Sonoma Clean Power Board of Directors
May 7, 2026

~ Sonoma
:::::: Clean Power
___________________________________________________________ AGENDA

BOARD OF DIRECTORS MEETING
THURSDAY, MAY 7, 2026, 9:00 A.M.

EXCEPT AS PERMITTED BY GOVERNMENT CODE SECTION 54953.8.3, MEMBERS OF THE BOARD OF DIRECTORS MAY PARTICIPATE IN THE MAY 7, 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 54953.8.3. 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.

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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 April 2, 2026, Draft Board of Directors Meeting Minutes (Staff pg. 5 Recommendation: Approve)

2. Receive Monthly Financial Report (Staff Recommendation: Receive and File) pg. 11

3. Receive Geothermal Opportunity Zone Update (Staff Recommendation: Receive and pg. 23 File)

BOARD OF DIRECTORS REGULAR CALENDAR

4. Receive Internal Operations Report and Provide Feedback as Appropriate (Staff pg. 27 Recommendation: Receive and File)

5. Receive Legislative and Regulatory Updates, Approve Legislative Positions, and pg. 31 Provide Direction as Appropriate (Staff Recommendation: Approve)

6. Approve the Proposed Annual Budget for Fiscal Year 2026-2027 and Conduct a Public pg. 35 Hearing on the Status of Vacancies, Recruitment, and Retention Efforts (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 49
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~ Sonoma ~ Clean Power
___________________________________________________________

DRAFT MEETING MINUTES

BOARD OF DIRECTORS MEETING
THURSDAY, APRIL 2, 2026
9:00 A.M.

CALL TO ORDER
(9:06 a.m. - Video Time Stamp: 00:00:08)
Chair Barnacle called the meeting to order.

Board Members present: Chair Barnacle, Directors Laskey, Lemus, Farrar-Rivas, Potter, Haschak. Vice Chair Elward and Directors Albin-Smith, Stapp, Carter, and Hopkins were absent
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Garth Salisbury, Chief Financial Officer and Treasurer; Ryan Tracey, Chief Strategy Officer; Neal Reardon, Director of Policy & Legislative Affairs; Miles Horton, Legislative Policy & Community Engagement Manager; Carolyn Glanton, Programs Operations Manager; Stephanie Reynolds, Director of Internal Operations; Brant Arthur, Program Manager; Chris Golik, Senior Finance Manager; Felicia Smith, Director of Customer Energy Solutions; and Karen Flores, Clerk of the Board.

BOARD OF DIRECTORS CONSENT CALENDAR
(9:07 a.m. - Video Time Stamp: 00:02:10)

1. Approve March 5, 2026, Draft Board of Directors Meeting Minutes

2. Receive Monthly Financial Report

3. Recommend the Board of Directors Approve and Delegate Authority to the Chief Executive Officer or His Designee to Execute a Legal Services Agreement with Sonoma County Counsel in the Amount Not-To-Exceed of $100,000 through December 31, 2028

4. Receive Geothermal Opportunity Zone Update
9:07 a.m. Director Hopkins entered the meeting
Public Comment: None
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Motion to approve April 2, 2026, Board of Directors Consent Calendar by Director Hopkins
Second: Lemus
Motion passed by roll call vote
AYES: Laskey, Lemus, Barnacle, Farrar-Rivas, Potter, Haschak, Hopkins ABSENT: Albin-Smith, Elward, Stapp, Carter

BOARD OF DIRECTORS REGULAR CALENDAR

5. Receive Internal Operations Report and Provide Direction as Appropriate (9:08 a.m. - Video Time Stamp: 00:03:30)
Stephanie Reynolds, Director of Internal Operations, provided updates on the construction at 421 E Street and on the finalization of the purchase of the 741 Fourth Street building. Director Reynolds then introduced Brant Arthur, Program Manager, who discussed the Redwood Bike Share partnership, and Carolyn Glanton, Programs Operations Manager, who spoke about the SCP Home Thermostat Upgrade program which launched on March 16th.

Public Comment: Gregory Farron, a resident of Santa Rosa, stated that he would like to be the first to volunteer to sign up for the SCP Home Thermostat Upgrade program.

6. Receive Legislative and Regulatory Updates, Approve Legislative Positions on AB 2313 (Berman) Home Electrification and SB 905 (Becker) Energy Affordability, and Provide Direction on Other Bills as Appropriate (9:18 a.m. - Video Time Stamp: 00:14:00)
Neal Reardon, Director of Policy & Legislative Affairs, provided a regulatory update on the ongoing power charge indifference adjustment (PCIA) proceeding, emphasizing customer equity and CalCCA’s position that renewable energy credits (RECs) paid for by Community Choice Aggregators (CCA) customers have measurable value and should be credited accordingly. Additionally, Director Reardon reported that the California Public Utilities Commission (CPUC) approved a decision requiring 6,000 MW of new statewide resource procurement for 2030–2032 and directing CAISO to plan transmission for 750 MW of new geothermal generation in Northern Nevada.
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Miles Horton, Legislative Policy & Community Engagement Manager, provided updates on the four bills SCP is sponsoring this year and spoke about two others that staff recommended that the Board support, AB 2313 (Berman) and SB 905 (Becker). AB 2313 (Berman), which would allow homeowners to permanently waive gas service at the time of a utility line replacement and receive a rebate to support home electrification, and SB 905 (Becker), which proposes broad reforms to utility law aimed at reducing long-term customer costs.

Public Comment: None
Motion to approve legislative positions on AB 2313 (Berman) Home Electrification and SB 905 (Becker) Energy Affordability by Director Hopkins Second: Farrar-Rivas
Motion passed by roll call vote
AYES: Laskey, Lemus, Barnacle, Farrar-Rivas, Potter, Haschak, Hopkins ABSENT: Albin-Smith, Elward, Stapp, Carter

7. Review and Provide Feedback on the Draft Annual Budget for Fiscal Year 2026- 2027
(9:54 a.m. - Video Time Stamp: 00:49:05)
Garth Salisbury, Chief Financial Officer and Treasurer, introduced Chris Golik, Senior Finance Manager, who gave a presentation regarding the draft budget for fiscal year 2026-2027 where he highlighted that SCP has returned $47 million from the rate stabilization fund back to SCP rate payers.

Public Comment: Gregory Farron, a resident of Santa Rosa, noted that the questions and issues raised by the Board reflect a thoughtful approach to managing its responsibilities and expressed general reassurance with how the organization is conducting its work.

8. Review Strategic Action Plan and Provide Feedback as Appropriate (10:22 a.m. - Video Time Stamp: 01:17:00)
Felicia Smith, Director of Customer Energy Solutions, delivered a presentation on the Strategic Action Plan, highlighting upcoming customer programs and incentive initiatives.
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Public Comment: Gregory Farron, a resident of Santa Rosa, encouraged the Board to consider community nonprofit and affordable housing parking lots as candidates for future EV charger installations, and expressed appreciation for SCP’s past support with solar installation and electric vehicle adoption.

BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(10:46 a.m. - Video Time Stamp: 01:41:27)
Director Farrar-Rivas provided an update that David Guin, the city of Sonoma’s City Manager, will now be the CEO for the County of Sonoma, and Cristine Alilovich will be the interim City Manager for the city of Sonoma. Additionally, the city of Sonoma will have Earth Day celebrations on April 25th from 11:00 a.m. to 4:00 p.m. which will include their Trash and Fashion show. Director Haschack shared that they have installed EV chargers at the Admin Center in Ukiah as well as at the Social Services Building. Director Lemus shared that the City of Cotati had about 300 participants at their Climate Fair. Director Laskey invited everyone to Cloverdale’s monthly wine walk which happens on the first Saturday of the month. Director Potter shared that Windsor will be hosting their Earth Day celebration on April 19th which will include their repair fair from 10 a.m. to 1 p.m. Director Hopkins shared that Occidental will be hosting their annual April Fools’ Day parade April 4th. Chair Barnacle shared that the Petaluma Speedway will be having opening day on April 4th as well as Butter and Egg Days parade on April 18th.

PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(10:51 a.m. - Video Time Stamp: 01:46:15)
Public Comment: Gregory Farron, President of the Homeless Emergency Assistance Program Association (HEPA), described HEPA’s role in piloting community-funded homeless support projects and offered a partnership and matching funds to launch a small pilot project providing public cell phone charging access for people experiencing homelessness.

Jen McDonald submitted a written comment in relation to an article from the SF Chronicle, her comment is attached to these minutes.

ADJOURN
(10:56 a.m. - Video Time Stamp: 01:50:40)
The meeting was adjourned by unanimous consent.
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Dear Sonoma Clean Power directors,
Today's SF Chronicle broke the story that local public agencies were being lobbied with fake emails using stolen email addresses. The group behind it? The Bay Area Council, of which SCP is a member.

I'm sure you more than most know how critical it is to hear from your constituents, and not be influenced by professional lobbyists using identity theft to fake genuine contact. So, I'm asking you to take a minute, just now, to contact SCP staff responsible for Bay Area Council membership, and ask them to demand that the Council abandon this reprehensible campaign, and break ties with the lobbying group doing the identity theft. After all, you could well be their next target.

I've attached a copy of the Chronicle article. Also, here is a link to a rather desperate PR that the BAC sent out last night. Instead of apologizing or backing down, they double down, and claim that the many individuals who had their identities stolen were somehow mistaken.

This brazen response, I think, demands that members of the BAC react strongly to this, particularly public agencies such as yourself.

Incidentally, the air district rules that they are opposing through their front group "Common Sense Coalition" are designed to eliminate more than 5 million tonnes of CO2 emissions every year, avoid 85 deaths a year, and costs of almost 1 billion dollars. Even if they weren't stealing identities to do so, does SCP - a leader in greening the area - really want to oppose such life-saving rules?
On an unrelated note, I want to thank you all for your phenomenal work at SCP. It's just fantastic to not have to be a captive of PG&E any longer, and it's truly inspiring to have a provider that thinks about the climate and the next generation, and is responsive to its clients and constituents.

Sincerely,
Jen McDonald
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~ Sonoma ~ Clean Power
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: May 7, 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.

Monthly Compiled Financial Statements (February 28, 2026) The year-to-date change in net position is more than projections by approximately $5,227,000. Year-to-date revenue from electricity sales is on target with budget while cost of energy is under budget projections by approximately 4%. Year-to-date electricity sales reached $168,364,000.

SCP maintains a balanced portfolio by procuring electricity from multiple sources. Net position reached a positive $299,215,000. 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.

Budgetary Comparison Schedule (February 28, 2026)
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 11 of 49

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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 under budget by less than approximately

0.5% at the end of the reporting period.

The cost of electricity was less than the budget-to-date by approximately 4%. 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 (March 2026).

SCP currently maintains bank accounts and investments at River City Bank (RCB), Summit State Bank, the State of California Local Agency Investment Fund (LAIF), USBank, and J.P. Morgan. Active individual securities are held at RCB, USBank and J.P. Morgan. Staff will provide Statements of Investments as required throughout the year.
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Reportable Activities
USBank
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 March 31st, CAM managed about $84 million of SCP’s reserves. All investments directed by CAM are held at SCP’s custodian, USBank. All investments held as of March 31, 2026, at USBank appear as Attachment 3 with new holdings purchased in March highlighted. USBank transaction details for the month of March, including sales and maturities of securities, are in Attachment 4. Additionally, the March 2026 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 March 31, 2026, appears as Attachment 6. River City Bank transaction details for the month of March, including sales and maturities of securities, are in Attachment 7.

State of California Local Agency Investment Fund
The LAIF investment balance as of March 31, 2026, appears as Attachment 8.

J.P. Morgan
The J.P. Morgan investment balance as of March 31, 2026, appears as Attachment 9.

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 – February 2026 Financial Statements
 Attachment 2 – February 2026 Budgetary Statement
 Attachment 3 – March 2026 Statement of Investments Held at USBank, available at this link or by request to the Clerk of the Board
 Attachment 4 – March 2026 Statement of Transactions at USBank, available at this link or by request to the Clerk of the Board
 Attachment 5 – March 2026 USBank Account Statement prepared by CAM, available at this link or by request to the Clerk of the Board  Attachment 6 – March 2026 Statement of Investments Held at River City Bank, available at this link or by request to the Clerk of the Board  Attachment 7 – March 2026 Statement of Transactions at River City Bank, available at this link or by request to the Clerk of the Board  Attachment 8 – March 2026 Statement of Investments Held at the Local Agency Investment Fund, available at this link or by request to the Clerk of the Board  Attachment 9 – March 2026 Statement of Investments Held at J.P. Morgan, available at this link or by request to the Clerk of the Board 14 of 49

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 February 28, 2026, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the eight 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
April 3, 2026
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SONOMA CLEAN POWER AUTHORITY

STATEMENT OF NET POSITION
As of February 28, 2026
ASSETS
Current assets
Cash and cash equivalents $ 232,505,600
Accounts receivable, net of allowance 11,351,960
Other receivables 3,556,465
Accrued revenue 8,347,694
Prepaid expenses 896,098
Loan receivable 12,229
Deposits 848,445
Investments 99,793,404
Total current assets 357,311,895
Noncurrent assets
Investments 78,307,756
Loan receivable 3,417,071
Other receivables 794,520
Deposits 16,000
Capital assets, net of depreciation 23,047,988
Total noncurrent assets 105,583,335
Total assets 462,895,229

LIABILITIES
Current liabilities
Accrued cost of electricity 21,036,795
Accounts payable 1,183,159
Other accrued liabilities 1,826,609
User taxes and energy surcharges due to other governments 570,671 Supplier security deposits 510,000
Total current liabilities 25,127,234
Noncurrent liabilities
Supplier security deposits 1,053,421
Total liabilities 26,180,655

DEFERRED INFLOWS OF RESOURCES
Rate stabilization fund 137,500,000

NET POSITION
Investment in capital assets 22,819,335
Unrestricted 276,395,239
Total net position $ 299,214,574
See accountants' compilation report. 2
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STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
Eight Months Ended February 28, 2026

OPERATING REVENUES
Electricity sales, net
Evergreen electricity premium
Liquidated damages
Grant revenue
Total operating revenues
$ 166,258,358
2,102,616
15,034,329
355,174
183,750,477

OPERATING EXPENSES
Cost of electricity
Contract services
Staff compensation
Program rebates and incentives
Other operating expenses
Depreciation
Total operating expenses
Operating income
106,220,434
6,227,553
8,437,567
1,825,335
2,042,279
903,841
125,657,009
58,093,468

NONOPERATING REVENUES (EXPENSES)
Investment income
Charitable contribution
Nonoperating revenues (expenses), net
11,523,901
(250,000)
11,273,901

CHANGE IN NET POSITION
Net position at beginning of year
Net position at end of period $
69,367,369
229,847,205
299,214,574
See accountants' compilation report. 3
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SONOMA CLEAN POWER AUTHORITY

STATEMENT OF CASH FLOWS
Eight Months Ended February 28, 2026

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 178,262,773
Receipts from grantors 301,811
Receipts of security deposits and liquidated damages revenue 19,653,065 Receipts from wholesale sales and other operating activities 26,923,284 Payments to electricity suppliers (129,048,814)
Payments for other goods and services (9,339,191)
Payments for staff compensation (8,354,217)
Payments for program rebates and incentives (1,591,626) Payments of taxes and surcharges to other governments (2,332,928) Deposits and collateral paid (2,903,400)
Net cash provided (used) by operating activities 71,570,757

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Purchases of capital assets (6,099,909)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 8,277,418
Proceeds from sales and maturities of investments 13,852,821 Loan principal received 1,323
Purchase of investments (28,582,154)
Loan issued (3,430,622)
Net cash provided (used) by investing activities (9,881,214) Net change in cash and cash equivalents 55,589,634
Cash and cash equivalents at beginning of year 176,915,966 Cash and cash equivalents at end of period $ 232,505,600

SUPPLEMENTAL CASH FLOW INFORMATION
Capital acquisitions included in accounts payable and other liabilties $ 228,653

NONCASH INVESTING ACTIVITES
Change in fair value of investments $ 3,574,868
Change in interest receivable $ (328,385)
See accountants' compilation report. 4
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SONOMA CLEAN POWER AUTHORITY

STATEMENT OF CASH FLOWS
(Continued)
Eight Months Ended February 28, 2026

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 58,093,468
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:

Depreciation expense 903,841
Charitable contributions considered an operating
activity for cash flow purposes only (250,000)
(Increase) decrease in:

Accounts receivable, net of allowance 3,360,108
Other receivables 2,557,485
Accrued revenue 4,282,271
Prepaid expenses 628,907
Deposits 5,704,614
Increase (decrease) in:

Accrued cost of electricity 1,568,428
Accounts payable (688,998)
Other accrued liabilities (280,106)
User taxes due to other governments (73,508)
Supplier security deposits (4,235,753)
Net cash provided (used) by operating activities $ 71,570,757 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 eight months ended February 28, 2026, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.

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
April 3, 2026
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BUDGETARY COMPARISON SCHEDULE - OPERATING FUND
Eight Months Ended February 28, 2026
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) * $ 166,798,285 $ 166,261,046 $ (537,239) 100% $ 221,379,000 $ 55,117,954 Evergreen Premium (net of allowance) 2,114,382 2,102,616 (11,766) 99% 3,150,000 1,047,384 CEC Grant Proceeds 525,002 355,174 (169,828) 68% 863,000 507,826 Investment returns 11,094,151 11,523,901 429,750 104% 15,994,000 4,470,099 Total revenue and other sources 180,531,820 180,242,737 (289,083) 100% 241,386,000 61,143,263 EXPENDITURES AND OTHER USES:

CURRENT EXPENDITURES
Cost of energy and scheduling 95,349,274 91,188,793 (4,160,481) 96% 162,463,000 71,274,207 Data management 2,237,796 2,251,127 13,331 101% 3,359,000 1,107,873 Service fees- PG&E 661,898 664,035 2,137 100% 990,000 325,965 Personnel 8,283,526 8,437,567 154,041 102% 12,781,000 4,343,433 Marketing & communications 2,609,547 1,900,134 (709,413) 73% 4,415,000 2,514,866 Customer service 143,215 126,284 (16,931) 88% 220,000 93,716 General and administration 1,397,561 1,348,047 (49,514) 96% 2,309,000 960,953 Legal 396,483 332,827 (63,656) 84% 525,000 192,173 Regulatory and compliance 140,567 111,831 (28,736) 80% 360,000 248,169 Accounting 239,400 239,200 (200) 100% 340,000 100,800 Legislative 138,667 148,000 9,333 107% 220,000 72,000 Other consultants 404,529 350,873 (53,656) 87% 535,000 184,127 Industry memberships and dues 623,943 694,216 70,273 111% 888,000 193,784 Program implementation 3,160,729 2,178,593 (982,136) 69% 6,481,000 4,302,407 Total current expenditures 115,787,135 109,971,527 (5,815,608) 95% 195,886,000 85,914,473

OTHER USES
Capital outlay 6,119,074 6,418,627 299,553 105% 7,022,000 603,373 Total expenditures, other uses 121,906,209 116,390,154 (5,516,055) 95% 202,908,000 86,517,846 Net increase (decrease) in available fund balance $ 58,625,611 $ 63,852,583 $ 5,226,972 $ 38,478,000 $ (25,374,583) * Represents sales of approximately 1,397,000 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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BUDGETARY COMPARISON SCHEDULE - OPERATING FUND (CONTINUED)

RECONCILIATION OF NET INCREASE IN AVAILABLE FUND BALANCE

TO CHANGE IN NET POSITION
Eight Months Ended February 28, 2026
Net increase (decrease) in available fund balance
per budgetary comparison schedule: $ 63,852,583
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 $
(903,841)
6,418,627
69,367,369
See accountants' compilation report. 3
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Staff Report – Item 03
To: Sonoma Clean Power Authority Board of Directors
From: Ryan Tracey, Chief Strategy Officer
Geof Syphers, Chief Executive Officer
Miles Horton, Legislative Policy & Community Engagement Manager Claudia Sisomphou, Director of Community & Governmental Relations Issue: Receive Geothermal Opportunity Zone Update
Date: May 7, 2026
Background
The Geothermal Opportunity Zone (GeoZone) is SCP’s initiative to secure affordable, reliable clean energy for our customers by building 600 megawatts of new geothermal power capacity in Sonoma and Mendocino Counites. This will eventually enable SCP to phase out its dependence on natural gas power plants for reliability. The Community Advisory Committee (Committee) meetings are a regularly scheduled public forum for the community to receive updates and provide input on the GeoZone. The updates provided to the Committee each month, and minutes from any discussion are posted on SCP’s website at https://sonomacleanpower.org/geozone-public-updates. Staff incorporate any feedback received from the Committee presentation into the monthly updates to the Board of Directors. Additional background on the GeoZone can be found on the GeoZone webpage at https://sonomacleanpower.org/geozone.

Partner Updates
SCP is actively collaborating with Eavor on siting opportunities for a GeoZone project.

Staff have begun leveraging expertise from SCP’s Capital Projects team to identify constraints and opportunities for locating the project. Additionally, Eavor and the University of Colorado publicly released a feasibility study for locating an Eavor system on campus (linked here), that provides a good guide for the types of considerations that influence favorable siting conditions.

Meanwhile, staff continue to organize meetings with prospective industry partners for bilateral negotiations. Early conversations are focused on understanding partner capabilities and synergies with SCP’s objectives for the GeoZone. 23 of 49

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California Energy Commission Integrated Energy Policy Report The California Energy Commission (CEC) is including an assessment of challenges and opportunities for geothermal development in California in its 2026 Integrated Energy Policy Report (IEPR – link here to scoping order). The IEPR is the primary venue at the CEC for assessing the state energy system and identifying legislative and regulatory opportunities. SCP staff believe that the IEPR assessment has the potential to accomplish many of the objective of AB 526, which was the legislation SCP sponsored last year to develop a strategic plan for in-state geothermal development that unfortunately didn’t pass out of appropriations.

SCP submitted comments (link here) to the 2026 IEPR docket expressing strong support of the CEC’s decision to focus the geothermal development report on in-state opportunities. Recent procurement of geothermal resources to meet the state’s needs as been concentrated unnecessarily out-of-state and focusing on in-state barriers and opportunities creates an opportunity to directly leverage the 2026 IEPR assessment in enabling development that can provide local reliability, access to more resources, and economic benefits.

Sonoma-Lake-Mendocino Proactive Regional Geothermal Planning Project Sonoma County executed its grant agreement with the California Energy Commission for the Sonoma-Lake-Mendocino Proactive Regional Geothermal Planning Project and kicked-off the project in early April. The project team includes Sonoma County, Mendocino County, Sonoma Clean Power, and the National Lab of the Rockies (NLR).

The CEC is providing $1.36 million in funding for county staff time, funding modeling and stakeholder engagement training from NLR, high-resolution surface mapping and analysis, biological surveys, and tribal reconnaissance. The project will develop products that are useful to both industry and county permitting staff to characterize the opportunity to site next-geothermal geothermal projects in the region.

In 2026, the focus of the project will be on NLR’s development of a three-dimensional thermal model for the region to characterize subsurface potential. The project team will also organize a field trip to a next-generation geothermal project site and begin collecting best practices and lessons learned for geothermal permitting practices. SCP is supporting the project through an in-kind contribution of staff time, valued at $164,000. The final report for the project is expected to be completed by the end of 2028.
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Agency Goals
The GeoZone activities are directly related to the 2026 agency goal to continue progress on the GeoZone, which SCP sees as a key initiative in supporting deployment of technology that will be critical to meeting long-term climate goals, addressing affordability, and providing reliability while creating local economic opportunities.

Attachments
 None.
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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 Feedback as Appropriate
Date: May 7, 2026
No More Construction Zone
The renovation of the office space at 421 E Street (next door to our parking lot) is complete, furniture has been installed, and we have passed all inspections and are starting to move people into new workspaces and supplies from storage.

Integrated Resources Plan (IRP) Timeline
In the February Committee meeting and March Board meeting, staff provided a presentation on this year’s IRP process. Staff shared that the Committee would be re-engaged in their April meeting with a recommended IRP portfolio that the Board could approve in May in anticipation of the California Public Utility Commission’s (CPUC) June 1st deadline. Following staff’s presentation, the CPUC has pushed the deadline for the 2026 IRP filing to August 10, 2026. To allow for more comprehensive analysis, staff have decided to delay presentation of a recommended IRP portfolio to the May Committee meeting and June Board meeting.

Business One-Stop Shop
On April 4, the Press Democrat ran a story about the planned small business support center called the Business One-Stop Shop (BOSS) that SCP is supporting with a $4 million loan and a grant of up to $500,000. The story covers it well, but it is worth adding three reasons why SCP was interested in this venture.

First, BOSS provides SCP access to the hardest-to-reach customers. Small businesses, including minority and underserved businesses, can often benefit from state or local incentives, education about energy efficiency and SCP support on lowering their energy bills. However, small businesses are extremely difficult to reach.

The BOSS center provides SCP with priority access to meeting and speaking with 27 of 49

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small businesses, helping SCP better achieve its goals of cutting pollution and reducing customer energy costs.

Second, the SCP loan provides interest income that will offset over $1 million in SCP customer rates over the coming decade. This is the first time SCP has ever made a community-supporting investment that also directly financially benefits all ratepayers.

Third, this investment promises to provide ongoing community support for many years, rather than typical year-by-year charitable donations to local non-profit organizations.

CUSTOMER ENERGY SOLUTIONS UPDATES
Upcoming Changes to the Heat Pump Water Heater Rebate: $2500 for eligible Heat Pump Water Heaters through Mar 1, 2027
In March 2023, the Bay Area Air District (formerly Bay Area Air Quality Management District) adopted amendments to building appliance rules 9-4 and 9-6 which prohibit the sale of new gas water heaters and furnaces to set zero nitrogen oxide (NOx) emission standards. Rule 9-6, prohibiting the sale of gas water heaters is planned to go into effect on January 1, 2027.

The only zero NOx space and water heating appliances currently available are electric and therefore rule implementation presents specific challenges regarding switching from natural gas to electric appliances for impacted SCP customers. At the direction of the Sonoma Clean Power Board of Directors, staff have increased contractor outreach and heat pump water heater education for customers in advance of the mandate.

Most notably, SCP will increase its standard heat pump water heater rebate from $700 to $2500 starting June 1, 2026, through March 1, 2027. Income-qualified (CARE/FERA) customers currently receive a higher rebate - 50% of project cost not to exceed $10,000 – which will continue to be available.

The enhanced rebates are intended to accomplish the following:
• Provide an incentive for households to replace old water heaters prior to the mandate and reduce total project cost.
• Increase familiarization of heat pump water heater installs with local electrical, plumbing, and HVAC contractor companies.
• Give local contractors a selling point to encourage heat pump water heaters in advance of the mandate (and avoid a surge of gas water heater installs through the end of 2026).
• Overall increased awareness of heat pump water heaters in the general market.

On average, SCP approves approximately 215 heat pump water heater rebates per year. With the enhanced rebate, SCP staff expects in increase in projects over the nine-month duration, and upwards of $1,200,000 in funding (including CARE/FERA). 28 of 49

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After March 1, 2027, SCP will continue to offer CARE/FERA rebates to support low-income households to comply with the mandate, but the standard rebate will be discontinued.

Summary of Changes
Customer Type Current Rebate Enhanced Rebate End Date
Residential or
Commerical
$700 $2500 3/1/2027
CARE or FERA 50% of project cost
not to exceed
$10,000
No changes No planned
end date
Successful VPP-FLEX Grant Partner Training
Between May 2026 and December 2027, four community-based organizations:

Nuestra Comunidad, Latino Service Providers, North Coast Opportunities/Visión Family Resource Center, and Council on Aging, will be supporting outreach to, and engagement with, eligible CARE/FERA customers across SCP’s service area.

On Friday, April 3rd, Sonoma Clean Power hosted training for its VPP-FLEX Grant community partners and contractors at the Customer Center. Over twenty people were in attendance. The training included an overview of SCP’s history and electricity services, the challenges facing the electric grid and energy affordability, how demand response programs work, and the eligibility requirements and benefits of SCP Home Thermostat Upgrade.

UPCOMING MEETINGS
• Community Advisory Committee – May 21, 2026
• Board of Directors – June 4, 2026
• Community Advisory Committee – June 18, 2026
• Board of Directors – July 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 29 of 49

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on outreach to underrepresented communities, and maintaining a strong credit rating.

We work to support our Board, Committee and all internal staff in their various work.

Attachments
 None.
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Staff Report – Item 05
To: Sonoma Clean Power Authority Board of Directors
From: Neal Reardon, Director of Policy
Adam Jorge, Senior Decarbonization Policy Manager
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: May 7, 2026
Requested Action
Receive legislative and regulatory updates, approve legislative positions, and provide direction as appropriate.

Regulatory Updates
California Energy Commission Approves SCP’s Load Management Standards Compliance Plan
Sonoma Clean Power’s (SCP) Load Management Standards Compliance Plan was formally approved by the California Energy Commission (CEC) at its March 12 Business Meeting. SCP is currently the only load serving entity to use a programmatic alternative to fulfill compliance obligations under the Load Management Standards.

The Warren-Alquist Act (1974) establishes the CEC’s broad authority and obligation to manage electricity demand and reduce inefficient energy use to support grid reliability.

The CEC developed the Load Management Standards under this authority to further advance energy efficiency and grid reliability solutions through dynamic electric load and electricity pricing pilots.

The Load Management Standards regulations require large electricity providers, including SCP, to have approved plans showing how customers can reduce or shift electricity use during times of grid stress. These rules are designed to support reliability and clean energy goals while giving customers options to participate in demand flexibility programs or real-time electricity pricing pilots. SCP submitted its compliance 31 of 49

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plan in 2024 and worked closely with CEC staff over the past year to refine and strengthen the plan.

The approved plan successfully demonstrated that SCP Rewards (formerly “GridSavvy Rewards”) provides a more suitable fit for SCP customers at this time, given its prior years of success deploying automated and behavioral incentive-based load flexibility programs. Instead of relying on complex hourly electricity pricing, SCP Rewards allows customers to earn rewards for shifting electricity use during key hours, without forcing changes to their rates.

CEC agreed that this approach effectively supports grid reliability and clean energy goals while remaining simple, easy and effective for customers. Additionally, the past several years of program growth coupled with the anticipated growth under the Virtual Power Plant Approaches for Demand Flexibility (VPP-FLEX) grant offers a dynamic way to expand program offerings and reach additional customers in a manner supportive of the Load Management Standards. Approval of the plan highlights the multifaceted value of programs like SCP Rewards, which achieve necessary Agency objectives, support grid resilience, and satisfy complex regulatory requirements.

SCP will be required to submit compliance filings by March 12 of each year in the form of a report demonstrating implementation of the plan. CEC is additionally slated to consider a new rulemaking at its April 8 Business Meeting to update and improve the Load Management Standards statewide. While this does not affect SCP’s approved plan, it will shape future requirements and opportunities as the program evolves.

CPUC Proposes Changes to Timing of 2026 California Climate Credit for Electric Customers
Last July, the California Public Utilities Commission (CPUC) initiated a rulemaking (R.25-07-013) to evaluate changes to and adjust the timing of the California Climate Credit to better support customer affordability.

The California Climate Credit is a bill credit designed to return a portion of the proceeds from California’s Cap-and-Invest (formerly Cap-and-Trade) program to customers, helping offset energy costs while supporting the state’s climate goals. The Climate Credit is funded by the sale of greenhouse gas emission allowances allocated to utilities, has historically been distributed automatically to electric utility customers in April and October of each year, and to natural gas customers once per year, typically in April.

In February 2026, the Commission issued a Proposed Decision pausing the April 2026 residential electric Climate Credit while it considers shifting electric credits to high-bill summer months. The proposal would distribute the 2026 electric residential credit in 32 of 49

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August and September, rather than April and October, without changing the total annual amount customers receive. For natural gas customers, there is no change in 2026, but the Commission will consider the proposed shift of the 2027 gas credit to February as part of the vote on April 30. Other Climate Credits, including those for small businesses and industrial customers, are not affected by the current proposals.

SCP is coordinating with CalCCA to provide ongoing support for thoughtful Climate Credit alterations expected in subsequent tracks of the proceeding focused on eligibility, equity, and other potential changes yet to be identified.

Legislative Updates
Sonoma Clean Power staff are continuing to work on our four sponsored legislative efforts this year:
• Another attempt to exempt geothermal exploration wells meeting a high standard of environmental, labor, and tribal resource and cultural 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 is similar to AB 527, which was vetoed last year. Assemblymember Diane Papan has also introduced AB 2234, which makes modest but beneficial changes to the definition of “geothermal exploration” and may intersect with this effort. • Securing $40 million in state funding, possibly through the Greenhouse Gas Reduction Fund, for new geothermal exploration wells in areas of California that have high potential for next-generation geothermal development, likely including Sonoma and Mendocino Counties. The goal would be to develop better geologic data for these areas and lower the risk of future geothermal projects, similar to how the federal government’s “Utah FORGE” project galvanized new development in that region.
• AB 2111 (Papan), which aims 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 resources. This is based off the research that SCP and Peninsula Clean Energy sponsored through Princeton University’s ZERO Lab. This legislation recently passed out of the Assembly Utilities & Energy Committee on a vote of 17-0.
• AB 2369 (Rogers), which seeks to allow new clean energy resources that are not “fully deliverable” to interconnect and deliver resource adequacy value to the 33 of 49

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grid. As with AB 2111, this bill would allow California to construct a significantly larger amount of clean energy resources much faster than what is possible today. At the time of writing, this bill is currently undergoing significant amendments, and SCP staff are working with the author to determine the best path forward.

Both AB 2111 and AB 2369 are co-sponsored by the Abundance Network. AB 2111 is also co-sponsored by Peninsula Clean Energy.

At the time of writing, both AB 2111 and AB 2369 are pending hearing in the Assembly Appropriations Committee before being voted on by the full Assembly and then moving on to the state Senate.

Community Advisory Committee Review
Most recently, the Community Advisory Committee encouraged continued vigorous efforts to advocate on all of these fronts in the legislative and regulatory processes.

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 AB 2111 and AB 2369 in 2026.

Attachments
 Attachment 1 - SCP’s approved LMS Compliance Plan, available at this link or by request of the Clerk of the Board
 Attachment 2 - Signed Order Approval of Load Management Standards Compliance Plans for MCE and SCP, available at this link or by request of the Clerk of the Board 34 of 49

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Staff Report – Item 06
To: Sonoma Clean Power Authority Board of Directors
From: Garth Salisbury, Chief Financial Officer & Treasurer Geof Syphers, Chief Executive Officer
Chris Golik, Senior Finance Manager
Issue: Approve the Proposed Annual Budget for Fiscal Year 2026-2027 and Conduct a Public Hearing on the Status of Vacancies, Recruitment, and Retention Efforts
Date: May 7, 2026
Recommendation
Approve the Proposed Fiscal Year 2026-2027 (FY 2026/27) Annual Budget and receive an update on the status of vacancies, recruitment, and retention efforts.

Public Hearing on the Status of Vacancies, Recruitment, and Retention Efforts Sonoma Clean Power (SCP) currently has two staffing vacancies. SCP values its employees and offers a strong recruitment and retention program, including competitive compensation.

Budget Summary
The Draft FY 2026/27 Annual Budget was well received by the Community Advisory Committee (Committee) and the Board of Directors (Board) at their respective meetings, and no substantive suggestions for financial changes to the Budget were advised. This report continues to include detailed background for reference, but no changes were made to the budget.

Staff proposes a budget for FY 2026/27 which runs from July 1, 2026, through June 30, 2027, that:
• Plans for SCP’s next rate change on or about February 1, 2027 • Aims for SCP customer bills to stay within 3% of PG&E bundled customer total electric bills through December 31, 2026 (subject to no surprises) 35 of 49

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• Returns a projected $46.7 million of Rate Stabilization Fund deferred revenues to ratepayers
The remainder of this item is the same as previously reviewed by the Board.

Background
Staff presented a budget for FY 2026/27 that continues to fulfill SCP’s adopted goals for providing electricity from very low greenhouse gas sources, investing in renewables, operating the Customer Center, utilizing the local investment fund, and delivering a broad set of customer services and incentives.

From the outset, SCP has held a high standard for its operations, usually far in advance of State requirements. One such groundbreaking offering is our EverGreen service, first introduced in 2014. EverGreen was the nation’s first electric supply that provides 100% local renewable energy 24/7 without any reliance on fossil energy sources for any purpose.

Rate History and Financial Planning
From its inception until early 2020, SCP consistently delivered lower overall bills to customers every year. This was possible because SCP set its electric generation rates significantly below PG&E’s, more than offsetting the Power Charge Indifference Adjustment (PCIA) fee charged to SCP customers. These competitive rates resulted in tens of millions of dollars in cumulative customer savings beginning in 2014, while also allowing SCP to build healthy financial reserves over time. All comparisons to PG&E are presented as total electric bill premium or savings.

From May 2020 through March 2022, SCP faced market conditions and PCIA dynamics that required temporarily setting rates that resulted in customer bills 5% above PG&E’s bundled service. Even during this period, SCP maintained sound financial practices and ensured that rates remained stable and predictable. SCP eliminated this premium in April 2022, and following the February 1, 2023, rate adjustment, SCP targeted approximately 5% savings on total customer bills. Between February 2023 and September 1, 2025, SCP achieved customer savings between 3% and 7% below PG&E, while continuing to add to reserves when conditions allowed.

Throughout 2025, SCP anticipated that PG&E would reduce its generation rates and substantially increase the PCIA on January 1, 2026. When PG&E later published its January 2026 rates, those expectations were confirmed. Staff determined that maintaining competitive rates in 2026 would require SCP to reduce its own rates significantly, a move that would necessitate a drawdown of SCP’s long-term financial 36 of 49

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reserves. Recognizing this coming pressure, SCP took the proactive step in September 2025 by lowering its savings target to approximately 0.5% below PG&E. This deliberate adjustment generated additional revenue and strengthened reserves ahead of the expected 2026–2027 cost impacts and the consequent draw down of the Rate Stabilization fund.

On January 1, 2026, SCP implemented a planned rate reduction based on PG&E’s expected January rates, using the reserves built up over prior years to shield customers from the full impact of rising PCIA and shifting market conditions. When PG&E’s finalized January 2026 rates differed from the forecast values used by SCP, a further rate correction was necessary. SCP therefore updated its rates again on February 1, 2026.

Beginning in February 2026, SCP targeted customer bills approximately 3% above PG&E’s bundled bills—reflecting both PG&E’s lower generation rates and PCIA increase and the planned, responsible drawdown of SCP’s reserves to maintain stable service and preserve long-term financial health.

This approach—strategically building reserves in favorable years and drawing them down during periods of volatility—is central to SCP’s mission of providing long-term value and rate stability. Reserves act as a financial buffer, allowing SCP to smooth sudden cost changes, support predictable customer pricing, and maintain program stability even when market or regulatory conditions shift significantly.

It is important to note that the PCIA remains difficult to forecast. Its value depends on several factors: PG&E’s internal decisions regarding market participation (such as whether to sell excess resource adequacy), frequent regulatory changes to the PCIA methodology, and volatility in natural gas driven energy and capacity markets. Because these drivers can change rapidly and significantly, staff will continue to provide routine updates to the Committee and Board as new information becomes available.

Rate Setting
This item is limited to SCP’s annual budget. But since rate setting and budgeting are closely linked, it is important to understand how SCP sets rates.

Step 1. Revenue Requirement: Identify the Revenue Requirement for SCP to provide its essential services and meet its Board’s adopted plans and policies. The budgeting process is used to identify the Revenue Requirement or the cost of providing service.

Step 2. Rate setting: Rate setting is generally done in November or December for implementation on or about February 1 of the following year. This delay allows any necessary mid-year correction to the Revenue Requirement before setting rates.

Importantly, the allocation of the Revenue Requirement is made by setting a particular 37 of 49

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percentage premium or savings on total electric charges relative to the most recently authorized CPUC rates for PG&E, then adjusting that premium or savings until SCP’s forecast revenues match the agency’s Revenue Requirement.

At this time, staff does not expect to recommend a rate adjustment until February 1, 2027.

However, SCP’s rates are always subject to change as forecasts of revenues and expenses vary with actual results.

Budget Overview
The FY 2026/27 proposed budget presented in this item seeks to:
• Procure a supply portfolio of electricity generation that meets the Board’s adopted plans and policies.
• Emphasize customer incentives and education that support energy affordability and cut greenhouse gas emissions. Expand customer outreach through improved market research and listening to our various communities. • Expand community education activities.
• Increase emphasis on ensuring all of SCP’s communities know about and have access to incentives and education.
• Promote the Customer Center and further develop the Center into a valuable community resource.
• Continue to advocate for laws and regulations that lower costs, cut pollution, provide transparency, and protect customers.

Community Advisory Committee
The Committee reviewed and voted unanimously to recommend the Proposed Budget to the Board.

Proposed Budget
The Proposed Budget is presented in the form that will be used for adoption and then is followed by supplemental information. The budget categories are intentionally general enough to allow some measure of staff discretion, without requiring frequent budget adjustments.
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Revision 2 Proposed
Budget Budget
FY25-26 FY26-27 Comments

REVENUES & OTHER SOURCES
Electricity Sales1 (net of allowance) $ 221,379,000 $ 193,575,000 Revenue from (to) Rate Stabilization Fund (38,478,000) 46,703,000 EverGreen Premium2 (net of allowance) 3,150,000 3,192,000 CEC Grant Proceeds 863,000 2,133,000 Investment Returns 15,994,000 13,546,000 SCP customers at rate parity with PG&E's bundled customers in early 2027 Utilizing a portion of deferred revenues from Rate Stabilization Fund Grants for Virtual Power Plant Approaches for Flexibility, Gas Transition, and Geothermal Study Lower interest rates and reserves Total Revenues 202,908,000 259,149,000 EXPENDITURES
Product
Cost of Energy & Scheduling3 Data Management Service Fees to PG&E 162,463,000 219,788,000 Higher market prices including winter energy, severe weather contingency, and no damages from project delays 3,359,000 3,420,000
990,000 996,000
Product Subtotal
Personnel External Relations Customer Service General & Administration Other Professional Services Legal Regulatory & Compliance Accounting Legislative Other Consultants 166,812,000
12,781,000
4,415,000
220,000
2,309,000
525,000 360,000 340,000 220,000 535,000
224,204,000
14,009,000
3,883,000
220,000
2,715,000
545,000 360,000 362,000 220,000 953,000
See details in write-up Prior fiscal year included BOSS partnership Increased letter of credit fees for CPUC-required financial security Increase for Geothermal Study CEC grant that is fully offset by grant proceeds Other Professional Services Subtotal 1,980,000 2,440,000 39 of 49
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Revision 2 Proposed
Budget Budget
FY25-26 FY26-27 Comments
EXPENDITURES – continued
Industry Memberships & Dues 888,000 1,114,000 Increased activity at California Community Power (CC Power)Customer Energy Solutions4 6,481,000 5,347,000 See details in write-up Total Expenditures 195,886,000 253,932,000 Revenues Less Expenditures 7,022,000 5,217,000 OTHER USES Capital Outlay 7,022,000 5,217,000 Utilization of local investment fund and design services for several projects Total Expenditures, Other Uses 202,908,000 259,149,000 Net Increase/(Decrease) in Fund Balance $ - $ - No change in Fund Balance due to revenue from Rate Stabilization Fund 40 of 49

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Notes on the Proposed Budget Table:

1. Revenues from electricity sales are net of the allowance for uncollectible accounts, estimated to be 2.1%.

2. The EverGreen premium covers the incremental cost of EverGreen power above the cost for CleanStart. The rest of the revenues for EverGreen customers appear in the Electricity Sales line item.

3. The Cost of Energy and Scheduling includes Net Energy Metering and Solar Billing Plan costs, ProFIT payments, California ISO fees and scheduling as well as all energy and capacity costs.

4. SCP’s 0% interest customer loans, and the loan repayments, are treated as balance sheet items and are not on the income statement.

Further detail on each of the proposed budget categories follows.

Information Only - Supplemental to the Proposed Budget
Revenues and Other Sources
The primary source of income is from the retail sale of electricity to CleanStart and EverGreen customers. Customers of both services provide all the Electricity Sales revenue. EverGreen currently costs 2.5 cents per kWh over the price of CleanStart and provides 100% renewable energy from sources in Sonoma and Mendocino Counties. The EverGreen premium pays for the purchase of local sources of renewable geothermal and solar and is not intended to produce surplus income.

The total sales estimate is based on 87% of eligible customers and load in SCP’s service area participating in SCP. The net financial performance of SCP is not sensitive to small changes in the rate of participation because a majority of expenses are proportional to the load served. In other words, income and expenses generally tend to go up and down together.

PG&E is currently expected to change the PCIA fee that they charge to SCP customers on January 1, 2027. Correspondingly, staff anticipates that SCP will update rates on or about February 1, 2027, to provide stability and remain competitive with PG&E bundled customer bills.

Staff estimates uncollectable billings at 2.1%.
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Expenditures
Product
Cost of Energy and Scheduling includes all the various services purchased from the power market through our suppliers. This includes energy, long term renewable power purchase agreements, ProFIT feed-in-tariff projects, capacity (resource adequacy), short term renewable and carbon free contracts (e.g. hydropower), scheduling services, California Independent System Operator (“CAISO”) fees, and other miscellaneous power market expenses.

SCP has entered into long and intermediate-term renewable and low carbon contracts with suppliers. SCP’s cost of energy is expected to increase in 2026 and again in 2027 due to several new projects coming online and projected increasing market prices of energy. Compared to recent years, SCP has a higher cash-flow exposure to the monthly fluctuations in energy market prices, but lower actual long-term financial exposure due to the delayed offsetting nature of the PCIA. The projected Cost of Energy and Scheduling for the FY 2026/27 Proposed Budget is $97 per MWh, up from $76 per MWh for the FY 2025/26 Revised Budget.

SCP closed a renewable energy prepayment transaction in November 2024, which will help to offset higher power costs. It will save SCP’s ratepayers a total of $47 million over the initial 7 ½ years of the transaction, including savings of over $5 million in FY 2026/27.

Major amounts of SCP’s customer load are also served by about 300 MW of customer-owned rooftop solar arrays. Customer over-generation of rooftop solar also reduces a small amount of the load of other SCP customers through SCP’s Net Energy Metering and Solar Billing Plan programs. However, none of this production is reportable on SCP’s Power Content Label because it is treated as a load reduction rather than energy supply under California regulations.

Based on current rates of participation, the total payout amount for SCP’s Net Energy Metering and Solar Billing Plan solar customers is estimated to be about $881,500 for the fiscal year.

The primary price risks are related to forecast error, changes in rates of customer participation, Public Safety Power Shutoffs (PSPS), shutoffs due to Enhanced Powerline Safety Settings (EPSS), variable generation output of solar and wind resources, generation curtailment risks, forward pricing of peak and off-peak energy, unprocured resource adequacy, and legislative and regulatory risks (e.g., PCIA fees).

Scheduling Coordinator services are provided by Northern California Power Agency. The charges for this service are included together with energy and resource adequacy in the 42 of 49

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budget. After electric power is scheduled for delivery to customers and ultimately consumed by those customers, the actual electric consumption must be trued up against the forecasted and scheduled energy. This true up occurs through the CAISO settlement process, or “settlements.” CAISO settlements also entail addressing a number of other market and regulatory requirements. The impact on budgeting is that CAISO invoices and credits occur several months (and sometimes up to two years) following a given month of service.

Data Management includes a broad scope of services provided by contract through Sacramento Municipal Utility District (SMUD), including billing data validation, bill coordination with PG&E, billing management of special programs (e.g., Net Energy Metering, Solar Billing Plan, and ProFIT), billing technical support, customer relationship management software, CAISO data preparation, WREGIS data preparation, and many support functions related to data reporting.

Service Fees to PG&E consist of a charge of $0.35 per account per month (including a $0.21 per account service fee and a $0.14 per account meter data management fee).

There are also numerous small fees associated with data requests. The fees cover PG&E’s costs associated with additional data processing and bill coordination and are mandatory and regulated by the California Public Utilities Commission (CPUC).

Personnel
Personnel costs include direct salaries, benefits, workers compensation premiums, Social Security, and payroll taxes. Management compares SCP staff salaries and benefits with the marketplace in order to remain competitive for high quality and performing staff. The staffing budget includes adjustments for 4-5 additional positions throughout the fiscal year.

External Relations
In FY 2026/27, Sonoma Clean Power will continue prioritizing customer education, engagement, and brand awareness to ensure that our communities clearly understand who we are, what we offer, and how we partner with PG&E to deliver reliable service.

Over the past several years, we have expanded outreach efforts to reach customers and community groups that are less familiar with SCP or the benefits of being an SCP customer. This work emphasizes meaningful engagement, so customers know not only that SCP exists, but how we operate, what services we provide, and what distinguishes SCP from PG&E.

SCP will continue developing and implementing targeted campaigns to promote our customer programs and rebates, with SCP Rewards serving as a key initiative. Because 43 of 49

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electric service and energy programs can be complex, our outreach will remain focused on making this information more accessible. This includes one-on-one education, partnerships with community-based organizations, and ongoing engagement with diverse customer segments to both understand community needs and help customers navigate their energy choices.

To further strengthen our understanding of customer perceptions and preferences, SCP will continue conducting formal market research through surveys, focus groups, and demographic analysis. Insights from this research will shape a new customer onboarding campaign aimed at increasing awareness of SCP’s offerings, tailoring communications, and expanding participation in our programs and services.

SCP will also continue and gradually expand its investments in youth education and workforce development, with an emphasis on STEM, building trades, and clean energy career pathways. This includes support for Schools Rule Mendocino County, the North Coast Builders Exchange’s North Bay Construction Corps, and ongoing partnerships with Sonoma Water, the Career Technical Education Foundation, and the LIME Foundation.

These initiatives help equip young people with the skills needed to participate in the region’s growing clean energy economy.

Throughout the fiscal year, SCP’s marketing and outreach strategy will focus on strengthening public understanding of SCP’s mission and the value we deliver to customers, communities, and the environment. This work will be carried out through data-informed marketing campaigns, strategic public and media relations, community engagement and sponsorships, service and volunteer activities, and ongoing two-way communication to ensure customer needs and concerns are heard and addressed.

A significant majority of SCP’s Marketing, PR & Events spending supports local organizations and contractors—including printers, writers, graphic designers, radio stations, web developers, social media support, photographers, caterers, carpenters, and other service providers—ensuring these investments also benefit the local economy.

Customer Service
The customer service team works with customers via phone, email, walk-ins, and events which are the primary touchpoint for customers in the agency. The customer service team’s budget includes confirmation notices, annual required notices, and customer appreciation.
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Customer Noticing
There are several kinds of official notices SCP provides to its customers. In addition to enrollment rollouts, the following notices are e-mailed or physically mailed out to applicable customers with the following cadence:
• Move-in notice postcard (weekly)
• Move-in notice letter (weekly)
• EverGreen welcome letters (weekly)
• Net Energy Metering welcome (weekly)
• Solar Billing Plan welcome (weekly)
• Opt-out confirmation – immediate notice (weekly)
• Opt-out confirmation – 6-month notice (weekly)
• Help letter (monthly)
• Re-enrollment welcome letter (weekly)
• Opt-down to CleanStart (weekly)
• Annual cash out letters (annually)
The customer service budget also reflects two required mailings by the CPUC and CEC:
• California Public Utilities Commission’s Joint Rate Mailer that compares SCP and PG&E’s rates and power mixes (annually)
• California Energy Commission’s Power Content Label that compares SCP and California’s power mix (annually)
Finally, the customer appreciation budget is used to help commercial EverGreen customers gain attention for their leadership in switching to 100% local, renewable energy.

Other Professional Services
Legal
This covers attorney expenses for general governance plus power supply negotiations and any other legal issues that arise.

Regulatory & Compliance
This category includes technical research into CPUC rate cases, resource adequacy, PCIA and other key issues. It includes technical and legal consultants for compliance filing preparation, review, and filings.
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Accounting
Accounting includes services from two providers. Maher Accountancy provides the day-to-day accounting for SCP, including generation of financial statements and consolidated reports. SCP also has an outside auditor review and opine on our financial statements each year.

Legislative
Staff retains a Sacramento legislative lobbyist to assist with tracking and advancing bills in the legislative session that affect SCP and the energy industry directly. The statewide CalCCA trade association continues to support SCP’s tracking and participation in legislative work that affects CCAs across the state. Some limited federal and state lobbying on the GeoZone is also included. One change of note this year is SCP’s retention of Nielsen Strategies to support our pursuit of leveraging external funds to enhance next-generation geothermal development in California.

Other Consultants
Other Consultants cover costs related to outside services needed for basic internal operations, such as: IT services/repairs, nighttime security for the Business Office building and the Customer Center, administration fees for our insurance benefits and retirement plans, consultants for mandatory training, and the collection agency SCP uses for past-due accounts.

Industry Memberships and Dues
The CalCCA trade association is an important entity for sharing the costs of legislative, regulatory, and analytic work. The association has been instrumental in improving SCP’s effectiveness at the CPUC on regulatory matters including the PCIA, resource adequacy, and in the legislature on organizing and providing direction to lobbyists and requesting action.

SCP is a member of California Community Power (CC Power), the joint powers authority formed with other CCAs to jointly procure power. SCP is also a member of the American Public Power Association (APPA). This is a nationwide association of public power entities, with a membership category for CCAs nationwide. In 2024, SCP became a member of California Community Choice Financing Authority (CCCFA) to facilitate energy prepayment transactions that will enable SCP to deliver meaningful cost savings to customers over the long-term.
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Customer Energy Solutions
The Customer Energy Solutions portfolio budget is less than the previous fiscal year due to a few programmatic improvements and changes:

1. SCP has secured two California Energy Commission grants that pair outside funding with SCP objectives.
a. Virtual Power Plant Approaches for Flexibility – SCP will expand automated smart devices in SCP Rewards in low-income and disadvantaged communities (DACs) to increase demand-response capacity consistent with the Board of Director’s goal of 7 MW in 2026 and Integrated Resources Plan goal of 30 MW by 2035.
b. Paving the Way for California’s Gas Transition – SCP’s project “A Community-based Assessment of Energy Transition Barriers in Rural and Tribal Areas” will conduct multidisciplinary research to uncover the local challenges of electrifying homes and businesses, while minimizing costs to customers, improving grid reliability, and ensuring an equitable transition. The project team will be in close collaboration with the partner communities of Willits, Hopland and the Hopland Band of Pomo Indians, and Graton.

2. SCP discontinued two historical programs that met its objectives and provided valuable learning that informs new customer energy solutions. a. California Electric Vehicle Infrastructure Program (CALeVIP) – From 2020 to 2025, SCP partnered with the California Energy Commission and the Northern Sonoma County Air Pollution Control District as CALeVIP to provide rebates for public Level 2 and DC fast charger installations. Over the five-year program, 225 chargers were installed across the region (196 Level 2 connectors and 29 DC fast chargers) with 29% of completed site funding directed to DACs or low-income communities.
b. Advanced Energy Build – From 2020 to 2024, Sonoma Clean Power offered incentives for the construction of all-electric homes in Sonoma and Mendocino Counties. In total, 549 units were incentivized, 98% of which were deed-restricted affordable. All reserved projects were completed by Dec 2025.

This transition positions SCP to pursue new high-impact offerings that directly support current customer needs, including the rollout of the SCP Home Thermostat Upgrade Program, new e-bike commuter grants, and expanded workplace EV charging rebates, 47 of 49

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along with other evolving priorities identified in Community Needs Assessments and Board direction.

SCP will continue to offer programs that assist our customers with their energy-related needs. These will likely continue to include Energy Savings Boxes, DIY Energy & Water Toolkits, SCP Rewards, Non-Profit EV Incentives, Electrification rebates, EV Daily Managed Charging, and Community Charge. For a complete list of SCP’s offer and incentives, rationale, and performance metrics, reference the current Strategic Action Plan.

Other Uses
Capital Outlay includes design services for the Ukiah Superfund Solar + Battery Project, design services for the commercial space adjacent to the Customer Center, new projects identified by the Capital Projects department, and equipment costing more than $5,000.

Debt Service
SCP currently carries no debt. In 2025, SCP secured a $100 million line of credit to further mitigate short-term variability in power costs and the consequent effect on customer rates.

Net Increase / (Decrease) in Available Fund Balance
Staff are planning for a net decrease in the available fund balance of $46.7 million, which reflects the return of a portion of ratepayer collections from prior fiscal years that had been designated as deferred revenues in the Rate Stabilization Fund. 48 of 49

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THREE-YEAR OUTLOOK
This three-year outlook is subject to significant modification as new information is available regarding PCIA and the market price of energy.

Revision 2
Budget
FY25-26
Proposed
Budget
FY26-27
Forecast
FY27-28
Forecast
FY28-29
Forecast
FY29-30

REVENUES & OTHER SOURCES
Electricity Sales (net of allowance)
Revenue from (to) Rate Stabilization Fund
EverGreen Premium (net of allowance)
CEC Grant Proceeds
Investment Returns
Total Revenues
$ 221,379,000
(38,478,000)
3,150,000
863,000
15,994,000
202,908,000
$ 193,575,000
46,703,000
3,192,000
2,133,000
13,546,000
259,149,000
$ 219,660,000
34,970,000
3,220,000
1,510,000
11,330,000
270,690,000
$ 275,900,000
-
3,250,000
1,290,000
8,400,000
288,840,000
$ 280,460,000
-
3,280,000
1,000,000
7,730,000
292,470,000

EXPENDITURES
Product
Cost of Energy & Scheduling
Data Management
Service Fees to PG&E
Product Subtotal
Personnel
External Relations
Customer Service
General & Administration
Other Professional Services
Legal
Regulatory & Compliance
Accounting
Legislative
Other Consultants
Other Professional Services Subtotal
Industry Memberships & Dues
Customer Energy Solutions
Total Expenditures
Revenues Less Expenditures
162,463,000
3,359,000
990,000
166,812,000
12,781,000
4,415,000
220,000
2,309,000
525,000
360,000
340,000
220,000
535,000
1,980,000
888,000
6,481,000
195,886,000
7,022,000
219,788,000
3,420,000
996,000
224,204,000
14,009,000
3,883,000
220,000
2,715,000
545,000
360,000
362,000
220,000
953,000
2,440,000
1,114,000
5,347,000
253,932,000
5,217,000
230,400,000
3,450,000
1,010,000
234,860,000
14,990,000
3,620,000
220,000
2,820,000
560,000
370,000
370,000
230,000
900,000
2,430,000
1,150,000
5,400,000
265,490,000
5,200,000
247,700,000
3,480,000
1,030,000
252,210,000
15,890,000
3,760,000
220,000
2,930,000
580,000
380,000
380,000
240,000
920,000
2,500,000
1,180,000
5,450,000
284,140,000
4,700,000
250,200,000
3,510,000
1,050,000
254,760,000
16,840,000
3,910,000
220,000
3,050,000
600,000
390,000
390,000
250,000
640,000
2,270,000
1,220,000
5,500,000
287,770,000
4,700,000

OTHER USES
Capital Outlay
Total Expenditures, Other Uses
Net Increase/(Decrease) in Fund Balance
7,022,000
202,908,000
$ - $
5,217,000
259,149,000
-
5,200,000
270,690,000
$ -
4,700,000
288,840,000
$ -
4,700,000
292,470,000
$ -
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