Presentation — San Diego Community Power Board of Directors, October 22, 2026

2 Board of Directors
Regular Meeting
October 22, 2026
3 Welcome and Call to Order
4 Welcome Director Kelly Purvis
City of Coronado
Councilmember
5 Roll Call
66 7
Land Acknowledgement
8 Items to be Withdrawn or
Reordered on the Agenda
9 Public Comment on non-Agenda Items
10 Consent
Calendar

1. Approve September 24, 2026, Meeting Minutes

2. Receive and File Update on Programs

3. Receive and File Update on Power Services

4. Receive and File Update on Customer Operations

5. Receive and File Update on IT and Data Analytics

6. Receive and File Update on Human Resources

7. Receive and File Update on Marketing, Public Relations, and Local Government Affairs

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

9. Receive and File Community Advisory Committee Monthly

10. Adopt Resolution No. 2026-16, Approving 2027 Board Meeting Schedule

11. Approve Agreement with Mercer LLC for Compensation and Benefits Benchmarking Services in an Amount Not-To-Exceed $175,000

12. Approve First Amendment to Second Amended and Restated Renewable Power Purchase Agreement with Pelicans Jaw Solar, LLC, to Allow for Fixed Pricing for the Solar Deliveries Ahead of Project Commercial Operations, Change the Test Energy Rate, and clean up Administrative Errors in Exhibit H, I, P, and T 11 Public Comment on Consent Calendar
12 Regular
Agenda

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

14. Approve Second Amendment to the Financially Settled Toll and Energy Storage Agreement and Approve a new
Resource Adequacy Agreement for the Enterprise Resource

15. Adoption of Resolution 2026-17, Amending the
Community Clean Energy Grant Program Policy

16. Update on Regulatory and Legislative Affairs

17. Fiscal Year 2025-2026 Financial Year End Review

18. Ratify Extension of Suite 200 Sublease to February 28, 2028, and Authorize Extension of Suite 200 and Suite 103 Subleases up to December 31, 2028

19. San Diego Community Power Data Center Load Integration Guidelines
13 Item No. 13
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
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 NEMA legacy period.

Recommendation:

Receive and File Fiscal Year End 2025-26
Financial Audit Progress Report
Presentation
14 sorren.com
San Diego Community Power
Board Meeting
October 22, 2026
15 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)
16 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. 17 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
18 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.
19 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 20 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.
21 Kellin Gilbert
Partner
[email protected]
(707) 577-1511
sorren.com
22 Public Comment on
Item No. 13
23 Item No. 13
Board Members
Comments or
Questions
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 NEMA legacy period.

Recommendation:

Receive and File Fiscal Year End 2025-26
Financial Audit Progress Report
Presentation
24 Item No. 14
Approve Second
Amendment to the
Financially Settled Toll
and Energy Storage
Agreement and Approve
a new Resource
Adequacy Agreement for
the Enterprise Resource
Presenter:

Kenny Key, Senior Director of Power Contracts
sting Net Billing Tariff (NBT) and Community
Power’s establishment of the new Net Billing
Tariff and a NetAggregation (NA) 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 NEMA legacy period.

Recommendation:

Approve Second Amendment to Financially
Settled Toll and Energy Storage Agreement
with MRP Pacifica Marketing II LLC, to change
the Delivery term to end December 31, 2026.

Approve a 15-year Resource Adequacy
Agreement with CalPeak Power, LLC to
provide local resource adequacy and Authorize
the Acting Chief Executive Officer to execute
the Agreements
25 • Legacy Facility: 50.96 MW natural gas-fired facility • Proposed New Construction: 52MW / 52MWh (1-hour) lithium-ion battery (not moving forward) • Location: Escondido, CA (San Diego County)
• Interconnection: CAISO (Escondido Substation)
Enterprise Project Summary
26 • This project came through the rolling local RFI and SDCP’s 2024-2026 RA solicitation • In May 2024, the Board approved the original Financially Settled Toll and Energy Storage Agreement (ESSA) with MRP Pacifica Marketing II, LLC, for the Enterprise project. o Original Scope:

1. 15 year Toll for new 1-hour battery (Energy Arbitrage, Ancillary Services)

2. 15 year Resource Adequacy from existing natural gas facility • In July 2025, the contract was amended due to delays in the battery permitting • In 2026, the parties determined that the battery cannot be permitted at the site and would not move forward
Enterprise: History
27 What is Resource Adequacy?
Resource Adequacy (RA) is “backup” capacity, it is power ready to dispatch in the market during heat waves and other high-energy usage events to avoid blackouts • RA requirements are set by the
California Independent Systems
Operator (CAISO) and California
Public Utilities Commission (CPUC)
• Capacity is extremely tight, so it’s
critical that Community Power find
new resources and creative solutions
to ensure compliance and reliability
Multi-hour stack analysis Sept 2026: CAISO Summer Loads and Resources Assessment 28 Natural Gas in the State
Although a reduced percent of energy production (e.g., core needs), natural gas still dominates Resource Adequacy supply (e.g., Insurance). 29 • Long-term RA agreements provide cost and capacity certainty in Community Power’s portfolio • Local RA is critically important to Community Power’s reliability and compliance requirements • RA Procurement:
o 2026: 41% thermal
o 2027: 40% thermal
Local Resource Adequacy (RA) Importance
30 • Contract #1: ESSA Amendment
o Changes the existing ESSA Delivery Term end date to December 31, 2026. o Community Power waives the damages that would be owed for not bringing the battery component online by its Guaranteed Commercial Operation Date. • Contract #2: RA-Only Agreement
o RA Contract Capacity: 50.96 MW
o RA Product: System, Local, and Flexible RA attributes o Contract Start Date: January 1, 2027
o Contract Term: 15 years
o Guaranteed RA Availability: 94.5%
o Pricing: Fixed pricing
o Option to contract for BESS unit if permitting challenges resolved Enterprise: Amendment Scope
31 • This agreement provides 50.96 MW of Local, 24/7 and Flex attributes, from a resource in the San Diego-Imperial Valley local capacity area. • This contributes to Community Power's resource adequacy contracting goals and addresses compliance requirements.
• Pricing is competitive with comparable product offerings received from Community Power’s recent RFPs. The long-term agreement will provide value and cost certainty over the 15-year term.
• Allows Community Power to secure local Resource Adequacy in a long-term contract versus the risk of short-term contracting and price volatility.

Enterprise: Staff Analysis
32 Public Comment on
Item No. 14
33 Item No. 14
Board Members
Comments or
Questions
sting Net Billing Tariff (NBT) and Community
Power’s establishment of the new Net Billing
Tariff and a NetAggregation (NA) 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 NEMA legacy period.

Recommendation:

Approve Second Amendment to Financially
Settled Toll and Energy Storage Agreement
with MRP Pacifica Marketing II LLC, to change
the Delivery term to end December 31, 2026.

Xiomalys Crespo, Senior Community Engagement 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 NEMA legacy period.

Recommendation:

Adoption of Resolution No. 2026-17,
amending the Community Clean Energy Grant
Program Policy previously approved on
February 22, 2024, to include the framework
for administering Community Benefits funds
and rename the policy as the “Community
Clean Energy Benefits and Grants Policy”
35 Community Clean Energy Grants
Since 2023
• $3.6M+ invested
• 55 community projects
• 26,000 community members reached
• $3.9M+ in additional funding leveraged
• Investments in:
o Clean mobility
o Residential and community solar
o Workforce development
o Energy education
• Demand continues to outpace available
funding
• 2026 cycle received 46 applications
requesting $3.6M in funds
36 Community Benefits Funds
Overview
• Community Benefits Funds are voluntary developer contributions negotiated through Community Power's Power Purchase Agreements (PPAs) that create an opportunity to expand local impact as one-time funding. • These funds are not from customer rates, Community Power revenues, public funding sources, charitable donations, project mitigation measures, or permitting requirements. • Over the next three years, Community Power anticipates receiving an estimated $2.8 million in community benefit funds through provisions negotiated in nine PPAs. Contractual uses vary. • In March 2026, staff presented potential initiatives to the Community Advisory Committee and Board of Directors that reflected alignment with:
• Contractual allowable uses
• Feasibility within available, one-time funds
• Administrative capacity considerations
• Potential for measurable impact
37 Staff Recommendation
Staff recommends leveraging the existing Community Clean Energy Grants infrastructure to deploy funds by including community benefits funds into a single, consolidated grantmaking policy.
• Supports Community Power's priorities of generating long-term energy savings, enhancing resilience during outages, and contributing toward Community Power’s 150 MW local development goal
• Builds upon a successful grant program with established partnerships • Leverages one-time funds to support projects and programs looking for gap funding • Incorporates permissible uses and stakeholder review
• Establishes funding governance and approval authority • Guides program community engagement and streamlines administration 38 Proposed Policy Revisions and Structure
Naming and Funding Inclusion
Revisions include the framework for administering community benefits funds and rename the policy as the “Community Clean Energy Benefits and Grants Policy”
Focus Areas
• Improving energy infrastructure, housing, and community resilience to help communities prepare for, withstand, and recover from energy disruptions.
• Expanding workforce training and career development opportunities that support the clean energy economy and local economic development.
• Increasing customer energy literacy through education and outreach that promotes clean energy adoption and carbon emissions reductions, particularly among youth.
• Delivering measurable environmental benefits through electrification, improved indoor and outdoor air quality, environmental stewardship, climate equity, and habitat improvement or preservation.

Eligibility
• Eligible applicants will continue to include nonprofit organizations and public agencies serving Community Power customers
• Funding to be deployed within Community Power's service territory while recognizing that a specific PPA includes flexibility for Community Power to support clean energy projects within a community adjacent to the project site 39 Timeline&
Next Steps
Fall 2026/Winter 2027
Release Request for Proposal for
grant program administrator
Spring 2027
Develop detailed Program Guidelines;
CAC & Board review
Summer/Fall 2027
Estimated 2027 Cohort Launch
Ongoing
Community outreach, reporting and
performance tracking, applicant support
40 Public Comment on
Item No. 15
41 Item No. 15
Board Members
Comments or
Questions
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 NEMA legacy period.

Recommendation:

Patrick Welch, Associate Director of Legislative Affairs Stephen Gunther, Regulatory Manager
Aisha Cissna, Senior Regulatory Manager
Recommendation:

Receive and File update on Regulatory and
Legislative Affairs
43 Legislative Update
Background
• Over 1,850 bills introduced in 2026
• Community Power monitored and reviewed
more than 150
• In accordance with the Board approved Policy
Platform, Supported 11 bills and opposed two
• Legislative session, including the bill signing
period, concluded on September 30
• A new legislative session begins on January 4,
2027
44 Legislative Update
Bill Description Our Position Outcome
AB 2111 (Papan)
Reforms transmission planning to increase access to renewable and clean resources Support Signed into Law
AB 2313 (Berman) Funds electric service alternatives to natural gas pipeline replacements Support Signed into Law AB 2369 (Rogers) Would have helped unlock renewable charging resources for battery energy storage Support Vetoed
AB 2493 (Petrie-Norris) Authorizes remedial actions on delayed transmission line improvements Support Signed into Law State Budget Funding for TECH Clean California, which provides electrification incentives Support Failed State Budget Support funding for the Demand Side Grid Support program at the CEC Support $22 million appropriated
Accelerating Deep Decarbonization
45 Legislative Update
Bill Description Our Position Outcome
AB 1813 (Ward) Would have improved an existing community solar program at the CPUC Support Failed
AB 2389 (Irwin) Would have extended a property tax exclusion for behind the meter solar and storage systems Support Failed SB 2508 (Hoover) Would have eliminated the collection of the public purpose program charge Opposed Failed
SB 868 (Wiener) Exempts balcony solar devices from utility interconnection requirements Support Signed into Law
SB 1295 (Stern)
Would have required utilities to evaluate whether
distributed storage systems could meet identified
reliability or capacity needs
Support if Amended to clarify that load
serving entities like Community Power
qualify as third-party providers and
ensure sufficient data transparency
Failed
Promoting Local Development
46 Legislative Update
Bill Description Our Position Outcome
AB 1761 (Rogers) Would have led to better transparency on data that informs the Power Charge Indifference Adjustment Support Vetoed
SB 1138 (Padilla) Would have reformed the CPUC’s Slice of Day Program to save Community Power customers $10.8 million in 2025 Support Failed AB 2383 (Zbur)
Would have authorized the CPUC to regulate the terms and conditions of CCA service for data center customers
Oppose Unless Amended
(neutral on 7/2) Signed into Law
Stabilizing Community Choice
47 Power Charge Indifference Adjustment Update
• The PCIA is the ratemaking mechanism to ensure
that cost shifts do no occur when customers
depart from an investor-owned utility (IOUs) to a
CCA.
o IOUs collect costs for the energy they
contracted for on behalf of both bundled and
unbundled customers to “make them whole”
for their legacy investments.
• Directly impacts Community Power’s generation
rates and competitiveness with SDG&E.
• Considered one of our largest financial risks.
• Problems include:
o Lack of transparency
o Unfair treatment of CCA customers
o Volatility
48 Where and How We are Advocating to Reform the PCIA
Regulatory
CA Public Utilities Commission
(CPUC) Proceeding
Legislative
2026 and 2027 CA Legislature
Legal
CA Court of Appeals
CalCCA
(Trade Association)
Community Power
49 Regulatory: CPUC Proceeding Status
Track 1
• Expedited Track on RA MPB Reform
• Active Appeals of Track 1 Decision
Track 2
• Pre-2019 Banked REC valuation
• Decision adopted at 9/17/26 CPUC Meeting
Track 3
• Additional PCIA/ERRA reform
• Scoping Ruling Issued
Track 4
• Remaining Issues: TBD
Track 3A: Refinements to
Existing PCIA Structures
1) Modifications of RPS MPB and
GHG-free MPB
2) Re-vintaging of existing
resources
October 2026: Staff report and/or
proposal on issues
Track 3B: Structural
Framework Changes
Consider proposals for alternative
structural frameworks that can ensure
ratepayers remain indifferent to load
departure as required by law (e.g.,
allocation, buy-down)
Schedule will be issued in Q4 2026
Data
Issues:

Meet and
Confer
within 60
days of the
issuance of
Scoping
Ruling
50 Legal: Appeal Status • CalCCA v. CPUC, CA Court of Appeal, Third Division (Appeal of PCIA Track One Decisions
25-06-049 and 25-10-061) (filed on December
1, 2025) o June 25: Appeal denied by Court of Appeal o July 6: CalCCA filed Petition for Review at the CA Supreme Court
o September 23: The CA Supreme Court
granted CalCCA’s petition, sending the case
back to the Court of Appeal
• SDCP & CEA v. CPUC, CA Court of Appeal, Fourth
Division – Case No. D088532 (Appeal of
SDG&E 2026 ERRA Forecast Decision) (filed
July 17, 2026)
51 Legislative Update -- AB 1761 (Rogers)
•Would have required the CPUC and IOUs to disclose
all data – with sensitive data protected – used to
calculate PCIA costs, including cost inputs, forecasting assumptions, and methodologies.

Greater transparency allows CCAs to better advocate
for their customers and assess proposals to change the
PCIA.

September 20 veto message:
• Concerned about improper dissemination of market-sensitive information to benefit a limited subset of market participants
• The CPUC already has a process in place to make
applicable data available
52 Decision Keeps SDG&E’s Regional Energy Efficiency
Programs in Place
What happened?
• In April 2025, SDG&E asked the CPUC for permission to stop administering its 2024-2027 authorized regional energy efficiency programs. • On October 8th, 2026, the CPUC denied that request.
• SDG&E's authorized programs remain in place, with flexibility to improve, change, or end underperforming programs.
• The decision leaves the door open to transition.

SDG&E requested
withdrawal
Decision rejects
the request
Existing programs
continue; future
transition remains
possible
53 The Decision Preserves Energy Efficiency as a Tool for Lower Bills and Real Relief
Lower Bills. Real Relief.

Energy efficiency helps customers use less
energy and manage their bills.

Programs Designed to Work Together.

As designed, SDREN is not a standalone
replacement for SDG&E's programs, but its role
could expand through a carefully planned
transition with SDG&E.

Customer Access Maintained.

SDG&E and SDREN programs will continue,
preserving access across the region and
investment for underserved customers.

Programs that Deliver Real Value.

SDG&E's portfolio delivers more benefits than cost
overall, with opportunities to improve
underperforming programs.
54 Bottom Line
Currently authorized
programs continue, while
the door remains open to a
carefully planned transition
to a willing successor that
protects customer benefits.

SDREN, SDG&E, and other
energy efficiency
administrator's 2028-2032
budgets are currently being
deliberated.

Board of Directors' Role
• Informational update
• No action needed
• Serve as a source of information for
the public
55 Public Comment on
Item No. 16
56 Item No. 16
Board Members
Comments or
Questions
Recommendation:

Receive and File update on Regulatory and
Legislative Affairs
57 Item No. 17
Fiscal Year 2025-2026
Financial Year End
Review
Presenters:

Tim Manglicmot, Senior Director of Finance and Risk
Will Weisman, Associate Director of Finance, Capital
Investment Plan
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 NEMA legacy period.

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:

1. Adoption of Resolution No. 2018-26,
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
58 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 59 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 60 FY 2025-26
Operating
Budget Review
61 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 62 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 63 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
64 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
65 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
66 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
67 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 68 $$ $$
-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 69 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
70 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
71 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 72 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 73 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 74 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 75 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 76 $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 77 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
78 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
79 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
80 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 81 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
82 Financial
Reserves
83 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
FY27 Expenses
Overview Revenue Cost of Energy Non-Energy Costs Reserves CIP & Capital Budget 84 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 86 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 87 $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 88 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
89 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 90 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 91 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 92 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 93 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 94 Capital
Investment
Plan
95 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. 96 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
97 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.
98 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
99 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.
• FY27 represents the FY27 adopted capital
budget.
• FY28-FY31 are informational for planning
purposes. No appropriations were made for the
outlook years. No changes have been made to
the outlook since the adopted budget.
100
Public Comment on
Item No. 17
101
Item No. 17
Board Members
Comments or
Questions
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 NEMA legacy period.

Recommendation:

1. Adoption of Resolution No. 2026-18,
Amending the Fiscal Year 2025-2026
Operating Budget by approvinga
$1,000,000 budget-neutral transfer
between Budget Level2 categories from
Professional Services to General&
Administration and Debt Service
102
Item No. 18
Ratify Extension of Suite
200 Sublease to
February 28, 2028, and
Authorize Extension of
Suite 200 and Suite 103
Subleases up to
December 31, 2028
Presenter:

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

Recommendation:

Ratify the extension of the Suite 200
sublease to February 29, 2028, authorize the
Acting Chief Executive Officer to negotiate
and execute an amendment to the existing
subleases with Corelation, Inc. for Suite 200
and Suite 103 for Community Power office
space and to authorize a potential extension
up to December 31, 2028, and execute
related documents necessary to implement
the amendment, including obtaining the
consent of the landlord, Kilroy Realty, L.P.
103
Background and Timeline
NOV. 1, 2023
Suite 200 term
began
MAR. 1, 2025
Suite 103 term began
FEB. 29, 2028
Requested Extension
Ratification
DEC. 31, 2028
Maximum authorized extension
• The extension, through February 2028 with a maximum authorized extension through December 2028, will provide Community Power with sufficient time to complete a disciplined long-term facilities evaluation.
• Staff is currently evaluating existing conditions, operational needs, public meeting and collaboration needs, security and technology requirements, geographic accessibility, and total occupancy cost. • Community Power has also initiated a competitive procurement for real estate brokerage and advisory services to support a comprehensive evaluation of Community Power’s long-term facility needs. 104
Current Office Footprint
Both suites support office, meeting, training, collaboration, and administrative needs.

Suite 200
• 13,704 rentable square feet
• Dedicated office, conference, collaboration, and administrative space Suite 103
• 8,864 rentable square feet
• Includes training and meeting space serving internal and broader community purposes
105
Fiscal Impact
• The total rental cost of extending both subleases
from February 28, 2027, to February 29, 2028, is
$935,784
• $311,928 is attributable to FY27 and is included in the operating budget. There is no change in budget
assumptions.
• Extending both suites further from March 1, 2028, to
December 31, 2028, at existing rental rates would
cost $779,820.
106
Public Comment on
Item No. 18
107
Item No. 18
Board Members
Comments or
Questions
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 NEMA legacy period.

Recommendation:

Lee Friedman, Associate Director of Strategic Partnerships 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 NEMA legacy period.

Recommendation:

Provide feedback to staff on the draft San
Diego Community Power Data Center Load
Integration Guidelines
109
Why these guidelines are needed
Rising Energy Demand
Data centers are a growing driver of electricity demand, accelerate load growth and increase pressure on grid reliability, clean energy targets and customer costs Scale & System Impacts
Large projects (20+ MW) require significant system planning, long-term energy procurement and resource adequacy needs, and coordination with SDG&E and grid operators
Customer & Community Protection
Community Power is taking a proactive approach to mitigating risks such as cost-shifts to existing customers without clear policy or potential disproportionate impacts on communities of concern
110
A Guardrail Framework
• Provides a structured approach to evaluate impacts
and guide decision-making
• Establishes clear guardrails for engagement, policy
development and potential commercial considerations
• Does not approve specific projects and carries no
immediate fiscal impact
• Designed to evolve over time
• Supports member agencies by informing local
permitting processes through Community Power
expertise
111
Ratepayer Protection
• 1.1 Full Cost Responsibility
Data Center load customers bear their own procurement costs, integration costs, resource adequacy obligations, and administrative overhead. No cross-subsidization
• 1.2 Financial Assurance and Stress-Tested Economics to ensure, at minimum, Customer Indifference Various scenarios will evaluate reasonably foreseeable risks – including lower-than-forecast load, delayed start, and early termination – and confirm recovery of all incremental procurement, hedging, capacity, and infrastructure costs
• 1.3 Stress-Tested Financial Modeling
Every deal must pencil under adverse scenarios, not just optimistic projections • 1.4 Transmission & Delivery Cost Protection
Work with the Investor Owned Utility for assurance that the transmission & delivery infrastructure costs for Data Center service will be directly assigned to the customers driving the load, not socialized across all distribution ratepayers
112
Community Benefit & Opportunity
• 2.1 Economic Development
Data Center load customers shall contribute to local economic growth: jobs, tax revenue, infrastructure investment, and workforce development tied to the San Diego region. • 2.2 Environmental Justice
Data Center customers should mitigate to the extent feasible environmental impacts including water consumption, noise and air quality impacts and it should not impose a disproportionate impact on disadvantaged communities.
• 2.3 Community Engagement
Siting and development processes should include transparent, meaningful engagement with affected communities before commitments are made.
• 2.4 Net Benefit Test
Quantifiable benefits must demonstrably exceed commodity costs. This is a threshold requirement, not an aspiration.
113
Clean Energy & Supply Responsibility
• 3.1 Dedicated Supply Portfolio
Community Power will assemble a dedicated supply portfolio for Data Center load service which may include contracted generation, storage, system power, and restructured portfolio resources. • 3.2 Clean Energy Options
Community Power shall offer Data Center customers options ranging from standard clean energy supply to enhanced procurement that may include new renewable resources. • 3.3 Grid Reliability Coordination
Data Center load service must not degrade reliability or resilience for existing customers. Coordination with the transmission and distribution provider is required to understand the impacts. • 3.4 Load Flexibility
Community Power should explore whether Data Center customers can provide demand response or load flexibility that supports grid stability.
114
Financial Assurance & Risk Management
• 4.1 Credit Support Calibrated to Project Phase
Security requirements should scale with project maturity, with appropriate instruments at each stage — lighter requirements pre-permit, heavier during construction, reduced post-COD based on performance. • 4.2 Menu of Credit Instruments
A defined set of acceptable credit tools allowing flexibility while maintaining rigor: collateral, parent guarantees, performance bonds, milestone-based deposits, and minimum demand charges. • 4.3 Minimum Contract Terms
Data Center load service agreements should have a term floor when relying on long-duration procurement commitments Community Power makes (e.g., 15 years) on their behalf. • 4.4 Exit and Off-Ramp Provisions
Defined consequences when a Data Center underperforms, fails to meet commitments, or ceases operations.

Includes early termination fees and take-or-pay provisions. 115
Transparency and Governance
• 5.1 Board Reporting
Regular, structured reporting to the Community Power’s Board on the Data Center pipeline, portfolio exposure, performance against principles, and risk metrics.
• 5.2 Principles Evolution and Review
These principles are expected to evolve. Community Power staff will evaluate the need for ongoing adjustments and will return to the Board to update the framework based on market developments, regulatory changes, and lessons from initial deals as needed.
• 5.3 Regulatory Engagement
Active participation in CPUC, CAISO, and legislative proceedings that affect CCA Data Center service, including SB 57 implementation, any SDG&E Rule 30 equivalent, and IRP procurement requirements. • 5.4 Community Choice Aggregation Jurisdictional Protection Monitor and defend CCA's role as the commodity provider for new Data Centers in CCA service territory. • 5.5 Stakeholder Communication
Maintain a clear position on Data Center policy that developers, community members, and regulators can reference. 116
Legislative Landscape AB 2383 (Zbur)
Requires each CCA and electric service provider to adopt a generation tariff by January 1, 2028, that meets, at a minimum, the following standards:
 Allocate the costs of serving data centers so that incremental costs are not borne by other customer classes.
 Ensure procurement by a CCA or electric service provider supports the ability to meet California Public Utilities Commission (CPUC) procurement requirements, the renewable portfolio standard, integrated resource planning requirements, and the state’s 100 percent clean energy by 2045 policy, as well as other state clean energy policies.
 Ensure data centers make equitable contributions to reliability and other programs generally funded through the generation component of customer bills.
 Does not result in, or have the potential for increased costs, for other retail customers.  Include a CPUC approved mechanism to ensure data centers pay for incremental generation cost increases to prevent nonparticipating customers from incurring stranded generation costs. 117
Legislative Landscape SB 886 (Padilla)
Requires the CPUC to, on or before January 1, 2028, establish tariffs or electric rules governing the interconnection of data centers to the transmission grid. In doing so, the CPUC must evaluate the risks and benefits of the tariffs to nonparticipating customers.
 Prevent stranded costs or cost shifts to nonparticipating customers, and, for unbundled customers, require charges generally included in the generation component of the consolidated bill to be assessed as a separate line item
 Require the participating customer to disclose whether an application for the same facility has been submitted in another electrical corporation service territory or other jurisdiction.  Assign cost responsibility for transmission facilities, including shared transmission network upgrades to the extent permitted by federal law, using a methodology established by the CPUC.  Allow interconnection refunds only if the electrical corporation's revenues from the participating customer are sufficient to recover energization costs, the costs of providing electrical service, and other allocated costs
 Require an early termination fee if, within 10 years, the participating customer terminates service or fails to achieve adequate load ramp as determined by the CPUC. 118
Community Power’s Influence
• Authority is shared across multiple entities, including local permitting agencies and SDG&E
• Community Power's role is to advocate for
ratepayers and communities within this broader
landscape
• The Board retains discretion over whether to serve
large data center loads
• Local permitting decisions may still proceed
independently of Community Power’s position
• Guidelines are intended to strengthen Community
Power’s influence, even where direct authority is
limited
119
Next Steps
• Board of Directors feedback
• Revisions to the guidelines
• Return to stakeholders for feedback
• Board adoption of guidelines
120
Public Comment on
Item No. 19
121
Item No. 19
Board Members
Comments or
Questions
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 NEMA legacy period.

Recommendation:

Provide feedback to staff on the draft San
Diego Community Power Data Center Load
Integration Guidelines
122
Acting Chief Executive Officer Report
123
Board Member Announcements
124
Adjournment
125
Next Regular Community
Power Board Meeting
December 10, 2026
[email protected]

San Diego Community Power Board of DirectorsOctober 22, 2026

San Diego Community Power Board of Directors
October 22, 2026