~ Sonoma ~ Clean Power
___________________________________________________________ AGENDA
BOARD OF DIRECTORS MEETING
THURSDAY, FEBRUARY 5, 2026, 9:00 A.M.
EXCEPT AS PERMITTED BY GOVERNMENT CODE SECTION 54953(F), MEMBERS OF THE BOARD OF DIRECTORS MAY PARTICIPATE IN THE FEBRUARY 5, 2026, MEETING AT ANY OF THE LOCATIONS SHOWN BELOW.
SONOMA CLEAN POWER BUSINESS OFFICE
431 E STREET
SANTA ROSA, CA 95404
MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING AT THE ABOVE PHYSICAL LOCATIONS OR VIEW REMOTELY THROUGH:
Webinar link: https://us06web.zoom.us/j/88546704126
Telephone number: 1 (669) 444-9171
Meeting ID: 885 4670 4126
How to Submit Public Comment:
Comments may be provided in person at the physical meeting locations. Comments may be submitted in writing to [email protected]. For detailed public comment instructions, please visit this page. Please note that live remote public comment will not be taken unless required by Government Code section 54953(F). If required, it will be announced by the Chair. Members of the public should attend in person or provide written comment to ensure they can provide public comment.
For written comments, state the agenda item number that you are commenting on and limit to 300 words. Written comments received prior to the meeting and/or the agenda item you wish to comment on will be read into the record up to 300 words. Written comments may be provided during the meeting.
DISABLED ACCOMMODATION: If you have a disability which requires an accommodation or an alternative format, please contact the Clerk of the Board at (707) 757-9417, or by email at [email protected] as soon as possible to ensure arrangements for accommodation.
For further clarification on any of the items listed please contact (855) 202-2139 and staff will be available to assist.
Agenda Page 1 of 2
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Staff recommendations are guidelines to the Board. On any item, the Board may take action which varies from that recommended by staff.
CALL TO ORDER
(Any private remote meeting attendance will be noticed or approved at this time)
BOARD OF DIRECTORS CONSENT CALENDAR
1. Approve January 8, 2026, Draft Board of Directors Meeting Minutes (Staff pg. 4 Recommendation: Approve)
2. Receive Monthly Financial Report (Staff Recommendation: Receive and File) pg. 9
3. Ratify Generation Rates Effective February 1, 2026, Consistent with Prior Board pg. 21 Direction (Staff Recommendation: Approve)
BOARD OF DIRECTORS REGULAR CALENDAR
4. Receive Internal Operations Report and Provide Direction as Appropriate (Staff pg. 25 Recommendation: Receive and File)
5. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and pg. 27 Provide Direction as Appropriate (Staff Recommendation: Approve)
6. Appoint Chair and Vice Chair for Calendar Year 2026 and Potentially Calendar Year pg. 31 2027 (Staff Recommendation: Approve)
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(Directors may report on their activities since the last Board meeting, including any reports required by Gov’t Code Section 53232.3(d).)
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(Comments are restricted to matters within the Board’s jurisdiction. Please be brief and limit spoken comments to three minutes, or 300 words if written.)
ADJOURN
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COMMONLY USED ACRONYMS AND TERMS
CAC Community Advisory Committee
CAISO California Independent Systems Operator – the grid operator CCA Community Choice Aggregator – a community-owned public power provider CEC California Energy Commission
CleanStart SCP’s default power service
CPUC California Public Utilities Commission
DER Distributed Energy Resource
ERRA Energy Resource Recovery Account – one of PG&E’s rate cases at the CPUC EverGreen SCP’s 100% renewable, 100% local energy service, and the first service in the United States providing renewable power every hour of every day.
Geothermal A locally available, low-carbon baseload renewable resource GHG Greenhouse gas
GRC General Rate Case – one of PG&E’s rate cases at the CPUC GridSavvy GridSavvy Rewards are available to SCP customers for reducing household energy use to help California increase power reliability.
IOU Investor-Owned Utility - for-profit distribution utilities like PG&E IRP Integrated Resource Plan – balancing energy needs with energy resources JPA Joint Powers Authority
MW Megawatt is a unit of power and measures how fast energy is being used or produced at one moment.
MWh Megawatt-hour is a unit of energy and measures how much energy is used or produced over time.
NEM Net Energy Metering. NEM is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.
PCIA Power Charge Indifference Adjustment – a fee charged by PG&E to all electric customers to ensure PG&E can pay for excess power supply contracts that it no longer needs.
RA Resource Adequacy – a required form of capacity that helps ensure there are sufficient power resources available when needed.
RPS Renewables Portfolio Standard refers to certain kinds of renewable energy which qualify to meet state requirements, including wind, solar, geothermal.
SCP Sonoma Clean Power
TOU Time of Use, used to refer to rates that differ by time of day 3 of 31
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___________________________________________________________
DRAFT MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, JANUARY 8, 2026
9:00 A.M.
CALL TO ORDER
(9:00 a.m. - Video Time Stamp: 00:01:18)
Chair Barnacle called the meeting to order.
Board Members present: Chair Barnacle, Vice Chair Elward, Directors Laskey, Lemus, Albin-Smith, Stapp, Carter, Farrar-Rivas, Potter, Haschak. Director Hopkins was absent.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Garth Salisbury, Chief Financial Officer and Treasurer; Neal Reardon, Director of Regulatory Affairs; Miles Horton, Legislative Policy & Community Engagement Manager; Stephanie Reynolds, Director of Internal Operations; Keila Hernandez, Customer Service Representative; Erica Torgerson, Managing Director of Customer Service; Rebecca Simonson, Director of Capital Projects & Engineering; Scott Salyer, Senior Program Manager, Decarbonization Strategy; Adam Jorge, Senior Decarbonization Policy Manager; and Karen Flores, Clerk of the Board.
BOARD OF DIRECTORS CONSENT CALENDAR
(9:03 a.m. - Video Time Stamp: 00:02:55)
1. Approve December 4, 2025, Draft Board of Directors Meeting Minutes (Staff Recommendation: Approve)
2. Receive Monthly Financial Report (Staff Recommendation: Receive and File)
3. Receive Geothermal Opportunity Zone Update (Staff Recommendation:
Receive and File)
Motion to approve December 4, 2025, Board of Directors Consent Calendar by Director Haschak
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Second: Lemus
Motion passed by roll call vote
AYES: Laskey, Lemus, Albin-Smith, Barnacle, Elward, Stapp, Carter, Farrar-Rivas, Potter, Haschak ABSENT: Hopkins
BOARD OF DIRECTORS REGULAR CALENDAR
4. Receive Internal Operations Report and Provide Direction as Appropriate (9:04 a.m. - Video Time Stamp: 00:04:25)
Stephanie Reynolds, Director on Internal Operations, gave an update on construction progress for the new office space located next to the business office at 421 E Street in Santa Rosa. Erica Torgerson, Managing Director of Customer Service, announced the retirement of Scott Lawrence, Senior Commercial Accounts Manager. Michael Koszalka, Chief Operating Officer, introduced Keila Hernandez, Customer Service Representative, who shared an analogy she commonly uses and has found to be successful in clearly explaining who SCP is and the services SCP provides to customers.
Public Comment: None
5. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
(9:16 a.m. - Video Time Stamp: 00:16:50)
Neal Reardon, Director of Regulatory Affairs, provided some background on the two items in the packet. The first being that the Public Utilities Commission (PUC) reduced the amount of profit that PG&E and other utilities are allowed to earn for the first time in several years. The second item discusses the California Public Utilities Commission’s (CPUC) Resolution E-5429 which denied PG&E’s request to end energy purchases from the Ivanpah Solar facility in 2026.
Although PG&E’s proposal was supported by CalCCA and the U.S. Department of Energy, the Commission approved the denial without discussion at its December 4, 2025, meeting.
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Adam Jorge, Senior Decarbonization Policy Manager, provided an update on SB 1221 which was passed to initiate a voluntary program which allows small zones within investor-owned utility (IOU) gas service areas to create pilots to help those selected areas transition off natural gas, long term. Several sites in Petaluma have been identified as potential pilot sites.
Miles Horton, Legislative Policy & Community Engagement Manager, introduced three bills that SCP would like to sponsor in the 2026 legislative year and asked for approval from the board. CEO Syphers highlighted that all of these bills are trying to address affordability with clean power.
Public Comment: None
Motion to Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate by Director Farrar-Rivas Second: Elward
Motion passed by roll call vote
AYES: Laskey, Lemus, Albin-Smith, Barnacle, Elward, Stapp, Carter, Farrar-Rivas, Potter, Haschak ABSENT: Hopkins
6. Approve and Delegate Authority to the Chief Executive Officer or his Designee to Negotiate Final Terms and Execute an Agreement for Professional Services with US Solar Construction Management, LLC through May 1, 2027, with a Not-To-Exceed Amount of $960,081 to Provide Design Services for the Ukiah Superfund Solar + Battery Project
(10:03 a.m. - Video Time Stamp: 01:02:50)
Rebecca Simonson, Director of Capital Projects & Engineering, introduced SCP’s first proposed owned and operated solar and battery storage project, which would be developed on an EPA superfund site. She provided details about the site, the project scope, and the professional services agreement.
Public Comment: None
Motion to Approve and Delegate Authority to the Chief Executive Officer or his Designee to Negotiate Final Terms and Execute an Agreement for Professional Services with US Solar Construction Management, LLC through May 1, 2027, 6 of 31
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with a Not-To-Exceed Amount of $960,081 to Provide Design Services for the Ukiah Superfund Solar + Battery Project by Director Haschak Second: Elward
Motion passed by roll call vote
AYES: Laskey, Lemus, Albin-Smith, Barnacle, Elward, Stapp, Carter, Farrar-Rivas, Potter, Haschak ABSENT: Hopkins
7. Receive Update on Sonoma Clean Power Authority’s E-bike Commuter Grants Program
(10:26 a.m. - Video Time Stamp: 01:26:00)
Scott Salyer, Senior Program Manager, gave a presentation on SCP’s historic and current e-bike programs and requested feedback from the board.
Public Comment: None
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(10:58 a.m. - Video Time Stamp: 01:58:06)
Director Laskey invited everyone to the ribbon cutting of Picks Drive-In in Cloverdale on January 10, 2026, at 11:00am. Director Albin-Smith shared that the Whale Festival in Fort Bragg as well as the 38th Annual Whale Run will be the weekend of March 21, 2026. Director Farrar-Rivas announced that she will be transitioning out of the mayoral position and shared about a Zoom meeting she attended through the Just Economy Institute organization. Director Farrar-Rivas also shared information from the Los Angeles Cleantech Incubator (LACI) regarding the Second City Climate Innovation Challenge, cities interested in participating must apply by January 31st. Director Lemus shared about the ribbon cutting of Galvan’s Eatery in Cotati. Director Stapp announced that on January 13, 2026, the Santa Rosa City Council is going to be holding a study session to look at our gas station ban. Vice Chair Elward congratulated newly appointed Sylvia Lemus as Mayor of Rohnert Park. Chair Barnacle shared that the temporary ice-skating rink, Luma Ice, will close on January 10, 2026. 7 of 31
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PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(11:07 a.m. - Video Time Stamp: 02:06:55)
Public Comment: None
ADJOURN
(11:07 a.m. - Video Time Stamp: 02:07:14)
The meeting was adjourned by unanimous consent.
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Staff Report – Item 02
To: Sonoma Clean Power Authority Board of Directors
From: Garth Salisbury, Chief Financial Officer & Treasurer Chris Golik, Senior Finance Manager
Jennifer Rafferty, Financial Analyst
Issue: Receive Monthly Financial Report
Date: February 5, 2026
Monthly Financial Report
The Financial Report is to inform the Board of Directors (Board) of monthly financial results and includes a summary of investments and investment activity in SCP’s portfolio.
The Investment Report and associated attachments are to inform the Board pursuant to the requirements of SCP’s Financial Policy B.5 Investments and Government Code Section 53607. This is an informational item only.
This report includes commentary for the November unaudited financial statements and budgetary comparison.
Monthly Compiled Financial Statements (November 30, 2025) The year-to-date change in net position is more than projections by approximately $59,554,000. Year-to-date revenue from electricity sales is above budget by approximately 8% and cost of energy is under budget projections by approximately 48%.
Year-to-date electricity sales reached $117,351,000.
SCP maintains a balanced portfolio by procuring electricity from multiple sources. Net position reached a positive $295,858,000 as of November 30, 2025. Approximately $324,252,000 is set aside for operating reserves as of June 30, 2025.
Other operating expenses continued near or slightly below planned levels for the year. 9 of 31
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Budgetary Comparison Schedule (November 30, 2025)
The accompanying budgetary comparison includes the 2025/26 Amended Budget approved by the Board of Directors.
The budget is formatted to make comparisons for both the annual and the year-to-date perspective. The first column, 2025/26 YTD Amended Budget, allocates the Board approved annual budget at expected levels throughout the year with consideration for the timing of additional customers, usage volumes, staffing needs etc. This column represents our best estimates, and this granular approach was not part of the Board approved budget.
Revenue from electricity sales to customers is greater than budget by approximately 8% at the end of the reporting period.
The cost of electricity was less than the budget-to-date by approximately 48%. Variation in this account is typically due to fluctuating market cost of energy on open position purchases as well as supplier delivery delays.
Major operating categories of Data Management fees and PG&E Service fees are based on the customer account totals.
In addition to the items mentioned above, SCP continues its trend of remaining near or under budget for most of its operating expenses.
Monthly Investment Report
This report is to verify and report in writing to the Board regarding the responsibilities designated to the SCP Treasurer pursuant to SCP Financial Policy B.5 Investments. The Investment Policy was amended in 2024 expanding the definition of Permitted Investments, adding several investment diversification requirements, best practices and requiring additional reporting requirements to the Board and stakeholders as follows.
Monthly Obligation to Report on New Investment Transactions Government Code Section 53607 and SCP’s Investment Policy require SCP to report to the Board and stakeholders any investment transactions (defined as purchases, sales, or exchanges of securities) made during the month as soon as is practicable after the end of the month. Given the scheduling of the SCP’s Board meetings during the first week of the month, the investment report will indicate investment transactions that occurred two months prior (December 2025).
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SCP currently maintains bank accounts and investments at River City Bank (RCB), Summit State Bank, the State of California Local Agency Investment Fund (LAIF) and USBank.
Active individual securities are held at both RCB and USBank. Staff will provide Statements of Investments as required throughout the year.
Reportable Activities
In November of 2024, the Board approved amendments to SCP Investment Policy as recommended by SCP’s investment advisor, Chandler Asset Management (CAM). As of December 31st, CAM managed about $73 million of SCP’s reserves. All investments directed by CAM are held at SCP’s custodian, USBank. All investments held as of December 31, 2025, at USBank appear as Attachment 3 with new holdings purchased in December highlighted. USBank transaction details for the month of December, including sales and maturities of securities, are in Attachment 4.
Additionally, the December 2025 account statement prepared by CAM is in Attachment 5.
River City Bank
A detailed statement of the investments held at River City Bank as of December 31, 2025, appears as Attachment 6. There were no investment transactions in the month of December at River City Bank.
State of California Local Agency Investment Fund
The LAIF investment balance as of December 31, 2025, appears as Attachment 7.
Agency Goals
SCP’s Financial Report, and more broadly, its financial decisions, directly support two of the Agency’s 2026 goals.
1. Recommend and take all necessary actions to protect customers from rate shock in 2026.
7. Maintain SCP’s ‘A’ credit rating to support cost-effective power procurement.
Community Advisory Committee
The Financial Report is a monthly, information-only, item that requires no action.
There were no questions nor feedback provided.
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Attachments
Attachment 1 – November 2025 Financial Statements
Attachment 2 – November 2025 Budgetary Statement
Attachment 3 – December 2025 Statement of Investments Held at USBank, available at this link or by request to the Clerk of the Board Attachment 4 – December 2025 Statement of Transactions at USBank, available at this link or by request to the Clerk of the Board
Attachment 5 – December 2025 USBank Account Statement prepared by CAM, available at this link or by request to the Clerk of the Board Attachment 6 – December 2025 Statement of Investments Held at River City Bank, available at this link or by request to the Clerk of the Board Attachment 7 – December 2025 Statement of Investments Held at the Local Agency Investment Fund, available at this link or by request to the Clerk of the Board 12 of 31
MAHER
ACCOUNTANCY
ACCOUNTANTS’ COMPILATION REPORT
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Management
Sonoma Clean Power Authority
Management is responsible for the accompanying financial statements of Sonoma Clean Power Authority (a California Joint Powers Authority) which comprise the statement of net position as of November 30, 2025, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the five months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Sonoma Clean Power Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 13, 2026
1 13 of 31
SONOMA CLEAN POWER AUTHORITY
STATEMENT OF NET POSITION
As of November 30, 2025
ASSETS
Current assets
Cash and cash equivalents $ 233,049,278
Accounts receivable, net of allowance 16,275,124
Other receivables 4,974,749
Accrued revenue 15,309,639
Prepaid expenses 1,452,878
Deposits 7,366,996
Investments 96,896,193
Total current assets 375,324,857
Noncurrent assets
Investments 69,155,234
Loan receivable 3,215,032
Other receivables 850,038
Deposits 16,000
Capital assets, net of depreciation 17,707,554
Total noncurrent assets 90,943,858
Total assets 466,268,715
LIABILITIES
Current liabilities
Accrued cost of electricity 24,932,250
Accounts payable 1,465,384
Other accrued liabilities 4,085,736
User taxes and energy surcharges due to other governments 584,904 Supplier security deposits 510,000
Total current liabilities 31,578,274
Noncurrent liabilities
Supplier security deposits 1,332,121
Total liabilities 32,910,395
DEFERRED INFLOWS OF RESOURCES
Rate stabilization fund 137,500,000
NET POSITION
Investment in capital assets 17,420,931
Unrestricted 278,437,389
Total net position $ 295,858,320
See accountants' compilation report. 2
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SONOMA CLEAN POWER AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Five Months Ended November 30, 2025
OPERATING REVENUES
Electricity sales, net
Evergreen electricity premium
Liquidated damages
Grant revenue
Total operating revenues
$ 116,053,549
1,297,688
11,972,688
205,533
129,529,458
OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
Program rebates and incentives
Other operating expenses
Depreciation
Total operating expenses
Operating income
58,876,984
4,404,429
4,947,053
678,956
1,217,390
596,350
70,721,162
58,808,296
NONOPERATING REVENUES (EXPENSES)
Investment income
Nonoperating revenues (expenses), net
7,202,819
7,202,819
CHANGE IN NET POSITION
Net position at beginning of year
Net position at end of period $
66,011,115
229,847,205
295,858,320
See accountants' compilation report. 3
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SONOMA CLEAN POWER AUTHORITY
STATEMENT OF CASH FLOWS
Five Months Ended November 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 114,541,447
Receipts from grantors 135,685
Receipts of security deposits 12,042,639
Receipts of liquidated damages revenue (2,404,929)
Receipts from wholesale sales and other operating activities 24,006,374 Payments to electricity suppliers (76,136,902)
Payments for other goods and services (6,243,375)
Payments for staff compensation (4,905,569)
Payments for program rebates and incentives (813,728)
Payments of taxes and surcharges to other governments (1,492,215) Deposits and collateral paid (54,000)
Net cash provided (used) by operating activities 58,675,427
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (459,306)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 5,142,548
Proceeds from sales and maturities of investments 10,557,492 Purchase of investments (14,567,817)
Loan issued (3,215,032)
Net cash provided (used) by investing activities (2,082,809) Net change in cash and cash equivalents 56,133,312
Cash and cash equivalents at beginning of year 176,915,966 Cash and cash equivalents at end of period $ 233,049,278
SUPPLEMENTAL CASH FLOW INFORMATION
Capital acquisitions included in accounts payable and other liabilties $ 286,623
NONCASH INVESTING ACTIVITES
Change in fair value of investments $ 2,177,242
Change in interest receivable $ (116,971)
See accountants' compilation report. 4
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SONOMA CLEAN POWER AUTHORITY
STATEMENT OF CASH FLOWS
(Continued)
Five Months Ended November 30, 2025
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 58,808,296
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense 596,350
(Increase) decrease in:
Accounts receivable, net (1,563,056)
Other receivables 1,295,098
Accrued revenue (2,679,674)
Prepaid expenses 72,127
Deposits (880,837)
Increase (decrease) in:
Accrued cost of electricity 3,756,245
Accounts payable (464,744)
Accrued liabilities 3,731,250
User taxes due to other governments (59,275)
Supplier security deposits (3,936,353)
Net cash provided (used) by operating activities $ 58,675,427 See accountants' compilation report. 5
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MAHER
ACCOUNTANCY
ACCOUNTANTS’ COMPILATION REPORT
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Board of Directors
Sonoma Clean Power Authority
Management is responsible for the accompanying Budgetary Comparison Schedule for the Operating Fund of Sonoma Clean Power Authority (a California Joint Powers Authority) for the five months ended November 30, 2025, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of Sonoma Clean Power Authority.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
Sonoma Clean Power Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 13, 2026
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SONOMA CLEAN POWER AUTHORITY
BUDGETARY COMPARISON SCHEDULE - OPERATING FUND
Five Months Ended November 30, 2025
2025/26 YTD
2025/26 YTD Amended Budget 2025/26 YTD 2025/26
Amended 2025/26 YTD Variance (Under) Actual / Amended Amended 2025/26 Amended Budget Actual Over Budget % Budget Budget Remaining
REVENUE AND OTHER SOURCES:
Electricity (net of allowance) * $ 107,345,040 $ 116,054,296 $ 8,709,256 108% $ 228,694,000 $ 112,639,704 Evergreen Premium (net of allowance) 1,312,500 1,297,688 (14,812) 99% 3,150,000 1,852,312 CEC Grant Proceeds 330,579 205,533 (125,046) 62% 863,000 657,467 Investment returns 5,000,000 7,202,819 2,202,819 144% 12,000,000 4,797,181 Total revenue and other sources 113,988,119 124,760,336 10,772,217 109% 244,707,000 119,946,664 EXPENDITURES AND OTHER USES:
CURRENT EXPENDITURES
Cost of energy and scheduling 90,951,680 46,905,043 (44,046,637) 52% 234,986,000 188,080,957 Data management 1,399,500 1,397,925 (1,575) 100% 3,359,000 1,961,075 Service fees- PG&E 412,500 414,719 2,219 101% 990,000 575,281 Personnel 5,198,885 4,947,053 (251,832) 95% 12,781,000 7,833,947 Marketing & communications 1,881,146 1,340,294 (540,852) 71% 4,415,000 3,074,706 Customer service 126,750 95,502 (31,248) 75% 220,000 124,498 General and administration 957,777 803,754 (154,023) 84% 2,309,000 1,505,246 Legal 218,750 265,159 46,409 121% 525,000 259,841 Regulatory and compliance 150,000 66,459 (83,541) 44% 360,000 293,541 Accounting 170,750 164,200 (6,550) 96% 340,000 175,800 Legislative 91,667 85,000 (6,667) 93% 220,000 135,000 Other consultants 305,375 274,599 (30,776) 90% 535,000 260,401 Industry memberships and dues 369,473 413,539 44,066 112% 888,000 474,461 Program implementation 2,681,758 979,625 (1,702,133) 37% 6,481,000 5,501,375 Total current expenditures 104,916,011 58,152,871 (46,763,140) 55% 268,409,000 210,256,129
OTHER USES
Capital outlay 2,713,333 694,983 (2,018,350) 26% 7,022,000 6,327,017 Total expenditures, other uses 107,629,344 58,847,854 (48,781,490) 55% 275,431,000 216,583,146 Net increase (decrease) in available fund balance $ 6,358,775 $ 65,912,482 $ 59,553,707 $ (30,724,000) $ (96,636,482) * Represents sales of approximately 841,000 MWh for 2025/26 YTD actual.
Balance - as of Long-Term % of Long-Term
RESERVES June 30, 2025 Targeted Target
Reserves and Rate Stabilization Funds $ 324,252,000 $ 267,909,000 121% See accountants' compilation report. 2
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SONOMA CLEAN POWER AUTHORITY
BUDGETARY COMPARISON SCHEDULE - OPERATING FUND (CONTINUED)
RECONCILIATION OF NET INCREASE IN AVAILABLE FUND BALANCE
TO CHANGE IN NET POSITION
Five Months Ended November 30, 2025
Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ 65,912,482
Adjustments needed to reconcile to the
changes in net position in the
Statement of Revenues, Expenses
and Changes in Net Position:
Subtract depreciation expense
Add back capital asset acquisitions
Change in net position $
(596,350)
694,983
66,011,115
See accountants' compilation report. 3
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Staff Report – Item 03
To: Sonoma Clean Power Authority Board of Directors
From: Geof Syphers, Chief Executive Officer
Garth Salisbury, Chief Financial Officer & Treasurer
Chris Golik, Senior Finance Manager
Issue: Ratify Generation Rates Effective February 1, 2026, Consistent with Prior Board Direction
Date: February 5, 2026
Recommended Action
Ratify the continued use of customer generation rates implemented February 1, 2026, and shown in Attachment 1. The Board of Directors previously approved the parameters for these rates on November 6, 2025, targeting 3% above PG&E’s bundled service total bills effective February 1, 2026, based on PG&E’s rates that went into effect on January 1, 2026. This item publishes the rates which satisfy the Board’s parameters and authorizes their continued use.
Background
The Sonoma Clean Power Board of Directors voted on November 6, 2025, in favor of new customer rates to be implemented as soon as is feasible after PG&E’s changes to PCIA and rates expected on January 1, 2026, using the following parameters:
Using the best available forecasts on December 1, 2025, establish SCP rates at 3% above PG&E’s expected January 1, 2026, bundled service total bills, while projecting that SCP’s revenues (including deferred revenues) will cover all expenses; and
Utilize the December 2025 rate structure for cost allocation among the rate classes; and
Reset all rate classes so SCP customer total bills have an equal 3% difference from PG&E’s bundled service total bills.
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To correct for any potential errors in forecast once PG&E’s actual fees and rates were adopted, staff are now returning to the Board to ratify a rate change effective February 1, 2026, using the following parameters:
Establish SCP rates at 3% above PG&E’s January 1, 2026, bundled service total bills, while projecting that SCP’s revenues (including deferred revenues) will cover all expenses; and
Reset all rate classes so SCP customer total bills have an equal 3% difference from PG&E’s bundled service total bills; and
Requires that staff return to the Board following rate implementation to have the final rates ratified for continued use.
Discussion
SCP updated rates effective January 1, 2026, targeting SCP rates at 3% above PG&E’s expected January 1, 2026, bundled service total bills. SCP’s January 2026 rate change had to be submitted before PG&E’s final January 2026 rates were published.
PG&E updated the PCIA as well as their generation and delivery rates on January 1, 2026. As anticipated, there were differences between PG&E’s forecasted and actual January 2026 rates.
To correct for PG&E’s errors in forecast, SCP updated rates effective February 1, 2026, as shown in Attachment 1, so that SCP customer total bills have a target of 3% above PG&E’s bundled service total bills.
The actions effective February 1, 2026, represent a significant reduction in SCP’s generation rates and a reduction in SCP customer total bill savings from the prior target of 0.5% below PG&E bundled service total bills to the new target of 3% above PG&E bundled service total bills.
Agency Goals
The rate setting parameters and staff recommendations to reduce generation rates to stay competitive with PG&E bundled service total bills while also having total bills 3% above PG&E’s bundled service total bills directly support one of SCP’s 2026 goals.
1. Recommend and take all necessary actions to protect customers from rate shock in 2026.
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Community Advisory Committee
The two-phased approach and rate setting parameters were presented to the Community Advisory Committee (Committee) at their October 16, 2025 meeting. The Committee discussed and unanimously voted to recommend the Board approve the recommended rate changes.
Attachments
Attachment 1 - SCP Rate Schedule Effective February 1, 2026, available at this link or by request to the Clerk of the Board
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Staff Report – Item 04
To: Sonoma Clean Power Authority Board of Directors
From: Stephanie Reynolds, Director of Internal Operations Mike Koszalka, Chief Operating Officer
Issue: Receive Internal Operations Report and Provide Direction as Appropriate
Date: February 5, 2026
CUSTOMER ENERGY SOLUTIONS UPDATES
SCP’s GridSavvy Rewards program enables customers to support grid reliability by shifting electricity usage away from peak demand periods during energy saving events. The program offers two participation pathways:
Alerts: Participants receive event notifications via their preferred method (email, text, or phone call) in English or Spanish and reduce usage through simple actions such as delaying large appliance use or turning off unnecessary lights. This option requires no equipment installation.
Smart Devices: Participants enroll eligible devices such as smart thermostats or electric vehicle chargers that automatically reduce electricity consumption during events.
Enrollment in GridSavvy grew in 2025 to over 14,000 SCP customers, with approximately 24% of Alerts participants qualifying for CARE/FERA income-based discount programs. Despite mild temperatures and correspondingly lower baseline electricity usage throughout the season, the program achieved good results:
Load reduction of 4.8 MW during a single event
Paid $170,000 in rewards
$14 average reward per meter
92% of enrolled participants earned rewards
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Notably, 700 SCP customers donated their earned rewards, enrollment incentives, or equipment rebates to five community partner organizations (Circuit Rider, Conservation Works, Mendocino Land Trust, Sonoma County Children's Museum, and The Climate Center), contributing over $13,000. SCP's matching contribution brought the total to over $23,000, supporting organizations across Sonoma and Mendocino Counties.
2026 Priorities
By leveraging the CEC awarded VPP-FLEX grant, we will increase participation and advance the Board’s goal of reaching 7 MW by:
Launching SCP’s Home Thermostat Upgrade and enrolling income-qualified households
Expanding the smart device fleet
Piloting smart panel and battery system integration
These initiatives position SCP to make meaningful progress toward the 7 MW target while delivering greater customer and grid benefits.
UPCOMING MEETINGS
Community Advisory Committee – February 19, 2026
Board of Directors – March 5, 2026
Community Advisory Committee – March 19, 2026
Board of Directors – April 2, 2026
AGENCY GOALS
This Internal Operations update, which is provided monthly to the Board of Directors and Community Advisory Committee provides background on how all SCP staff support several Agency Goals, such as taking actions to protect customers, working on outreach to underrepresented communities, and maintaining a strong credit rating.
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Staff Report – Item 05
To: Sonoma Clean Power Authority Board of Directors
From: Neal Reardon, Director of Regulatory Affairs
Miles Horton, Legislative Policy & Community Engagement Manager Geof Syphers, Chief Executive Officer
Issue: Receive Legislative and Regulatory Updates, Approve Legislative Positions, and Provide Direction as Appropriate
Date: February 5, 2026
Requested Action
Receive legislative and regulatory updates, approve legislative positions, and provide direction as appropriate.
Regulatory Updates
Administrative Law Judge Issues Proposed Decision Requiring Additional Resource Procurement
On Wednesday January14th, administrative law judge Julie Fitch issued a Proposed Decision that, if adopted by the Commission, would require all load serving entities (LSEs) to procure additional resources between 2029-2032. Specifically, it would require an additional 2,000 MW by 2030 and an additional 4,000 MW by 2032. The proposal would allow energy storage resources to count for up to half of the total capacity, leaving renewable generation resources to provide the remainder. Sonoma Clean Power’s proposed share of the total requirement, which is based on our territory’s share of electric load, is 23 MW in 2030 and 45 MW in 2032 for a total of 68 MW.
The proposal did not come as a surprise. It followed a Ruling last September seeking input from stakeholders on the need for additional resources. CalCCA submitted a response on behalf of all CCAs and advocated that if CCAs were already exceeding procurement requirements, that excess capacity should be eligible to count towards 27 of 31
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the requirements in this order. In addition, CalCCA recommended that any procurement order start with 4,000 MW and re-evaluate the need for additional resources in the future. Sonoma Clean Power staff joined CalCCA in meeting with 4 Commission Offices and highlighted the negative impacts procurement orders have on market prices and, correspondingly, customer bills. While the Proposed Decision did not adopt the lower procurement amount, it did specify that any procurement in excess of previous orders would be counted as eligible to meet the capacity targets in the current order.
If adopted, the Proposed Decision would require power providers to demonstrate their progress towards compliance semi-annually through 2032. Existing legislation requires that all load serving entities provide a minimum of 90% clean electricity by 2035.
Legislative Updates
Sonoma Clean Power staff are continuing to work on our three ideas for sponsored legislative efforts this year, in advance of the deadline to introduce legislation in late February. The Board of Directors had previously approved advancing these three bill proposals:
Another attempt to exempt geothermal exploration wells meeting a high standard of environmental and labor protections from review under the California Environmental Quality Act. Federal policy already exempts these types of wells from environmental review under the National Environmental Policy Act, putting California at a significant competitive disadvantage. This bill would be similar to AB 527, which was vetoed last year. Securing roughly $40-50 million in funding through the state’s Greenhouse Gas Reduction Fund for new geothermal exploration wells in areas of California that have great potential for next-generation geothermal development, including Sonoma and Mendocino Counties. The goal would be to develop better geologic data for these areas and lower the risk of future geothermal development, similar to how the federal government’s “Utah FORGE” project galvanized new development in that region. Legislation to revamp the transmission planning process in California to produce a more flexible, adaptable system that can lower ratepayer costs over the long term and allow faster interconnection of new renewable energy 28 of 31
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resources. This is based off the research that SCP and Peninsula Clean Energy sponsored through Princeton University’s ZERO Lab.
Agency Goals
This item aligns with several agency goals. The achievement of Goals 3 & 4 (reducing reliance on natural gas power, including through development of “clean firm” power sources like geothermal as part of our GeoZone effort) is heavily reliant on statutory changes that make it more straightforward and cost-effective to build new geothermal power plants in California. Goal 10 (continuing to develop Sonoma Clean Power’s leadership on transmission planning in a manner that advances ratepayer affordability and climate progress) will also be served by advancing transmission planning legislation in 2026.
Attachments
None.
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Staff Report – Item 06
To: Sonoma Clean Power Board of Directors
Issue: Appoint Chair and Vice Chair for Calendar Year 2026 and Potentially Calendar Year 2027
Date: February 5, 2026
Recommended Action
Appoint a Chair and Vice Chair for calendar year 2026 and potentially calendar year 2027.
Background
One year ago, the SCP Board discussed the potential value of two-year terms for Chair and Vice Chair as a method of developing deeper expertise in SCP’s complex operations. At that time, the Board decided to pursue two consecutive one-year terms rather than a single vote for a two-year term.
The current Chair, Brian Barnacle, and Vice Chair, Jackie Elward, have held their positions for one year.
Attachments
None.
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