Presentations — Silicon Valley Clean Energy Finance & Administration Committee, May 26, 2022

PFM Asset Management LLC
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
| pfmam.com
Silicon Valley Clean
Energy
May 26, 2022
Engagement With PFM Asset Management
Monique Spyke
Managing Director
For Institutional Investor or Investment Professional
Use Only – This material is not for inspection by,
distribution to, or quotation to the general public
Item 3

PRESENTATION
▸ November 2021: PFMAM responded to SVCE’s RFQ for Portfolio Management Services ▸ November 2021: PFMAM interviewed with SVCE and was selected to be SVCE’s partner ▸ SVCE staff and PFMAM have held meetings to further discuss objectives and goals of the relationship and SVCE’s investment program
▸ PFMAM is reviewing SVCE’s policies and historical data and preparing recommendations:
▹ Investment Policy changes
▹ Allocation between liquid funds and core funds
▹ Investment Strategy
▪ Duration
▪ Diversification
▸ Communication and transparency are key components of the relationship ▸ PFMAM is your Investment Manager—we never take control of cash or assets ▹ SVCE’s investments will be held with a third-party custodian under a separate contract between SVCE and the custody bank
SVCE’s and PFMAM’s Relationship
1 Item 3

PRESENTATION
▸ Since May 2016 SVCE’s cash balances
have grown at an annual rate of 41%
▸ Overnight investment vehicles may no
longer represent the best opportunity set
for SVCE
▸ A more diversified opportunity set can help
SVCE protect assets, maintain liquidity,
and maximize income
SVCE Investment Program
*Source: Silicon Valley Clean Energy. Earnings rate is the annual percentage yield for April 2022 on bank money market deposit.

Current Portfolio Characteristics*
Investment Vehicle Bank Deposits
Average Life Overnight
Earnings Rate 0.15%
Credit Rating NR
$-
$50
$100
$150
$200
$250
May-16 May-17 May-18 May-19 May-20 May-21
Millions
Average Monthly Cash Balance
2 Item 3

PRESENTATION
Investment Universe vs. California Government Code
Source: California Government Code Section 53601.
1 Day 180 Days 270 Days 1 Year 5 Years Over 5 Years
U.S. Treasuries Permitted Requires Approval
Federal Agencies Permitted Requires Approval
Municipal Securities Permitted Requires Approval
Negotiable Certificates of Deposit Permitted Requires Approval Commercial Paper Permitted Prohibited
Bankers’ Acceptances Permitted Prohibited
Medium-Term Corporate Notes Permitted Prohibited
Asset-Backed Securities (ABS) Permitted Prohibited
Supranationals Permitted Prohibited
Public Bank Debt Permitted Requires Approval
Repurchase Agreements Permitted Prohibited
Money Market Funds/Bond Mutual Funds Permitted Prohibited Local Government Investment Pools Permitted Prohibited
Foreign Sovereign Prohibited
Fixed-Income ETFs Prohibited
High-Yield Bonds Prohibited
Private Placements Prohibited
Convertibles Prohibited
Non-U.S. Dollar Investment Grade Prohibited
Emerging Markets Debt Prohibited
Bank Loans Prohibited
Domestic Equities (Large-, Mid-, Small Cap) Prohibited
International Equities (Large-, Mid-, Small Cap) Prohibited Emerging Markets Prohibited
Preferred Stock Prohibited
Equity Mutual Funds and ETFs Prohibited
Commodities Prohibited
Real Estate Prohibited
Hedge Funds Prohibited
Private Equity Prohibited
Venture Capital Prohibited
Tangible Assets Prohibited
Complex Derivatives, Futures, and Options Prohibited
Conventional Fixed
Income
Broader
Fixed Income Equities Alternatives
3 Item 3

PRESENTATION
What Others Are Doing
4 Source: Entity websites; ACFRs or other financial reports.

Entity Permit
Government
Permit Credit?
Corporate Asset-Notes Backed
Average Duration
Strategy/Maturity
Peninsula Clean Energy Yes A rated No 1-5 years
Campbell Yes AA rated No <12 months
Cupertino Yes A rated Yes <12 months/<2 years
Gilroy Yes No No Overnight
Los Altos Yes A rated Yes 1-3 years
Los Altos Hills Yes A rated No 1-5 years
Los Gatos Yes A rated No 1-5 years
Milpitas Yes A rated Yes 1-5 years
Monte Sereno Yes No No Overnight
Morgan Hill Yes No No 2 years
Mountain View Yes AA rated No 2 years
Santa Clara County Yes A Yes <2 years
Saratoga Yes No No Overnight
Sunnyvale Yes A Yes 1-5 years
Item 3

PRESENTATION
▸ PFMAM in coordination with SVCE
staff is undergoing a thorough review
of SVCE’s Investment Policy
▹ PFMAM’s recommendations will
be discussed in detail with
SVCE staff to ensure suggested
changes, and ultimate Policy
changes, are consistent with
SVCE’s goals and risk
tolerances
▸ Recommendations will be brought to
the Finance Committee in August
SVCE Investment Policy Review
5 ➢ Project Goals:
▪ Ensure the SVCE Investment Policy is in
compliance with California Government Code (the
“Code”)
▪ Incorporate best practices as illustrated by sample
policies, such as those written by the California
Municipal Treasurers Association (CMTA) and the
Association of Public Treasurers of the United
States and Canada (APT US&C)
➢ Outcomes:
▪ Add sections to create a more comprehensive
Policy
▪ Detail processes or procedures to reduce risk (for
example, sections on safekeeping and custody,
internal controls, performance)
▪ Expand list of authorized investments to allow for
most of the investment types permitted by Code
Item 3

PRESENTATION
▸ PFMAM’s Cash Flow Model
▸ Identifies cash flow needs in the near term
▸ Determines “seasonality” and historical
seasonal factors
▸ Helps identify an appropriate allocation
between assets invested short term
(“liquidity”) to meet cash needs and assets
that can be invested longer term
Cash Flow Overview
6 Goals and Outcomes
► Gain a better understanding
of SVCE’s historical
balances
► Aid in determining
appropriate allocation
between core funds and
liquid funds
► View seasonality, if any
Item 3

PRESENTATION
Investment Strategy Review Overview
7 ▸ Understand relevant risks
▹ Credit risk
▹ Market/interest rate risk
▹ Liquidity risk
▹ Cyber risks
Goals and Outcomes
► Recommend strategy that
balances risk and reward
► Recommend appropriate
investment benchmark
► Help SVCE maintain
sufficient liquidity
► Appropriately communicate
PFMAM’s cybersecurity and
relevant updates
Item 3

PRESENTATION
Illustrative Portfolios
Source: PFMAM, as of 5/12/2022. For illustrative purposes only and subject to change.

1. Annual income difference calculated as the product of the yield differences of 0.15% (estimated River City bank earnings rate) and invested AUM of $125,000,000.

Treasury
37%
Agency
17%
Agency MBS
29%
Supranational
7%
Municipal
10%
Sample Government-Only Portfolio
Treasury
42%
Agency
9%
Agency MBS
5%
Supranational
9%
ABS
5%
Credit
25%
Municipal
5%
Sample Portfolio (Including Credit)
Portfolio Statistics
Duration 2.68 years
Gross Yield
Benchmark

2.70%

0.15%
Gross Annual Income Difference:1 $3,187,500
Portfolio Statistics
Duration 2.68 years
Gross Yield
Benchmark

2.90%

0.15%
Gross Annual Income Difference:1 $3,437,500
8 Item 3

PRESENTATION
PFMAM 1-5 Year and 1-3 Year Fixed Income Composites, as of March 31, 2022 Illustrative Return and Risk
9 The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate. Data shown is prior to the deduction of investment advisory fees. Composite presentations prepared in accordance with GIPS® are available upon request. For important disclosure information please visit pfmam.com/disclosures.

Benchmark source: Bloomberg. All benchmarks represent total returns for the noted periods.

Strategy/Benchmark Average Annual Total Returns Duration Standard
Deviation
of Returns
(gross of fees)
No. of
Accounts
Assets
(in $
Millions)
for periods ended March 31, 2022 (5 years)
1Q22
1 Year
3 Years
5 Years
7 Years
10 Years
PFMAM 1-3 Year Fixed Income Composite -2.21% -2.60% 1.07% 1.31% 1.17% 1.06% 1.72 1.13% 150 12,661 ICE BofAML 1-3 Treasury Index -2.34% -2.84% 0.88% 1.07% 0.93% 0.86% 1.80 1.31% PFMAM 1-5 Year Fixed Income Composite -3.01% -3.49% 1.15% 1.41% 1.29% 1.28% 2.41 1.62% 153 14,310 ICE BofAML 1-5 Treasury Index -3.16% -3.72% 0.92% 1.15% 1.04% 1.04% 2.54 1.85% ICE BofAML 1-5 Gov't/Corp, AA or better -3.17% -3.71% 0.94% 1.20% 1.09% 1.10% 2.55 1.79% Item 3

PRESENTATION
▸ Meetings with staff to further discuss recommendations and strategy ▹ June 1: Cashflow Discussion
▹ June 14: Investment Policy Discussion
▹ July 13: Investment Strategy Discussion
▹ July 20: Investment Strategy Discussion
▸ Finance & Administration Committee
▹ August: Review and approve Investment Policy and strategy recommendations ▸ Board of Directors
▹ August or September: Review and approve Investment Policy and strategy recommendations
Looking Ahead
10 Item 3

PRESENTATION
Appendix
For Institutional Investor or Investment Professional
Use Only – This material is not for inspection by,
distribution to, or quotation to the general public
Item 3

PRESENTATION
SVCE’s Team
Managing Director
Engagement Oversight
18 years in the
industry/PFMAM
Monique Spyke
Senior Portfolio Strategist
Portfolio Strategy
7 years in the
industry/PFMAM
Gray Lepley
Managing Director
Portfolio Strategist
20 years in the industry/
10 years with PFMAM
Kyle Jones
Director
Structured Products Insight
13 years in the industry/
PFMAM
Chris Harris, CFA, CAIA
Managing Director
Sustainable Investment Insight
26 years in the industry/
25 years with PFMAM
David Reeser, CTP, EA
Senior Portfolio Manager
Portfolio Management
19 years in the industry/
PFMAM
Joseph Creason, CFA
Senior Analyst
Relationship Support
15 years in the
industry/PFMAM
Allison Kaune
12 Item 3

PRESENTATION
▸ Independent fiduciary focused on
public agencies and other institutional
clients
▸ Specialist in customized, investment-grade fixed income and multi-asset portfolios
▸ Philosophy and mission consistent
with public sector objectives
▸ Strong record of success meeting
client goals across
PFM Asset Management LLC
13 All data is as of December 31, 2021, unless otherwise noted. 41 years of experience
National Reach:

PFMAM Offices
Over 250 professionals
$177.3b
Total assets nationwide
$130.2b
Discretionary assets under management
$47.1b
Assets under advisement
Item 3

PRESENTATION
▸ Trusted advisor in the California finance community since 1989 ▹ Regular educators for CDIAC, CSMFO, CMTA, and CACTTC
▹ Membership on CSMFO Professional Standards Committee
▹ Membership on GFOA Treasury & Investment Management Committee ▸ Significant experience with Code and IPS development
▹ Membership on CMTA Investment Policy Certification Committee ▹ Membership on AP&T Investment Policy Certification Committee ▹ Advise CACTTC Legislative Committee
▸ Local presence – San Francisco and Los Angeles offices ▹ Practice leaders live in Oakland and Pasadena
Trusted Advisor in California
*As of December 31, 2021.
$56.8b
$31.8 billion in
discretionary assets*

TOTAL ASSETS
IN CALIFORNIA*
Selected California Clients
• City of Los Altos
• Town of Los Altos Hills
• Peninsula Clean Energy
• City of Burlingame
• Modesto Irrigation District
• Silicon Valley Clean Water
• East Bay Regional Park District
• City of Santa Clara
• City of Fremont
• City of Hayward
• City of Redwood City
14 Item 3

PRESENTATION
Research & Portfolio Management
Meticulous market analysis and custom
strategies allow us to help you seek
safety, liquidity, and yield proactively
Client Services Group
Dedicated to interacting with investors daily,
providing support for transactions, reporting,
invoices, or other general needs
Accounting & Reporting
Online access to detailed recordkeeping and
reconciliation, and receive comprehensive reports
that explain performance in a transparent manner
Compliance & Legal
Disciplined procedures, dedicated staff, and
integrated systems help manage risk and
ensure adherence to your objectives and policy
Client Management & Communications
Attentive relationship managers and regular
commentaries, webinars, and educational
pieces to keep you informed
Total
PFMAM
Staff
Depth of Resources Supporting SVCE
15 All data as of December 31, 2021.
42 24
138
30 6
258
Item 3

PRESENTATION
PFMAM Fixed Income Separate
Account Composites
For Institutional Investor or Investment Professional
Use Only – This material is not for inspection by,
distribution to, or quotation to the general public
Managed by PFM Asset Management LLC
March 31, 2022
Item 3

PRESENTATION
1-3 Year Composite
Item 3

PRESENTATION
PFMAM 1-3 Year Fixed Income Composite
As of March 31, 2022
Managed by PFM Asset Management LLC. Please refer to the accompanying Important Disclosures. 18 Cumulative Annualized Return Ex-Post Standard Deviation of Returns PFMAM Composite
(Gross of Fees)
ICE BofAML 1-3 Year
Treasury Index
PFMAM Composite
(Gross of Fees)
ICE BofAML 1-3 Year
Treasury Index
1 Year -2.60% -2.84% 1.33% 1.43%
2 Year -0.61% -1.31% 1.17% 1.10%
3 Year 1.07% 0.88% 1.32% 1.55%
4 Year 1.56% 1.34% 1.22% 1.44%
5 Year 1.31% 1.07% 1.13% 1.31%
6 Year 1.19% 0.94% 1.07% 1.24%
7 Year 1.17% 0.93% 1.02% 1.18%
8 Year 1.16% 0.94% 0.98% 1.13%
9 Year 1.08% 0.88% 0.94% 1.08%
10 Year 1.06% 0.86% 0.89% 1.03%
Periods
Ended
03/31/22
2022 YTD -2.21% -2.34% n/a 150 $12,661 9.5% $132,971
2021 -0.43% -0.55% 0.09% 148 $12,753 9.8% $130,407
2020 3.30% 3.10% 0.28% 153 $12,412 10.2% $121,169
2019 3.84% 3.55% 0.25% 151 $11,890 10.4% $114,275
2018 1.70% 1.58% 0.09% 157 $11,420 12.0% $95,311
2017 0.82% 0.42% 0.17% 159 $10,943 12.9% $84,652
2016 1.17% 0.89% 0.11% 153 $9,849 13.1% $74,979
2015 0.68% 0.54% 0.13% 145 $9,450 14.9% $63,625
2014 0.72% 0.62% 0.14% 126 $8,604 15.7% $54,889
2013 0.41% 0.36% 0.11% 118 $7,975 15.4% $51,650
2012 1.00% 0.43% 0.23% 113 $7,204 14.7% $49,093
Composite
Assets
(Millions)
Percentage of
Firm Assets
Total Firm
Assets
(Millions)
Year PFMAM Composite
Return (Gross of Fees)
ICE BofAML 1-3 Year
Treasury Index Return
PFMAM Composite
Dispersion
(Gross of Fees)
Number of
Accounts
Item 3

PRESENTATION
PFMAM 1-3 Year Fixed Income Composite
As of March 31, 2022
Managed by PFM Asset Management LLC. Please refer to the accompanying Important Disclosures. 19 PFMAM Composite
(Gross of Fees)
ICE BofAML 1-3 Year
Treasury Index
PFMAM Composite
(Gross of Fees)
ICE BofAML 1-3 Year
Treasury Index
2021 2.22% 2.01% 0.96% 1.21%
2020 2.94% 2.74% 0.91% 1.22%
2019 2.11% 1.84% 0.84% 0.95%
2018 1.23% 0.96% 0.73% 0.86%
2017 0.89% 0.62% 0.67% 0.75%
2016 0.86% 0.68% 0.68% 0.76%
2015 0.60% 0.51% 0.52% 0.57%
2014 0.71% 0.47% 0.43% 0.44%
2013 0.99% 0.78% 0.46% 0.51%
2012 1.62% 1.44% 0.64% 0.74%
3-Year
Periods
Ending
3-Year Cumulative Return 3-Year Ex-Post Standard Deviation Item 3

PRESENTATION
PFMAM 1-3 Year Fixed Income Composite
As of March 31, 2022
Managed by PFM Asset Management LLC. Please refer to the accompanying Important Disclosures. 20 PFMAM Composite ICE BofAML 1-3 Year
Treasury Index PFMAM Composite ICE BofAML 1-3 Year Treasury Index 3/31/2022 -2.21% -2.34% 3/31/2017 0.35% 0.26%
12/31/2021 -0.52% -0.53% 12/31/2016 -0.30% -0.43%
9/30/2021 0.07% 0.06% 9/30/2016 -0.01% -0.11%
6/30/2021 0.05% -0.03% 6/30/2016 0.53% 0.53%
3/31/2021 -0.03% -0.05% 3/31/2016 0.95% 0.90%
12/31/2020 0.17% 0.05% 12/31/2015 -0.29% -0.44%
9/30/2020 0.22% 0.10% 9/30/2015 0.34% 0.31%
6/30/2020 1.05% 0.13% 6/30/2015 0.11% 0.15%
3/31/2020 1.83% 2.81% 3/31/2015 0.52% 0.52%
12/31/2019 0.53% 0.51% 12/31/2014 0.20% 0.17%
9/30/2019 0.69% 0.58% 9/30/2014 0.03% 0.03%
6/30/2019 1.41% 1.44% 6/30/2014 0.29% 0.27%
3/31/2019 1.15% 0.98% 3/31/2014 0.19% 0.14%
12/31/2018 1.08% 1.29% 12/31/2013 0.10% 0.06%
9/30/2018 0.39% 0.19% 9/30/2013 0.33% 0.29%
6/30/2018 0.36% 0.22% 6/30/2013 -0.16% -0.11%
3/31/2018 -0.14% -0.13% 3/31/2013 0.14% 0.12%
12/31/2017 -0.16% -0.25% 12/31/2012 0.12% 0.07%
9/30/2017 0.32% 0.24% 9/30/2012 0.35% 0.26%
6/30/2017 0.31% 0.17% 6/30/2012 0.23% 0.19%
Quarter
Ended
Total Return (Gross of Fees)
Quarter
Ended
Total Return (Gross of Fees)
Item 3

PRESENTATION
PFMAM 1-3 Year Fixed Income Composite
As of March 31, 2022
21 PFM Asset Management LLC claims compliance with the Global investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. PFM Asset Management LLC has been independently verified for the periods 2006 through 2019. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

PFM Asset Management LLC is an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S.

Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.

PFM Asset Management LLC was created in 2001; prior to 2001, PFMAM’s investment advisory business was operated as part of Public Financial Management, Inc. utilizing the same personnel and investment process. Firm performance includes accounts managed by PFM Asset Management LLC, but which may have been previously managed by Public Financial Management, Inc. Stable value portfolios were managed by Fiduciary Capital Management, Inc. prior to December 15, 2017, when the assets of that firm were acquired by PFM Asset Management LLC. We manage short-term pools and money market funds, investment-grade fixed-income portfolios, stable value portfolios, and multi-asset class portfolios under a variety of individual client mandates. For important disclosure information please go to pfmam.com/disclosures.

I M P O R T A N T D I S C L O S U R E S

F I R M D E F I N I T I O N
PFMAM 1-3 Year Fixed Income Composite includes all institutional fixed-income portfolios with the majority of their assets in securities with maturities or effective durations between 1 and 3 years, and that are managed against the ICE BofAML 1-3 Year US Treasury Index or an index with a similar effective duration. Accounts typically invest in US dollar denominated, investment-grade fixed-income securities, including US government securities, including bonds and notes of federal agencies, high quality money market, municipal and corporate debt instruments, generally limited to those rated A or better, and agency mortgage-backed securities. Accounts in this composite do not use leverage, complex derivatives, or short positions. Accounts in the composite will typically maintain an overall effective duration similar to that of the ICE BofAML 1-3 Year US Treasury Index, but may vary by plus or minus 25%, or more. Individual accounts may have policies that are more or less restrictive than those described above, in some cases significantly so, and may use specific benchmarks that differ from the composite benchmark used in this presentation.

The composite creation date is September 2003; the composite inception date is January 1, 1998. The minimum portfolio size for inclusion in the composite is $10 million. Only actual portfolios are included in the composites; the composite contains no simulated, model or non-fee-paying portfolios.

C O M P O S I T E D E S C R I P T I O N
Item 3

PRESENTATION
PFMAM 1-3 Year Fixed Income Composite
As of March 31, 2022
22 Composite performance is compared to the ICE BofAML 1-3 Year US Treasury Index.

Benchmark returns are provided to represent the investment environment that existed during the time periods shown. The ICE BofAML 1-3 Year US Treasury Index comprises all US Treasury securities (excluding TIPS and STRIPS) with maturities between 1 and 3 years and is rebalanced monthly.

B E N C H M A R K D E S C R I P T I O N
Valuations are computed, and performance results and asset values are reported in US dollars. Gross-of-fees returns are presented before management fees, custodial fees and taxes, but after brokerage and other transaction fees, if any. Returns include the reinvestment of income. A client’s return will be reduced by advisory fees and other expenses the portfolio may incur. PFMAM’s Asset Management standard investment advisory fee schedule is 0.25% per annum on first $25 million and 0.15% per annum on assets over $25 million, but actual fees may be higher or lower. Investment advisory fees are described in Part 2 of the firm’s Form ADV. Fees have a compounding effect on the net return of a portfolio. As an example, the effect of investment advisory fees on the total value of a client’s portfolio assuming (a) a $1,000,000 initial investment, (b) portfolio return of 4% a year, and (c) 0.25% per annum fee charged monthly, is shown in the following table:

P E R F O R M A N C E C A L C U L A T I O N S
Period
Ending Portfolio Value
Without Fees
(Gross)
After Fees
(Net)
1 Year $1,040,742 $1,038,147
5 Years $1,220,997 $1,205,853
10 Years $1,490,833 $1,454,081
Actual performance results may differ from composite returns, depending on the size of the account, investment guidelines and restrictions, inception date and other factors. Past performance is not indicative of future results. As with any investment vehicle, there is always the potential for gains as well as the possibility of losses. There can be no assurance that a client portfolio will meet its performance objective.

R I S K D I S C L O S U R E
A list of composite descriptions and a list of broad distribution pooled funds are available upon request. Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request. Requests should be made to Kenneth Schiebel, CFA, at [email protected].

A D D I T I O N A L I N F O R M A T I O N
Internal dispersion is calculated using the equal-weighted standard deviation of the annual gross returns of those portfolios that were included in the composite for the entire year; for years where there are five or fewer portfolios in the composite for the full annual period, dispersion is not presented, as it is deemed not meaningful. Benchmark returns are presented on a gross basis.

Item 3

PRESENTATION
1-5 Year Composite
Item 3

PRESENTATION
PFMAM 1-5 Year Fixed Income Composite
As of March 31, 2022
Managed by PFM Asset Management LLC. Please refer to the accompanying Important Disclosures. 24 2022 YTD -3.01% -3.16% -3.17% n/a 153 $14,310 10.8% $132,971 2021 -0.93% -1.10% -1.06% 0.14% 146 $14,155 10.9% $130,407 2020 4.49% 4.25% 4.25% 0.29% 136 $11,697 9.7% $121,169
2019 4.54% 4.20% 4.29% 0.33% 128 $10,818 9.5% $114,275
2018 1.57% 1.52% 1.55% 0.09% 125 $9,311 9.8% $95,311
2017 1.10% 0.65% 0.79% 0.20% 124 $8,600 10.2% $84,652
2016 1.32% 1.09% 1.14% 0.11% 104 $6,400 8.5% $74,979
2015 1.13% 0.98% 0.99% 0.13% 87 $5,464 8.6% $63,625
2014 1.39% 1.24% 1.30% 0.20% 71 $4,560 8.3% $54,889
2013 0.02% -0.19% -0.08% 0.18% 62 $4,394 8.5% $51,650
2012 1.78% 0.91% 1.32% 0.37% 48 $3,174 6.5% $49,093
Composite
Assets
(Millions)
Percentage of
Firm Assets
Total Firm
Assets
(Millions)
Year PFMAM Composite
Return (Gross of Fees)
ICE BofAML 1-5 Year
Treasury Index Return
ICE BofAML 1-5 Year AAA-AA US
Corporate & Government Index
PFMAM Composite
Dispersion
(Gross of Fees)
Number of
Accounts
Cumulative Annualized Return Ex-Post Standard Deviation of Returns PFMAM Composite
(Gross of Fees)
ICE BofAML 1-5 Year
Treasury Index
ICE BofAML 1-5 Year AAA-AA US
Corporate & Government Index
PFMAM Composite
(Gross of Fees)
ICE BofAML 1-5 Year
Treasury Index
ICE BofAML 1-5 Year AAA-AA US
Corporate & Government Index
1 Year -3.49% -3.72% -3.71% 1.91% 2.06% 2.06%
2 Year -1.10% -1.92% -1.79% 1.63% 1.56% 1.59%
3 Year 1.15% 0.92% 0.94% 1.85% 2.13% 2.06%
4 Year 1.72% 1.47% 1.51% 1.73% 2.00% 1.94%
5 Year 1.41% 1.15% 1.20% 1.62% 1.85% 1.79%
6 Year 1.22% 0.94% 1.00% 1.57% 1.79% 1.74%
7 Year 1.29% 1.04% 1.09% 1.51% 1.72% 1.67%
8 Year 1.37% 1.15% 1.20% 1.48% 1.69% 1.64%
9 Year 1.24% 1.01% 1.07% 1.45% 1.65% 1.60%
10 Year 1.28% 1.04% 1.10% 1.39% 1.58% 1.53%
Periods
Ended
03/31/22
Item 3

PRESENTATION
PFMAM 1-5 Year Fixed Income Composite
As of March 31, 2022
Managed by PFM Asset Management LLC. Please refer to the accompanying Important Disclosures. 25 PFMAM Composite
(Gross of Fees)
ICE BofAML 1-5 Year
Treasury Index
ICE BofAML 1-5 Year AAA-AA
US Corporate & Government
Index
PFMAM Composite
(Gross of Fees)
ICE BofAML 1-5 Year
Treasury Index
ICE BofAML 1-5 Year AAA-AA
US Corporate & Government
Index
2021 2.66% 2.42% 2.46% 1.40% 1.69% 1.61%
2020 3.52% 3.31% 3.35% 1.38% 1.75% 1.65%
2019 2.39% 2.11% 2.20% 1.27% 1.43% 1.39%
2018 1.33% 1.08% 1.16% 1.27% 1.45% 1.40%
2017 1.18% 0.90% 0.97% 1.23% 1.39% 1.34%
2016 1.28% 1.10% 1.14% 1.27% 1.45% 1.40%
2015 0.84% 0.67% 0.74% 1.09% 1.21% 1.19%
2014 1.06% 0.65% 0.84% 0.98% 1.03% 1.01%
2013 1.69% 1.35% 1.44% 1.08% 1.17% 1.11%
2012 2.82% 2.62% 2.67% 1.20% 1.40% 1.29%
3-Year
Periods
Ending
3-Year Cumulative Return 3-Year Ex-Post Standard Deviation Item 3

PRESENTATION
PFMAM 1-5 Year Fixed Income Composite
As of March 31, 2022
Managed by PFM Asset Management LLC. Please refer to the accompanying Important Disclosures. 26 PFMAM Composite ICE BofAML 1-5 Year
Treasury Index
ICE BofAML 1-5 Year AAA-AA US Corporate &
Government Index
PFMAM Composite ICE BofAML 1-5 Year
Treasury Index
ICE BofAML 1-5 Year AAA-AA US Corporate &
Government Index
3/31/2022 -3.01% -3.16% -3.17% 3/31/2017 0.49% 0.37% 0.42% 12/31/2021 -0.70% -0.68% -0.69% 12/31/2016 -0.95% -1.09% -1.07% 9/30/2021 0.04% 0.00% 0.01% 9/30/2016 -0.07% -0.19% -0.14% 6/30/2021 0.16% 0.11% 0.13% 6/30/2016 0.80% 0.81% 0.82% 3/31/2021 -0.43% -0.52% -0.51% 3/31/2016 1.56% 1.57% 1.55% 12/31/2020 0.20% 0.02% 0.05% 12/31/2015 -0.45% -0.66% -0.63% 9/30/2020 0.28% 0.13% 0.16% 9/30/2015 0.68% 0.70% 0.69% 6/30/2020 1.31% 0.29% 0.47% 6/30/2015 -0.02% 0.02% 0.02% 3/31/2020 2.65% 3.80% 3.55% 3/31/2015 0.92% 0.92% 0.91% 12/31/2019 0.41% 0.35% 0.37% 12/31/2014 0.46% 0.49% 0.48% 9/30/2019 0.87% 0.75% 0.77% 9/30/2014 -0.02% -0.06% -0.05% 6/30/2019 1.77% 1.82% 1.82% 6/30/2014 0.57% 0.55% 0.57% 3/31/2019 1.42% 1.22% 1.27% 3/31/2014 0.38% 0.26% 0.30% 12/31/2018 1.44% 1.72% 1.67% 12/31/2013 0.08% -0.11% -0.05% 9/30/2018 0.30% 0.05% 0.11% 9/30/2013 0.54% 0.46% 0.50% 6/30/2018 0.27% 0.13% 0.15% 6/30/2013 -0.81% -0.69% -0.71% 3/31/2018 -0.44% -0.38% -0.38% 3/31/2013 0.21% 0.15% 0.18% 12/31/2017 -0.28% -0.38% -0.36% 12/31/2012 0.12% 0.04% 0.09% 9/30/2017 0.38% 0.29% 0.32% 9/30/2012 0.67% 0.47% 0.57% 6/30/2017 0.51% 0.38% 0.42% 6/30/2012 0.59% 0.59% 0.58% Quarter
Ended
Quarter
Ended
Total Return (Gross of Fees) Total Return (Gross of Fees) Item 3

PRESENTATION
PFMAM 1-5 Year Fixed Income Composite
As of March 31, 2022
27 PFM Asset Management LLC claims compliance with the Global investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. PFM Asset Management LLC has been independently verified for the periods 2006 through 2019. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.

I M P O R T A N T D I S C L O S U R E S

F I R M D E F I N I T I O N
PFMAM 1-5 Year Fixed Income Composite includes all institutional fixed-income portfolios with the majority of their assets in securities with maturities or effective durations between 1 and 5 years, and that are managed against the ICE BofAML 1-5 Year US Treasury Index or an index with a similar effective duration. Accounts typically invest in US dollar denominated, investment-grade fixed-income securities, including US government securities, including bonds and notes of federal agencies, high quality money market, municipal and corporate debt instruments, generally limited to those rated A or better, and agency mortgage-backed securities. Accounts in this composite do not use leverage, complex derivatives, or short positions. Accounts in the composite will typically maintain an overall effective duration similar to that of the ICE BofAML 1-5 Year US Treasury Index, but may vary by plus or minus 25%, or more. Individual accounts may have policies that are more or less restrictive than those described above, in some cases significantly so, and may use specific benchmarks that differ from those used as composite benchmarks in this presentation.

C O M P O S I T E D E S C R I P T I O N
Item 3

PRESENTATION
PFMAM 1-5 Year Fixed Income Composite
As of March 31, 2022
28 Composite performance is compared to the ICE BofAML 1-5 Year US Treasury Index and the ICE BofAML 1-5 year AAA-AA US Corporate & Government Index. Benchmark returns are provided to represent the investment environment that existed during the time periods shown. The ICE BofAML 1-5 Year US Treasury Index comprises all US Treasury securities (excluding TIPS and STRIPS) with maturities between 1 and 5 years and is rebalanced monthly. The ICE BofAML 1-5 year AAA-AA US Corporate & Government Index comprises US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, certain foreign government and supranational debt, and corporate securities; all that meet common index qualifications, are rated AA3 or better, and have maturities between 1 and 5 years. The index is rebalanced monthly. The ICE BofAML 1-5 year AAA-AA US Corporate & Government Index was added as a second benchmark beginning 2012Q3 and is presented retroactively. The second benchmark was added to provide an additional comparison for those accounts with investment policies that permit a broader range of investments.

B E N C H M A R K D E S C R I P T I O N
Valuations are computed, and performance results and asset values are reported in US dollars.

Gross-of-fees returns are presented before management fees, custodial fees and taxes, but after brokerage and other transaction fees, if any. Returns include the reinvestment of income.

A client’s return will be reduced by advisory fees and other expenses the portfolio may incur.

PFMAM’s asset management standard investment advisory fee schedule is 0.25% per annum on first $25 million and 0.15% per annum on assets over $25 million, but actual fees may be higher or lower. Investment advisory fees are described in Part 2 of the firm’s Form ADV. Fees have a compounding effect on the net return of a portfolio. As an example, the effect of investment advisory fees on the total value of a client’s portfolio assuming (a) a $1,000,000 initial investment, (b) portfolio return of 4% a year, and (c) 0.25% per annum fee charged monthly, is shown in the following table:

Item 3

PRESENTATION
Disclaimer
Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S.

Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.

For more information regarding PFMAM’s services or entities, please visit www.pfmam.com.

Disclaimer
Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S.

For more information regarding PFMAM’s services or entities, please visit www.pfmam.com.

For Institutional Investor or Investment Professional
Use Only – This material is not for inspection by,
distribution to, or quotation to the general public
Item 3

PRESENTATION
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Stress Test Analyses
Amrit Singh
Finance and Administration Committee Meeting
May 26, 2022
Item 4

PRESENTATION
2 Presentation
Highlights
• Construction of Stress Test
Cases
• Expectation vs Results • Insights on Drivers of
Biggest Financial Risks
Purpose
Present findings of the
stress test analyses
Item 4

PRESENTATION
3 Stress Scenarios for CY 2023 to CY2027 (five-year horizon):

1. Significant drop in energy prices including REC
• Higher PCIA and lower PG&E Gen Rate

2. Insufficient financial liquidity
• Price collapse triggers credit downgrade
• Collateral calls from counterparties and CAISO
• Increase in POLR (Provider of Last Resort) funding (called FSR – Financial Security Requirement)

3. PPAs default, renegotiate for higher prices, and/or delay start • RPS non-compliance penalty
• Replacement at higher prices

4. Load loss due to direct access and distributed load

5. Threat to Public Services or Facilities
Stress Test Scenarios
Extreme but plausible scenarios that can deplete reserves and make SVCE uncompetitive. • Ensure adequacy of
reserves and
organizational resiliency
• Guide development of
strategic plan
• Shape FY 22-23 budget
and reserve targets
• Price uncertainty Drives
the first 4 scenarios
Item 4

PRESENTATION
4 Expectation versus Analyses Results
Revenue sensitivity to market prices via PCIA and PG&E Gen rate impacts dwarf other stress factors.

Stress Case Expectation Results from Analyses

1. Prices Collapse Significant reduction in revenues and large draw of reserves
Same as expected

2. Price Collapse leads to
insufficient liquidity
Large draw of reserves Price collapse does not trigger any significant liquidity needs. New POLR requirements require $35 million in
liquidity.

3. PPAs default/delay/renegotiate
for higher prices
Price increases result in higher
replacement cost and higher
compliance penalties
Price increases lead to substantial increases in
revenues which far exceed expected increase in
procurement costs.

4. Load Loss Price Collapse leads to stranded
assets
Load loss helps the bleeding from negative margins
caused by significant reduction in revenues. Results are better than stress case 1.

Assumes current rate setting methodology continues.

Item 4

PRESENTATION
5 PCIA and PG&E Gen Rate determine SVCE Rates and
therefore Revenues
Key Takeaways – Price Uncertainty Stress Scenarios (1-4) SVCE Gen Rate SVCE
discount
PG&E Gen Rate: PCIA
Biggest contributor to risk: PCIA and PG&E Generation Rate Uncertainty.

Revenues
PCIA
PCIA
Revenues
PG&E Rate
PG&E Rate
Revenues decline when prices decline
Item 4

PRESENTATION
6 • PCIA2023 = PCIA Balancing Account2022 + Forecast Balance • Balancing Account = (Prior Year’s Forecast Prices2022 - Actual Prices2022)* PCIA Portfolio • Forecast Balance = (Legacy Contract Costs – Forecast Prices2023)* PCIA Portfolio • PG&E Gen Rate Set Similarly
• PG&E Gen Rate = ERRA Balancing Account + Forecast Costs * Simplified representation of concepts
Key Takeaways – Price Uncertainty Stress Scenarios –
Cont’d
Big contributor to PCIA and PG&E Generation Rate Uncertainty is Market Prices.

Can’t fully bank current year’s margin
• Deviations between actual and forecast costs are tracked in balancing accounts and trued up next year • If prices drop, then there can be substantial draw from reserves Next Year’s PCIA &
PG&E Gen Rate
Current Year’s actual
realized Prices
Forecast of Next
Year’s Market Prices
Item 4

PRESENTATION
7 Key Takeaways – Price Uncertainty Stress Scenarios –
Cont’d
Price collapse poses biggest financial risk.
• Revenues drop significantly
• Loss of revenues far exceed
savings from lower power
procurement costs
• Power procurement savings
dampened by existing hedges
Item 4

PRESENTATION
8 Past, Current, and Stress Case Modeled Commodity Prices • Forward prices are at all time
high.
• Extreme case of runup in
prices
• Most of the increase occurred
in the last 12 months.
• Can’t predict future but price
trends could reverse, and
prices could drop equally or
more.
• Prices were trading at the
modeled stress test levels as
recently as 12 months ago.

Past Future
$/Mwhr
Item 4

PRESENTATION
9 Base Case
High forward prices result in low PCIA and high PG&E Gen Rates resulting in healthy SVCE Margins. • If current forward prices are realized
and other model assumptions prevail:
• Significant growth in reserves from forecast
2022 level of $227 to $322 at the end of 2023
• Continued strong growth in margins over the
next 5 years
• Caveats:
• PCIA and PG&E Gen Rate portfolio
assumptions based on public data as best
modeled by NewGen Consultants
• PG&E’s portfolio management strategy and
portfolio contents may change from those
modeled
• CPUC may moderate rate impacts
• Uncertainty increases further out in time
• Focus on delta of base case to stress
test results
Current Reserves Targets:
• Minimum: 120 days
• Goal: 230 days
• Maximum: 320 days
$ millions
2023 2024 2025 2026 2027
Revenues $ 398 $ 410 $ 391 $ 374 $ 375
Power Supply Cost $ 271 $ 281 $ 279 $ 272 $ 272
Operating Margin $ 127 $ 129 $ 112 $ 102 $ 102
Other Costs $ 32 $ 32 $ 33 $ 33 $ 34
Net Contribution to Reserves $ 95 $ 97 $ 79 $ 69 $ 69
Projected Reserve Balance $ 322 $ 418 $ 497 $ 566 $ 635 Days Cash on Hand 388 487 582 677 758
Uncertain
Highly
Uncertain
Item 4

PRESENTATION
10 Reserve Balances Under Each Scenario
Projected Reserve Balance ($ millions) 2023 2024 2025 2026 2027

1. Prices Collapse $ 322 $ 144 $ 106 $ 67 $ 31

2. Price Collapse leads to insufficient liquidity $ 287 $ 109 $ 71 $ 32 $ (4)

3. PPAs default/delay/renegotiate for higher prices $ 334 $ 175 $ 153 $ 128 $ 105

4. Load loss $ 322 $ 144 $ 118 $ 92 $ 79
Corresponding Days Cash on Hand (DCOH) 2023 2024 2025 2026 2027

1. Prices Collapse 388 181 138 90 41

2. Price Collapse leads to insufficient liquidity 346 137 92 43 (5)

3. PPAs default/delay/renegotiate for higher prices 420 235 212 179 148

4. Load loss 388 181 177 141 143
Draw on Reserves
of $178 million.

Below minimum
target of 120 DCOH.

Add'l $35 million
for POLRFSR.

Item 4

PRESENTATION
11 Risk Mitigations
Best mitigation is to hold sufficient financial reserves.

Use results of these analyses to propose reserve target for next fiscal year’s budget • Examples:

1. Target/Build reserves such that if scenario 2 were to occur, reserves do not fall below the minimum reserve threshold of holding 120 days of cash (DCOH) on hand over the next
• 2 years
Or
• 5 years

2. Build reserves such that if scenario 2 were to occur, reserves do not fall below the minimum reserve threshold of holding 120 DCOH over the next 2 years and 60 days DCOH over years 3 to 5. • Level selected determines funds for additional customer discounts and decarbonization programs Other Risk Mitigation:
• Revisit current energy hedging strategy
• Allow for loss in revenues from price collapse to be mitigated by reduction in power supply costs • Challenges:
• Determining level of hedging given uncertainty in modeling PCIA and PG&E Generation Rates • Increased volatility in Power Supply Costs, Budget, and Reserves Item 4

PRESENTATION
12 Appendix
Item 4

PRESENTATION
13 Summary of Stress Test Results
Stress Case 1 - Significant Drop in Energy Prices
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 240 $ 236 $ 236
Power Supply Cost $ 271 $ 257 $ 246 $ 240 $ 239
Operating Margin $ 127 $ (145) $ (5) $ (5) $ (3)
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 95 $ (178) $ (38) $ (38) $ (36) Reserve Balance $ 322 $ 144 $ 106 $ 67 $ 31
Days Cash on Hand 388 181 138 90 41
Stress Case 3 - PPAs Default
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 240 $ 236 $ 236
Power Supply Cost $ 258 $ 239 $ 229 $ 227 $ 226
Operating Margin $ 139 $ (127) $ 11 $ 9 $ 11
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 107 $ (159) $ (22) $ (25) $ (23) Reserve Balance $ 227 $ 334 $ 175 $ 153 $ 128 $ 105
Days Cash on Hand 420 235 212 179 148
Stress Case 4 - Load Loss
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 216 $ 212 $ 189
Power Supply Cost $ 271 $ 257 $ 210 $ 204 $ 168
Operating Margin $ 127 $ (145) $ 7 $ 8 $ 21
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 95 $ (178) $ (26) $ (26) $ (13) Reserve Balance $ 227 $ 322 $ 144 $ 118 $ 92 $ 79
Days Cash on Hand 388 181 177 141 143
Stress Case 2 - Insufficient Liquidty
2023 2024 2025 2026 2027
Revenues $ 398 $ 112 $ 240 $ 236 $ 236
Power Supply Cost $ 271 $ 257 $ 246 $ 240 $ 239
Operating Margin $ 127 $ (145) $ (5) $ (5) $ (3)
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ 95 $ (178) $ (38) $ (38) $ (36) Reserve Balance $ 227 $ 322 $ 144 $ 106 $ 67 $ 31
After FSR Requirement $ 287 $ 109 $ 71 $ 32 $ (4)
Days Cash on Hand 346 137 92 43 (5)
Item 4

PRESENTATION
14 Illustrative Methodology for Setting Target Reserves 2023 Required
Reserve Level
2023 Required
DCOH
Available for Add'l
Expenditure*
Next 5 years Reserves Remain Above 120 DCOH $380 million 460 $0 Next 4 years Reserves Remain Above 120 DCOH $345 million 415 $0 Next 3 years Reserves Remain Above 120 DCOH $310 million 370 12 Next 2 years Reserves Remain Above 120 DCOH $275 million 329 $47 * Based on current base case modeling.

Illustrative Methodology: Target reserves such that if scenario 2 were to occur, reserves do not fall below the minimum reserve threshold of holding 120 days of cash (DCOH) on hand over the next 2 years.

Base Case Reserve Projection: $322 million
Less Reserve Target: $275 million
Available for Add'l Expenditure: $47 million
Item 4

PRESENTATION
15 1. Significant Drop in Prices
Stress Scenario Construction*
• Energy: Statistical 1% low case prices
• RECs : 50% of current equilibrium curve
• RA : 50% of current RA cost
• Term : CY2023 to CY2027
• PCIA and PG&E gen-rate forecasts: NewGen
Model
• Price drops at once for all forward months and
stays at that level
• Hedges executed per ERM thresholds (hedge
to max targets)
• Current:
• Reserves to withstand the shocks
• Additional
• Additional reserves if needed
• Consider revising hedging strategy to
account for PCIA / gen-rate variability to
energy prices in the hedge plan
Mitigation Strategies
*Most stressful year modeled for term
Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
16 2. Insufficient Financial Liquidity
Stress Scenario Construction
• Persistent price raise followed by a steep/quick price collapse
• e.g., 2006 to 2008 price raise followed by the credit crisis scenario happens in year 4.
• Take nat. gas forwards from 2006 to 2008 and replicate the % changes to current energy price levels.
• All new hedges to the generic counterparty - avg.
unsecured credit given to us.
• Ratable execution based on ERM thresholds
• Increase POLR funding/ FSR impact – is additional cash impact – ~$ 35M - depending on methodology adopted
• Current:
• Lockbox
• Reserves
• Additional
• Exploring more counterparties in lockbox
• Reframing of credit policy
• Additional reserves if needed
SVCE Mitigation Strategies
Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
17 3. PPAs default and delay start
Stress Scenario Construction
• Some assets default and rest of them not online
yet will be delayed by ~6 months
• Valuation will include
• MTM of the defaulted assets and delays
(replacement at higher costs)
• SB350 penalties
• MTR penalties
• Current:
• Diversify technology
• Diversify counterparty
• Contractual language for delay damages
and default provisions
• Reserves to withstand the shocks
• Adding 10- year existing asset PPA to
exceed CP4 limits.
• Additional
• Additional reserves if needed
SVCE Mitigation Strategies
Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
18 4. Load Loss Due to Direct Access and Distributed Load Stress Scenario Construction
• Load Loss of 10% in Year 3 and another 10% in
Year 5
• DER – replicate the IEPR scenarios delta from
baseline to high DER scenario
• Prices in years 3-5 collapse to one percentile
(load loss creates stranded asset risk)
• Current:
• Custom Pricing to lock Customers to 10
years
• DER - NEM reform
• Additional:
• Seek non-bypassable charges (NBC) from
CPUC. PG&E has it, we don't.
• Additional reserves if needed
SVCE Mitigation Strategies
Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
19 • Operational Risks
• Modeling Errors
• Process Failures
• Governance and Risk Control Weaknesses
• Additional Risks from Regulatory and Legislative Actions • Additional Areas of Risks that can affect SVCE’s Services and Facilities
Other Potential Stress Test Scenarios
These could be considered in future analyses.

Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY

Silicon Valley Clean Energy Finance & Administration CommitteeMay 26, 2022

Silicon Valley Clean Energy Finance & Administration Committee
May 26, 2022