Presentation — San Diego Community Power Finance and Risk Management Committee, September 17, 2026

2 Finance and Risk
Management Committee
Regular Meeting
September 17, 2026
3 Welcome and Call to Order
4 Roll Call
55 6
Land Acknowledgement
7 Items to be Withdrawn or
Reordered on the Agenda
8 Public Comment on non-Agenda Items
9 Consent
Calendar

1. Approve August 20, 2026, Meeting Minutes
10 Public Comment on Consent Calendar
11 Regular
Agenda

2. Treasurer’s Report for 12-Month Period
Ending June 30, 2026

3. Quarterly Risk Oversight Committee Report

4. Recommend Board Approval for a Contract
with Neighborhood National Bank for
Qualified Public Depository Services for the
Period September 24, 2026, through August
30, 2031, and Authorize the Acting Chief
Executive Officer to Execute the Contract
12 Item No. 2
Treasurer’s Report
for 12-Month Period
Ending June 30,
2026
Presenters:

Jeb Spengler, Associate Director of Strategic Finance & Procurement Dan Delaney, Chandler Asset Management
Recommendation: Receive and file Community
Power’s revisions to the existing Net Energy Metering
Tariff/Program (NEM) and to the existing Net Billing
Tariff (NBT) and Community Power’s establishment of
the new Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new customers who elect this and who have installed onsite generation on or after February 15, 2024 that qualifies for the tariff and for existing customers transitioning out of the
Virtual Net Energy Metering Tariff (VNEM) or the Net
Energy Metering Aggregation Tariff (NEMA) following
the conclusion and/or termination of their 20-year
VNEM or NEMA legacy period.

Recommendation:

Receive and File Treasurer’s
Report for 12-Month Period
Ending June 30, 2026
13 Unaudited results for the fiscal year ending
June 30, 2026:
• Operating Revenues = 5.5% below
budget*
• Operating Expenses = 8.8% below
budget
Totals for Fiscal Year End 2026:
• $1.11B in net operating revenues
• $934.7M in total expenses (including
energy costs of $885.8M)
• $176.0M change in net position
Financial Statement Highlights
Summary of Actual Results vs. Amended Budget
YTD FY26 as of 6/30/26
(12 months) FY26 YTD Budget Budget Variance ($) Variance (%) Net Operating Revenues $ 1,110,757,158 $ 1,175,419,000 $ (64,661,842) -5.50% Total Expenses $ 934,735,976 $ 1,025,009,000 $ (90,273,024) -8.81% Change in Net Position $ 176,021,182 $ 150,410,000 $ 25,611,183 Budget Comparison
$-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY26 Results v. Budget
YTD FY26 as of 6/30/26 (12 months) FY26 YTD Budget
*Operating Revenues do not include the Rate Stabilization Reserve Deferral of $115 million 14 Reserves
-
50 100
150
200
250
300
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026 3/31/2026 4/30/2026 5/31/2026 6/30/2026 DCOH 139 157 161 191 201 229 228 227 238 244 244 249
Maximum 270 270 270 270 270 270 270 270 270 270 270 270 Target 225 225 225 225 225 225 225 225 225 225 225 225
Minimum 180 180 180 180 180 180 180 180 180 180 180 180 Rolling 12-Months Days Cash on Hand (DCOH)
DCOH
Maximum
Target
Minimum
15 Reserves and Total Liquidity
Reserves are defined as unrestricted cash, cash equivalents, and investments unencumbered by legal agreements and not earmarked for specific purposes.

Unrestricted Cash,
$497,203,424
71%
Investments (Current),
$80,988,906
12%
Investments
(Non-Current)
$117,874,747
17%

RESERVES
696,067,077 223,000,000
$M $200M $400M $600M $800M $1000M
6/30/2026

LIQUIDITY
Total Cash & Investments Credit Agreement
16 FY26 Year-To-Date Investment Income
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
11/1/2025 12/1/2025 1/1/2026 2/1/2026 3/1/2026 4/1/2026 5/1/2026 6/1/2026 11/30/2025 12/31/2025 1/31/2026 2/28/2026 3/31/2026 4/30/2026 5/31/2026 6/30/2026 Accumulated Investment Income 6,521,057 8,205,810 10,120,219 12,911,528 13,253,348 15,440,702 16,972,947 19,131,854 Monthly Investment Income 1,678,943 1,684,753 1,914,409 2,791,309 341,820 2,187,354 1,532,245 2,158,907

INVESTMENT INCOME
Accumulated Investment Income
Monthly Investment Income
17 Quarterly Clean Energy Prepayment Bond Program Savings Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
2026C Rebate
2025D Rebate 518,678
2024F Rebate 451,563
2026C - -
2025D 290,970 892,712 872,506 882,609
2024F 789,845 1,231,065 1,231,622 1,218,793 884,961 732,483 -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Prepay Bond Program Savings
2024F 2025D 2026C 2024F Rebate 2025D Rebate 2026C Rebate 18 Participation by Jurisdiction
19 Rate Stabilization Reserve Determination
• $115 million set aside for rate stabilization reserve purposes from fiscal year 2025-26. • Represents a full 45 days cash on hand determination, as described in the Rate Stabilization Policy. • Based on FY 2025-26 fiscal year-end results and current reserve levels. • Net operating revenues of $1.11 billion reflect the $115.0 million deferral, to be recognized in a future fiscal year.
• Preserves financial flexibility and supports rate stability for customers. • Maintains compliance with the Financial Reserves Policy and overall liquidity targets. • The $115 million remains included in Days Cash on Hand and liquidity calculations for reporting available liquidity.
• Further detail to be presented at the October FRMC and Board meetings as part of the full-year FY26 financial review.
20 Year-End Financial Review Timing
• Full-year FY 2025-26 financial review is anticipated in October. • Review will include additional detail on year-end results, the rate stabilization reserve determination, and related reserve considerations.
• Staff will also present a report on supplemental budget appropriation amounts at the October FRMC meeting.
• That report will detail appropriation amounts identified during the FY 2025-26 year-end review and any budgetary actions requiring Committee consideration. 21 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 August.

Contract or Amendments: Not-to-Exceed Amount:

Agreement 2026-21
Communities for Global Sustainability - C4GS LLC $140,000.00

INVESTMENT REPORT
San Diego Community Power | As of June 30, 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 your qualified custodian. Please see Important Disclosures at the end of the statement. 22

TABLE OF CONTENTS

ECONOMIC UPDATE ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS TRANSACTIONS
23 ECONOMIC UPDATE
24 ฀
฀
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at

3.50%–3.75%, a notable shift from the 8–4 split at April’s meeting, which marked Jerome Powell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance. The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
25 ฀
-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-monthaverage (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 (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021.

Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

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

EMPLOYMENT
26 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

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%
Consumer Price Index (CPI)
CPI YOY % Change
CoreCPI YOY %
Change
YOY (%) Change
Inflation decelerated sharply in June, with the Consumer Price Index falling 0.4% on the month—its largest decline since the onset of the pandemic in 2020—and bringing the annual rate down to 3.5% from 4.2% in May. Core CPI (excluding food and energy) was flat on the month and rose 2.6% year over year, both coming in softer than expected after energy-driven pressures pushed inflation to a three-year high earlier in the quarter. The CPI report suggests at least a near-term reprieve in inflation. However, the latest available Personal Consumption Expenditures (PCE) price index tells a firmer story: headline PCE rose 0.4% in May and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE increased 0.3% on the month and 3.4% over the year. Energy prices remained the primary driver of recent headline acceleration, reflecting supply disruptions tied to the Iranian conflict, although price volatility remains elevated.

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

INFLATION
27 Source: Federal Reserve Source: Bloomberg
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Federal ReserveBalance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to

3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the April meeting—Jerome Powell’s last as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summary of Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4% in March, before easing to

3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at

3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemploymentrate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

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

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
USTreasury NoteYields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
USTreasury YieldCurve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal. The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowed to 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relative to the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
29 ACCOUNT PROFILE
30 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. 31 PORTFOLIO CHARACTERISTICS
San Diego Community Power ConsAgg | Account #11452 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.55 0.55
Average Modified Duration 0.46 0.47
Average Purchase Yield 3.70% 3.73%
Average Market Yield 3.73% 3.79%
Average Quality** AA+ AA+
TotalMarket Value 691,604,047 662,161,715
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 32 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of June 30, 2026 RulesName Limit Actual Complianc
e
Status
Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 1.9 Compliant
Max % Issuer (MV) 30.0 1.9 Compliant
Max Maturity (Years) 5.0 4.6 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 3.8 Compliant
Max % Issuer (MV) 5.0 0.2 Compliant
Max Maturity (Years) 5.0 4.6 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 25.8 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 36.0 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
33 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of June 30, 2026 RulesName Limit Actual Complianc e
Status
Notes
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max% (MV) 30.0 5.0 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 1.1 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 2.9 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max% (MV) 100.0 10.8 Compliant

MONEY MARKET MUTUAL FUNDS
Max% (MV) 20.0 0.1 Compliant
Max% Issuer (MV) 20.0 0.1 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
34 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of June 30, 2026 RulesName Limit Actual Complianc
e
Status
Notes
Max % (MV; ABS & MBS) 20.0 3.8 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 3.3 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 4.3 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 8.8 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
35 PORTFOLIO CHARACTERISTICS
San Diego Community Power | Account #11293 | As of June 30, 2026 Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.64 3.04 2.93
Average Modified Duration 2.46 2.55 2.51
Average Purchase Yield 4.13% 4.09%
Average Market Yield 4.16% 4.33% 4.02%
Average Quality** AA+ AA AA+
TotalMarket Value 125,351,435 124,884,349
*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. 36 SECTOR DISTRIBUTION
San Diego Community Power | Account #11293 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 48.69% 55.53%
Corporate 27.69% 23.61%
Agency CMBS 10.80% 10.46%
ABS 10.31% 7.52%
Supras 0.78% 0.79%
Agency 0.72% 0.73%
Muni Bonds 0.70% 0.71%
Money Mkt Fd 0.30% 1.44%
Cash 0.00% -0.80%
37 QUALITY DISTRIBUTION
San Diego Community Power | Account #11293 | As of June 30, 2026 S&P Rating Moody’sRating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 9.30% 8.11%
AA 68.22% 69.51%
A 17.41% 16.12%
BBB 2.05% 2.06%
A-1+ -- 2.39%
NA 3.01% 1.81%
Rating 06/30/2026 03/31/2026
Aaa 8.47% 6.65%
Aa 67.70% 69.16%
A 18.75% 17.28%
P-1 -- 2.39%
NA 5.08% 4.52%
Rating 06/30/2026 03/31/2026
AAA 17.10% 15.32%
AA 58.91% 63.22%
A 9.83% 8.73%
F1+ -- 2.39%
NA 14.16% 10.33%
38 DURATION DISTRIBUTION
San Diego Community Power | Account #11293 | As of June 30, 2026 Portfolio Compared to the Benchmark
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 0.9% 0.0% 10.0% 25.0% 23.7% 30.4% 10.0% 0.0% 0.0% ICE BofA 1-5 YearUnsubordinated US Treasury
& Agency Index 0.0% 0.0% 2.5% 36.2% 28.4% 20.6% 12.3% 0.0% 0.0% 39 INVESTMENT PERFORMANCE
San Diego Community Power | Account #11293 | As of June 30, 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 0.39% 3.10% 3.47%
Benchmark 0.24% 2.71% 3.05%
*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 40 PORTFOLIO CHARACTERISTICS
San Diego Community Power Reporting | Account #11451 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.60% 3.65%
Average Market Yield 3.60% 3.73%
Average Quality** AAA AAA
TotalMarket Value 566,252,611 537,277,366
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 41 SECTOR DISTRIBUTION
San Diego Community Power Reporting | Account #11451 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
Collateralized Bank Deposit 43.98% 43.32%
Placement Service Deposit 31.56% 32.94%
LAIF 13.24% 13.96%
Cash 7.66% 7.92%
LGIP 3.56% 1.86%
42 43
Public Comment on
Item No. 2
44 Item No. 2
Committee Members
Comments or
Questions
Recommendation:

Receive and File Treasurer’s
Report for 12-Month Period
Ending June 30, 2026
Treasurer’s Report for
12-Month Period
Ending June 30, 2026
45 Item No. 3
Quarterly Risk
Oversight
Committee Report
Presenters:

Tim Manglicmot, Senior Director of Finance and Risk
Diana Gonzalez, Risk Manager
Recommendation: Receive and file Community Power’s
revisions to the existing Net Energy Metering
Tariff/Program (NEM) and to the existing Net Billing Tariff (NBT) and Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net Billing Tariff Aggregation (NBT-A) for all new customers who elect this and who have installed onsite generation on or after
February 15, 2024 that qualifies for the tariff and for existing customers transitioning out of the Virtual Net Energy Metering Tariff (VNEM) or the Net Energy Metering Aggregation Tariff (NEMA) following the conclusion and/or termination of their 20-year VNEM or NEMA legacy
period.

Recommendation:

Receive and File Quarterly
Risk Oversight Committee
Report
46 Risk Management Approach
Enterprise
Risk
Management
Bolstered risk management team
composed of representatives from the
Community Power’s senior leadership
and business units
Multi-Department
Risk Team
cQuant.io provides several price
simulation models that consume
internal data combined with the most
up-to-date market data available to
generate financial projections.
cQuant Energy
Risk Management
Used APPA risk framework to
proactively identify, assess, respond,
communicate, and monitor risks and
threats to Community Power.

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

Risk Consultant
Onboarded
47 Energy Risk Management Policy (ERMP)

1.3 FRMC may periodically
recommend policy updates to
the Board.

7.2 Review and recommend
approval of substantive changes
to this Policy

7.3 No less than once per
quarter, (the ROC shall) provide
a report to the FRMC

7.3 Gross policy violations shall
be reported to the FRMC
48 Six Dashboard Modules
M1: Portfolio & Market Position
M4: Regulatory & Legislative
M2: Liquidity & Reserves M3: Counterparty & Credit
M5: Operations M6: Governance & Exceptions
Open positions, MTR/compliance,
congestion
Cash position, reserve targets, scenarios,
budget
Credit exposure, collateral, thresholds
Proceedings, PCIA, advocacy PPA performance, load forecast, Back Office, Pipeline
Policy compliance, violations,
remediation
What's our market exposure?
What external rules constrain us?
Did we execute as expected?
(Settlements + Development
Pipeline)
Are controls working?
Any problems?
Can we handle it financially? Who are we exposed to?
49 Six Dashboard Modules
M1: Portfolio & Market Position
M4: Regulatory & Legislative
M2: Liquidity & Reserves M3: Counterparty & Credit
M5: Operations M6: Governance & Exceptions
Open positions, MTR/compliance,
congestion
Cash position, reserve targets, scenarios,
budget
Credit exposure, collateral, thresholds
Proceedings, PCIA, advocacy PPA performance, load forecast, Back Office, Pipeline
Policy compliance, violations,
remediation
What's our market exposure?
What external rules constrain us?
Did we execute as expected?
(Settlements + Development
Pipeline)
Are controls working?
Any problems?
Can we handle it financially? Who are we exposed to?
ROC Module 2
discussed
previously
50 Reserves and Total Liquidity
Reserves are defined as unrestricted cash, cash equivalents, and investments unencumbered by legal agreements and not earmarked for specific purposes.

Unrestricted Cash,
$497,203,424
71%
Investments (Current),
$80,988,906
12%
Investments
(Non-Current)
$117,874,747
17%

RESERVES
696,067,077 223,000,000
$M $200M $400M $600M $800M $1000M
6/30/2026

LIQUIDITY
Total Cash & Investments Credit Agreement
Previously discussed
Reserves in Dec 2025
51 Reserves
-
50 100
150
200
250
300
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026 3/31/2026 4/30/2026 5/31/2026 6/30/2026 DCOH 139 157 161 191 201 229 228 227 238 244 244 249
Maximum 270 270 270 270 270 270 270 270 270 270 270 270 Target 225 225 225 225 225 225 225 225 225 225 225 225
Minimum 180 180 180 180 180 180 180 180 180 180 180 180 Rolling 12-Months Days Cash on Hand (DCOH)
DCOH
Maximum
Target
Minimum
Reserve
Targets
52 Risks to Community Power Stability

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

3. Other (Cybersecurity, Force Majeure)
Bottom-Up Risk Analysis
Category Risk Estimate of Adverse
Outcome
Market Price Benchmark Volatility* PCIA & Generation Rate “SNAPBACK” $420 million Energy Costs* Wholesale, Load and Open Position Volatility $245 million Load* Participation Rate Drops to 86% $51 million
Uncollectibles* Increase in uncollectibles to 5% $36 million Prepay Savings Loss Prepay savings loss to unforeseen event $12 million Operations Legal Loss $5 million
Operations Force Majeure or Cybersecurity Event $2 million Total $771 million
(Approx. 278 DCOH)
* Risk categories may fluctuate marginally due to changes in market conditions 53 Reserves and Total Liquidity
Reserves are defined as unrestricted cash, cash equivalents, and investments unencumbered by legal agreements and not earmarked for specific purposes.

Unrestricted Cash,
$497,203,424
71%
Investments (Current),
$80,988,906
12%
Investments
(Non-Current)
$117,874,747
17%

RESERVES
696,067,077 223,000,000
$M $200M $400M $600M $800M $1000M
6/30/2026

LIQUIDITY
Total Cash & Investments Credit Agreement
We have not
done a deep dive
on liquidity
54 Six Dashboard Modules
M1: Portfolio & Market Position
M4: Regulatory & Legislative
M2: Liquidity & Reserves M3: Counterparty & Credit
M5: Operations M6: Governance & Exceptions
Open positions, MTR/compliance,
congestion
Cash position, reserve targets, scenarios,
budget
Credit exposure, collateral, thresholds
Proceedings, PCIA, advocacy PPA performance, load forecast, Back Office, Pipeline
Policy compliance, violations,
remediation
What's our market exposure?
What external rules constrain us?
Did we execute as expected?
(Settlements + Development
Pipeline)
Are controls working?
Any problems?
Can we handle it financially? Who are we exposed to?
ROC Module 3 is
where liquidity
matters
55 What is our portfolio worth today — and how bad could it get over time? Module 3: Counterparty and Credit asks:

What Module 3 Answers
Current Snapshot
Mark to Market (MtM)

DEFINITION
Present fair value of all open contracts at
today's forward prices. Unrealized gain or
loss if entire portfolio closed today.

WHY IT MATTERS
Real-time scorecard on portfolio health.

Foundation for measuring counterparty
credit exposure.

MtM at 5th Percentile — Forward
Potential Future Exposure (PFE)

DEFINITION
Stress case estimate of how large MtM
exposure could become over remaining
contract life. PFE is to MtM what VaR is to
the open position.

WHY IT MATTERS
Drives credit limits, collateral requirements,
and SDCP's own collateral posting
obligations.

Exposure Tiers
Credit, Collateral & Lockbox

DEFINITION
Credit = total potential loss on default.

Collateral = liquid subset posted (cash,
LOC).

Gap = unsecured exposure.

Lockbox = counterparty has direct access to
SDCP revenue.

WHY IT MATTERS
Not all exposure is equal. Collateralized =
recoverable. Unsecured = at risk. Lockbox =
SDCP liquidity exposure.
56 Module 3: Counterparty and Credit asks:

Market Risk vs. Credit Risk
Two distinct risks — managed differently, but connected through reserves CONNECTION: Market moves create the exposure that becomes credit risk · Credit losses drain reserves just like adverse market moves

MARKET RISK
"Am I overpaying or underpaying for power?"
Measured by: MtM (positive or negative)
Managed by:
• Hedging strategy
• Open position limits
• Reserve adequacy
Reported in: Module 1

CREDIT RISK
"Will my counterparty perform on the contract?"
Measured by: Credit Exposure (always a potential loss)
Managed by:
• Collateral requirements
• Lockbox structure
• Credit limits & monitoring
Reported in: Module 3 (this deck)
57 Module 3: Counterparty and Credit asks:

What Is Mark to Market (MtM)?
Market to Market (MtM) presents fair value of all open contracts at today's forward prices. Unrealized gain or loss if entire portfolio closed today
ANALOGY: You signed a lease at $2,000/mo. Today identical apartments rent for $2,500. Your lease is "in the money" by $500/mo × remaining months.

Key Points
Unrealized MtM is a paper gain/loss — not cash in hand. It changes every day as forward prices move.

Positive MtM SDCP's contracts are below market (favorable). SDCP has credit risk — counterparty might not deliver.

Negative MtM SDCP's contracts are above market (unfavorable). Counterparty has credit risk — SDCP might not pay.

Tracked by contract SDCP monitors MtM for each individual contract, not just the aggregate portfolio. 58 Module 3: Counterparty and Credit asks:

MtM Example: Prices Fall — Counterparty Has Credit Risk Credit risk in energy contracts flows in BOTH directions — it depends on where market prices are relative to the contract price
MtM tells you who has credit risk to whom. Positive MtM = SDCP has credit risk. Negative MtM = counterparty has credit risk to SDCP.

PRICES FALL (below contract price)
Counterparty has credit risk to SDCP
The counterparty has a valuable contract (selling above market).

If SDCP defaults, they lose that premium revenue.

Counterparty demands:
• Collateral from SDCP, OR relies on lockbox waterfall
priority
SDCP's risk here is market risk (overpaying), not credit risk.

PRICES RISE (above contract price)
SDCP has credit risk to counterparty
SDCP has below-market contracts. If counterparty defaults, SDCP must replace at higher market price.

SDCP demands:
• Collateral from counterparty, OR 2-way lockbox call
Counterparty's risk here is market risk (selling below market). 59 Module 3: Counterparty and Credit asks:

MtM Example: Prices Fall — Counterparty Has Credit Risk Both contracts are above market — negative MtM. This is market risk for SDCP (overpaying). XY&Z at $55 is deeper in the money for the counterparty.

The counterparties have credit risk — they have valuable contracts and need assurance SDCP will keep paying.

ABC Energy: Protected by lockbox waterfall — gets paid first from SDCP revenue.

XY&Z Power: MtM of $3.6M is below $5M threshold — no collateral call yet, but approaching.

SCENARIO: SP15 forward drops to $30/MWh (market falls below both contract prices) Counterparty Type Contract $/MWh Volume (MWh/yr) MtM (Annual) ABC Energy Lockbox $45 72,000 ($1,080,000)
XY&Z Power Non-Lockbox $55 144,000 ($3,600,000)
What this means:
60 Module 3: Counterparty and Credit asks:

MtM Example: Prices Rise — SDCP Has Credit Risk
Both contracts are below market — positive MtM. This is favorable, but creates credit risk for SDCP.

Note: Despite different contract prices and volumes, both show +$1.44M annual MtM — ABC's larger price gap ($20/MWh) is offset by its smaller volume.

ABC Energy: Lockbox provides structural protection; SDCP can also make 2-way collateral calls.

XY&Z Power: MtM of $1.44M is below $5M threshold — no collateral call yet. SDCP monitors closely.

SCENARIO: SP15 forward rises to $65/MWh (market rises above both contract prices) Counterparty Type Contract $/MWh Volume (MWh/yr) MtM (Annual) ABC Energy Lockbox $45 72,000 +$1,440,000
XY&Z Power Non-Lockbox $55 144,000 +$1,440,000
What this means:
61 Module 3: Counterparty and Credit asks:

What Is Credit Exposure?
Credit Exposure = total potential loss on counterparty default = Current MtM + Potential Future Increase (PFE)
TOTAL CREDIT EXPOSURE (MtM + PFE)
COLLATERALIZED Covered by cash / LOC
LOCKBOX Revenue priority protection
GAP UNSECURED EXPOSURE — this is what the ROC
should focus on
What you could lose
62 Module 3: Counterparty and Credit asks:

Collateral: How It Works
Collateral is liquid security (cash or Letters of Credit) posted by one party to the other when credit exposure exceeds an agreed threshold.

Collateral Threshold
The amount of unsecured exposure
tolerated before collateral posting is
required.

Example: $5M threshold means no
collateral is needed until MtM
exceeds $5M.

May be bilateral (same both ways) or
asymmetric.

How Posting Works
When |MtM| exceeds threshold:

Collateral Call = |MtM| –
Threshold
The "out of the money" party posts
collateral to the other. Returned as
MtM moves back within threshold.

Bilateral = Both Directions
Collateral flows BOTH ways:

Prices rise → counterparty posts to
SDCP
Prices fall → SDCP posts to
counterparty
Lockbox contracts also allow 2-way
collateral calls.
63 Module 3: Counterparty and Credit asks:

Collateral Example — Both Directions
Consider the non-lockbox counterparty XY&Z Power. SDCP has executed a deal with them for 144,000 MWh at $55/MWh. They have a collateral threshold of $5,000,000 The threshold absorbs normal market volatility. Collateral only kicks in under larger moves.

PRICES RISE TO $90/MWh
MtM = ($90 – $55) × 144,000
= +$5,040,000 for SDCP
Exceeds $5M threshold by $40,000
XY&Z must post $40,000
to SDCP as collateral
At $100/MWh: MtM = $6.48M → collateral call = $1.48M
PRICES FALL TO $10/MWh
MtM = ($10 – $55) × 144,000
= ($6,480,000) for SDCP
Exceeds $5M threshold by $1,480,000
SDCP must post $1,480,000
to XY&Z as collateral
Ties up SDCP cash — impacts liquidity
64 Module 3: Counterparty and Credit asks:

Why Collateral Matters for CCA Liquidity
Collateral posting ties up cash or credit facility capacity. For a CCA like SDCP — with rates set at or below SDG&E parity — cash is precious.

This is why SDCP created the lockbox mechanism — to provide counterparty protection through revenue structure rather than cash collateral. With SDCP's new credit rating, counterparties may accept higher unsecured thresholds on newer contracts.

Cash drag Posted collateral can't be used for operations, procurement, or reserves LOC capacity Letters of Credit consume bank credit facility lines — limited and costly Stress amplification When markets move sharply (exactly when cash is most needed), collateral calls increase Opportunity cost Capital locked in collateral can't earn returns or fund growth 65 Public Comment on
Item No. 3
66 Item No. 3
Committee Members
Comments or
Questions
Recommendation:

Receive and File Quarterly Risk
Oversight Committee Report
Quarterly Risk
Oversight Committee
Report
67 Item No. 4
Recommend Board
Approval for a Contract with
Neighborhood National
Bank for Qualified Public
Depository Services for the
Period September 24, 2026,
through August 30, 2031,
and Authorize the Acting
Chief Executive Officer to
Execute the Contract
Presenter:

Jeb Spengler, Associate Director of Strategic Finance & Procurement
Recommendation: Receive and file
Community Power’s revisions to the existing
Net Energy Metering Tariff/Program (NEM)
and to the existing Net Billing Tariff (NBT) and
Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new
customers who elect this and who have
installed onsite generation on or after
February 15, 2024 that qualifies for the tariff
and for existing customers transitioning out of
the Virtual Net Energy Metering Tariff (VNEM)
or the Net Energy Metering Aggregation Tariff
(NEMA) following the conclusion and/or
termination of their 20-year VNEM or NEMA
legacy period.

Recommendation:

Recommend Board approval for a contract
with Neighborhood National Bank for
Qualified Public Depository Services
(“Agreement”) for the period September 24,
2026, through August 30, 2031, and authorize
the Acting Chief Executive Officer to execute
the Agreement
68 Community Banking Solicitation: Background
• RFP No. 26-012, Community Banking & Qualified Depository Services, was issued to establish a qualified public depository relationship with a community-based financial institution • Objective: safely hold public funds while directing deposits to institutions serving communities within Community Power's service territory
• Scope was intentionally limited to deposit placement and related depository banking services o Excluded investment management, investment advisory services, and discretionary authority over Community Power funds
• Publicly advertised May 19 through June 19, 2026, resulting in seven proposals from qualified financial institutions • Proposals evaluated by a cross-functional panel against the criteria established in the RFP 69 Community Banking Selection: Neighborhood National Bank $15M
Max deposits authorized
5 yrs
Agreement term
$0
Anticipated banking fees
Selection Criteria & Recommendation
• Neighborhood National Bank (a Community Development Financial Institution, or “CDFI”) ranked highest after interviews • Selection criteria included: Background & Experience, capacity, technical services and deposit service capabilities, community banking approach, implementation plan, fees, and local
employment/community footprint.
• Five-year community banking and qualified public depository services agreement
• Authorize Acting CEO to execute; deposits not to exceed $15 million Community Impact
• Advances local community banking objectives and prudent stewardship (100% FDIC insurance coverage and collateralization requirements; competitive interest rates)
• Deposits stay local, funding small business, affordable housing and nonprofit lending in San Diego communities
• CDFI mission focus directs capital to low- and moderate-income and historically underbanked neighborhoods
• Local depository relationship reinforces our equity commitments and deepens community trust in public funds
70 Public Comment on
Item No. 4
71 Item No. 4
Committee Members
Comments or
Questions
Recommendation:

San Diego Community Power Finance and Risk Management CommitteeSeptember 17, 2026

San Diego Community Power Finance and Risk Management Committee
September 17, 2026