638,828 $ -
General and Administration $2,591,363 $2,741,363 $150,000 Marketing and Outreach $4,164,167 $4,164,167 $ -
Personnel Costs $7,951,499 $7,951,499 $ -
Professional Services and
Consultants
$16,881,036 $16,731,036 $(150,000)
Programs $1,395,000 $1,395,000 $ -
Debt Service $1,314,922 $1,314,922 $ -
Total Budget Level 2 $695,936,815 $695,936,815 $ -
The CEO, under his or her discretion, may still require approval of the Board for any budget changes that may fall under the discretion of the Policy. Amendments to the annual budget as approved by the Board will reset the original appropriation (revenue or expense) for the fiscal year for the purposes of the Policy.

Balanced Budget
A balanced budget shall exist when the total projected revenues are greater than or equal to the total projected expenses. Total revenues shall include all revenues from retail and wholesale sales of electricity. Total expenses shall include all operating expenses, program expenses, and contributions to reserve funds. Any year-end surplus will be used to maintain reserve levels. Any decrease in revenues and or increase in expenditures that causes the budget to become imbalanced will require an amended budget. The CFO shall prepare a proposed amended budget and submit it to the Board for approval.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 89 Financial Reserves Policy
Purpose and Scope
San Diego Community Power (“Community Power” or
“agency”) will maintain Financial Reserves (Reserves) as described in this policy.

Definitions
• Days cash on hand: Unrestricted cash, cash equivalents, and investments unencumbered by legal agreements
and not earmarked for specific purposes x 365 /
(budgeted operating expenses for the current fiscal year) • Reserves: Unrestricted cash, cash equivalents, and
investments unencumbered by legal agreements and
not earmarked for specific purposes. Any Reserves
that are designated by the Board of Directors as Rate
Stabilization Reserves are included in the total Reserves calculation and reserve thresholds.
• Reserve Event: An occurrence that necessitates the use of Reserves to preserve Community Power’s financial
stability or to address risk factors. Reserve Events may include, but are not limited to:
• Volatility in energy costs, market price
benchmarks, and energy sales (load)
• An increase in uncollectable customer accounts
due to an unforeseen event
• Need to stabilize customer rates
• Ensuring sufficient working capital, including
funding for strategic capital projects
• Covering unanticipated expenditures
• Rate Stabilization Reserves: A type of reserve intended to provide budget stabilization for the organization
while mitigating financial impacts and cost of energy to customers due to cyclical cost of energy fluctuations.

It is intended to reduce rate shocks while maintaining
compliance with financial covenants.

Policy
A. Reserves Balance Thresholds
Community Power’s Reserves policy establishes three
key thresholds:

Minimum Reserve Balance: Community Power will
strive to ensure a minimum reserve balance sufficient
to cover at least 180 days cash on hand. This minimum
level provides the agency with the ability to meet
essential obligations and maintain financial stability.

Target Reserve Balance: Community Power will
strive to maintain a target reserve balance sufficient
to cover at least 225 days cash on hand. The Target
Reserve Balance provides sufficient reserves
for typical fluctuations in market volatility. This
target level ensures the agency’s ability to absorb
unexpected cost increases or revenue shortfalls
without immediate negative impacts on operations,
credit rating, or customer rates.

Maximum Reserve Balance: Community Power
will strive to build reserves sufficient to cover
no more than 270 days cash on hand, unless
specifically authorized by the Board. The Maximum
Reserve Balance provides sufficient reserves
for significant fluctuations in market volatility or
unforeseen circumstances.

B. Purpose and Intent of Reserves Balance
Thresholds:

The Board shall determine the contribution
to Reserves at least annually, with the goal of
maintaining balances between the Target Reserve
Balance and Maximum Reserve Balance. However,
to the extent fiscal year end reserves fall between
the Minimum and Maximum Reserve Balances, no
immediate Board action is required.

If Reserves are below the Minimum Reserve
Balance: The Board should ensure that Reserves do
not drop below the Minimum Reserve Balance unless
determined by the Board to be necessary to address
a Reserve Event. The Minimum Reserves Balance is
essential to maintain operational requirements and
credit worthiness by providing reserves sufficient to
meet basic threats of risk.

Should Community Power’s Reserves fall below the
Minimum Reserve Balance, a plan to restore Reserves
to the Minimum Reserve Balance shall be included in
subsequent budget and rate discussions to return to
the Minimum Reserve Balance as soon as practicable.

If Reserves are above the Maximum Reserve
Balance: If Fiscal Year End Reserves are above
the Maximum Reserve Balance, the Board may
evaluate opportunities for strategic investments,
programmatic reserves, or other purposes as
authorized by the Board.

C. Permissible Use of Reserves:
• The Board may authorize the use of Reserves for any
Reserve Event.
• The Board may authorize the use of Reserves
between the Target Reserve Balance and Maximum
Reserve Balance to be designated as Rate
Stabilization Reserves. Rate Stabilization Reserves
allows Community Power to defer revenues in years
of strong financial results for use in future years when 230
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 90 financial results are weaker or stressed. This strategy would enable Community Power to address spikes in
energy costs or other variable costs through the use
of the Rate Stabilization Reserves and mitigating or
avoiding substantial rate increases for customers.

D. Permissible Use of Reserves:
• Temporary reductions in Reserves for cash flow
purposes to even out the expected peaks or dips
in revenues and expenditures are normal cyclical
occurrences to be expected during the fiscal year, and
do not constitute a use of reserves. Transfers to and
from Reserves to account for such temporary cash
flow fluctuations is within the discretion of the Chief Financial Officer.

The Chief Executive Officer (“CEO”) will have the
discretion to authorize the use of reserves during
the fiscal year up to the lesser of 10% of the year’s
total budgeted costs, or $100 million, for the
following purposes:

1. Cover increases in power supply expenses
due to spikes in costs and/or due to higher
customer demand;

2. Meet any margin or collateral posting
requirements under energy supply
contracts; and

3. Provide resources to meet
emergency expenditures.
• Any use of the reserves under the CEO’s authority
shall be reported to the Board at the next regularly
scheduled meeting.
• Any further use of reserves as necessary or desirable, must be recommended by the CEO to the Board for
approval of such use.

D. Reserve Review and Reporting
Reserves and annual contributions will be reviewed
on an annual basis as part of Community Power’s
budget process. Reserves will also be reviewed at
the completion of Community Power’s annual audit
to reconcile the Reserve balance. The results will
be reported to the Board as part of the year-end
financial report presentation.

E. Excess Reserve Distribution
If Fiscal Year End reserves exceed the Maximum
Reserve Balance, the Board may authorize excess
reserve distributions at their discretion, including for the following purposes:
• Strategic Uses: Use excess funds for capital
projects, financing programs, paying down
existing debt, rate reductions, or other
strategic purposes.
• Programmatic Reserve: Use excess funds
to establish a contingency for programs and
projects. Specifically, this Reserve could fund
unforeseen and unexpected needs such as
cost overruns, local leveraging or matching for
external funds, or other programmatic needs
as required.

F. Policy Review
Community Power staff will complete a periodic
review of this Financial Reserve Policy.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 91 Rate Stabilization Reserve Policy
Purpose and Scope
San Diego Community Power (Community Power) may
maintain a Rate Stabilization Reserve (RSR) as recognized in the Board-adopted Financial Reserves Policy. Any RSR will be maintained and utilized as described in this policy for the intention of providing customer rate stability.

Definitions
• Reserves: Unrestricted cash, cash equivalents, and
investments unencumbered by legal agreements and
not earmarked for specific purposes. Any Reserves
that are designated by the Board of Directors as Rate
Stabilization Reserves are included in the total Reserves calculation and reserve thresholds.
• Rate Stabilization Reserves: A type of reserve intended to provide budget stabilization for the organization
while mitigating financial impacts and cost of energy to customers due to cyclical cost of energy fluctuations.

It is intended to reduce rate shocks while maintaining
compliance with financial covenants.
• Rate Stability Metrics: The change in generation rates experienced by customers due to rate changes approved
by the Board of Directors, which may be measured as
year-over-year rate change or value proposition change.

Regular components of rates that fluctuate independently of changes approved by the Board, such as seasonal or
time-differentiated rates or changes to delivery rates may be excluded from rate stability metrics.
• Fiscal Year (FY): The consecutive twelve-month period of July through June, identified by the calendar year of the latter half (i.e., July 2025 through June 2026 is FY 26), for use in financial planning, or as otherwise established by the Community Power Board pursuant to Section 7.1
of the Joint Powers Agreement.
• Calendar Year (CY): The consecutive twelve-month
period of January through December, aligned with the
calendar, for use in rate-setting.
• Revenue Transfer: A financial decision within a strong FY, defined by expected net position, to allocate a portion of revenues to the RSR. In this scenario, the allocation to the RSR is classified as a negative contribution to
net position, so that these funds are not recognized as revenue within that FY.
• Revenue Recognition: A financial decision within a weak FY, defined by net position or rate stability metrics, to allocate a portion or all of funds in the RSR to revenues.

In this scenario, the allocation from the RSR is classified as a positive contribution to net position, so that these funds are recognized as revenue within that FY.

Policy
Objectives
The RSR allows Community Power to defer revenues in strong fiscal years and to withdraw revenues in weak fiscal years, relative to net position, in order to provide rate stability to customers and avoid substantial rate increases. The primary use case of the RSR is to mitigate rate volatility caused by Market Price Benchmark (MPB) and Power Charge Indifference Adjustment (PCIA) rate fluctuations, or for any other purpose, to reduce year-over-year rate changes and/or maintain
Community Power’s rate competitiveness between rate
setting cycles.

Community Power staff will closely monitor reserves and metrics associated with rate stability and affordability to determine appropriate Revenue Transfers and Revenue
Recognitions via the RSR during the fiscal year and the rate-setting process.

Target RSR Balance
The Target RSR Balance may be an amount up to or equivalent to 45 Days Cash on Hand, representing the Reserves between the Target Reserve Balance and Maximum Reserve Balance
of Community Power’s Financial Reserves, as defined in the Financial Reserves Policy. Community Power may reevaluate this Target RSR Balance annually to determine that the RSR is sufficient to cover identified risks and to mitigate rate volatility for customers. Should the balance increase above the amount equivalent to 45 Days Cash on Hand, the Community Power Board may authorize adjustment to the balance consistent with the Financial Reserves Policy.

Accounting
The RSR is accounted for under Government Accounting
Standards Board Statements 62 which codify deferred
outflows and inflows of resources. The balance of the RSR, including annual Revenue Transfers and Recognitions, will be recorded on the statement of net position in Community Power’s Statement of Revenues.

Trigger Mechanism: Revenue Transfers should be considered during fiscal years with positive net position, in which reserves are above the Target Reserve Balance as defined by the
Financial Reserves Policy. Revenue Recognitions should be considered during fiscal years with an expected negative net position, or during the rate-setting process to mitigate substantial rate increases for customers. The impacts on financial or bank covenants and other appropriate financial metrics should also be a factor in the decision-making process.

Community Power staff shall strive to not negatively impact the agency’s financial standing via decisions related to the RSR. 232
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 92 Replenishment Mechanism: When Revenue Recognition
decisions from the RSR are approved, Community Power staff must also present a plan to replenish the RSR within 2-4 years by the next regularly scheduled Board meeting, if feasible.

Revenue Transfers and Recognitions may be made within the same fiscal year, provided that all other criteria are met.

Reporting and Authorization
The Chief Executive Officer (CEO) will have the discretion to authorize Revenue Transfer and Recognition decisions related to the RSR during the fiscal year. Any Recognition of the RSR during a fiscal year must be recommended by the CEO to
the Board for approval of such use, subject to appropriation approved by the Board.

Revenue Transfer and Recognition decisions will be reported to the Board of Directors by Community Power staff at the next regularly scheduled meeting. The year-end financial report presentation to the Board will also include an update on the status of the RSR.

Policy Review
Community Power will complete a periodic review of this Rate Stabilization Reserve Policy and recommend updates to the Board, as appropriate.

Miscellaneous
Nothing in this policy shall supersede any provisions
established or updated via Community Power’s Financial
Reserves Policy and Rate Development Policy.
233
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 93 Non-Energy Procurement Policy
Purpose
It is in the interest of San Diego Community Power (“Community Power”) to establish procurement practices that facilitate efficient business operations and provide fair compensation and local workforce opportunities, whenever possible, within a framework of high quality and competitive service offerings.

This Non-Energy Procurement Policy (“Policy”) shall not apply to energy procurement or transactions governed by the Energy Risk Management Policy as enacted, adopted or revised from time to time by Community Power’s Board of Directors (“Board”).

Policy

1. Procurement of Professional Services
Community Power may contract for professional services, which are services that require expertise and knowledge, including but not limited to consultant, legal, or design services, in its sole discretion. Community Power shall procure professional services in compliance with this Policy.

Community Power shall endeavor to secure the highest quality professional services available and is not required to award a contract for services to the lowest-cost proposer.

2. Procurement of General Services
Community Power may contract for general services, which are services that are not professional services, including but not limited to cleaning or maintenance services, in its sole discretion. Community Power shall procure general services in compliance with this Policy. Although Community Power shall not be required to award a contract to the lowest-cost proposer, Community Power shall seek to procure general services at the lowest costs.

3. Procurement of Goods
Community Power shall procure goods, including but
not limited to supplies, materials, furnishings, software or equipment, in compliance with this Policy. Although
Community Power shall not be required to award a contract to the lowest-cost proposer, Community Power shall seek to procure goods at the lowest costs. Community Power is encouraged to jointly procure goods with other governmental agencies to obtain the lowest cost when possible.

4. Procurement of Public Works Projects
Community Power shall comply with California Public Contract Code Section 20160 et seq. and other applicable laws and regulations when procuring public projects in excess of $5,000. For purposes of this section, a “public project” shall have the same meaning as defined in Public Contract Code Section 20160, and includes, among other things, projects for the erection, improvement, painting, or repair of public buildings and works.

5. Competitive Procurement Requirements
a. Contracts Exceeding $150,000. One of the following
methods shall be used for anticipated goods and/or
services with an aggregate contract value exceeding
$150,000 over the entire duration of the contract:
i. Request for Proposals (“RFP”): An RFP is typically
used to procure technical, complex and unique
services, and/or when the requirements are
qualitative rather than quantitative. A RFP tends to
be used when creative or innovative approaches
are needed or when Community Power is looking
for a customized solution to a problem. An RFP will
include, at a minimum, a requirements statement
or statement of work; experience, expertise, or
qualification criteria; and an evaluation criteria
for which a proposal will be evaluated. Proposals
will be required to include a detailed explanation
of Proposer’s approach, detailed work plans,
solutions, or methods, and price/budget, as
applicable. All RFPs shall, at a minimum, be posted
on Community Power’s website.
i. Request for Qualifications (“RFQ”): An RFQ is
typically used to procure goods and/or services
when Community Power needs to establish a
pool of pre-qualified providers (“PQPs”). The
RFQ process is typically used to determine a
proposer’s capability to perform specified services
and meet stipulated requirements. The RFQ will
specify the areas of expertise, experience, or
knowledge that Community Power seeks, and, if
applicable, the process for a proposer to become
a pre-qualified provider in those specified areas.

PQPs are then eligible to propose and compete in
subsequent task order solicitations when defined
scopes of work are identified by Community
Power. Subsequent task order solicitations will
include scope of work, experience, expertise or
qualifications, and evaluation criteria for which
proposals will be evaluated against.
i. Additionally, the RFQ method can be used to
award contracts for services that include scopes
of work to be authorized on an as-needed basis.

All RFQs shall, at a minimum, be posted on
Community Power’s website.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 94 b. Contracts between $10,000 and $150,000. For
anticipated goods and/or services with an aggregate
contract value between $10,000 and $150,000 over
the entire duration of the contract. Community Power
shall obtain written quotes or bids from at least three providers, if feasible. Each quote or bid shall include the provider’s name, address, phone number, professional
license number (if applicable), a description of the
work to be performed, and the proposed cost. Public
advertising is not required for these solicitations.

6. Non-Competitive Procurement
a. Contracts Less than $10,000. For anticipated goods
and/or services with an aggregate contract value of less than $10,000 over the entire duration of the contract,
no competitive procurement is required, but staff is
directed to seek the lowest cost goods and the highest
quality services available. This process shall not be used when it is reasonably foreseeable that additional goods and/or services are anticipated from the same vendor
would exceed the $10,000 threshold in the aggregate, in which case competitive procurement shall be used.
b. Legal Services. No competitive procurement is required for legal services.
c. Rent or Lease of Office Space. No competitive
procurement is required to rent or lease office space.
d. Contracting with a Government Agency. No competitive procurement is required for goods and/or services
provided by another governmental agency, provided
that such agency’s procurement is in compliance with
California law.
e. Emergencies. In the event of an emergency, the Chief Executive Officer (“CEO”) may suspend the normal
purchasing and procurement requirements for goods
and/or services related to abatement of the impacts or
effects of the emergency. “Emergency” for purposes
of this Policy means a situation creating an imminent
danger to life or property or other material financial loss that calls for immediate action with inadequate time for a competitive procurement.

7. Sole-Source
The Board or the CEO, as applicable, after consultation with the General Counsel, may waive the competitive procurement requirements in this Policy and procure goods and/or services from a sole source, based upon written documentation
justifying a sole-source award as described below, and as allowed by applicable law.
a. Written justification for a sole-source award must
demonstrate that:
i. The desired goods and/or services are available
from only the sole source based upon one or more
of the following reasons: (a) The unique experience
and capabilities of the sole source; (b) The project
involves the use of proprietary technology from
sole source; or (c) The sole source has ownership of
key assets required for project performance; or
i. Other circumstances exist which in the
determination of the Board or the CEO, as
applicable, require such waiver in the best interests
of Community Power. Such circumstances may
include, but are not limited to: (a) Projects involving cost sharing by multiple sponsors; (b) Time
extension of an existing sole source agreement;
or (c) Projects requiring compatibility with existing
specialized equipment.
b. The following are not permissible justification for
sole source:
i. Personal preference for product or vendor;
ii. Cost, vendor performance or local service (the
latter may be considered an award factor in
competitive procurements);
iii.Features that exceed the minimum requirements
for the goods and/or services; or
iv.The length of time needed to conduct a
competitive procurement is inconvenient.

8. Additional Authorized Procurement Methods
a. Cooperative Procurement. Cooperative Procurement
refers to the combining of requirements of two or more
government agencies to leverage the benefits of volume
purchases, delivery and supply chain advantages, best
practices, the reduction of administrative time and
expenses, or some combination thereof. Community
Power may use Cooperative Procurement when the use
of it enhances operational efficiencies and demonstrates potential cost savings for Community Power, including
transaction costs.
b.Piggyback Procurement. Piggyback Procurement is
a type of Cooperative Procurement, and it refers to a
government agency’s use of an existing competitively
awarded contract from another government agency
to form its own contract directly with that vendor
to purchase goods and/or services on the same or
similar terms. Community Power may use Piggyback
Procurement when such a procurement enhances
operational efficiencies and demonstrates potential
cost savings for Community Power, including
transaction costs.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 95

9. RFP/RFQ Proposal Evaluation
a. Responses received through an RFP or RFQ shall be
subject to a set of criteria and a scoring system, reviewed and evaluated by relevant Community Power staff and
an evaluation committee selected by the CEO or, at
the discretion of the Board, members of a designated
Board committee. Responses received shall be evaluated
based on competency to perform the scope of work,
best fit, price competitiveness, and other additional
criteria pursuant to Community Power’s Inclusive and
Sustainable Workforce Policy. The preferences below
may not apply to procurements conducted jointly
with other public agencies, and shall not apply when
prohibited by state or federal statutes or regulations
that require award to the lowest responsible bidder.

Proposers may only pursue two of the four preferences.
i. Businesses with office(s) located in San Diego
County and include at least 25% San Diego
County residents under their employment shall
receive a bonus of up to 5 points or 5% out
of a 100-point scoring system in competitive
solicitations. To receive the preference, a proposer
must submit written information relating to the
location of its office(s) in San Diego County and
the percentage of San Diego County residents
under its employment.
ii. Businesses certified as disabled veteran business
enterprises by the Supplier Clearinghouse
(thesupplierclearinghouse.com) shall receive a
bonus of up to 5 points or 5% out of a 100-point
scoring system in competitive solicitations. To
receive the preference, a proposer must submit
proof of current, valid certification by the Supplier
Clearinghouse. Such proof shall be subject to
verification by Community Power.
i. Businesses certified as a Persons with Disabilities
business enterprise by the Supplier Clearinghouse
or Disability:IN shall receive a bonus of up
to 5% or 5 points out of a 100 point scoring
system in competitive solicitations. To receive
the preference, a proposer must submit proof
of current, valid certification by the Supplier
Clearinghouse or Disability:IN. Such proof shall be
subject to verification by Community Power.
i. Businesses certified as small business by the
Department of General Services shall receive
a bonus of up to 5% or 5 points out of a 100-
point scoring system in competitive solicitations.

To receive the preference, a proposer must
submit proof of current, valid certification by the
Department of General Services. Such proof shall
be subject to verification by Community Power.
b. Community Power is committed to the highest
standards of responsible behavior and integrity in
all of its business relationships. Community Power
will consider an organization’s business practices,
environmental record, and commitment to fair
employment practices and compensation in its
procurement decisions.

10. Amendments.
a. For non-Board-approved contracts with an original value less than $10,000, amendments may be authorized to
increase the aggregate contract value up to $10,000.
b. For non-Board-approved contracts with an original value between $10,000 and $150,000 that were procured in
accordance with Section 5 of this Policy, amendments
may be authorized to increase the aggregate contract
value up to $150,000.
c. For Board-approved contracts, amendments may be
authorized to increase the aggregate contract value by
up to an additional $150,000 or 10% of the original
contract value, whichever is greater, without Board
approval. Amendments exceeding these values shall
require Board approval. The contract amendments shall
be reported at the next regular Board meeting.

11. General Provisions.

The provisions below shall apply to all methods of
procurement described above.
a. All awards resulting from solicitations conducted in accordance with this Policy shall be documented in a
written agreement. Execution of such agreements shall
be effectuated in accordance with Community Power’s
Delegated Authority Policy.
b. The Board may, consistent with applicable law, waive one or more purchasing procedures in this Policy in its sole discretion.
c. The Board designates the CEO as Community
Power’s purchasing agent. As the purchasing agent for
Community Power, the CEO is hereby authorized on
behalf of Community Power to (i) purchase Goods;
(ii) rent furnishings and equipment; (iii) contract for Services, Professional Services, or Legal Services, or
(iv) procure Public Works projects, as provided herein.

The CEO may further delegate this authority in the
CEO’s discretion.
d. The CEO, at their discretion, may direct Community
Power to use competitive procurement for anticipated
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 96 goods and/or services with an aggregate contract value
of $150,000 or less for a contract term.
e. When procuring goods and/or services utilizing state or federal funds (e.g., grant or loan funds), Community Power shall comply with all state and federal project
requirements in securing any goods or services
necessary. If there is a conflict between the foregoing, the more restrictive requirements shall apply.
f. Community Power shall not be required to award a
contract to purchase goods or services from the lowest
responsible bidder, unless required by California law.
g. A contract shall not split purchases into more than one purchase in order to avoid the Competitive Procurement
Requirements in this Policy. If it is reasonably
foreseeable that similar goods and/or services are
anticipated from a vendor that would have an aggregate
value of $10,000 or more, the competitive procurement
requirements of this Policy shall apply.
h. No Community Power officer or employee shall accept, directly or indirectly, any gift, rebate, money or anything of value from any person or entity if such gift, rebate, money or anything of value is intended to reward or be
an inducement for conducting business, placing orders
with, or otherwise using the officer’s or employee’s
position to secure a contract with Community Power.

12. Protests
a. Protest Regarding Solicitation – an interested party that is an actual or prospective proposer with a direct economic interest in the procurement may submit a
protest in writing relating to the form or content of
a solicitation to Community Power’s Procurement
Manager at least five (5) business days before the
deadline to submit proposals.
b. Protest Regarding Award of Contract – a proposer may submit a protest in writing regarding the award of a
contract to Community Power’s Procurement Manager
no later than five (5) business days after proposer
receives notification of non-award.
c. Protest Contents – For the protest to be valid, it must:
clearly identify the procurement action being protested; specify, in detail, the factual and legal grounds for the protest, including identifying the specific provisions of the solicitation, rules, regulations or laws upon which the protest is based; include all relevant, supporting
documentation with the protest at the time of filing;
identify the specific relief requested; and include the name, mailing, address, telephone number and email address of the person representing the protester. Any matters not set forth in the protest shall be deemed waived.
d. Community Power Review – upon receipt of a valid
and timely protest, Community Power will investigate
the protest and will provide a written response to the
protester within a reasonable time. If necessary, the
CEO at their sole discretion may extend the deadline
to submit proposals to allow for a reasonable time to
review the protest. The CEO at their sole discretion
may elect to withhold contract execution until the
protest is resolved or denied, or proceed with contract execution while the review is pending. If the protest
is upheld, the CEO will consider all circumstances
surrounding the procurement in their decision for a
fair and reasonable remedy, including the degree of
prejudice to the protester or to the integrity of the
competitive procurement process, the urgency of the
procurement, the extent of performance if the contract
has already been executed, the cost to Community
Power, and the impact of the proposed remedy. The
remedy may include, but is not limited to, reissuance of the solicitation, revised evaluation of the proposals, or termination of the contract.
e. Exclusive Remedy – The procedure set forth in this
Policy is mandatory. Failure by a protester to comply
with the procedure for protests will constitute a waiver of any right to pursue the protest, including the filing of a claim under the relevant Government Code section or
initiating legal proceedings. In no event will a protest be considered if all proposals are rejected or no contract is awarded. If Community Power determines that the
protest is frivolous, the protester may be deemed
ineligible for future contract awards.

13. Nondiscrimination Contract Clause
Each Community Power contract and subcontract shall contain a nondiscrimination clause that reads substantially as follows:
“Contractor shall not discriminate on the basis of race, gender, gender expression, gender identity, religion, national origin, ethnicity, sexual orientation, age, or disability in the solicitation, selection, hiring, or treatment of subcontractors, vendors, or suppliers. Contractor shall provide equal opportunity for subcontractors to participate in subcontracting opportunities.”

14. Information on Supplier Diversity
Public Utilities Code Section 366.2(m) requires certain community choice aggregators, including Community Power, to annually submit to the California Public Utilities Commission (CPUC): (1) a detailed and verifiable plan for increasing procurement from small, local, and diverse business enterprises; and (2) a report regarding its procurement from women,
minority, disabled veteran, and LGBT business enterprises.

General Order 156 (GO 156), adopted by the CPUC, requires 237
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 97 certain California public utilities to engage in outreach activities and meet specific procurement goals from women, minority, disabled veteran, persons with disabilities, and LGBT business enterprises. Qualified businesses become GO 156 certified through the CPUC and are then added to the GO 156 Supplier Clearinghouse database (www.thesupplierclearinghouse.com).

To assist Community Power with its reporting obligations under Public Utilities Code Section 366.2(m) and with
evaluating its supplier outreach and other activities, proposers that are awarded the contract will be asked to voluntarily disclose their certification status with the CPUC Clearinghouse, as well as their efforts to work with diverse business
enterprises, including WBEs, MBEs, DVBEs, and LGBTBEs.

Except as otherwise expressly provided under this Policy and/or required by applicable state or federal law or funding requirements (including, without limitation, any grant or loan conditions), Community Power shall not use any demographic information received from potential vendors in any way
as part of its decision-making or selection process. Rather, Community Power will use such information solely for
compliance with its reporting obligations to the CPUC and evaluation of Community Power’s outreach and other activities consistent with applicable law. Pursuant to Article I, Section 31 of the California Constitution, Community Power shall not discriminate against or give preferential treatment to any individual or group on the basis of race, sex, color, ethnicity, or national origin except as otherwise allowed therein.

15. Signing Authority
Community Power’s CEO and designated staff are authorized to execute contracts and related documents in accordance with Community Power's Delegated Contract and Signature Authority Policy, as enacted, adopted or revised from time to time by the Board.

16. Review and Approval as to Form by
General Counsel
All Community Power agreements must be approved as to the form and content by the General Counsel or his/her designee prior to signature by any authorized individual.
238
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 98 Debt Policy
Purpose
This Debt Policy (“Policy”) establishes San Diego Community Power’s (“SDCP”) Debt Policy. The Policy articulates: (1) the situations and steps necessary for the issuance of debt; (2) the types of debt that may be issued; and (3) how the debt fits into SDCP’s capital investment program (CIP), Community Power Plan, integrated resource plan, or strategic policy goals.

This Policy is adopted pursuant to Senate Bill 1029 (Hertzberg, 2016) and Government Code Section 8855 et seq. and must be adopted or amended by resolution. The SDCP Board of
Directors (“Board”) is required to adopt a formal Debt Policy before any debt can be used.

Background
The SDCP Board adopts budgets and establishes and adjusts rates, as appropriate, each fiscal year to provide sufficient revenues to pay all operating expenses, make required
payments and comply with commitments on all other debts or financial obligations of the Agency.

SDCP is committed to long-term financial planning,
maintaining appropriate reserve levels, and employing
prudent practices in governance, management, and budget administration. The SDCP Board further adopted its Strategic Plan on June 23, 2022, which included the goal to adopt financial controls and policies to meet or exceed best practices and manage risk.

SDCP utilizes financial policies that foster financial stability, support fiscal discipline, and enable SDCP to maintain strong investment-grade credit ratings.

This Policy confirms the commitment of the SDCP Board,
management, staff, advisors and other decision makers to adhere to sound financial management practices, including full and timely repayment of all borrowings, allowing continuing ready access to the capital markets to achieve the most effective cost of capital within prudent risk parameters. The goals and objectives of this Policy are as follows:
• Maintain cost-effective access to capital markets
• Maintain a prudent level of financial risk
• Preserve future financial flexibility
• Finance capital projects, acquisitions, or improvements in a timely and cost-effective manner
• Manage debt effectively within SDCP Board established objectives and parameters
• Maintain strong credit ratings and good investor relations • Maintain compliance with all relevant laws, reporting, and disclosure requirements
• Foster integrity in the debt management process
Further, this Policy is intended to comply with the regulatory requirements of California Government Code Section 8855 and Senate Bill 1029 which, among many things, requires debt issuers to adopt a local debt policy governing the issuance of debt and to enhance the management of government
financial resources.

Scope and Authority
This Policy shall govern the issuance and management of all bonds and other forms of indebtedness of SDCP, together with any credit, liquidity, or other security instruments and agreements that may be executed in connection with the
issuance of bonds and other forms of indebtedness (“bonds” or “debt”). It also considers certain financial targets which SDCP and its Board may contemplate in the future in order to continue to implement its capital investment program and to support cost-effective borrowing.

While this Policy specifically governs debt issued directly by SDCP, SDCP may consider joint arrangements with other
municipal issuers or private parties to finance a project when it serves SDCP’s policy objectives. SDCP is authorized to join together with other municipal agencies to create a separate entity, such as a joint powers authority, to issue debt on behalf of SDCP or the project participants. Typically, joint venture debt is repaid through revenues generated by the project, and SDCP will be liable only for its share of debt service, as specified in a contract executed in connection with the joint venture debt. If the potential for a joint venture does exist, SDCP will examine and negotiate the financial arrangements, obligations, liabilities, tax issues and other factors that may arise in the context of impacts on SDCP and its direct debt obligations using this Policy and financial best practices as guidance. SDCP will comply with state law limitations and in general, avoid joint procurement situations if SDCP lends it credit or enhances the credit of another entity, unless doing so will result in other net tangible benefits to SDCP. Further, as with all SDCP debt, any joint venture debt would be subject to evaluation and authorization of the Board.

While adherence to this Policy is generally required, it is recognized that changes in the capital markets, SDCP programs and other unforeseen circumstances may from
time to time produce situations that are not covered by the Policy and will require modifications or exceptions to best achieve policy goals. In these cases, management flexibility is appropriate, provided specific authorization from the SDCP Board is obtained.

This Policy shall be reviewed at least annually as described below and presented to the SCDP Board for approval of any changes as appropriate. This Policy will remain in effect as amended or restated in the future by the Board.

Notwithstanding anything in this Policy to the contrary, the failure of SDCP to comply with any provisions of this Policy 239
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 99 shall not affect the authorization, validity, or enforceability of any debt or other forms of indebtedness that are otherwise issued in accordance with law.

Use of Debt
To achieve its objectives, SDCP may consider debt financing for the construction, acquisition, rehabilitation, replacement, or expansion of physical assets, including real and personal property, equipment, furnishings, and improvements. Debt may also be issued for other Board-approved needs or for the refunding of prior outstanding debt.

For example, SDCP may consider the use of debt to finance ownership interest in generating or storage assets if it is determined to be a cost-effective alternative to a standard power purchase agreement or if asset ownership may afford synergies between SDCP’S other objectives (e.g., resiliency, GHG free energy, etc.) or additional measurable advantages in terms of operational efficiency.

SDCP, under the direction of the Board, will retain full flexibility in determining the best funding approach on a case-by-case basis.

Types of Debt
Types of bond issuance, further described in the Appendix, include:
• New Money: Debt may be incurred to provide for
capital financing for future capital expenditures or
reimbursement of prior expenditures.
• Refunding: Refunding bonds may be issued to realize
debt service savings, restructure outstanding debt,
modify covenants, or for other debt management
purposes. Absent significant non-economic factors,
refunding transactions contemplated solely for debt
service savings must produce a minimum aggregate net
present value debt service savings of at least 3% of the par value of the refunded bonds, calculated using the
refunding issue’s true interest cost (“TIC”) as the discount rate. SDCP will work with its Municipal Advisor (“MA”) to assess potential refunding opportunities.

Bonds may be issued as taxable or federally tax-exempt:
• Tax-Exempt: Interest received by bondholders of
SDCP’s bonds issued on a federally tax- exempt basis is exempt from federal income tax, and so typically may
be issued at lower interest rates, reducing SDCP’s cost of borrowing. Additional interest rate advantages may
be available for bank qualified bonds (where SDCP will
issue less than $10 million of tax- exempt bonds in a
year). However, SDCP is limited by federal tax law in the uses of tax- exempt bond proceeds and must comply
with additional federal tax law requirements during the full term of any bond issue. Uses of proceeds typically require a governmental purpose and must be spent on
capital improvements rather than operating expenses.

Tax implications include having reasonable expectations for spending proceeds at the time of issuance, limiting private use of financed projects, and complying with
arbitrage restrictions on the bond proceeds.
• Taxable: Taxable debt’s interest is not exempt from
federal income tax, and so is typically issued at higher interest rates than tax-exempt debt. However, the
IRS restrictions described above do not apply, and
so SDCP may wish to use taxable debt in situations
where the project or purpose of borrowing may not
meet federal tax law requirements. SDCP may also
consider taxable tax credit or direct subsidy bonds, such as Clean Renewable Energy Bonds, Qualified Energy
Conservation Bonds, etc., that offer lower costs of
borrowing to SDCP through the issuance of taxable debt
that is supported by federal subsidy payments on the
interest expense to SDCP.

Method of Sale
SDCP may choose to issue bonds using either a competitive or negotiated sale process. SDCP may also sell bonds by means of a private placement or direct sale with a financial institution or other accredited investor when this method is expected to result in cost savings or provide other advantages compared to a traditional public offering. SDCP staff will work with its Municipal Advisor to determine the most appropriate method of sale for each issuance. Please see the Appendix for a detailed description of the different methods of sale that SDCP may consider.

Structure and Term
The repayment schedule of a bond issue can vary greatly from one sale to another. The same is true for other debt instruments. SDCP will consider which structures meet SDCP’s strategic goals, are cost effective, minimize the new debt’s impact on SDCP’s overall debt service schedule, future debt capacity, and other factors when deciding how to structure new debt. In addition to debt amortization terms, structuring options may include the addition and procurement of credit enhancement, the establishment of reserves, the use of
capitalized interest, and call or redemption options.

In structuring debt service, SDCP shall consider (1) current and forecasted revenues and any anticipated changes to rates, charges and operating expenses, (2) future borrowing plans, (3) meeting the Credit Considerations described in the next section, and (4) feedback from the Municipal Advisor and rating agencies on a structure’s potential impacts to SDCP’s credit worthiness. Generally, but not a requirement under 240
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 100 this Policy, SDCP prefers level debt service over time. SDCP, consistent with tax law, will not structure debt with a maturity date that materially exceeds the average useful life of the assets or improvements being financed.

Green Bonds
To the extent possible, SDCP bond issuances shall be green bonds. A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. These bonds are typically asset-linked and backed by the issuing entity's balance sheet, so they usually carry the same credit rating as their issuers' other debt obligations.

Credit Considerations
When SDCP issues debt, the Agency will have to execute
certain bond documentation and agreements (herein generally referred to as ‘indentures’) that will bind SDCP to specific terms or requirements. Generally speaking, SDCP will agree to abide by certain covenants written in the indenture which describes in detail the obligations and responsibilities of SDCP and the rights of the bondholders which are designed to protect bondholders by setting standards by which SDCP agrees to comply. These types of covenants may require SDCP to meet certain requirements or, conversely, may forbid SDCP from undertaking certain activities that would jeopardize SDCP’s ability to repay its debt. An indenture defines SDCP’s contractual obligations and determines the parameters of SDCP’s permissible financial behavior.

The incorporation of effective bond covenants into SDCP’s future bond issues and respective documentation signal a commitment to abide by stated financial and
operating parameters over the long-term and contribute
towards SDCP’s ability to maintain strong financial health.

Credit ratings are ultimately statements about the likelihood of full and timely debt repayment. Because bond covenants govern an issuer’s ongoing financial behavior, the analysis of bond/indenture covenants and their impact on the risk profile of a bond is an integral part of the credit rating process.

Credit ratings are fundamentally forward-looking opinions on the relative default risk associated with a particular issuer and its debt obligations. Credit ratings have a significant impact on the interest rates for SDCP debt, and therefore SDCP will work to address the cost and benefits of obtaining and maintaining strong credit ratings. Depending on the lien structure of the debt, some, or all, of the following factors may be included in its bond documentation in order to obtain and maintain strong credit ratings that would broaden the appeal of and lower the cost of debt issued by SDCP.
• Debt Service Coverage Ratio: The ability of an agency to pay debt service (i.e. principal and interest on debt obligations) when due is often measured by how much
cash flow is available, after payment of operating
expenses, to cover debt service payments (Debt Service
Coverage Ratio). Debt Service Coverage Ratio is a
common financial metric used in the utility industry and is used by the rating agencies and investors to determine the ability of a utility to fulfill its debt obligations and ensure that the utility generates sufficient revenues
to make its debt secure. SDCP’s future indentures will
likely require cash flow in excess of debt service, or a Debt Service Coverage Ratio greater than 1.0x. Many
public agencies target a Debt Service Coverage Ratio in its financial and debt policies higher than the minimum required by its indenture to improve debt ratings and
lower their costs of borrowing. Should SDCP establish
a minimum Debt Service Coverage Ratio in its future
indentures, the Board may consider establishing a target ratio in this Policy that is higher than the legal minimum.

Note, that a failure by SDCP to meet a target ratio
proposed in this Policy will not result in a default under the indenture so long as the minimum Debt Service
Coverage Ratio is achieved.
• Rate Covenant: A rate covenant is a promise to set
rates or fees at levels that are set to recover sufficient revenues at a designated threshold level to cover
operating expenses and debt service payments. This
designated threshold level is the same as the Debt
Service Coverage Ratio discussed previously. SDCP
may develop one or more rate covenants in order to
measure and govern operating performance. As noted,
future indentures may establish minimum levels of
coverage and SDCP’s Board-adopted financial policies
may establish internal goals that exceed these minimum
coverage requirements.
• Additional Bonds Test: If SDCP were to issue bonds or other debt obligations, the indentures governing those
obligations may have covenants that stipulate whether
SDCP may sell additional bonds in the future that share that same pledged revenue stream as security. SDCP
may develop conditions or standards in its indentures
that describe the parameters whereby SDCP could issue
additional bonds (referred to as an “additional bonds
test”). This test is intended to ensure that future bond issuance does not reduce bondholder security by placing too high a burden on the revenue stream. The additional bonds test may require that SDCP demonstrate that it
has sufficient revenues to meet or exceed the designated Debt Service Coverage Ratio before additional bonds
can be issued.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 101 While the specific formulation of the Additional Bonds
Test may vary depending on the type of bonds being
contemplated, the SDCP will utilize an Additional Bonds which establishes a limitation on new issuances such that the pledged revenues are no less than one and a half times (1.5x) the maximum annual principal and interest and debt service for the aggregate outstanding senior lien bonds including the debt service for the new issuance.

The Agency will also seek to maintain aggregate annual debt service on long- term debt at a level not-to-exceed 5% of the Agency’s annual total operating expenses. The actual terms and conditions specific to each debt issue will be controlled by the applicable documents.
• Reserves: SDCP may maintain reserves including
those in compliance with GASB 62 such as the adopted
Operating Reserve Fund to act as a rate stabilization fund that can help mitigate the impacts of revenue variability.

Depending on whether or not SDCP incorporates a rate
stabilization fund reserve into its indentures, this reserve may be used to help meet Debt Service Coverage Ratio
requirements during times of revenue shortfalls. This
fund can be a valuable tool to manage and mitigate
the risk related to any Debt Service Coverage Ratio
requirements included in future indentures and to
address revenue and rate volatility. There are other
reserves that the Board may consider adopting in the
future that, for example, may be utilized for paying
debt service, for funding specific capital projects, or for emergency purposes etc.
• Additional Ratio Targets: In the future the Board
will continue to monitor this Policy and will establish enhancements to further strengthen the financial ratios and targets of SDCP. For example, while not a ratio
included in Indenture covenants, another ratio that can help measure SDCP’s financial health and tion is the
ratio of debt-funded capital to overall capital spending (i.e., debt to pay-go spending). Prudent use of debt
financing rather than pay-go funding of capital projects can facilitate better allocation of resources over time and ensure payment equity across generations for the use of long-term assets.

Financing Team and Professional Services
SDCP will assemble a financing team that will provide advice and support for the development and implementation of debt issuance as well as ongoing analysis and support. The financing team will include both SDCP staff and outside professional consultants. When required by SDCP’s procurement policy, SDCP will use a competitive process through a Request for Proposal (“RFP”) in the retention of professional consultants.

Otherwise, SDCP will adhere to its best practices in contracting to procure such vendors. The professional consultants selected by SDCP could be engaged to help develop a credit strategy, issue debt and/or assist SDCP with its compliance with
applicable federal and state statutes, and Internal Revenue Code at the time of issuance as well as on a continuing basis.

Please see the Appendix for a detailed description of the outside professional consultants SDCP may include on its financing team.

Debt Administration
The Chief Executive Officer (“CEO”), or designee shall make recommendations on budget, stabilization transfers and rate adjustments. The Chief Financial Officer shall be responsible for the administration and implementation of this Policy and will have day- to-day responsibility for structuring, implementing and managing SDCP’s debt program.

Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Policy, SDCP shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post- issuance compliance, and investment of bond proceeds.

Please see the Appendix for a detailed description of SDCP’s internal control procedures.

Post-Issuance Administration
SDCP will comply with requirements pertaining to initial bond disclosure, continuing disclosure, tax-exemption, post-issuance compliance, and investment of bond proceeds.

This includes any continuing disclosure undertakings under Securities and Exchange Commission (“SEC”) Rule 15c2-12; tax covenants and related federal tax compliance requirements such as arbitrage restrictions and rebate requirements; and all California State reporting requirements. Please see the Appendix for a detailed description of SDCP’s Post-Issuance Compliance Policy and additional information on SDCP’s post-compliance procedures.

Training
The Chief Financial Officer shall provide training the members of SDCP staff involved in the tax compliance and the initial or continuing disclosure process in coordination with the CEO, and the SDCP Board regarding their respective responsibilities for disclosure and tax compliance.

The Chief Financial Officer, or designee, shall arrange for periodic disclosure and tax training sessions conducted by SDCP’s disclosure counsel or other professionals (e.g., seminars) which shall include education regarding disclosure policies, SDCP’s disclosure obligations under applicable federal and state securities and tax laws, and the tax compliance and disclosure responsibilities of SDCP.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 102 Policy Review
In coordination with the CEO, the Chief Financial Officer, or designee, will be responsible for regularly reviewing and updating this Policy, and shall present any recommended revisions to the Board for consideration and adoption.

APPENDIX
Permitted Types of Debt
SDCP may legally issue both short-term and long-term debt, through either a direct loan or through the public market, using the debt instruments described below. SDCP in consultation with its internal Counsel, Bond Counsel and Municipal
Advisors, shall determine the most appropriate instrument for a proposed debt offering.

SDCP may issue the following types of tax-exempt
or taxable Debt:
• Long-Term Debt: Long-term debt generally includes
debt issued to finance capital expenditures with the
objective of structuring repayment within the expected
life of the financed asset. Debt may be used as a tool for rate stabilization as repayment of the debt is spread over the useful life of the financed project. Long-term bonds may bear interest at fixed or variable rates or structured with level debt service payments or otherwise with term maturities. Long-term revenue bonds are a type of debt
that may be entered into by SDCP and which may be
secured by a lien on the revenues of SDCP. SDCP may
also enter into long-term loans with state or federal
agencies. These loans typically have fixed interest
rates. Government loan programs may offer favorable
interest rates and terms, and should be considered as
alternatives to market rate debt when available. The
use of long-term debt will be evaluated with pay-as-you-go capital investment and would not be expected (absent extraordinary circumstances) to fund non-capital operational expenditures or operating deficits.
• Short-Term Debt: Short-term debt generally has a
maturity of less than 7 years and may take several
forms, including notes, commercial paper, direct bank
loans and other short- term products with either fixed
or variable rates. Short- term debt products are flexible cash management tools that are primarily used to meet
interim funding (pending the issuance of long-term
debt). When approving short-term debt products, the
Board may limit SDCP’s percentage of short-term debt
when compared to its long-term debt portfolio taking
into account future market access, term-out provisions
and retail rate stability.
• Variable-Rate Debt: In addition to interim financing, which includes commercial paper and similar short-term
borrowing programs, it may be appropriate to issue long-term variable rate debt that bears an interest rate that is reset periodically at predetermined intervals, including entering into revolving credit facilities, to diversify the debt portfolio, to reduce interest costs, and to improve the match of variable rate assets (such as short-term
investments and reserves) to liabilities. The amount of variable rate debt will generally not exceed a net 20%
after consideration of investments and cash equivalents of the outstanding debt portfolio of SDCP.
• Refunding Debt: Refunding bonds may be issued
to refinance existing bonds to achieve debt service
savings, restructure the type of debt outstanding,
modify SDCP’s covenants to bondholders, restructure
future debt service payments, take advantage of
market opportunities, or to reduce exposure to certain
counterparties. SDCP will work with its Municipal Advisor (MA) to assess potential savings and determine whether
refunding bond issuance is warranted. If refunding bonds are being contemplated solely for debt service savings, the refunding should generally result in a reduction in average annual debt service or provide an overall savings target (net of all costs) set by the Board at the time
it approves the financing. This savings target may be
adjusted depending on the remaining term of the debt
or under circumstances where the number of refunding
options is then limited by federal tax law.

SDCP may consider the following types of fixed or variable rate debt:
• Revenue Bonds secured by general revenues or project
revenues
• Commercial Paper or other Interim Funding Notes
• Capital Leases
• Certificates of Participation/Lease Revenue Bonds
• Installment Sale or Purchase Agreements Revenue
Bonds
• Bond or Grant Anticipation Notes
• Tax and Revenue Anticipation Notes
• State and Federal Loans and Grants
• Direct Bank Loans or Lines of Credit
• Public Private Partnerships
This list is not meant to be inclusive of all options that may be available to SDCP as different circumstances may dictate.

SDCP may from time to time find that other types of debt would be beneficial to further its purposes and may approve such debt without an amendment to this Policy.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 103 Method of Sale
SDCP may choose to issue bonds using either a competitive or negotiated sale process. SDCP may also sell bonds by means of a private placement or direct sale with a financial institution or other accredited investor when this method is demonstrated to result in cost savings or provide other advantages relative to a traditional public offering. SDCP staff will work with its Municipal Advisor to determine the most appropriate method of sale for each issuance.
• Competitive Sale: SDCP may elect to sell bonds in the public market on a competitive basis depending on
market conditions, required size of issuance and relative complexity of structure. The Bonds are marketed to a
wide audience of investment banking (underwriting)
firms. The underwriter is selected based on its bid for the securities. SDCP will award the sale of the competitively sold bonds on the basis of the lowest true interest cost basis. Pursuant to this policy, The Chief Financial Officer, or designee, is authorized to sign the bid form on behalf of the SDCP fixing the interest rates on bonds sold on a competitive basis.
• Negotiated Sale: SDCP may elect to sell bonds in
the public market on a negotiated basis depending
on market conditions, required size of issuance and
relative complexity of structure. SDCP staff selects the underwriter, or team of underwriters, of its securities in advance of the bond sale on the basis of responses to
a proposal review. With the assistance of the Municipal Advisor (MA), SDCP staff works with the underwriter
to bring the issue to market and negotiates all rates
and terms of the sale. In advance of the sale, SDCP
staff will determine compensation for and liability of
each underwriter employed and the designation rules
and priority of orders under which the sale itself will be conducted. Pursuant to this policy, the Chief Financial Officer or designee will be authorized to sign the bond purchase agreement on behalf of SDCP, fixing the
interest rates on bonds sold on a negotiated basis.
• Private placement: SDCP may elect to issue debt
on a private placement basis. Such method shall be
considered if it is demonstrated to result in cost savings or provide other advantages relative to other methods
of debt issuance, or if it is determined that access to the public market is unavailable and/or timing considerations require that a financing be completed more quickly than required for a competitive or negotiated sale.

Financing Team and Professional Services
SDCP will assemble a financing team that will provide advice and support for the best execution of each debt transaction.

The financing team may consist of multiple parties with distinct responsibilities and is generally comprised of both SDCP staff and outside professional consultants. These
outside professional consultants may include:
• Municipal Advisors: SDCP shall utilize the services
of independent MAs in connection with debt-related
issuances or projects. SDCP’s MA will not serve as an
underwriter on negotiated bond sales of SDCP
• Underwriters: SDCP will utilize an underwriter in the sale of bonds on a competitive or negotiated basis. An
underwriter is a financial services firm that acquires (by purchase) bonds for resale in the public bond markets.

For a negotiated sale, SDCP will select an underwriter
through a request for proposal process; basing the
selection on value for SDCP including capital structure, underwriting capabilities, demonstrated expertise
and experience as well as proposed fees. SDCP may
also select an underwriting firm to act as placement
agent in connection with a private placement of bonds.

In a competitive sale, bonds are offered for sale at a
designated date and time, and multiple underwriters
may submit bids. The bonds are awarded to the
underwriter (or group of underwriters) that submit the
lowest bid.
• Disclosure Counsel: SDCP will endeavor to provide
complete and appropriate disclosure of financial and
legal condition in the issuance of debt. SDCP will also take steps and adopt policies in order to provide for
compliance with continuing disclosure requirements.

Disclosure counsel, which may be Bond Counsel, shall
be responsible for assisting SDCP in the preparation of the Preliminary and Final Official Statements and any
other disclosure documents. SDCP will select, through
a request for proposal process, and retain qualified
and experienced counsel in achieving this objective of
appropriate disclosure.
• Bond Counsel: SDCP will retain qualified and
experienced legal counsel as representation of SDCP to
provide the customary opinions required for the issuance of bonds and other financial obligations. Bond counsel
shall be responsible for developing the legal documents required for each transaction and draft and review
documentation sufficient to provide approving legal
opinions. Bond counsel will render customary approving
legal and tax opinions for each transaction.
• Trustee: SDCP may select through a request for proposal process the services of a financial institution, acting through its trust division, to act as trustee. The trustee may hold, invest and disburse financing proceeds as directed by
SDCP. The trustee will act as registrar as well as the paying agent for SDCP debt. The Chief Financial Officer or
designee shall monitor the services rendered by the trustee. 244
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 104 Internal Control Procedures
All debt transactions must be approved by the Board of
Directors. The proceeds of bond sales will be invested until used for the intended project(s) in order to maximize utilization of the public funds. The investments will be made consistent with the following guidelines: (1) compliance with federal tax arbitrage requirements, as applicable; (2) safety of principal; (3) liquidity; (4) diversity; and (5) return on investment or yield, and may be held as cash. SDCP’s Investment Policy guidelines and bond indentures will govern objectives and criteria for investment of bond proceeds. The Treasurer will oversee the investment of bond proceeds consistent with the foregoing guidelines.

Proceeds of debt will be held either by a third-party trustee or by SDCP. The trustee will disburse bond proceeds to SDCP upon submission of one or more written requisitions signed by an authorized SDCP officer. If the funds are held directly by SDCP, they must be held and accounted for in a separate fund or account, the expenditure of which will be documented by SDCP and subject to established internal controls consistent with SDCP’s applicable policies and procedures. These
procedures will include, in connection with each requisition or expenditure of proceeds held by SDCP, a written record of the particular capital project or program or other expense to which the funds drawn were applied or allocated.

For bond proceeds that are meant to reimburse SDCP for
previous expenditures, SDCP staff will provide documentation that conform to tax requirements and other applicable
regulations. To support this certification, staff will analyze capital expenditures and establish that requirements are met before the bond issuance takes place and maintain a written record of such analysis and the amount reimbursed to each particular capital project or program or other expense to which such reimbursed proceeds are to be allocated.

For bond proceeds intended to provide funding for ongoing or upcoming capital expenditures, SDCP staff will monitor the expenditure process. Staff will analyze the use of proceeds on an annual basis or more frequently, if deemed appropriate, until the proceeds are completely spent and will perform monitoring and record-keeping in accordance with SDCP’s accounting guidelines and other applicable regulatory requirements.

Refunding bond proceeds are generally held by a third-party trustee or fiscal agent to be applied in connection with written directions generally prepared by bond counsel. SDCP will maintain records of the directions to the trustee, and will review of fund statements and other records received from, the trustee.

Post-Issuance Administration
SDCP will comply with requirements pertaining to initial bond disclosure, continuing disclosure, tax-exemption, post-issuance compliance, and investment of bond proceeds. This includes any continuing disclosure undertakings under SEC Rule 15c2- 12; tax covenants and related federal tax compliance requirements such as arbitrage restrictions and rebate
requirements; and all California State reporting requirements. • Post-Issuance Compliance Policy: SDCP will adopt a
Post-Issuance Compliance Policy (“PICP”) to provide
for ongoing monitoring and reporting with respect to
compliance with SEC requirements for publicly offered
indebtedness and with tax regulations applicable to
tax-exempt debt. The PICP will provide for the federal
disclosure requirements, responsibility for reporting,
training, and describe procedures for compliance with
continuing disclosure agreements entered into for each
such series of bonds from the date they are issued until the bonds are no longer outstanding. The PICP may be
administratively adopted and amended without approval
of the Board.
• Financial Disclosure: SDCP will comply with applicable deliverable obligations and financial disclosure
requirements, as specified in any and all bond and
debt- related documents. Staff has developed and will
maintain an updated schedule of the requirements
in compliance with SDCP’s internal record-keeping
processes. SDCP will post required documents to the
Municipal Securities Rulemaking Board’s (“MSRB”)
Electronic Municipal Market Access (“EMMA”) website
as required on a timely basis. SDCP, at its discretion, may also post documents voluntarily to EMMA. SDCP
will provide financial disclosure to rating agencies,
institutional and individual investors, other levels
of government, and the general public to share
clear, comprehensible, financial information using
the appropriate channels/policies/procedures. The
Chief Financial Officer is responsible for monitoring
the compliance by SDCP of applicable disclosure
requirements. SDCP also may contract with an outside
service provider to monitor disclosure postings.
• Tax Compliance: SDCP will comply with applicable
federal arbitrage and rebate regulations related to its bonds and other debt instruments. These responsibilities include monitoring the investment and expenditure of
bond proceeds, maintaining a system of record-keeping
and reporting and contracting for the services of outside arbitrage consultants as necessary. SDCP will establish and implement post-issuance procedures to guide its
compliance with these requirements. The Chief Financial Officer is responsible for monitoring the compliance by 245
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 105 SDCP of applicable tax requirements for debt issued on
a tax- exempt basis.
• Record Keeping: A copy of all debt-related records shall be retained at SDCP’s offices or otherwise electronically.

At a minimum, these records shall include all official
statements, bid documents, bond documents/
transcripts, indentures, resolutions, trustee statements, leases, and title reports for each financing (to the extent available). The following documents shall be maintained for the term of each issue of bonds (including refunding bonds) plus at least three years:
– A copy of the bond closing transcript(s) and other
relevant documentation delivered to SDCP at or
in connection with closing of the issue of bonds;
– A copy of material documents relating to
capital expenditures financed or refinanced by
bond proceeds, including (without limitation)
construction contracts, purchase orders, invoices,
trustee requisitions and payment records, draw
requests for bond proceeds and evidence as to
the amount and date for each draw down of
bond proceeds, as well as documents relating
to costs paid or reimbursed with bond proceeds
and records identifying the assets or portion of
assets that are financed or refinanced with bond
proceeds, including a final allocation of bond
proceeds;
– A copy of all contracts and arrangements
involving the use of bond-financed or refinanced
assets; and
– A copy of all records of investments, investment
agreements, arbitrage reports and underlying
documents, including trustee statements, in
connection with any investment agreements, and
copies of all bidding documents, if any.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 106 Investment Policy
Purpose and Scope
The San Diego Community Power (“Community Power”)
Investment Policy (“Policy”) establishes investment guidelines for protecting Community Power’s cash reserves, deposits, and investments (collectively, “Funds”) while producing a reasonable rate of return on investments.

This Policy articulates: (1) the objectives and priorities for Community Power investments; (2) the types of investments that are permitted and prohibited; and (3) the controls Community Power will implement to ensure investments are protected.

This Policy is adopted pursuant to California Government Code Section (“Section”) 53600-53608 and must be adopted or amended by resolution. The Community Power Board of
Directors (“Board”) is not required to adopt a formal Investment Policy by statute, however, it is in the best practice to ensure agency assets are protected.

Background
On October 1, 2019, the founding members of Community Power adopted the Joint Powers Agreement (JPA) which was amended and restated on December 16, 2021.

Section 3.2.12 of the JPA specifies that the Board may at its discretion adopt rules, regulations, policies, bylaws and procedures governing the operation of Community Power.

Further, Section 4.5.5 of the JPA states that one of the general purposes of the Board is to set policy.

Section 5.10.2(C) of the JPA states that one of the primary purposes of the Financial and Risk Management Committee (FRMC) is to review and recommend to the Board financial policies and procedures to ensure equitable contributions by parties consistent with a recommendation for Board approval of the Policy herein. Further, this section states the FRMC may have such other responsibilities as may be approved by the Board, including but not limited to, advising the Chief Executive Officer on fiscal and risk management policies and procedures, rules and regulations governing investment of surplus funds, audits to achieve best practices in corporate governance, selection and designation of financial institutions for deposit of Community Power funds, and credit/depository matters.

Investment Objectives
To the extent possible, investments will align with Community Power’s mission, vision, value, and goals. When managing Funds, Community Power’s primary objectives shall be to (1) safeguard the principal of the Funds, (2) meet the liquidity needs of Community Power, (3) achieve a return on Funds invested, and (4) exercise a high standard of care on Funds within Community Power’s control.

1. Safety
Safety of principal is the foremost objective of cash and investment management activities. The investment of Funds shall be undertaken in a manner that seeks to ensure the preservation of principal.

2. Liquidity
The Funds of Community Power shall remain sufficiently
liquid to meet all operating needs that may be reasonably anticipated. Since all possible cash demands cannot
be anticipated, the investment of Funds in deposits or
instruments that are available on demand is recommended.

3. Return on Investments
Community Power’s deposit and investment portfolio shall be designed with the objective of attaining a market rate of return throughout the economic cycle while considering investment risk and liquidity constraints. The return on deposits and investments is of secondary importance compared to the safety and liquidity objectives described in Investment Objectives, Section (1) and Investment Objectives, Section (2), above.

4. Standard of Care
Community Power will manage the Funds in accordance
with the “Prudent Investor Standard” pursuant to California Government Code Section 53600.311
as follows:
“All governing bodies of local agencies or persons
authorized to make investment decisions on behalf of
those local agencies investing public funds are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing,
acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like
character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within
the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
1 All further statutory references are to the California Government Code unless otherwise stated.
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SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 107 Delegation of Authority
Pursuant to Section 53607, the Board has the authority to delegate the responsibility to manage Community Power’s funds to the Treasurer. The Treasurer has authority to appoint Deputy Treasurer(s) as the Treasurer deems necessary to carry out the duties in accordance with the Policy.

Community Power may engage the services from one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of Community Power’s investment portfolio in a manner consistent with Community Power’s Policy. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with the investment objective set forth in this Policy.

Scope
This Policy applies to all funds and investment under the direct authority of Community Power. This Policy does not apply to the investment of bond proceeds, which would be governed by any applicable bond documents, and any other funds specifically exempted by the Board.

Acceptable Investment Types: To the extent possible,
investments will align with Community Power’s mission, vision, value, and goals.

1. Deposits at Bank(s): Funds may be invested in non-interest-bearing depository accounts to meet Community Power’s operating and collateral needs and grant
requirements. Funds not needed for these purposes may
be invested in interest-bearing depository accounts or
Federal Deposit Insurance Corporation (FDIC) insured
certificates of deposit with maturities not to exceed five (5) years. Banks eligible to receive deposits will be federally or state chartered and will conform to Section 53635.2
which requires that banks “have received an overall rating of not less than ‘satisfactory’ in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate-income
neighborhoods, pursuant to Section 2906 of Title 12 of
the United States Code.” As per Section 53652, banks
must collateralize the deposits of public agencies in an amount equal to no less than 110% of as currently stated in the value of the deposits. The Treasurer will monitor the credit quality of eligible banks holding Community Power deposits that exceed FDIC insurance limits to ensure the safety of Community Power deposits. There are no limits on the dollar amount or percentage that Community
Power may invest in collateralized bank deposits.

2. Local Agency Investment Fund (LAIF): Funds may be
invested in the Local Agency Investment Fund established by the California State Treasurer for the benefit of local agencies. LAIF’s investments in instruments prohibited
by or not specified in Community Power’s policy do not
exclude the investment in LAIF itself from Community
Power’s list of allowable investments, provided LAIF’s
reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

3. US Treasury Obligations: Funds may be invested in
United States Treasury obligations with a term to maturity not exceeding five (5) years and subject to the limitations set forth in Sections 53601 et seq. and 53635 et seq.

4. Federal Agency Securities: Funds may be invested in
Federal Agency Securities or Government-Sponsored
Enterprise (GSE) obligations with a term to maturity not exceeding five (5) years and subject to the limitations set forth in Sections 53601 et seq. and 53635 et seq. No more than 20% of the total portfolio may be invested in callable agency securities and no more than 30% of the total
portfolio may be invested in any single Agency/ GSE issuer.

5. Bankers’ Acceptances: Funds may be invested in Banker’s Acceptances provided that they are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one Nationally Recognized Statistical Rating Organization (NRSRO). Not more
than 40% of the portfolio may be invested in Bankers’
Acceptances, and no more than 5% of the portfolio may
be invested in any single issuer. The maximum maturity
shall not exceed 180 days.

6. Negotiable Certificates of Deposit: Funds may be
invested in negotiable certificates of deposit in accordance with the requirements of Section 53601 and 53601.8, and subject to the following limitations:
a. Issued by an entity as defined in Section 53601(i);
and
b. No more than 30% of the total portfolio shall be
invested in certificates of deposit, no more than
5% of the total portfolio may be invested in any
single issuer, and the maximum maturity does not
exceed 5 years.

7. Placement Service Deposits: Funds may be invested in deposits placed with a private sector entity that assists in the placement of deposits with eligible financial
institutions located in the United States (Section 53601.8).

No more than 30% of the total portfolio may be invested in a combination of qualifying placement service deposits.

The full amount of principal and the interest that may be accrued during the maximum term of each deposit shall
at all times be insured by federal deposit insurance. Under 248
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 108 a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service. The maximum maturity shall not
exceed five (5) years.

8. Money Market Funds: Funds may be invested in money
market funds pursuant to Section 53601(l)(2) and subject to Section 53601(l)(4). No more than 20% of the portfolio may be invested in the shares of any one Money Market
Fund. No more than 20% of the total portfolio may be
invested in these securities.

9. Commercial Paper: Funds may be invested in commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by an
NRSRO. The entity that issues the commercial paper must meet all of the following conditions in either paragraph A or paragraph B below:
a. The entity meets the following criteria: (i) is
organized and operating in the United States as a
general corporation, (ii) has total assets in excess
of five hundred million dollars ($500,000,000),
and (iii) has debt other than commercial paper, if
any, that is rated in a rating category of “A” or its
equivalent or higher by an NRSRO.
b. The entity meets the following criteria: (i)
is organized within the United States as a
special purpose corporation, trust, or limited
liability company, (ii) has program-wide credit
enhancements including, but not limited to, over
collateralization, letters of credit, or surety bond,
and (iii) has commercial paper that is rated “A-1” or
higher, or the equivalent, by an NRSRO.
• No more than 10% of the outstanding
commercial paper of any single issuer.
• No more than 25% of Community Power’s
investment assets under management may be
invested in Commercial Paper. Under a provision
sunsetting on January 1, 2026, no more than
40% of the total portfolio may be invested
in Commercial Paper if Community Power’s
investment assets under management are
greater than $100,000,000.
• No more than 5% of the total portfolio may
be invested in any single issuer. The maximum
maturity does not exceed 270 days.

10. Medium Term Notes (MTN): The issuer is a corporation organized and operating within the United States or by
depository institutions licensed by the United States or any state and operating within the United States (Section 53601 et seq). The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.

No more than 30% of the total portfolio may be invested in MTNs, no more than 5% of the total portfolio may be
invested in any single issuer and the maximum maturity
does not exceed five (5) years.

11. Pass Thru Securities: Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized
Mortgage Obligations (Section 53601 et seq) from
issuers not defined in sections 3 and 4 of the Acceptable Investment Types section of this Policy, provided that, the securities are rated in a rating category of “AA” or its equivalent or better by an NRSRO, no more than 20%
of the total portfolio may be invested in these securities, no more than 5% of the total portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer and the maximum maturity does not exceed five
(5) years.

12. Municipal Securities: These include obligations of
Community Power, the State of California and any local
agency within the State of California (Section 53601).
provided that, the securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO, no more than 5% of the total portfolio may be invested in any single issuer, no more than 30% of the total portfolio may be in Municipal Securities and the maximum maturity does not exceed five (5) years.

13. Municipal Securities: Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or
operated by a state or by a department, board, agency,
or authority of any of the other 49 states, in addition to California (Section 53601). The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO, no more than 5% of the total portfolio may
be invested in any single issuer, no more than 30% of
the total portfolio may be in Municipal Securities and the maximum maturity does not exceed five (5) years.

14. Supranationals: Issues are US dollar denominated
senior unsecured unsubordinated obligations issued or
unconditionally guaranteed by the International Bank
for Reconstruction and Development, International
Finance Corporation, or Inter-American Development
Bank. (Section 53601). The securities are rated in a rating category of “AA” or its equivalent or better by an NRSRO, no more than 30% of the total portfolio may be invested in these securities, no more than 10% of the total portfolio may be invested in any single issue and the maximum
maturity does not exceed five (5) years.
249
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 109

15. Local Government Investment Pools (LGIPs): Shares
of beneficial interest issued by a Joint Powers Authority (JPA) organized pursuant to California Government
Code Section 6509.7 that invest in the securities and
obligations authorized in subdivisions (a) to (r), inclusive.

Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA. To be eligible under this section, the JPA issuing the shares will have retained an investment adviser who is registered with the SEC (or exempt from registration), has assets
under management in excess of five hundred million
dollars ($500,000,000), and has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) of Government Code Section 53601, inclusive.

Prohibited Investment Types
Pursuant to Section 53601.6, Community Power shall not invest Funds in any security that could result in a zero-interest accrual, or less, if held to maturity. These prohibited investments include, but are not limited to, inverse floaters, range notes, or mortgage-derived interest-only strips. The purchase of foreign currency denominated securities is prohibited. The purchase of Crypto Asset Securities is prohibited. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. Community Power is prohibited from investing in any company or organization whose business do not align with Community Power’s mission, vision, value, and goals.

Investment Portfolio Management
The term to maturity of any Funds invested shall not exceed five (5) years pursuant to Section 53601. The Treasurer will allocate Funds among authorized investments consistent with the
objectives and standards of care outlined in this Policy.

Collateralization
Certificates of Deposit (CDs). Community Power shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

Bank Deposits. A bank or financial institution may pledge securities or other deposits for the purpose of securing repayment of deposited funds. Community Power shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

Risk Management and Diversification
Community Power’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, Supranationals and investment pools such as LAIF and money market funds.
a. Credit Risk: Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in this Policy and by diversifying the
investment portfolio so that the failure of any one issuer would not unduly harm Community Power’s cash flow.
b. Market Risk: Market risk or interest rate risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a short term and long-term
investment strategies. It is explicitly recognized herein, however, that in a diversified portfolio, occasional
measured losses are inevitable and must be considered
within the context of overall investment return.

The duration of the portfolio will generally be
approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected
by Community Power based on Community Power’s
investment objectives, constraints and risk tolerances. c. Credit Rating: This Policy sets forth minimum credit ratings for each type of security. These credit ratings apply to the initial purchase of a security and do not
automatically force the sale of a security if the credit ratings of the security fall below the policy limits
Minimum credit ratings:

1. For securities with maturities of 13 months or less, the rating must be in the highest short-term rating
category (without regard to qualification of such
rating symbol such as “+” or “- “) by at least one
NRSRO.

2. For securities with maturities greater than 13
months, the rating must be “A” or higher by at least
one NRSRO.
250
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 110 The monitoring of credit ratings consists of the following procedures:

1. When a credit rating downgrade occurs which results
in a rating below the minimum credit requirement,
Community Power’s Finance Department or external
investment adviser will analyze and evaluate the
credit rating to determine whether to hold or sell the
investment.

2. In the event a security in the Fund receives a credit rating downgrade which results in a rating below the minimum
credit rating requirement, Community Power’s Treasurer
will report the rating change to the Finance and Risk
Management Committee in the monthly public report.

In the same manner, the Finance and Risk Management
Committee will be informed on the decision to hold or
sell a downgraded security.

3. The Investment Officials or authorized employees
involved in the investment process and external
investment advisers shall meet at least quarterly to
review and update the approved list of securities and
establish credit criteria for each category of security.

To ensure that the Fund maintains the highest overall credit rating with the contracted NRSRO, the asset allocation and portfolio holdings will be provided to the contracted NRSRO on a monthly basis.
to any member of the Board, or any candidate who may join the Board in an amount exceeding the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Board, the Political Reform Act, including section 84308, or any applicable Community Power Policy, as amended from time to time. The selected broker or dealers shall be provided with and acknowledge receipt of this Policy.

Losses
Losses are acceptable on a sale before maturity and may be taken if required to meet the liquidity needs of Community Power or if the reinvestment proceeds will earn an income flow with a present value higher than the present value of the income flow that would have been generated by the original investment, considering any investment loss or foregoing interest on the original investment.

Delivery and Safekeeping
The delivery and safekeeping of all securities shall be made through a third-party custodian when practical and cost effective as determined by the Treasurer, or a duly appointed Deputy Treasurer, and in accordance with Section 53608.

The Treasurer shall review all transaction confirmations for conformity with the original transaction and monitor for excessive trading.

Ethics and Conflict of Interest
The Investment Officials or authorized employees involved in the investment process, shall act as custodians of the public trust and will refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions. Investment Officials and any external investment advisers acknowledge that all direct Community Power
investments are subject to public review and evaluation.

Community Power Investment Officials involved in the
investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the
investment program, or which could impair their ability to make impartial investment decisions.

Community Power Investment Officials shall disclose to
General Counsel or designee (i) any material interests in financial institutions with which they conduct business, and (ii) disclose any personal investments with a direct, indirect or beneficial interest totaling $2,000 or more. Investment Officials shall refrain from undertaking any personal
investment transactions with the same individual from the external investment adviser with whom business is conducted on behalf of Community Power.

Brokers
The Treasurer shall endeavor to complete investment
transactions with institutions eligible to transact investment business with Community Power, in accordance with Section 53601.5, including:
a. Institutions licensed by the state as a broker-dealer. b. Institutions that are members of a federally regulated securities exchange.
c. Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers.
d. Nationally or state-chartered banks.
e. The Federal Reserve Bank.
f. Direct issuers of securities eligible for purchase.

Broker/dealers shall be approved by the Chief Executive Officer upon recommendation by the Treasurer. Selection of broker/ dealers shall be based upon the following criteria: the reputation and financial strength of the company or financial institution, the reputation and expertise of the individuals employed, and pursuant to the requirements of Section 53601.5. The Treasurer shall require any selected broker, brokerage firm, dealer, or securities firm to affirm that it has not, within any 48-consecutive month period, made a political contribution 251
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 111 Investment Officials, pursuant with all applicable laws, shall not accept honoraria, gifts, and gratuities from advisers, brokers, dealers, bankers, or other entity with whom
Community Power conducts business.

Any external investment adviser contracted by Community Power will comply with Municipal Securities Rulemaking
Board Rule G-37 and shall follow the Investment Adviser Fiduciary Standard established by the U.S. Securities and Exchange Commission.

Internal Controls
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse.

The internal control structure shall be designed to provide reasonable assurance that these objectives are met.

Accordingly, the Treasurer shall establish and maintain internal controls that shall address the following points:
a. Control of Collusion: Collusion is a situation where two or more employees are working in conjunction to defraud their employer. To achieve a segregation of duties,
individuals who authorize investment transactions shall not also record or reconcile said transactions.
b. Clear Delegation of Authority to Subordinate Staff
Members: Subordinate staff members must have a clear
understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective
responsibilities.
c. Delivery-Versus-Payment (DVP): All investment
transactions shall be conducted on a delivery-versus-payment basis. d. Safekeeping and Custody: Securities purchased from
any bank or dealer, including appropriate collateral
(as defined by California Government Code), that
are not insured by the FDIC, shall be placed with an
independent third party for custodial safekeeping. To
protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and
securities in Community Power’s portfolio shall be held in safekeeping in Community Power’s name by a third-party custodian, acting as agent for Community Power under the terms of a custody agreement executed by the
bank and Community Power. All investment transactions
will require a safekeeping receipt or acknowledgment
generated from the trade. A monthly report will be
received by Community Power from the custodian listing
all securities held in safekeeping with current market
data and other information. The only exceptions to the
foregoing shall be depository accounts and securities
purchases made with: (1) local government investment
pools; (2) time certificates of deposit, (3) Local Agency Investment Fund, and (4) mutual funds and money
market mutual funds, since these securities are not
deliverable.
e. Avoidance of Physical Delivered Bearer Securities: Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place.

Bearer securities must be properly safeguarded against
loss or destruction. The potential for fraud and loss
increases with such securities.
f. Written Confirmation of Telephone Wire Transfers: Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions should be supported by written or electronic communications
and approved by the appropriate person. Community
Power will consider entering into a Wire Transfer
Agreement with the Lead Bank or Third-Party.
g. Audits: Community Power’s Funds shall be subject to a process of independent review by its external auditors.

Community Power’s external auditors shall review the
investment portfolio in connection with Community
Power’s annual audit for compliance with the Policy
pursuant to Section 27134. The results of the audit shall be reported to the Treasurer.
252
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 112 Reports
a. Monthly: The Treasurer will perform a monthly review of the investment function. Following the commencement
of investment transactions, the Treasurer shall submit
a monthly report of all investment transactions to the
Finance and Risk Management Committee. Investment
transactions are defined as the purchase, sale or
exchange of securities.
b. Annually: The Treasurer will submit an annual report to the Finance and Risk Management Committee within 60
days of the end of a fiscal year providing the following:
• A list of individual securities by investment type,
issuer, credit risk rating, CUSIP number, settlement
date of purchase, date of maturity, par value and
dollar amount invested on all securities, and the
market value and source of the market value
information;
• A statement that the portfolio is in compliance
with this Policy and in accordance with Section
53646 or the manner in which the portfolio is not
in compliance; and
• A statement of Community Power’s ability to meet
anticipated cash requirements for the upcoming 12
months.
• The Treasurer shall monitor and evaluate the
portfolio’s performance relative to the chosen
market benchmark(s), which will be included in the
Treasurer’s annual report. The Treasurer shall select
an appropriate, readily available index to use as a
market benchmark. Benchmarks may change over
time based on changes in market conditions or
cash flow requirements.
c. Annual Review: This Policy will be reviewed annually by the Treasurer. The Board is authorized to approve changes to this Policy following the review of proposed changes by the Finance Risk Management Committee.
253
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 113 Glossary of Investment Terms
ASSET BACKED SECURITIES. Securities supported by
pools of installment loans or leases or by pools of revolving lines of credit.

BANKERS’ ACCEPTANCES. A short-term, negotiable,
unconditional, and time draft drawn on and accepted by a bank.

It is typically used in trade to finance the purchase and sale of goods.

BENCHMARK. A comparison security or portfolio. A
performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a
specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY
SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage.

CDARS is currently the only entity providing this service.

CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower
to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED MORTGAGE OBLIGATIONS
(CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER. The short-term unsecured debt of
corporations. COUPON. The rate of return at which interest is paid on a bond.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

CRYPTO ASSET. Digital assets that use public ledgers over the internet to prove ownership. They use cryptography, peer-to-peer networks and a distributed ledger technology (DLT) – such as blockchain – to create, verify and secure transactions.

CUSIP. Committee on Uniform Securities Identification
Procedures. A CUSIP number identifies most financial
instruments, including: stocks of all registered U.S. and Canadian companies, commercial paper, and U.S. government and municipal bonds.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DELIVERY vs. PAYMENT (DVP). A securities industry
procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a
variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a
bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

FEDERAL FUNDS RATE. The rate of interest charged by
banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.
254
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 114 ISSUER. The entity identified as the counterparty or obligator related to a security trade..

INVERSE FLOATER. A bond or other type of debt whose
coupon rate has an inverse relationship to a benchmark rate.

INVESTMENT OFFICIALS. This includes any applicable
Community Power staff participating in the investment process; Community Power Treasurer; Community Power Deputy
Treasurer(s); and Community Power Board of Directors.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUID. Term for securities that can be converted to
cash quickly.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF).

A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL.

Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MARGIN. The difference between the market value of a
security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be
traded.

MATURITY. The final date upon which the principal of a
security becomes due and payable.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for
a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt
instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MORTGAGE-BACKED SECURITY. Debt obligations
that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property.

MORTGAGE-DERIVED INTEREST-ONLY STRIPS.

A financial product created by separating the interest and principal payments of a mortgage-backed security.

MORTGAGE PASS-THROUGH SECURITIES.

A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and
local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of
investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING
ORGANIZATION (NRSRO). A credit rating agency that
the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CD. A short-term debt instrument that pays
interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).
255
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 115 PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

RANGE NOTES. A structured investment where the coupon
is linked to the performance of a reference index
REPURCHASE AGREEMENT. Short-term purchases of
securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby
securities are held by the bank in the customer’s name.

SUPRANATIONAL. A Supranational is a multi-national
organization whereby member states transcend national
boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s
performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by
the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial
maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial
maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial
maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of
return on an investment which equates the expected cash flows from the investment to its cost.
256
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 116 Rate Development Policy
Background
San Diego Community Power (SDCP) advocates for ratepayers by providing a choice of electricity providers and shifting control of local energy decisions from profit-driven, incumbent utility into the hands of residents and businesses located in our service jurisdiction. This creates competition in rates that benefits customers, increased transparency and ensures a better overall customer experience.

Purpose
This policy provides the framework for SDCP’s Board of Directors and staff to ensure SDCP’s rate design, development and implementation process remains transparent, fiscally responsible and centered on the customer.

As a not-for-profit public agency, SDCP must, at a minimum, set rates to recover costs associated with debt service and the purchase of power and operational costs. It is in the best interest of SDCP and its customers to design and implement rates that meet revenue requirements as well as targeted reserves, while maintaining rate competitiveness, stability and long-term financial viability.

General Criteria
SDCP has established various objectives and priorities that shall be considered as part of SDCP’s rate design process. SDCP’s rate setting objectives are as follows:

1. Cost Recovery: rates must be sufficient to recover
all expenses, debt service and other expenditure
requirements.

2. Reserves: rates must be sufficient to build prudent
reserves in line with SDCP’s Reserve Policy, which will provide funds to cover unanticipated expenditures,
secure favorable terms with vendors, secure a standalone investment-grade credit rating and meet strategic objectives.

3. Rate Competitiveness and Customer Value:
rates must allow SDCP to successfully compete to retain and attract customers while offering superior electricity service offerings with higher renewable content compared to the incumbent investor-owned utility.

4. Rate Stability: rate changes should be minimized to
reduce customer bill impacts with a preference for annual rate adjustments. Additionally, a Rate Stabilization Fund may be established and over time sufficiently funded to help mitigate significant swings in rates.

5. Equity among customers: rate difference among
customers should be justified by differences in usage
characteristics and/or cost of service. Additionally, to the extent possible, rates shall be equalized from a value
proposition perspective among customers enrolled during different Power Charge Adjustment Indifference (PCIA)
Vintage Years.

6. Rate Structures: as new rates are developed,
emphasis shall be put on rate-design simplicity and
comparability as well as overall customer experience.

SDCP reserves the right to design pilot rates as reviewed and approved by the Board.

7. Transparency: SDCP’s Board will review and approve
rates at an open and public meeting held in accordance
with the Ralph M. Brown Act. SDCP shall post a copy
of the adopted rates in both English and Spanish on its website within 14 calendar days of approval or by the
rates’ effective date, whichever is sooner. SDCP shall also make any rate design documents promptly available upon
request under the California Public Records Act.

8. Cost Shifting: SDCP shall avoid, to the best of its
ability, cost shifting between customer classes.

9. Cost of Service: SDCP may explore a cost-of-service
model for rate design. Cost-of-service studies are used to determine the total costs incurred by a utility in providing service to its customers and the allocation of those costs through rates back to customer classes. Revenue collected from each customer class then may be compared with
that class’s cost responsibility to determine the extent to which each class is reimbursing the utility for the costs it incurred in providing service.
257
SAN DIEGO COMMUNITY POWER OPERATIONAL BUDGET FY 2026–2027 Financial Policies Attachment 1 117 SDCP's Rate Setting Timeline
SDG&E’s Energy Resource Recovery Account (ERRA) application is usually approved by the CPUC in December, which provides the trajectory of bundled service commodity rates including the above market costs and other fees1
that will be passed on from
SDG&E to all customers. Once the ERRA is approved, SDCP staff shall present proposed rates for the year to the Board in January of each year for review, deliberation and approval to be effective no later than February 15. With ever-changing market developments and regulatory climate, there may be instances where SDCP staff also proposes intra-year changes to rates.

To the greatest extent possible, SDCP’s rates will be competitive with SDG&E’s rates. With each SDG&E and SDCP rate change, both entities are required to work collaboratively to co-publish and post a Joint Rate Comparison on their respective websites to allow customers to easily see how rates compare.
1 Fees passed on by SDG&E to “departing load” customers such as SDCP include the Power Charge Indifference Adjustment (PCIA) and Franchise Fees. The PCIA is a charge to ensure that both SDG&E customers and those who have left SDG&E service to purchase electricity from other providers pay for the above market costs for electric generation resources that were procured by SDG&E on their behalf. “Above market” refers to expenditures for generation resources that cannot be fully recovered through sales of these resources at current market prices.

The Franchise Fee is a surcharge applied to electricity transported over SDG&E systems that are constructed in public streets and highways. SDG&E collects the surcharge from customers and remits them to the appropriate municipality. The surcharge is charged equally to customers regardless of who provides their electric generation.

The PCIA and the SDG&E commodity portion of the Franchise Fee are included within the generation rate of SDG&E’s standard bundled service. In other words, they are paid by all customers, regardless of who provides their electricity generation.

Implementation of SDCP's Rates
SDCP’s rate setting process is and will always be open and transparent to the public. SDCP’s Board of Directors, which is composed of a representative from each of its member agencies, will set rates according to agreed-upon strategic goals of SDCP and the cost of service.

Prior to the implementation of new rates, the Board will review and deliberate the proposed rates in a public setting and take comments from the public. Once the Board approves proposed rates, the rates will be published on SDCP’s website in advance of their effective date, giving customers time to compare, budget and better understand what to expect on their bills going forward.

For more information on SDCP’s rates, visit SDCommunityPower. org/billing-rates/residential-rates for residential rates or SDCommunityPower.org/billing-rates/commercial-rates for commercial rates.
258
ITEM 4

ATTACHMENT D
259
Resolution 2026-XX Proposed June 2026

SAN DIEGO COMMUNITY POWER
Capital Investment
Plan (CIP)
Fiscal Year
2027–2031
260
Contents
How to Use This Book 4
A Letter from the Chief Executive Officer 5
Capital Investment Plan Overview 8
Overview of San Diego Community Power 11
Who We Are 11
Our Story 11
How It Works 12
Governance and Structure 13
Organizational Structure 13
About the CIP 15
CIP Development Process 16
Core Strategic Goals 19
Community Engagement 21
Community Engagement Process 21
Capital Investment Areas 24
Investment Type Overview 24
Investment Type 1. Application Assistance 25
Investment Type 2. Disadvantaged Communities Green Tariff 26 Investment Type 3. Pilot Programs 27
Investment Type 4. Grant Programs 28
Investment Type 5. Building Electrification 29
Investment Type 6. Planning and Studies 30
Investment Type 7. Battery Energy Storage Systems 32
Investment Type 8. Demand Response 33
Investment Type 9. Energy Efficiency 34
Investment Type 10. Information Technology 35
Funding Guide 38
Internal vs. External Funding 38
External Sources 38
Budget Resolution 40
Acknowledgments 42
Finance Department 42
261
List of Figures
FIGURE 1. FY 2026–2027 CAPITAL BUDGET* 8
FIGURE 2. FY 2027–2031 CIP PROGRAMS AND PROJECTS* 9
FIGURE 3. CCAS IN CALIFORNIA 12
FIGURE 4. MEMBER AGENCIES 13
FIGURE 5. ORGANIZATIONAL STRUCTURE 13
FIGURE 6. CIP DEVELOPMENT PROCESS 16
FIGURE 7. COMMUNITY POWER PLAN COMMUNITY NEEDS ASSESSMENT 21 FIGURE 8. APPLICATION ASSISTANCE PROJECTS 25
FIGURE 9. DISADVANTAGED COMMUNITIES GREEN TARIFF PROJECTS 26 FIGURE 10. PILOT PROGRAMS PROJECTS 27
FIGURE 11. GRANT PROGRAMS PROJECTS 28
FIGURE 12. BUILDING ELECTRIFICATION PROJECTS 29
FIGURE 13. PLANNING & STUDIES PROJECTS 30
FIGURE 14. BATTERY ENERGY STORAGE SYSTEMS PROJECTS 32
FIGURE 15: DEMAND RESPONSE PROJECTS 33
FIGURE 16. ENERGY EFFICIENCY PROJECTS 34
FIGURE 17. INFORMATION TECHNOLOGY PROJECTS 35
262
How to Use This Book
The San Diego Community Power (Community Power) Fiscal Years (FY) 2027–2031 Capital Investment Plan (CIP) contains agency budgetary and fiscal policy information as well as detailed agency capital investment plans. The adopted Capital Investment Plan is organized into the following sections.

Executive Summary
Includes the Chief Executive
Officer’s Letter for the CIP and
provides a high-level overview
of the agency’s capital budget
and other high-level details
on specific projects and their
benefits to the community.

Capital Investment
Plan Overview
Describes the CIP in brief,
including summary tables that
reflect the operating transfer
into the CIP as well as the list of
projects planned for the next
five years.

Strategic Plan
Describes Community Power’s
strategic planning process and
board-adopted strategic goals that
provide the foundation for the
creation of the CIP.

Investment Types
Includes the 10 investment
types, projects and funding
segments that will be
delivered within the CIP.

Community
Engagement
Outlines the outreach process
to the community that provided
feedback and significant input
into project and program design.

Overview
Provides a high-level overview
of Community Power’s
governance, structure and
agency values and priorities.

Funding Guide
Explains sources that fund the
CIP as well as considerations
for future potential funding
sources that Community
Power can leverage to bolster
CIP funding amounts.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 How to Use This Book 4 263
A Letter from the
Chief Executive Officer
San Diego Community Power continues to invest in near-term affordability so we can deliver long-term value for our customers. We are advancing programs, infrastructure and tools that will expand access to clean energy this year and beyond.

Our approach is disciplined to ensure stability and flexible to ensure we remain competitive in an evolving and volatile energy market. We are intentional in how we allocate resources so we can equitably advance toward 100% renewable energy by 2035 through careful planning, testing and scaling investments over time. This phased and data-driven approach allows us to build a portfolio that strengthens reliability and delivers value to the communities we serve.

At the same time, we are building the financial strength necessary to sustain growth. Maintaining strong reserves, managing risk and leveraging innovation are core to our strategy. By combining internal resources with external funding opportunities, we are able to expand the reach and impact of our programs and maximize their benefits.

Many of the investments are intentionally structured to allow Community Power time to evaluate their performance and refine its approach to achieve success. This includes investments in customer pilot programs that encourage adoption among residential and commercial customers. It also includes the implementation of a Distributed Energy Resource Management System (DERMS), which integrates data from customer usage, market conditions and weather patterns to optimize resources and reduce costs.

We continue to grow Solar Battery Savings, our most successful program to date, by funding upfront and ongoing performance incentives for new battery energy storage systems. This supports grid reliability during peak demand and reduces long-term cost pressures while also strengthening the local workforce.

Community Power is also expanding our impact through the San Diego Regional Energy Network (SDREN) and its comprehensive portfolio of 10 new energy efficiency programs that will all be available for enrollment by the end of 2026. In partnership with San Diego County, SDREN provides hands-on assistance, technical support and low- to no-cost installations that help customers reduce their energy use and bills.

As Community Power’s impact grows, so will our reach. Community Power is currently the second-largest Community Choice Aggregator in the nation, serving nearly 1 million municipal, business and residential power customers in the cities of San Diego, Chula Vista, Encinitas, Imperial Beach, La Mesa and National City as well as the unincorporated communities in San Diego County. This year, the Coronado City Council voted unanimously to join Community Power.

Coronado residents and businesses could begin receiving service as soon as 2028. This growth reflects the trust that local communities place in us to deliver reliable, affordable service.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 A Letter from the Chief Executive Officer 5 264
Chief Executive Officer
San Diego Community Power
Looking ahead, our mission is clearly focused on affordability, fiscal resilience and advancing clean energy for all communities. Our strategic investments and careful planning help build a sustainable, adaptable and reliable future that is built to last.

With continued leadership from our Board of Directors, Community Advisory Committee and dedicated staff, Community Power is proud to deliver more affordable energy, strengthen our communities and build a cleaner, more resilient future for the San Diego region.

We thank our community for its continued trust and partnership.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 A Letter from the Chief Executive Officer 6 265
01 Capital Investment
Plan Overview
266
San Diego Community Power developed its first Capital
Investment Plan (CIP) for FY 2024–2028 and continues to grow it with the FY 2027–2031 CIP, which contains all the individual capital projects, major equipment purchases and major programs for the agency that are intended to span multiple years. The FY 2026–2027 budget proposes a one-time portion of net operating revenues be transferred 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. The figure below also outlines planned expenditures of funds that the Board previously approved, accepted and appropriated.

The CIP includes funding for local development feasibility studies, customer program pilot projects, community grants, Capital Investment Plan Overview
a customer education platform and other areas as outlined in the short- and medium-term program areas. Given the
number of planning and pilot projects, the Community Power CIP is largely funded by internal funding that allows maximum flexibility in the planning phase with designing programs and projects. This allows the agency to focus on designing based on community and agency needs rather than based on the
requirements requested by a funding agency. The planning phase of a program or project also requires less funding when compared with implementation or design and construction.

As Community Power builds reserve funds and endeavors to maximize impact, Community Power will leverage the CIP
to aggressively pursue external funding from sources such as state and federal agencies.

FIGURE 1. FY 2026–2027 CAPITAL BUDGET*
Carryforward1
FY27
Authorized Budget
FY27
Proposed Appropriation
Operating Transfer In 18.4 - 8.0
Regional Energy Network2 - 63.1 -
DAC-GT 0.3 0.3 -
Equitable Building Decarbonization 1.4 - -
Planning and Studies 0.7 - -
CIP Revenue 20.8 63.4 8.0
1 The Carryforward amount represents actual financial data through February 28, 2026. Carryforward amounts will be reconciled until the close of fiscal year 2025–2026.
2 The Regional Energy Network was fully appropriated for $124 million in January 2025 for Calendar Years 2024–2027 and funded programs will be available across SDG&E service territory.
*Amounts displayed in millions of dollars
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Capital Investment Plan Overview 8 267
FIGURE 2. FY 2027–2031 CIP PROGRAMS AND PROJECTS*
The first year of the CIP is appropriated as part of Community Power’s annual budget process and becomes the adopted capital budget for the fiscal year. The subsequent years of the CIP are planned expenses that are subject to Board approval during the annual budget process and are subject to change.

Beginning
Balance
Expenses Carryforward1 5-Year Budget
FY26 FY26 FY26 FY27 FY28 FY29 FY30 FY31 Total
External Funding
Regional Energy
Network

15.9 15.9 - 63.1 51.4 42.0 43.7 45.5 245.7
DAC-GT 0.5 0.2 0.3 0.3 - - - - 0.6
Equitable Building
Decarbonization

1.4 - 1.4 - - - - - 1.4
Planning and Studies 0.7 - 0.7 - - - - - 0.7
Subtotal 18.5 16.1 2.4 63.4 51.4 42.0 43.7 45.5 248.4
Internal Funding
Solar Battery
Savings

21.9 11.1 10.8 3.5 10.4 8.3 8.5 7.6 49.1
Pilot Programs 2.3 0.5 2.0 2.5 - - - - 4.5
Grants 1.5 0.2 1.3 - - - - - 1.3
Flexible Load 0.6 0.1 0.5 1.5 - - - - 2.0
IT Projects 3.7 0.5 3.2 0.2 - - - - 3.4
Planning and Studies 0.3 - 0.3 0.3 - - - - 0.6
Application
Assistance

0.3 - 0.3 - 0.3 - - 0.3 0.9
Subtotal 30.6 12.4 18.4 8.0 10.7 8.3 8.5 7.9 61.8
CIP Expense Total 49.1 28.5 20.8 71.4 62.1 50.3 52.2 53.4 310.2 *Amounts displayed in millions of dollars
1 The Carryforward amount reviews actual financial data through February 28, 2026 updated April 30. Carryforward amounts will be reconciled at the close of FY 2025–2026.
2 The Regional Energy Network was fully appropriated for $124M in January 2025 for Calendar Years 2024–2027. It is reflected in this table as anticipated spending by fiscal year.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Capital Investment Plan Overview 9 268
02 Overview of San Diego
Community Power
269
Overview of San Diego Community Power
Who We Are
San Diego Community Power is a Community Choice
Aggregator (CCA) that gives customers an option to power their homes and businesses with significantly higher levels of renewable power at competitive rates. Since 2021, Community Power has grown to serve nearly 1 million residential, business and municipal power customers in the cities of San Diego, Chula Vista, Encinitas, Imperial Beach, La Mesa and National City as well as the unincorporated communities of San Diego County.

Community Power is a not-for-profit public agency that
provides affordable clean energy and invests in its local communities to create an equitable and sustainable future for the San Diego region.

Learn more at SDCommunityPower.org.

Our Story
Through phased enrollment from
2021 through 2023, Community
Power gradually became the
official clean energy provider for
our member agencies. Customers
were automatically enrolled in
our service and received two
notices before and two notices
after enrollment.

With support from local
communities, Community Power
was established as a Joint Powers
Authority by five cities in the San
Diego region. Community Power
submitted an implementation
plan to the California Public
Utilities Commission, outlining the
intended organizational structure,
operations and funding. Once
approved, our Board of Directors
began meeting regularly, and
implementation activities began.

In 2020, a sixth municipality,
National City, and the County
of San Diego elected to join
Community Power.

FORMATION ENROLLMENT
2021–2023
TODAY
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Overview of San Diego Community Power 11 270
How It Works
About Community Choice
San Diego Community Power is one of 25 Community Choice Aggregators (CCAs) that serve a total of more than 15 million customers in California. The first CCA began service in 2010, and 25 CCAs are operating today.

FIGURE 3. CCAS IN CALIFORNIA
CCAs are making good on their commitments to invest in new renewable energy facilities throughout California.

To date, CCAs have contracted for more than 21,000
megawatts (MW) of new clean generation capacity through long-term power purchase agreements (PPAs) with terms of 10 years or more. CCA PPAs equate to:
• More than 21 gigawatts (GW) of new solar, wind, energy storage, geothermal and demand response resources
• Projects totaling more than 9,700 MW that are already operational and serving CCA customers
• Over $48.4 billion committed by CCAs to build and operate clean energy resources
• Support for more than 48,000 construction jobs
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Overview of San Diego Community Power 12 271
FIGURE 4. MEMBER AGENCIES
Governance and Structure
In September 2019, the cities of San Diego, Chula Vista, Encinitas, Imperial Beach and La Mesa adopted an ordinance and resolution to form San Diego Community Power, a
California Joint Powers Authority (JPA). National City and the County of San Diego voted to join Community Power in 2020.

Community Power’s Board of Directors is composed of an
elected representative from each member jurisdiction, with each member selecting an alternate from the agency they represent. The Board is publicly accountable to Community Power ratepayers and hosts monthly Board meetings, where it establishes policy, sets rates, determines power purchase options and maintains fiscal oversight. As a public agency, Community Power is designed to be fully transparent with all official meetings and information open or available to the public.

Organizational Structure
FIGURE 5. ORGANIZATIONAL STRUCTURE

CHIEF EXECUTIVE OFFICER
Karin Burns
LEGAL
General Counsel

OPERATIONS
Chief Operating Officer

FINANCE
Chief Financial Officer/
Treasurer
POWER

The Proposed 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. The proposed operating contribution supports the following investments:
$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 participating in battery discharges during on-peak dispatch windows to maximize benefits for the customer and the grid.
$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. $0.3 million, EV Load Growth Study — The Regional EV Load Analysis will forecast how growing EV adoption can impact electricity demand across Community Power’s service territory, including hourly load profiles, adoption scenarios and geographic variation. It will evaluate how different charging behaviors — especially unmanaged vs. managed charging — affect load shape, peak demand and system risks, with a focus on strategies (for example, time-of-use rates or managed charging) that can shift or mitigate EV-related peaks. Overall, the study aims to provide insights that support long-term planning, helping Community Power understand both the risks and opportunities of transportation electrification for load forecasting, Resource Adequacy and program design. $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 design and implement programs properly and efficiently. Additionally, pilot programs can cover all customer segments and a variety of technologies or activities, including managed charging for electric vehicles and energy efficiency.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 About the CIP 15 274
This CIP continues Community Power’s commitment to plan and finance programs and projects that align with community and organizational priorities. The programs and projects compose a list that gives Community Power the confidence to target a core set of investment types that focus on community needs. It also provides Community Power the flexibility to co-design programs with community partners and to be
responsive to external funding opportunities as they emerge.

Likewise, this list is not all-inclusive. Unexpected requirements often require adjustments in the design and execution process.

Projects, programs and funding are also subject to Board approval, consistent with the JPA and the agency’s internal policies and programs.

The capital budget and the CIP undergo a public outreach process comprising a wide range of stakeholder groups.

Additionally, the CIP is a dynamic document intended to be updated regularly as needs shift or fund availability changes.

All subsequent updates to the CIP will be brought to the Community Power Board for approval.

FIGURE 6. CIP DEVELOPMENT PROCESS
$0.2 million, IT Projects — Focused on Community Power’s commitment to fiscal stewardship and operational scaling, this project funds the optimization and expanded rollout of the agency’s central Enterprise Resource Planning (ERP) platform. While Phase 1 successfully established core budgeting functionalities, Phase 2 is being considered for strategic rescoping to prioritize immediate agency-wide operational controls and financial efficiencies. Once deployed, this phase will streamline cross-departmental workflows, enhance internal financial controls and automate routine processes. This targeted optimization ensures the finance, non-energy procurement team and broader agency possess the scalable infrastructure required to support expanding community programs and minimize administrative overhead.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 About the CIP 16 275
04 Strategic Planning
276
San Diego Community Power’s budgeting process, including its CIP, is directly informed by its strategic plan — a document co-created by the Board, Community Advisory Committee,
executive leadership and staff — that translates community priorities into actionable goals. The Strategic Plan serves as a critical management tool, aligning resources, guiding operational decisions and driving long-term organizational focus across all departments and initiatives.

Community Power is sharpening its focus on delivering long-term value to the communities it serves through affordability, transparency and disciplined growth. The next chapter of the agency’s work will be defined by measurable outcomes, including maintaining competitive rates, strengthening
financial resilience and advancing a cleaner, more renewable energy portfolio.

By reinvesting
locally, Community
Power strengthens
regional economies,
supports workforce
development and
expands access
to programs,
with a focus on
benefiting historically
underserved
communities.

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 About the CIP 18 277
Core Strategic Goals

SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 About the CIP 19 278
05 Community Engagement
279
Community Engagement Process
San Diego Community Power is a not-for-profit public agency that integrates community engagement directly into its decision-making and views outreach as a core function of governance. Through ongoing dialogue with customers, local leaders and regional partners, the agency ensures its budgeting reflects real-world priorities and evolving community needs. This approach reinforces our commitment to affordability while maintaining strong accountability for how public funds are managed. By grounding financial planning, including the development of the Capital Investment Plan (CIP), in community input, Community Power strengthens organizational stability, supports local economic opportunities and accelerates the transition to cleaner energy while delivering benefits to the communities it serves.

Community Engagement
Community Power Plan (CPP)
A key milestone shaping Community Power’s customer
engagement and investment strategies is the Community
Power Plan (CPP), adopted by the Board of Directors on May 25, 2023. The CPP provides strategic direction for customer energy program development over a five-year time frame and is instrumental in guiding CIP investments.

Community Power is committed to designing programs that are community driven, with a particular focus on uplifting Communities of Concern. The CPP was built through extensive outreach and partnership building, helping Community Power strengthen ongoing relationships with residents, community-based organizations and stakeholders across the region.

Between May and November 2022, Community Power
engaged more than 3,450 community members through
listening sessions, workshops, pop-up events and a customer-wide survey — prioritizing equity and reaching harder-to-engage populations. The CPP’s foundational community needs assessment shaped both short-term priorities and a longer-term framework for program evaluation and design.

Rather than treating outreach and partnership building as a one-time effort, the CPP established a foundation for ongoing dialogue and partnership between the agency and the
communities it serves — a commitment that continues through the CIP, program design and investments. This community-centered approach informs all areas of work, including public meetings, partnerships with local organizations and targeted outreach efforts to ensure clean energy opportunities are accessible, equitable and responsive to community needs.

FIGURE 7. COMMUNITY POWER PLAN COMMUNITY

NEEDS ASSESSMENT

ENGAGEMENT
METHOD
Estimated
Number
Engaged
Community-Based Organization
Co-hosted Listening Sessions (two rounds)
325
Business, Key Stakeholders and Public
Listening Workshops
325
Unincorporated San Diego County
Pop-up Events
100
Community Needs Survey 2,980
Total 3,450
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Community Engagement 21 280
Customer Information and Transparency
Clear, accessible information is essential in building trust with customers and supporting informed decision-making about service options. Community Power publishes an annual Joint Rate Comparison in coordination with SDG&E that allows
customers to easily evaluate pricing. The Power Content Label further reinforces transparency by providing a detailed look at the sources used for each service plan. In addition, Community Power’s website serves as a central resource for information, rebates, incentives and self-service tools.

These efforts create a strong, continuous feedback loop between the agency and the public, strengthening transparency, informing budget decisions and ensuring Community Power remains responsive, accountable and focused on delivering affordable, reliable and increasingly renewable energy solutions. 183 16,000 650,000 community
events
unique
interactions impressions
281
06 Capital Investment Areas
282
Investment Type Overview
Community Power’s investment types are designed to deliver measurable value to customers by improving affordability, enhancing reliability and expanding access to clean energy solutions. Each investment reflects the agency’s commitment to reinvesting public funds in ways that reduce costs over time, support rate stability and provide direct benefits to the communities it serves.

Guided by the Community Power Plan (CPP) and informed by ongoing community engagement, these investment types represent a coordinated portfolio of customer programs, infrastructure investments, pilot initiatives, planning efforts and enabling technologies.

Together, they support near-term customer benefits while advancing long-term system reliability, cost control and sustainability.

Community Power prioritizes disciplined, data-driven investments that can be refined, scaled and aligned with available funding over time. This flexible approach enables the agency to respond to changing market conditions, leverage external funding and incorporate emerging technologies while minimizing financial risk. By focusing on a defined set of high-impact investment types, Community Power ensures resources are used effectively to support long-term financial strength and deliver reliable, affordable and community-driven energy solutions.

Capital Investment Areas
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Capital Investment Areas 24 283
Investment Type 1. Application Assistance
Project Scope of Work Carryforward FY27
Commercial Application
Assistance Program
This initiative aims to support small and large
commercial and industrial customers in identifying
energy saving solutions and publicly available
funding programs that can help meet their needs
and goals. The program also provides project
management and grant support, if needed.
$250,000 -
Total $250,000 -
FIGURE 8. APPLICATION ASSISTANCE PROJECTS
Nonresidential Community Power customers may be eligible for energy savings opportunities through existing utility, state and federal funding programs. This program provides key customers in the commercial, industrial, agricultural and public sectors with a no-cost assessment of their business energy needs and identifies available funding opportunities that can support these needs.

Simplifying access to third-party energy savings programs reduces administrative burdens for nonresidential customers and streamlines the customer application process. By improving participation in existing programs, this initiative positions Community Power as a strategic partner to our key and priority nonresidential customers. The program brings additional energy resources and investments into the region, which helps retain customers in our service while lowering their utility bills.

Description Benefits
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Capital Investment Areas 25 284
Investment Type 2. Disadvantaged Communities Green Tariff Project Scope of Work Carryforward FY27
Disadvantaged
Communities Green Tariff
(DAC-GT)
Bring the benefits from local solar projects to
those who may not be able to install solar on their
roofs and offer a 20% bill discount to eligible
residential customers in state-defined disadvantaged
communities
$299,175 $300,000
Total $299,175 $300,000
FIGURE 9. DISADVANTAGED COMMUNITIES GREEN TARIFF PROJECTS The California Public Utilities Commission (CPUC)
Disadvantaged Communities Green Tariff (DAC-GT) program provides a 20% bill discount to income-qualified residential customers in underresourced communities who may be
unable to install solar on their roof. Community Power brands DAC-GT as Solar Advantage in public-facing materials. This investment supports outreach and enrollment through trusted local partners, helping build awareness of Solar Advantage and trust in Community Power among eligible customers in disadvantaged communities. Eligibility is determined by the CPUC, using the “CalEnviroScreen” tool to identify communities that are disproportionately burdened by or vulnerable to multiple sources of pollution.

DAC-GT provides equitable bill relief to low-income residents by overcoming ownership, structural, financial and linguistic barriers to clean energy access. The program is externally funded through CPUC-administered sources, allowing
Community Power to deliver savings and solar benefits without relying on internal funding.

Description Benefits
SAN DIEGO COMMUNITY POWER CAPITAL INVESTMENT PLAN FY 2027–2031 Capital Investment Areas 26 285
Investment Type 3. Pilot Programs
Project Scope of Work Carryforward FY27
Customer Pilot Programs Test program concepts and support the implementation of high-impact projects that
Community Power may be able to scale with more
funding.
$1,772,839 $2,500,000
Clean Energy Asset
Feasibility Study
This solar and storage feasibility study will assess
the technical, economic and environmental viability
of integrating solar generation and/or energy
storage into Community Power's service territory.

The project involves data collection and review,
technical analysis of potential solar locations and grid interconnection, economic modeling to assess costs
and savings, environmental impact assessment and
development of a preliminary implementation plan
with project size, timeline and cost estimates. The
final deliverables will include reports on technical
feasibility, economic analysis, environmental impact
and a preliminary implementation plan.
$225,088 -
Total $1,997,927 $2,500,000
FIGURE 10. PILOT PROGRAMS PROJECTS
Pilot Programs allow Community Power to test targeted energy solutions in real-world conditions before broader deployment.

San Diego Community Power Finance and Risk Management CommitteeJune 18, 2026

San Diego Community Power Finance and Risk Management Committee
June 18, 2026