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Agenda packet

Silicon Valley Clean Energy Executive Committee
May 27, 2022

Document
Agenda packet
Meeting
May 27, 2022
Body
Silicon Valley Clean Energy Executive Committee
Pages
7
Original file
1.2 MB
Text extracted from the CCA's file for reading and search. Open the original on www.svcleanenergy.org. That file is the official record.
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Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).

Liz Gibbons, Chair
City of Campbell
George Tyson, Vice Chair
Town of Los Altos Hills
Jon Willey
City of Cupertino
Zach Hilton
City of Gilroy
Neysa Fligor
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Javed Ellahie
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Tina Walia
City of Saratoga
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Silicon Valley Clean Energy
Executive Committee Meeting
Friday, May 27, 2022
10:00 am
Teleconference Meeting
Webinar:
https://svcleanenergy-org.zoom.us/j/87868637258
Or by Telephone (Audio only):

US: +1 669 219 2599
Webinar ID: 878 6863 7258
This meeting will be conducted in accordance with California Government Code Section 54953(e), in consideration of the Coronavirus (COVID-19). All members of the Silicon Valley Clean Energy Executive Committee and staff will participate in this meeting by teleconference.

Members of the public may observe this meeting electronically by accessing the meeting via instructions above. Public Comments can be sent in advance of the meeting via email up to three hours before the meeting begins to Board Clerk Andrea Pizano at [email protected] and will be distributed to the Executive Committee. The public will also have an opportunity to provide comments during the meeting. Members of the public using Zoom may comment during public comment or the applicable agenda item by using the Raise Hand feature and you will be recognized by the Chair. Those using the telephone (audio only) feature should press star 9 on your phones to initiate the “Raise Hand” function in Zoom. You will then be announced, unmuted, and your time to speak will begin.

The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.

If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact Board Clerk Andrea Pizano at [email protected] prior to the meeting for assistance.

AGENDA
Call to Order
Roll Call
Public Comment on Matters Not Listed on the Agenda

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Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).

Liz Gibbons, Chair
City of Campbell
George Tyson, Vice Chair
Town of Los Altos Hills
Jon Willey
City of Cupertino
Zach Hilton
City of Gilroy
Neysa Fligor
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Javed Ellahie
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Tina Walia
City of Saratoga
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
The public may provide comments on any matter not listed on the Agenda provided that it is within the subject matter jurisdiction of SVCE. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.

Consent Calendar (Action)
1) Approve Minutes of the March 25, 2022, Executive Committee Special Meeting
Regular Calendar
2) CEO Report (Discussion)
3) Intro to 2023 Strategic Plan (Discussion)
4) Recommend Community Electrification Engagement and Demonstration Programs (Action)
5) Business Process Optimization Update (Discussion)
6) Results of the Stress Test Analyses (Discussion)
7) Update on Digital Engagement and Customer Awareness (Presentation) Committee/Staff Remarks
Public Comment on Closed Session
The public may provide comments regarding the Closed Session item(s) just prior to the Committee beginning the Closed Session. Closed Sessions are not open to the public.

Closed Session

THREAT TO PUBLIC SERVICES OR FACILITIES
Consultation with: Amrit Singh, Chief Financial Officer and Director of Administrative Services, Kevin Armstrong, Deputy Director of Administrative Services Report from Closed Session
Adjourn
Silicon Valley Clean Energy
Executive Committee Special Meeting
Friday, March 25, 2022
9:00 a.m.

Pursuant to State of California Gov’t Code Section 54953 (e) the meeting was conducted via teleconference.

DRAFT MINUTES
Call to Order
Chair Tyson called the meeting to order at 9:02 a.m.

Roll Call

Present:

Chair George Tyson, Town of Los Altos Hills
Vice Chair Neysa Fligor, City of Los Altos
Director Liz Gibbons, City of Campbell
Director Javed Ellahie, City of Monte Sereno
Director Yvonne Martinez Beltran, City of Morgan Hill

Absent:

None.

All present committee members participated via teleconference.

Public Comment on Matters Not Listed on the Agenda
No speakers.

Consent Calendar
MOTION: Director Gibbons moved and Director Martinez Beltran seconded the motion to approve the Consent Calendar.

The motion carried unanimously by verbal roll call vote. 1) Approve Minutes of the February 25, 2022, Executive Committee Meeting Regular Calendar
2) CEO Report (Discussion)
CEO Girish Balachandran provided a report which included:

Item 1 1 Draft Minutes of the March 25, 2022 Special Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY
• Information on SVCE’s fifth anniversary celebration in association with the City of Cupertino’s Earth and Arbor Day Festival on April 23, 2022, which would be followed by a reception for board members and several others involved in the formation and support of SVCE; and • SVCE’s realignment and reorganization information.
3) Update on Potential Plans for Return to In-Person Board/Committee Meetings (Discussion) Kevin Armstrong, Administrative Services Manager, introduced the item and presented a PowerPoint presentation on plans for the potential return to in-person meetings and preparations for hybrid meetings. The presentation included a summary of the current state of in-person Brown-Act meetings, the status of meetings without a State of Emergency in place, pending legislation, options for hybrid Brown Act meetings in the event stricter requirements return, remote location assistance, and a draft schedule for hybrid meetings.

Administrative Services Manager Armstrong responded to committee member questions regarding staff assistance for virtual meetings, and offering the SVCE office as a location for meeting attendance.

The committee discussed the potential for stricter Brown Act requirements in the future and the possible need to participate remotely in an accessible noticed location.

Bena Chang, Senior Government Affairs Manager, stated as long as the Governor’s State of Emergency is in place, the current practices could continue until January 1, 2024. If the Governor were to rescind the State of Emergency, and pending legislation on public meetings had not gone into effect, the previous guidelines for public meetings would need to be followed. Senior Government Affairs Manager Chang responded to committee member questions.

Chair Tyson summarized comments from the discussion which included:
• There was no distinction between board and committee meetings, • SVCE staff is willing to offer additional support for meetings, • It is advisable that members connect remotely from a public location in the event stricter Brown-Act requirements return, for example a City facility, and
• Having an option to attend in person was a positive.

CEO Balachandran summarized there are several uncertainties, but Staff is preparing for support, and noted the item would be brought to the Board of Director’s April meeting; there were no objections from the committee.

Chair Tyson opened public comment.

No speakers.

Chair Tyson closed public comment.
4) Member Agency Energy Resilience Grant Update (Discussion) Zoe Elizabeth, Manager of Energy Services, provided a status update on the Community Energy Resilience Grants program via a presentation to the committee.

Manager of Energy Services Elizabeth responded to questions regarding Capex projects, the budget allotted to the grant program, member agency unspent funds, deadlines, and project identification.

Director Gibbons suggested staff provide a list of primary contacts within each member agency and project forms for the Board of Directors.

Item 1 2 Draft Minutes of the March 25, 2022 Special Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY
Chair Tyson opened public comment.

Bruce Karney responded to a comment from Director Martinez Beltran regarding the possibility that there was a worthy project identified for a grant, but the grant funds were not sufficient to build it. Karney suggested in terms of battery storage systems, install a fraction of the batteries you ultimately want and what the system could handle, then as more funds are available in future months or years, you could then procure additional batteries until you have developed the resilience system to its full capacity.

Tony Eulo, Senior Manager of Public Sector Services, concurred with Bruce Karney’s comments and noted the City of Morgan Hill’s core grant project is going to build the switching structure and introductory batteries, with an eye toward future funding providing additional batteries.

Chair Tyson closed public comment.

Vice Chair Fligor endorsed her support for a grace period prior to redistribution of unused grant funds.

Committee/Staff Remarks
Chair Tyson thanked committee members for accommodating an earlier meeting time.

Adjournment
Chair Tyson adjourned the meeting at 10:07 a.m.

Item 1 3 Draft Minutes of the March 25, 2022 Special Meeting r ~'\ SILICON VALLEY ~ CLEAN ENERGY

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Staff Report – Item 2
Item 2: CEO Update
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/27/2022
This item will be addressed in the form of an oral report to the Executive Committee.

Item 2
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Staff Report – Item 3
Item 3: Intro to 2023 Strategic Plan
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/27/2022
This item will be addressed in the form of a presentation to the Executive Committee with an update and discussion on the FY 23 Strategic Plan.

ATTACHMENT
The presentation for this item will be posted to the SVCE website.

Item 3
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Staff Report – Item 4
Item 4: Recommend Community Electrification Engagement and Demonstration Programs From: Girish Balachandran, CEO
Prepared by: Don Bray, Director of Energy Services & Community Relations Justin Zagunis, Director of Decarbonization Programs & Policy Date: 5/27/2022
This item will be addressed in the form of a presentation to the Executive Committee with a proposal on new community electrification engagement and demonstration programs.

ATTACHMENT
The presentation for this item is posted to the SVCE website.

Item 4
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Staff Report – Item 5
Item 5: Business Process Optimization Update
From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/27/2022
This item will be addressed in the form of a presentation to the Executive Committee from staff on the status of the business process optimization project.

ATTACHMENT
The presentation for this item is posted to the SVCE website.

Item 5
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Staff Report – Item 6
Item 6: Results of the Stress Test Analyses
From: Girish Balachandran, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Karthik Rajan, Senior Risk Manager
Date: 5/27/2022

RECOMMENDATION
Receive and discuss the results of the Stress Test analyses.

BACKGROUND
Staff conducted stress tests to assess the critical risks facing the organization that can threaten its viability to carry its mission. The stress test scenarios, also often referred to as Black Swan events in risk terminology, are extreme but plausible events that if occurred could have severe adverse effects on the organization.

In constructing the stress test scenarios, cross-functional teams at SVCE brainstormed on risks facing the agency over the next five calendar years. Out of those discussions, the team prioritized five stress test scenarios that based on staff’s professional assessment could have the most severe consequences for SVCE.

Four out of the five scenarios are impacted by market price uncertainties:

1. Significant drop in energy prices that result in higher Power Cost Indifference Adjustment (PCIA) and lower Pacific Gas and Electric (PG&E) generation rate.

2. Insufficient financial liquidity caused by:
a. Energy price collapse that reduces SVCE’s margins and triggers credit downgrades b. Higher energy collateral postings form counterparties and the California Independent System Operator (CAISO)
c. Pending regulatory case that significantly increases Financial Security Requirements (FSR) to the Provider of Last Resort (POLR), which for SVCE currently is PG&E. FSR amounts posted are held by POLR as financial security in the event a community choice aggregator’s (CCA’s) customers are returned to POLR such as during a CCA bankruptcy.

3. Power Purchase Agreements (PPAs) default, renegotiate for higher prices and/or delay their commercial start dates that result in RPS non-compliance penalties and replacement of energy and RA at higher market prices.

4. SVCE loses load due to direct access and growth in distributed energy resources.

The fifth scenario addresses risks that deal with threat to public services or facilities and will be discussed in a closed session of the Committee meeting.

Other scenarios that were not selected but could be selected in the future include:
• Operational Risks
o Modeling Errors
o Process failures
o Governance and Risk Control Weaknesses
• Additional risks from Regulatory and Legislative actions Item 6
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Agenda Item: 6 Agenda Date: 5/27/2022

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• Additional Areas of Risks that can affect SVCE’s services and facilities

ANALYSIS & DISCUSSION
The key finding from the stress test analyses is that the most significant financial risk facing SVCE is a collapse in energy prices. A collapse in energy prices will significantly reduce SVCE’s revenues because of higher PCIA and lower PG&E generation rates and will not significantly reduce our energy purchase costs because the prices for most of the forward energy purchases are locked as result of hedging over the next five years of the stress test study period with more hedges in the earlier years following the Energy Risk Management Policy hedging targets. The price collapse impact overwhelms all other stress factors.

The attachments to this report contain the summary tables with financial results under the current base case scenario and the modeled stress case scenarios. The base case shows significant growth in reserves from forecast 2022 level of $227 million to $322 million at the end of 2023 and continued strong growth in margins over the next five years1. The modeled results are based on the assumptions that the current high forward prices and other modeled assumptions especially those around PCIA and PG&E generation portfolio prevail.

PCIA and PG&E generation portfolio assumptions are based on public data as best modeled by the California Community Choice Association (CalCCA) consultant NewGen Strategies and are highly uncertain. In addition to not knowing the contents of the PCIA portfolio and PG&E’s generation portfolio, PG&E’s portfolio management strategy may change from those modeled, and the California Public Utilities Commission (CPUC) may moderate future PG&E generation rate increases. All these uncertainties make the absolute value of the results highly unreliable. Nevertheless, the relative differences among the base case and the modeled stress test scenarios are highly pertinent in understanding our strategic risks. The focus of the stress test is on the delta of the base case to the stress test results.

The following is a summary of what the staff expected when constructing the scenarios versus the results of the analyses.

Scenario 1 – Prices Collapse
Expectation: Because of higher PCIA and lower PG&E Generation rate, SVCE’s revenues will drop significantly and meeting operating expenses while maintaining a one percent effective discount rate to comparable PG&E’s rates will lead to significant draw from reserves.

Result: Same as expected.

To provide customers with competitive rates, SVCE sets its generation rates such that customers receive an effective Board designated discount, currently set at one percent, to comparable PG&E rates. Because CCA customers must pay PCIA charges, to provide the effective discount rate SVCE reduces its rate by the PCIA amount. As a result, if PCIA increases and PG&E generation rate decreases, SVCE generation rates and therefore revenues decline.

Market prices for energy are at an all-time high level with most of the increases occurring in the last 12 months. Stress test Scenario 1 assumes that market prices beginning in 2023 and for all forward months in the five-year study period drop to the one percentile level, which is close to where prices were trading as recently as twelve months ago. If this were to occur and SVCE maintains its current rate methodology, then there would be a draw of $178 million from reserve in 2024 leaving days cash on hand (DCOH) at 181 days and DCOH declining to 41 by 2027, well below the current Board established minimum target of 120. The reserves start at a high-level of $322 million (388 DCOH) at the end of 2023 because of the current high prices. Per the scenario assumptions, the price collapse occurs at start of 2023, but the impact will not be felt 1 SVCE’s reserves as of March 31, 2022, was at about $147 million and the corresponding days cash on hand was at 165.

Item 6
Agenda Item: 6 Agenda Date: 5/27/2022

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until 2024 when new PCIA and PG&E generation rates take effect reflecting the lower realized prices in 2023 and lower forwards for 2024.

Scenario 2 – Price Collapse leads to insufficient financial liquidity Expectation: Price collapse would trigger large collateral postings and lead to large draw from reserves.

Result: Price collapse does not trigger any significant liquidity needs. However, there’s large draw of $35 million that’s modeled for potential regulatory change to the financial security requirement (FSR) deposit for CCA’s.2
The standard credit risk management practice, except for long-term Power Purchase Agreements (PPAs), is the requirement to post collateral, usually cash or letters of credit, when the exposure to the counterparty reaches the negotiated credit limit. A price collapse would increase our counterparties credit risk or exposure to SVCE and per the contract when the credit limit is reached SVCE must post the required collateral. Because of SVCE’s active management of collateral posting requirement including placing key counterparties in a lockbox mechanism in return for not having posting requirements and long-term PPAs not being subject to this requirement, the price collapse does not have a significant impact on liquidity.

The most significant impact comes from regulatory uncertainty under potential changes to the FSR requirements. Each CCA is required to post an FSR amount to their incumbent investor-owned utilities (IOU), PG&E for SVCE, that the utility can draw upon should the CCA fail and return its customers to the IOU. The IOUs are currently the provider of last resort (POLR). The current FSR methodology is largely based on the difference between the IOUs retail rates and forecast of serving the CCA load over a 6-month period, where the FSR is adjusted every six months. Under current regulatory proceedings, certain proposals from the IOUs that seems to be gaining traction could increase the posting requirement for SVCE to two months of the energy cost of serving the customers, which under current market conditions could be as high as $70 million.

Because under the stress case assumption, the price collapse would reduce the cost of serving the customers, the FSR is modeled at $35 million.

The stress test modeling of additional liquidity needs of $35 million for FSR is additive to the Scenario 1 price collapse. As a result, Scenario 2 is the most consequential of the four price uncertainty scenarios modeled. If Scenario 2 were to occur, the DCOH in 2024 would be 137 and by 2027, SVCE would run out of cash.

Scenario 3 – PPAs default/delay/renegotiate for higher prices Expectation: Price increases result in higher replacement cost.

Result: Price increases lead to substantial increases in revenues which far exceed the increase in higher energy procurement costs.

If our PPAs default on their contractual obligations, delay their commercial operation date, or renegotiate for higher prices, SVCE’s energy procurement cost could increase substantially. The higher costs would occur under a high price scenario. If prices are low, then the energy can be replaced at relatively lower prices.

Another cost dimension is RPS compliance penalties, under the modeled scenario the non-compliance penalties were not significant.

While the procurement costs would increase under the price increase scenario, the growth in revenues from lower PCIA and higher PG&E generation rates far offset the increase in procurement costs. The scenario results in more favorable outcome than the base case and for this reason, the results shown for Scenario 3 in the attachment assumes the Scenario 1 price collapse assumption. 2 The current FSR posting for SVCE is at the minimum required level of $147,000.

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Agenda Item: 6 Agenda Date: 5/27/2022

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While under the entirety of the price increase scenario the results are favorable, SVCE must continue its efforts to ensure the PPAs perform as expected. Isolating (ignoring the increase on the revenue side) the increase in the procurement cost of energy under the high price scenario could cost approximately $80 million in 2026.

Scenario 4 – Load Loss
Expectation: Load loss along with price collapse leads to stranded assets.

Result: Price collapse significantly reduces SVCE revenues, as explained in scenario 1, such that the operating margin turns negative, and loss of load reduces selling energy at a loss.

The results of this scenario are better than those of scenario 1.

This scenario assumes that SVCE loses 10% of load in 2025 and another 10% in 2027 from growth in direct access and distributed energy resources. In addition to lost revenues, load loss can result in stranded assets.

The stranded assets are the powered procured on the departed customers behalf that must now be sold in the open market. The assets will be stranded if SVCE has to sell the power at a loss, which would occur under a low-price scenario such as those modeled under Scenario 1. As explained in Scenario 1, price collapse leads to significant loss of revenues such that the operating margin in years 2024 to 2025 is negative. Under this condition, load loss reduces selling more energy at a loss resulting in slightly better financials than those of Scenario 1.

SVCE should continue its efforts to retain and attract customers. While the modeled stress scenario is overwhelmed by the price collapse factor, on an expected basis relative to the base case, load loss of 10% in 2025 and another 10% in 2027 would harm SVCE by about $8 million in 2025, $8 million in 2026 and $16 million in 2027.

STRATEGIC PLAN
These analyses support SVCE Strategic Plan Goal 13 – “Commit to maintaining a strong financial position” and the accompanying measures, “Set balanced rates that maintain customer value and support SVCE’s financial stability” and “Balanced budget that achieves cash reserve targets and maintains customer value”.

FISCAL IMPACT
The stress test analyses shows that the key financial risk facing SVCE is a collapse in energy prices that can significantly reduce revenues and require substantial draw of funds from the reserves. The best mitigation of this risk is to hold sufficient fund in reserves. Staff will use the results of these analyses to recommend reserve levels for the Board to consider in setting the Fiscal Year 2022-23 budget.

Staff is also reviewing SVCE’s energy hedging strategies. Some of the challenges in setting the hedging strategy is the uncertainty in modeling the PCIA and PG&E generation rates along with potentially increasing the volatility in power supply costs relative to the budgeted costs.

ATTACHMENT

1. Summary of Base Case Results

2. Summary of Stress Test Results
Item 6
Agenda Item: 6 Agenda Date: 5/27/2022

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Attachment 1 – Summary of Base Case Results
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 6
Agenda Item: 6 Agenda Date: 5/27/2022

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Attachment 2 – 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 $ (145)$ 127 (5)$ (5)$ (3)$
Other Costs $ 32 $ 33 $ 33 $ 34 $ 34
Net Contribution to Reserves $ (178)$ (38)$ (38)$ (36)$ 95 Reserve Balance $ 322 $ 144 $ 106 $ 67 $ 31
Days Cash on Hand 388 181 138 90 41
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 $ (4)$ 32
Days Cash on Hand 346 137 92 43 (5)
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
Item 6
Agenda Item: 6 Agenda Date: 5/27/2022

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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
Item 6

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Staff Report – Item 7
Item 6: Update on Digital Engagement and Customer Awareness From: Girish Balachandran, CEO
Prepared by: Andrea Pizano, Board Clerk/Executive Assistant Date: 5/27/2022
This item will be addressed in the form of a presentation to the Executive Committee from staff on digital engagement efforts and takeaways from a recent customer awareness survey.

ATTACHMENT
The presentation for this item is posted to the SVCE website.

Item 7
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