Presentation — San Diego Community Power Finance and Risk Management Committee, October 15, 2026

2 Finance and Risk
Management Committee
Regular Meeting
October 15, 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7 Items to be Withdrawn or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 September 17, 2026, Meeting
Minutes

2. Approve 2027 Finance and Risk
Management (FRMC) Committee
Meeting Schedule
10 Public Comment on Consent Calendar
11 Regular
Agenda

3. Fiscal Year End 2025-26 Financial Audit
Progress Report Presentation

4. Treasurer’s Report for One-Month Period
Ending July 31, 2026

5. Fiscal Year 2025-2026 Financial Year End
Review
12 Item No. 3
Fiscal Year 2025-2026
Financial Year End Review
Recommendation:

Receive and File Fiscal Year End 2025-26
Financial Audit Progress Report Presentation
Presenters:

Jannies Burlingame, Chief Financial Officer/Treasurer
Kellin Gilbert, Audit Partner, Sorren
Alauna Rico, Audit Supervisor, Sorren
13 sorren.com
San Diego Community Power
Finance & Risk Management Committee
October 15, 2026
14 Introduction
Kellin Gilbert, CPA
Audit Partner
• 18 years in public accounting,
performing audits of government
entities
• Currently working with several
CCAs throughout California
Alauna Rico
Audit Supervisor
• 5 years in public accounting,
performing audits of governments
(CCAs)
15 Update for Ongoing Audit
The 2026 audit is currently underway. Fieldwork has commenced, and we are awaiting the draft financial statements. Based on the work completed to date, we currently anticipate reporting the following:
• Unmodified opinion – Based on our audit, the financial statements are materially accurate.
• No significant deficiencies or material weakness in internal control noted. 16 Relative Roles and Responsibilities
Management
Responsible for preparing the financial statements and establishing a system of internal control.

Auditor
Responsible for auditing the financial statements including:
• Considering risks of material misstatement
• Considering internal controls relevant to the financial statements • Performing tests of year-end balances based on risk assessment • Evaluating adequacy of disclosures
Shared objective

MANAGEMENT
Prepares the financial statements and maintains internal control
FY 2026
Financial
statements

AUDITOR
Independently audits and reports on the statements
17 Risk Assessment
Our audit is a risk-based audit. Risk assessment procedures include:
1 Understand the entity
Gain understanding of Community Power’s operating characteristics, practices, and procedures.
2 Benchmark
Compare to our knowledge of similar entities, industry, and professional guidance. 3 Evaluate controls
Review procedures and controls surrounding significant transaction cycles and business processes.
18 Significant Audit Areas of Focus
Revenue recognition – accounts receivable
and accrued revenue
• Test a sample of customer billings
• Relate total cash received during the year to revenue • Review revenue recognition through year-end and method for determining accrued revenue
Cash and investments
• Confirmations sent to financial institutions
Accrued cost of electricity
• Review subsequent bills from electricity providers
• Review related cash payments
Advances from grantors
• Reviewed the grant funding schedule and supporting
documentation
• Vouching selected transactions to supporting documentation 19 Required Board Communications
• No alternative treatments of accounting principles for material items in the financial statements have been discussed with management.
• We are not expecting to propose any adjustments to the financial statements. • We have not identified any significant or unusual transactions or applications of accounting principles where a lack of authoritative guidance exists. • There have been no disagreements with management concerning the scope of our audit, the application of accounting principles, or the basis for management’s judgments on any significant matters.
• We have not encountered any difficulties in dealing with management during the performance of our audit.
20 Kellin Gilbert
Partner
[email protected]
(707) 577-1511
sorren.com
21 Public Comment on
Item No. 3
22 Item No. 3
Committee Members
Comments or Questions
Recommendation:

Receive and File Fiscal Year End 2025-26
Financial Audit Progress Report Presentation
23 Item No. 4
Treasurer’s Report for
One-Month Period
Ending July 31, 2026
Recommendation:

Receive and File Treasurer’s Report for One-Month Period Ending July 31, 2026 Presenter:

Jannies Burlingame, Chief Financial Officer /Treasurer
24 Financial Statement Highlights – Executive Summary
110.7

86.6 24.1

17.8 125.6

98.7 26.9

20.3 -

20.0 40.0

60.0 80.0
100.0
120.0
140.0
Net Operating
Revenues
Total Operating
Expenses
Operating Income
(Loss)
Net Change in Net
Position
$ Millions
Operating Fund: Budget vs. Actual
YTD Budget ($M) YTD Actual ($M)
• Net Operating Revenues: $125.6M vs. $110.7M budget —
+$14.9M (+13.4%) on higher summer ratepayer revenue and lower NEM payments from expanded Super-Off Peak hours.
• Total Operating Expenses: $98.7M vs. $86.6M budget —
+$12.1M (+13.9%), driven by Cost of Energy ($94.6M vs.
$82.1M, +15.2%) on the same higher summer load.
• Operating Income: $26.9M vs. $24.1M budget — +$2.8M
favorable.
• Net Position: +$20.3M for the month; total net position $695.0M as of July 31, 2026.
• Reserves & Liquidity: $716.6M unrestricted cash and
investments — ~282 days cash on hand, above the 225-day target and 180-day minimum, including the $115.0M Rate
Stabilization Reserve.
25 Operating Fund Analysis
Operating Fund budgetary comparison for the one-month period ended July 31, 2026, shown with the FY 2026-27 Annual Budget and remaining budget capacity.

Line Item Variance vs. Budget % of YTD
Budget
Driver
Gross Ratepayer Revenues +$15.1M favorable 113% Higher-than-forecast summer retail energy sales Cost of Energy $12.5M over 115% Moves with the higher ratepayer sales volume Professional Services & Consultants $0.5M under 74% Timing of contract utilization early in the fiscal year Personnel Costs $30,451 under 98% Normal vacancy and accrual timing General & Administrative $186,917 over 152% Other G&A and Insurance Investment Income $341,249 under 82% Portfolio duration positioning 26 Financial Reserves
-
50 100
150
200
250
300
Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Days Cash on Hand (DCOH)
DCOH DCOH (Rate Stabilization) Maximum Target Minimum
Unrestricted
Cash
499.4
Investments —
Current

82.5 Investments —
Noncurrent
134.7
Reserve Composition (in Millions)
27 Investment Portfolio Report
Chandler Asset Management manages Community Power’s long-term investment portfolio Highlights for the investment period ending July 31, 2026, are as follows:
• Average Portfolio Investment Duration: 2.54 years.
• Average Purchase Yield: 4.19% (Yield to Maturity).
• Average Credit Quality: AA+ credit rating, compliant with investment policy. • Top Holdings: U.S. Treasuries 47.28% and Freddie Mac 11.19%; all other at or below 1.29%. • Account Activity: Market value grew month over month on a $20.0 million contribution plus income earned. 28 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
Varonis cybersecurity subscriptions for Microsoft 365, Managed Data Detection and Response (MDDR), Copilot, and AWS $73,793.76 29 Capital Investment Program Fund • Scope: FY 2027-31 CIP covers multi-year, one-time capital projects, major equipment,
and major programs.
• Focus areas: Local development feasibility
studies, customer program pilots, member
agency and community grants, and a
customer education platform.
• Details of $8M FY 2026-27 operating fund
transfer: – $3.5M — Solar Battery Savings – $2.5M — Customer Pilot Programs – $1.5M — Flexible Load Strategy (DERMS software platform)
– $0.3M — Regional EV Load Analysis – $0.02M — IT projects 30 Public Comment on
Item No. 4
31 Item No. 4
Committee Members
Comments or Questions
Recommendation:

Receive and File Treasurer’s Report for One-Month Period Ending July 31, 2026 32 Item No. 5
Fiscal Year 2025-2026
Financial Year End Review
Recommendation:

Review the Community Power Fiscal Year
2025-2026 Financial Year-End Review and
reserve outlook and designation of $115 Million
Fiscal Year rate stabilization reserve deferral
and take the following action:

Tim Manglicmot, Senior Director of Finance and Risk
Will Weisman, Associate Director of Finance CIP
33 FYE 2025-26 Review
Long-Term PPAs
13 utility scale PPAs and four local
PPAs for 1.6 GW of renewable
energy, enough to power nearly
800,000 homes.

Battery Storage
16 utility scale contracts for
battery storage (~1.9 GW) that
can cover almost 500,000
homes at peak usage.

Deepest Discount
PowerOn electricity generation rates with
a 4% value proposition and PowerBase
electricity generation rates with a 10%
value proposition compared to SDG&E
Major Programs
Solar Battery Savings provides incentive to
single-family residences that installed
solar power/battery storage. SDREN offers
10 energy efficiency programs.

Infrastructure Growth
Information technology, enterprise data
platform, policy review and updates,
standard operating procedures, brand
recognition and web design.

Personnel
Continuing to build core team, focus on
retention, continuity and succession
plans, and building an institutional
culture of managerial best practices.

FY 2025-26
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 34 FYE 2025-26 Review
Balanced Budget
Achieved balance budget and non-operating expense savings with resulting net position of $176.0 million.

Rate Stabilization Reserve
Fully funded rate stabilization
reserve by adding $115 million or 45-
days cash on hand.

CIP Carryforward
Solar Battery Savings and SDREN ramp up
with $26.2 million in remaining CIP
carryforward positioning programs well for
future growth.

Max Reserve Balance
Achieved maximum reserve balance by
growing reserves to 274-days cash on
hand based on FY 2026-27 operating
expenses.

FY 2025-26
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 35 FY 2025-26
Operating
Budget Review
36 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
+$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 37 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
+$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 38 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Rate Stabilization Transfer
Deferred to use in future fiscal years
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
39 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Rate Stabilization Transfer
1,110.8
+ 115.0
1,225.8
Net Revenue
Net Revenue
with Rate
Stabilization
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
40 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - - -
Net Revenue 1,175.4 1,225.8 50.4
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
41 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - - -
Net Revenue 1,175.4 1,225.8 50.4
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
How did
Community Power
collect $50.4
million more in net
revenue?
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
42 Highlights of SDG&E General Rate Case Phase 2 Rate Changes • Creates a new Medium Commercial customer class for
customers with demand between 20-200 kW.
• Impacts SDG&E generation and PCIA rates.

New Medium
Commercial Customer
Class (effective 4/1)
• Updates on how the revenue requirement is collected
from the customer classes.
• Better aligns with cost of service.
• Impacts SDG&E generation and PCIA rates.

Revenue Allocation
Updates (effective 4/1)
• Extends existing weekday Super Off-Peak (10am - 2pm), currently applied to March and April, to the full year. • Reduces prices to encourage load-shifting to the mid-day period.
• Overall revenue decrease for Community Power.

Time-of-Use (TOU)
Super Off-Peak
Extension (effective 4/1)
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 43 $$ $$
-300
-200
-100
0 100
200
300
400
500
600
700
12:00 AM
1:00 AM2:00 AM3:00 AM4:00 AM5:00 AM6:00 AM7:00 AM8:00 AM9:00 AM 10:00 AM11:00 AM
12:00 PM
1:00 PM2:00 PM3:00 PM4:00 PM5:00 PM6:00 PM7:00 PM8:00 PM9:00 PM 10:00 PM11:00 PM
MWh (Monthly Average)
Residential
TOU-DR-1
NEM TOU-DR-1 -300
-200
-100
0 100
200
300
400
500
600
700
12:00 AM
1:00 AM2:00 AM3:00 AM4:00 AM5:00 AM6:00 AM7:00 AM8:00 AM9:00 AM 10:00 AM11:00 AM
12:00 PM
1:00 PM2:00 PM3:00 PM4:00 PM5:00 PM6:00 PM7:00 PM8:00 PM9:00 PM 10:00 PM11:00 PM
MWh (Monthly Average)
Residential
TOU-DR-1
NEM TOU-DR-1
Super Off-Peak Expansion & Customer Impacts
$ $$ $$$ $ $$ $ $$ $$$
Negative
Load Usage
Off-Peak usage drops
between 10am to 2pm
Lower-than expected
NEM credits to
residential customers
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 44 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
45 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Why $84.1 million
in cost of energy
savings?
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
46 Cost of Energy Energy 1,000,000 MWh
When CCAs start,
all energy is
purchased in the
short-term spot
market.

Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 47 Cost of Energy Energy 1,000,000 MWh
To make this
energy “renewable”
we purchase RECs
in the short-term
spot market.

RECs
500,000
50% Renewable
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 48 Cost of Energy Energy 1,000,000 MWh
Resource Adequacy
from short-term
spot market
required for grid
reliability.

RA
200,000
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 49 Cost of Energy Energy, RECs, and RA 1,000,000 MWh
Long-term strategy
are real projects
and long-term
PPAs that combine
everything.

Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 50 Cost of Energy
Short-Term Spot
Market
Short-Term Spot
Market
Short-Term Spot
Market
Short-Term Spot
Market
Long-Term
PPA Long-Term
PPA Long Term
PPA
Significant
part of
portfolio is
still short-term.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 51 $30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Off-Peak On-Peak
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$-
$20.00
$40.00
$60.00
$80.00
$100.00
Cost of Energy
Energy and
Renewables
have dipped
lower leading
to energy
savings.

Renewables
PCC1 CY26
Resource adequacy
System RA CY26
Base load energy
SP-15 On-Peak and Off-Peak
January 2024 September 2026
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 52 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Savings from
short-term energy
markets
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
53 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
54 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
Overall savings in
non-energy costs
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
55 FY 2025-2026 Operating Budget
Professional Services & Consultants
Savings from increased internal staffing in alignment with the budget, lower costs largest non-energy contracts.

General & Administration
Higher costs in insurance, software and
technology services, and utilities.

Debt Service
Higher-than-anticipated costs associated
with credit facilities and related financing fees.
$1 million
savings
$500K
Rebalance
$500K
Rebalance
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 56 FY 2025-2026 Operating Budget
Item
FY 2025-2026
Amended
Budget, $M
FY 2025-26
Preliminary
Actuals, $M
Difference
Gross Revenue 1,194.8 1,238.0 43.2
Less Uncollectibles (19.4) (12.2) 7.2
Rate Stabilization Transfer - (115.0) (115.0)
Net Revenue 1,175.4 1,110.8 (64.6)
Cost of Energy 969.9 885.8 (84.1)
Non-Energy Costs 50.0 44.3 (5.7)
Subtotal Operating Expense 1,019.9 930.2 (89.7)
Interest Income (18.3) (19.2) (0.9)
Debt Service 1.5 1.9 0.4
Capital Investment Plan 21.9 21.9 -
Total Expense 1,025.0 934.7 (90.3)
Net Position 150.4 176.0 25.6
$176.0 million
FY 2025-26
Reserve Contribution
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget +$50.4M
Net Revenue
with Rate Stabilization
($84.1M)
Cost of Energy
Savings
($5.7M)
Non- Energy
Savings
+$176.0M
Reserve Contribution
57 Financial
Reserves
58 Growth of Financial Reserves in FY26
Month-End Days Cash on Hand
vs.

Minimum
(180)
vs. Target (225)
vs.

Maximum
(270)
Jul-25 139 -41 -86
Aug-25 157 -23 -68
Sep-25 161 -19 -64
Oct-25 191 +11 -34
Nov-25 201 +21 -24
Dec-25 229 +49 +4
Jan-26 228 +48 +3
Feb-26 227 +47 +2
Mar-26 238 +58 +13
Apr-26 244 +64 +19
May-26 244 +64 +19
Jun-26 249 (FY26 expenses)
274 (FY27 expenses)
+69
+94
+24
+49
-
+4
-
50 100
150
200
250
300
Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Days Cash on Hand (DCOH)
DCOH DCOH (Rate Stabilization) Maximum Target Minimum
180 DCOH
225 DCOH
270 DCOH
+$176.0M
Reserve Contribution
249-DCOH
FY26 Expenses
274-DCOH
FY26 Expenses
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 59 Risks to Community Power Stability

1. Revenue (Load, Participation)

2. Expense (Energy, Operations, Litigation)

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 PCIA and Generation Rates
comprise Community Power’s
biggest risk
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 61 Predicting Market Volatility
Storage
Weather
Financial
Storage
Weather
Weather/
Storage
PCIA
Snapback
Period of high energy prices falling to low
energy prices
Stable
Reserves
Period of stable energy prices
Reserve
Build
Period of low energy prices building to high
energy prices
Weather
Stable
Reserves
Reserve
Build
PCIA
Snapback
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 62 $30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Off-Peak On-Peak
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$-
$20.00
$40.00
$60.00
$80.00
$100.00
Predicting Market Volatility
Renewables
PCC1 CY26
Resource adequacy
System RA CY26
Base load energy
SP-15 On-Peak and Off-Peak CY27
January 2024 September 2026
PCIA
Snapback
Period of high energy prices falling to low energy
prices
Falling Prices
Energy, Renewables, and Resource Adequacy prices
have all gone down in the last two years.

Energy Savings
The FY 2025-26 operating budget
saw savings as a result.

Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 63 PCIA Deep Dive – Renewables Example
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Forecast MPB: $71.24/MWh
$70.00 - $71.24 = ($1.24)
2024 2025 2026
SDG&E 2026 PCC1 Price: $70.00/MWh
CPUC 2026 Forecast MPB: $62.45/MWh
$70.00 - $62.45 = $7.55/MWh
SDG&E 2025 PCC1 Price: $70.00/MWh
CPUC 2025 Actual MPB: $63.86/MWh
$71.24 – $63.86= $7.38/MWh
$71.24 – $63.86= $7.38/MWh
$70.00 - $62.45 = $7.55/MWh
ERRA forecast
Lower prices means lower
rates in CY27
* Illustrative example of calculating PCIA
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget PABA true up
Lower prices means SDG&E
paid back in CY27
64 Predicting Market Volatility
Storage
Weather
Financial
Storage
Weather
Weather/
Storage
PCIA
Snapback
Period of high energy prices falling to low
energy prices
Stable
Reserves
Period of stable energy prices
Reserve
Build
Period of low energy prices building to high
energy prices
Weather
Stable
Reserves
Reserve
Build
PCIA
Snapback
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 65 Reserve Strategies
In calendar year 2026, we saw two
contrasting PCIA Snapback
strategies within the PG&E territory. Reserve Draw Strategy  Use 160-DCOH or
$117 million in reserves
 Only 1% Premium to
PG&E
Rate Increase Strategy
 No usage of reserves to
preserve cash
 31% Rate Premium to
PG&E
PCIA
Snapback
Strategies
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 66 Reserve Strategy
-
50 100
150
200
250
300
Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Days Cash on Hand (DCOH)
DCOH DCOH (Rate Stabilization) Maximum Target Minimum
180 DCOH
225 DCOH
270 DCOH Rate
Stabilization
Reserves
Main
Reserves
Rate Stabilization
Reserves
282-DCOH
Thru July 2026
Main
Reserves
FY26 fully funded the $115M (45-
DCOH) maximum Rate Stabilization Reserve.

Favorable market conditions enabled the
deferral to cushion anticipated future cost
increases and moderate future rate volatility.

Through July 2026, total reserves
are $717M or 282-DCOH. Community Power is
well positioned for a potential PCIA Snapback.

Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 67 Rate Stabilization Reserve – Future Recognition
• Designation: At fiscal year-end, Community Power designated eligible reserves as RSR up to the policy cap of approximately 45 days cash on hand, which was then reported through the June 30, 2026 Treasurer’s Report at the regular Board meeting held on September 24, 2026.
• Recognition: The Board must approve any release of RSR into revenue. Staff will recommend the amount and timing during the annual financial review, with reserve-use scenarios in January rate-setting. Approved RSR would enter revenue later in the fiscal year if needed for financial covenants. The Board may also authorize use of non-RSR reserves.

Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 68 Projected Use of Reserves in FY27 and FY28
FY27: Managing the anticipated PCIA “snapback”
• Higher PCIA charges and lower SDG&E generation rates are expected to compress revenues and operating margins as prior market conditions flow through the PABA true-up. • The FY27 budget anticipates a $3.9M positive net margin, versus $150.4M in the FY26 amended budget, which targeted reserve growth.
• During January 2027 rate-setting, staff expect to recommend using RSR and/or regular reserves above the 225-day cash target to offset margin compression, protect financial covenants and moderate customer rate impacts.

FY28 and beyond: Preliminary outlook
• Staff anticipate further reserve drawdowns as PCIA’s multi-year true-up continues. Preliminary FY28 budgets will go to the FRMC and Board in spring 2027.
• Staff will update reserve balances, RSR activity and multi-year forecasts, and promptly report material changes to the FY27 or FY28 outlook.

Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 69 Capital
Investment
Plan
70 FY26 Results and Outlook
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget Purpose of the CIP:
• The Capital Investment Plan represents Community Power’s commitment to plan and finance programs and projects that align with community and organizational priorities.

CIP vs Operating Budgets:
• While operating budgets authorize funds only for the current fiscal year, CIP budget carries over from year to year for the life of the program or until reduced by subsequent action. This is represented as carry forward funding in the budget.
• CIP funding is based on operational availability or external resources to fill a need over the five-year outlook period. 71 FY26 Results
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget Beginning
Balance
FY26
Budget
FY26
Actuals
Carry
Forward
External Funding
San Diego Regional Energy Network 31.9 - 9.4 -
DAC-GT 0.6 (0.1) 0.3 0.2
CDFA - 0.5 0.5 -
Equitable BuildingDecarbonization - 1.4 - 1.4
CEC 0.7 - - 0.7
Total External Funded Programs 33.2 1.8 10.1 2.4
-
Internal Funding: -
Solar BatterySavings 18.8 4.1 4.0 18.9
Pilot Programs - 2.2 0.6 1.6
Grants 1.3 0.1 0.4 1.0
Flexible Load 0.3 0.2 0.4 0.1
IT Projects 1.3 3.1 0.6 3.8
Planning & Studies 0.3 - - 0.3
ApplicationAssistance - 0.1 - 0.1
Total Internally Funded Programs 22.0 9.8 6.0 25.8
CIP Total 55.2 11.6 16.1 28.1
Funded via external
sources, not supported by
the operating budget
Funded by internal
transfers from the
operating budget
72 CIP FY26 Major Accomplishments
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget Solar Battery Savings:$18.8millioninvestment to fund upfront and performance-based incentives for home battery systems that boost resilience and reduce grid demand during peak hours.

Program Outlook: Funding allows for strategic investment of one-time resources to meet a projected $55 million in program need over the outlook period.

Program Outcomes: $3.9 million in program expenses are reported from the Solar Batter Savings Program in FY26, including $3.6M in customer incentive payments.

As of September 4, 2026, 706 applications have been completed representing an enrolled energy capacity of 18 MWh, with another 536 applications approved pending installation.
73 CIP FY26 Major Accomplishments
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget SD Regional Energy Network: In partnership with the County of San Diego, SDREN generates nearly $125 million in energy efficiency resources for the region through 2027 and marks the final major population area in California to establish a Regional Energy Network.

ProgramOutcomes: $9.5 million in external funding spent across SDREN program categories in FY 2026. Through focused efforts, SDREN has launched:
• Tribal Energy Upgrade
• Refresh Refrigeration
• Multifamily Energy Upgrade
• Home Energy Savings
74 FY27-31 Capital Investment Plan
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget Beginning
Balance
FY26 FY27 FY28 FY29 FY30 FY31 Total
External Funding
Regional EnergyNetwork 63.1 - 51.4 42.0 43.7 45.5 245.7 DAC-GT 0.3 0.2 - - - - 0.5
Equitable BuildingDecarbonization - 1.4 - - - - 1.4
Planning and Studies - 0.7 - - - - 0.7
Total External Funded Programs 63.4 2.4 51.4 42.0 43.7 45.5 248.3 Internal Funding
Solar BatterySavings 3.5 18.9 10.4 8.3 8.5 7.6 57.2
Pilot Programs 2.5 1.6 - - - - 4.1
Grants - 1.0 - - - - 1.0
Flexible Load 1.5 0.1 - - - - 1.6
IT Projects 0.2 3.8 - - - - 4.0
Planning and Studies 0.3 0.3 - - - - 0.6
ApplicationAssistance - 0.1 0.3 - - 0.3 0.7
Total Internally Funded Programs 8.0 25.8 10.7 8.3 8.5 7.9 69.2 CIP Total 71.4 20.8 62.1 50.3 52.2 53.4 317.5
5-Year Budget Updated FY27-31 Capital Investment Plan:
• Updated beginning carry forward balances
reflecting actuals through the end of the fiscal
year.
• No change to the adopted FY27 Capital Budget.
• No change to the outlook years.
75 Public Comment on
Item No. 5
76 Recommendation:

1. Recommend Board Adoption of a Resolution
Amending the Fiscal Year 2025-2026
Operating Budget by approving a
$1,000,000 budget-neutral transfer
between Budget Level 2 categories from
Professional Services to General &
Administration and Debt Service
Item No. 5
Committee Members
Comments or Questions
77 Committee Member Announcements
78 Adjournment
79 Next Regular Finance and
Risk Management
Committee Meeting
December 3, 2026
[email protected]

San Diego Community Power Finance and Risk Management CommitteeOctober 15, 2026

San Diego Community Power Finance and Risk Management Committee
October 15, 2026