Presentations — Silicon Valley Clean Energy Board of Directors, August 10, 2022

New SV Clean Energy
PowerPoint Template
Subtitle
Item 3

PRESENTATION
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PRESENTATION
In preparation to adopt the budget
in September, review and provide
feedback on the Proposed Fiscal
Year 2022-2023 (FY 23) Budget
and Revised Reserves Policy

1. Summary of the Proposed Budget

2. Revenue Modeling
PCIA and PG&E Gen Rate
Uncertainty

3. Reserve Targets

4. Customer Discount Rate and
Funding for Programs

5. Power Supply Costs

6. Other Cost Drivers
Personnel, BPO, Legal,
Cybe rsec u rity
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PRESENTATION
© FY22-23 Budget Approval in September
Budget Framework
at Exec Comm
Present Draft
Budget to Finance
&Admin Comm
August 8
Present Draft
Budget to BOD
Present Recommended
Budget to BOD. Adopt
updated Strategic Plan
Late August
Incorporate
Changes based
on BOD feedback
March 2023
Mid-Year Budget
Review/ Adjustment
3 SILICON VALLEY CLEAN ENERGY
FY 2022-23 OPERATING BUDGET
($ in thousands)
FY 2021-22 FY 2022-23

ADJUSTED PROPOSED
BUDGET BUDGET $ %
Energy Revenues 385,502 483,860 98,358 25.5%
Power Supply Expense 274,979 325,296 50,317 18.3%
Operating Margin 110,523 158,564 48,041 43.5%
Operating Expenses 21,693 28,204 6,512 30.0%
Non-Operating Revenues/(Expenses) 310 639 329 106.1%
Transfers and Other Expenses $27,531 $15,465 $12,066 -43.8% BALANCE AVAILABLE FOR RESERVES $61,609 $115,534 $53,924 87.5%

YEAR OVER YEAR
CHANGE
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© 1. Proposed FY 23 vs FY 22 Mid-Year Adjusted Budget
Revenues increase, due to higher margins, outpaces rising energy costs 4 •
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Strategic Focus Areas: Impacts all five strategic focus areas

1. Revenues
Issue
PG&E's preliminary 2023 rate forecast,
issued in May, is based on outdated
market prices. Results in lower SVCE
revenues than likely the case.

Attempt to calibrate NewGen Model to
likely prices used by PG&E overstates
SVCE Margins by N10%*.
*Using latest version 3.1 - version 2.5 used for Executive Committee presentation.

Proposed Budget
Uses latest market data
in NewGen model and
discounts results (reduce
SVCE Margins) by 10% for
modeling error.

Implications/Reasons
Likely aligns revenues
closer to rates that PG&E
will update in October.

Better aligns revenues
with power supply costs
Primarily for budget
setting purposes.

Additional expenditures
based on headroom
projections will be made
by the Board likely in
December when actual
PG&E and PCIA rates are
known.
5 Healthy SVCE Margins Remain
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PRESENTATION
Current Effective
Rate*
PG&E Gen Rate:

14.30 ¢/kWh
1% SVCE discount t
PG&E ERRA Forecast
2023 Rate**
PG&E Gen Rate:

12.62 ¢/kWh
Proposed Budget
2023 Rate ***
PG&E Gen Rate:

12.79 ¢/kWh
2% SVCE Discount
* Source: PG&E June 2022 Updated Rates
** Source: PG&E 2022 ERRA Forecast (Weighted for SVCE Portfolio Load) *** Using NewGen Model with 7/16/2022 Forward Curves and 10% haircut Above margin analyses ignores minor reductions for franchise fees (0.09 ¢/kWh) 6 •
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PRESENTATION
Strategic Focus Areas: Impacts all five strategic focus areas

2. Reserve
Targets
Issue
Ensure SVCE maintains sufficient
reserves to manage risks such as
those modeled under Stress Test
Scenario Two.

Prices collapse reducing revenues
and there's additional draw on
reserves from increase in financial
posting requirements to the
Provider of Last Resort (PG&E).

Use stress test 2 scenario
assumptions and update for Fiscal
Year period (Oct 2022 to Sep 2023) and
latest market data
Proposed Budget
Targets to keep reserves above
120 Days Cash On Hand (DCOH)
for FY 2022-2023 and FY 2023-
2024 (under stress test scenario 2
assumptions)
Resets Upper Reserve Target such
that over the next 5 fiscal years
reserves do not fall below 90
DCOH
Implications/Reasons
FY 23 margins not
guaranteed given true-up
in 2024 for PCIA and
PG&E Gen rate
If adverse conditions
materialize, need 120
days to reshape strategy
and secure additional
liquidity
Increase upper reserve
target to take advantage
of good margin years to
manage risks over 5-year
period
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PRESENTATION
Reserve Targets (DCOH}
Minimum
Goa I (Target)
Maximum (Upper Target)
Derived using stress test scenario 2*:

Current
120
230
320
Draw on reserves in FY 2024 would be N$186 million
New Targets
120
285
490
To end up with 120 DCOH in FY 2024, need to end 2023 with N$288 million in reserves $288 million is equivalent to holding 285 DCOH (@ $1.01 million a day burn rate) * Updated with budget assumptions and modeled over fiscal year as opposed to calendar year 8 •
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Strategic Focus Areas: Supplier of Choice; Work Electrification into SVCE's Value Prop. to Customers

3. Additional
Expenditure
1% discount over 12
months N$5 million
1% discount over 9
months (Jan -
Sep) N$3.6 million
Monthly Average Bill
Savings of 1%
Discount:

Residential -
N$0.66
Small Commercial
- N$2.39
Medium
Commercial -
N$26.89
Issue
Continue to provide
competitively-priced and high-valued services to SVCE
customers
Funds not needed to cover cost-of-service flow to customers via lower SVCE rates (discount to
comparable PG&E rates)
Cost-of-service includes funds
needed to cover operations,
meet reserve targets, and fund
decarbonization programs
Proposed Budget
Target discount at 3%
2% for all customers
Additional 1% converted to $ bill credits to CARE
& FERA customers
Board can change the budgeted discount rate,
once actual PG&E rates are known, which is
expected to occur in late Dec 2022. Until then
current 1% discount rate continues.

Revisit additional funding for programs during
mid-year budget update in March given time
needed to ramp up new initiatives to utilize
existing authorized funds
Implications/Reasons
Reaching new target reserve
levels ensures SVCE can
withstand adverse risk
scenarios
Keeping the discount rate to a
reasonable level
Enables additional funding for
valued customer programs
such as decarbonization
efforts
Ensures there's more
organizational resiliency to
respond to risks over the 5-yr
planning horizon
Time SVCE rate change with
PG&E rate change when Board
will have more certainty on
PG&E Gen and PCIA rates
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PRESENTATION

4. Power
Supply
N90% of
Expenses
Strategic Focus Areas: Supplier of Choice, 24x7 Clean Energy Delivery Issue
Power prices are near record high levels and
market is very volatile
In addition to PG&E Gen Rate and PCIA
uncertainty, power price volatility makes budget
projections more uncertain
Currently hedged N79% for FY 2023
Remaining 21% exposed to volatile market prices
Load Projection for FY2023 is N3.9 Twh, slightly
higher than Mid-Year Budget
Commercial load is to yet to recover pre-Covid levels (-) Offset by increase in number of meters
served by SVCE (+)
Contract delays/negotiations further add
uncertainty
Cost of carbon-free energy is high due to low
hydro conditions. PG&E allocations help
Resource Adequacy requirements are changing,
and costs are high
Proposed Budget
Continue hedging to current ERM
(Energy Risk Management) targets
Staff conducting additional
analyses of hedging targets
based on stress test findings.

Recommendations to be
developed later.

Continue with SVCE 100% clean
policy
Purchasing remaining carbon free
allocations expected to cost
about $1.2 million to $6 million
depending on PG&E allocations.

Implications/Reasons
High hedge targets increase risk
to price collapse; does not
account for correlation of prices
to PCIA and PG&E Gen rate
Need further analysis before
changing policy given
challenges of uncertainty in
modeling PCIA and PG&E Gen
Rates
Maintain high customer value
proposition with 100% clean
energy and serve SVCE mission
Furthers SVCE focus toward
24x7 clean energy goal
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Strategic Focus Area: Employer of Choice; Leverage Balance Sheet for Structured Financing

4. Additional
Costs
Issue
Growth in all areas of the
organization requires
additional staffing
Decarb Programs effort
increasing from N$2M/year to
N$20/year for the next 3 years
Going from hundreds of
rebates to thousands
Increased engagement with
local agencies
Increase employee salaries
for cost-of-adjustment and
merit/promotions
Enhance employee benefits
to remain competitive with
peer CCAs
Budget for BPO, legal costs,
consulting for structed
financing, and cybersecurity
enhancements
Proposed Budget
Add 10 full time staff positions to the
current headcount of 39, bringing new
headcount level to 49 (Details in next slide)

5.3% adjustment for COLA
Based on 6-month rolling average of SF
Bay Area CPI (Dec-21 to June-22)
CEO discretion applied depending on
employee pay relative to market range,
performance, and date of hire
N$350k annual cost increase@ 39 FTE
Any additional increases for merit and
promotions based on CEO discretion
N$330k annual cost increase @ 39 FTE
Employee benefit enhancements (see
detailed slide) - N$370k annual cost increase
Other Additional Costs:

BPO - $1.375 million
Legal - $1.5 million
Structured Finance: $150k
Cybersecurity improvements: $250k
Implications/Reasons
Additional staff needed to:

Scale up programs team for double down
effort (more details in appendix)
Reduce high level of existing employee
workload
Advance strategic focus area goals
Create organization depth for business
continuity
Adjustments to employee compensation and
benefits needed to retain and attract talent
BPO, a key FY 21-22 strategic focus area to
mature operations to industry standards and
reduce operational risks
Sustained investments in cybersecurity
preparedness; FY22-23 efforts include virtual
CISO; Incident Response Tabletop exercises;
and a combined IT audit/ security
assessment, along with continued monitoring
and security tools. 11
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© Staffing - Propose 10 Additional Full-time Positions
Current Staffing
39 full-time employee
6 vacancies; 1 on Maternity Leave
5 intern positions
1 currently filled
4 part-time employees
Don Bray transitioned to part-time as Director of
Strategic Development
2 Climate Corps Fellows
21ong~ermindependent
consultants
Personnel Authority
CEO can approve job titles, salary ranges,
and org chart positions
Positions can be swapped / changed and
added within Board-approved budget
Additions will not exceed 10% of
authorized number shown in budget
Changes/ hires communicated in next
CEO report to Board
Per CEO personnel authority, these and existing positions may change to address evolving business needs.

Decarbonization Programs and Policy (3; tbd)
Senior Programs Specialist - Community Programs (1)- to design and implement decarbonization programs
Programs Specialist - Policy (1) - to support state and local policy and government initiatives Program Implementation Manager (1) - to oversee program delivery and effectiveness Additional Staff (tbd)- Will need additional staff over coming 12 months as programs scale up and more clarity is gained on types of resources needed
4PRO (3)
Regulatory Analyst (1) - to support engagement at CPUC, CAISO, CEC Power Data/ Markets Analyst (2) - to support increased data analysis from operational PPAs and Load Forecasting
ESCR (3)
Energy Services Specialists (2) - to support rate implementations and commercial/ industrial offerings
Outreach Specialist (1) - to support outreach directly to member agencies and community groups Finance & Admin (1)
Risk Control Analyst (1)- to support middle office functions and administration of internal controls including implementation of BPO
12 Benefit Current Proposed Supporting Detail
Health Reimbursement
Account (HRA) Cap $6000 / year Cap @ $18k (3x annual) SVCE leading (3CE offers $3600 / year), but balances growing beyond useful limits.

Cash In Lieu of Health Benefits $250 / mo $600 / mo CCA range ($250 - $750); ** Monthly Premium
Contribution $1200 / mo $1500 / mo CCA range ($1200 - $1891) Phone / Internet Allowance $50 / mo (phone only) $120 / mo CCA range ($50 - $150) – combine into a single “remote technology” allowance; **
Paid Parental Leave (bonding) none
120 hours during 1st year
after birth Offered by MCE and PCE
Employee Participation in
Program Incentives none $2500 / FTE
Recommend setting up a budget amount for staff to benefit from similar decarbonization incentives as customers but separated to avoid issues of unfair access. Estimating 50% utilization**
** Benefit may be taxable to employees; SVCE confirming tax status Item 3

PRESENTATION
SVCE is proposing benefit increases to remain competitive with peer CCAs 13 •
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PRESENTATION
Summary - Despite ongoing
uncertainty, the overall financial
picture looks good for FY22-23
Biggest risks include late-year adjustments to
PCIA / PG&E Gen Rate and significant volatility in . power prices Reserve targets increase to account for risks as
modeled in the stress test analyses
Keep 1% customer discount rate and revisit once
PG&E and PCIA rates are known
Power supply costs will increase, but margins
showing favorable improvement
Budget increases for operating expenses other
than power supply needed to advance strategic
focus areas including retaining and attracting
employees, reducing operational risks, and
enhancing operational efficiency.

Many Risks can Deplete Reserves
Market Prices
Reduced Revenues
via Higher PCIA and
Lower PG&E Rates;
Increased Power
Supply Expense
SUPPLY
Project delays;
PPAs Default or
Renegotiate for
Higher Prices
L&R ISSUES PAYMENTS LOAD LOSS CYBER·RISK
IRP, RPS, RA Customer Defaults Direct Access Hardware, Software, R f IP it· and Potential for and Training to combat e orm ena 1es, Expansion Ransomware and PCIA, POLR Phishing
RATE
Rate Increases due
to socialized wildfire
costs, Energy Price
Increases will
ultimately impact
usage and
electrification
14 • Provide feedback on the FY 2022-23 Proposed
Operating Budget and the Updated Reserves Policy
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PRESENTATION
Next Steps
Incorporate feedback and seek Board approval in September Seek SVCE rate change approval, likely in December
Once PCIA and PG&E Generation rates are known with more certainty Board can revisit the customer discount rate
Adjust budget in March
15 Item 3

PRESENTATION
($ in Thousands)
2022 2023 2024 2025 2026 2027
Operating Revenue (Budget) (Budget) (Forecast) (Forecast) (Forecast) (Forecast) GWh Sales 3,914 3,907 3,782 3,746 3,766 3,767
Electricity Sales, Net $ 384,498 $ 482,930 $ 410,965 $ 394,285 $ 361,155 $ 338,749 Available for PCIA/Gen Rate/Power Supply Cost Changes - - - (13,000) (27,000) (35,000) GreenPrime Electricity Premium 1,005 931 899 873 872 875 Total Operating Revenues 385,502 483,860 411,864 382,158 335,028 304,624 Operating Expense
Power Supply $ 274,979 $ 325,296 $ 302,663 $ 305,570 $ 300,691 $ 285,026 Operating Margin 110,523 158,564 109,201 76,587 34,337 19,598 Data Management 3,249 3,413 3,413 3,583 3,762 3,950
PG&E Service Fees 1,450 1,470 1,544 1,621 1,702 1,787
Staff Compensation 8,535 12,024 13,263 13,694 14,139 14,599 Consultants and other Professional Fees 5,669 7,922 8,318 8,734 9,170 9,629 Communications and Noticing 1,040 993 1,043 1,095 1,150 1,207 General and Administration 1,750 2,382 2,501 2,626 2,758 2,895 Programs 27,381 15,265 8,237 7,903 7,241 6,792
Total Operating Expenses 324,053 368,766 340,981 344,826 340,613 325,886 Operating Income 61,449 115,095 70,883 37,331 (5,585) (21,262) Nonoperating Revenue (Expense)
Other Income 50 50 51 51 52 52
Investment Income 300 592 713 836 904 895
Capital Outlay & Financing Costs (190) (203) (53) (53) (53) (53) Grant Income - - - - - -
Total Non-Operating Revenue (Expense) 160 439 711 834 903 894 Change in Net Position/Available for Reserves 61,609 115,534 71,593 38,166 (4,682) (20,368) Item 3

PRESENTATION
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For forecast years
FY23-24 onward:

Revenues are based
on GWh Sales from
the CEC IEPR load
forecast and CalCCA
NewGen Model for
SVCE margin analysis
using latest market
data
Power Supply Costs
are based on updated
portfolio positions and
latest market data
Operating Expenses
are assumed to grow
5% /year
Staffing Headcount is
unchanged from
proposed FY22-23
level
17 Item 3

PRESENTATION
All are
important
Shining a
spotlight on
incremental
areas
Workplan will
include the
details on how
we will address
these and
other
areas/goals
(internal
document)
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1. Employer of Choice
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5. 24x7 clean energy
delivery

9. Expand focus on C&I
decarb/industrial load

2. Supplier of Choice
(electrification, rates,
DA customers, 24x7
CFE ... )

6. Operationalize
resources and
portfolio/asset
management in the
wholesale market to
achieve objectives

10. Expand/scale digital
and in-person
electrification
awareness and
education

3. Leverage Balance
Sheet for Structured
Financing

7. Ensure state and
federal policy
landscape preserve
CCA autonomy +
program policies

11. Execute on planned
programs to
demonstrate impacts
and influence policy

4. Efficient and
Effective Internal
Operations

8. Work electrification
into SVCE's value
proposition to
customers

12. Operationalize
equity into programs
18 ₵
₵
₵
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PRESENTATION
© NewGen Projection vs PGE ERRA Forecast
Comparing 2023 PCIA / Gen Rates using 3/28 curves
Gen Rate ( /KWH)

PCIA ( /KWH)
Headroom ( /KWH)
* Source: NewGen 3.1
Proposed PGE
ERRA Rate
(3/28)

12.62 1.43

11.19 NewGen
Projection
(3/28)*

13.05 0.93

12.12 Variance

0.43 -0.50

0.93 19
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© 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
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
20 Item 3

PRESENTATION
Projections include unspent program dollars
Reserves Forecast
$500
$450 490 days
$400
$350
1/J $300 C:
~
:E $250 285days
<II- ·=
$200
$150
$100 120days
$50
$0
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
- Total Adjusted Ending Reserves - Target Reserves Maximum Reserves - Minimum Reserves Source.· FY2022-23 Proposed Budget 21
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PRESENTATION
QI
u
·;;:

0. .c
3:
:1:
..._
<I\-
$140
$120
$100
$80
$60
$40
$20
$300
$250
$200
8 ·;::

0. .c $150
!
......
-v,. $100
$SO
$0
Jan-18
On-Peak NPlS Historical and Simulated Monthly Prices
Off-Peak NPlS Historical and Simulated Monthly Prices
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
- NP-15 Off-Peak ($/MWh) Historical - NP-15 Off-Peak ($/MWh) MEAN Jan-26
Forward Price Levels elevated compared to history,
driven by gas prices recently due to Ukraine Crisis
$9.00
$8.00
$7. 00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
- Hen ry Hub 7/ 14/2022
Henry Hub Forward Prices
- Hen ry Hub 2/11/2022 - Actuals
22 Item 3

PRESENTATION
© Energy Risk Management Min/Max Bands
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We hedge to manage market price risk. 79% of FY 23 load is hedged. However only 72% of CY 23 is hedged.

Period Year
Balance
2022 of Year
Year 2 -
2023 2023
Year 3 -
2024
2024
Year 4 -
2025
2025
Year 5 -
2026
2026
ERM Min ERM Max
Tolerance-LRB Tolerance LRB
" "
80% 110%
70% 90%
55% 80%
50% 80%
50% 80%
SVCETotal
Hedge" Net Open Position Tolerance and Positions
120%
94% 100%
80%
72% 60% 71.7% ---17;;3_4:%r----t~~---1-

66.4%
40%
73% 20%
0%
66% 2022 2023 2024 2025 2026
- SVCE Board-approved Hedging Tolerance Bands, 2021-2026 - SVCE Total Hedge% 58%
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FY 23 costs are estimated to be higher than FY 22 at the Mid-Year Budget.

Net Energy Supply Costs, Fiscal Year
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
Spot Market Costs
■ Renewable Energy Supply
Resource Adequacy
6M
54M
17M
61M
92M
95M
FY2023
■ Contracted Supply Costs
■ Environmental Products
■ CAISO Costs
FY 23 Power Supply Cost N$325.7M:

Load Cost - CAISO energy(+)
Energy hedges (net of CAISO
revenues) (+)
Renewable Energy Supply (PPAs) (-)
Clean Environmental Products -
short-term index+ RECs and carbon-free resources (+)
Resource Adequacy(+)
CAISO non-energy costs (+)
Source: FY2022-23 Early Draft numbers 24
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PRESENTATION
Load Recovery is assumed to be about 50%* offset by increase in new load moving into SVCE portfolio Load is yet to recover to Pre-COVID
levels.

C&I Load is yet to recover
Shelter in place residential load
increase has tapered off due to
return to office and milder
temperatures
This Load loss is offset by some
growth with new meters.
*Prior forecast had assumed 100% recovery by 2022.
4,100,000
3,900,000
3,700,000
Vl 3,500,000 ....
.c
s 3,300,000
~ 3,100,000
2,900,000
2,700,000
2,500,000
Historical Baseline & 2023 Load
2019A 2020A 2021 A 2022 (Budget) 2023 Forecast
- Load - Actuals Average
25 CCA Comparisons
CCA Name FY20-21 Staffing
Accounts Revenue
($MM)
Net Position
($MM)
FY21-22 FY22-23
Silicon Valley Clean Energy 274,000 $242.9 $166.1 39 49 Peninsula Clean Energy 296,000 $228.2 $180.8 32 39
Central Coast Community Energy 430,000 $288.6 $190.0 43 43 Clean Power Alliance 1,033,800 $824.3 $74.2 59 69
East Bay Community Energy 640,000 $424.1 $171.9 49 68
MCE 470,000 $454.7 $189.4 63 76
CCA Discount Rates
CCA Name 2020* 2021* 2022* Proposed FY22-23
Silicon Valley Clean Energy 4% 1% 1% 3%**
Peninsula Clean Energy 5% 5% 5% 5%
Central Coast Community Energy 2% 0% 2% / COS*** 2% / COS*** Clean Power Alliance 0% -17% 0% 0%
East Bay Community Energy 5% 0% 1% 3%
MCE -3% -15% 18% 7%
*2020-2022 discounts are determined from residential rates presented in the respective Joint Rate Mailer **SVCE discount is 1% through CY22, becomes 3% in January 2023 **3CE provides a 2% discount in SCE service territory and bases rates on cost-of-service in PG&E territory Item 3

PRESENTATION
26 14
21 25 25
27 27
31 32
38 39
49 0
10 20
30 40
50 60
0 2
4 6
8 10
12 14
16 18
Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 $MM / FTE
Rev ($MM) / FTE Cost ($MM) / FTE FTEs
Item 3

PRESENTATION
Revenue and Energy Costs/ FTE have remained fairly flat over time. 27 Item 3

PRESENTATION
CEO
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r r ' ' Chief Director of Chief Senior
Operating Strategic Financial Government
Officer (COO) Development Officer and Affairs
and Director ----------------------------------, Director of Manager of Power I Administrative CEO
Resources I Services
4PO I F&A I
J I l
r r r 1 1 1 I I I 1 1
Senior Power Senior Power Power Power Senior Power Senior Risk Deputy Senior Technology Manager of Resources Manager of Resources Supply Supply Manager of Markets/ Manager Director of Financial Services Power Planner Power Manager Program Program Energy Policy Data Analyst F&A Administration Analyst Manager Resources 4PRO Operations 4PRO Manager Manager and 4PRO Services F&A F&A Manager 4PRO 4PRO 4PRO Regulatory F&A
4PRO Analysis
I 4PRO
Wholesale Power l Regulatory & Senior Senior
Energy Settlements Compliance Quantitative Management
Markets l & Manager Analyst Analyst
Manager Compliance 4PRO F&A F&A
4PRO Analyst
4PRO
Associate Power l Senior Risk Control Administrative
Power Markets/ Regulatory Analyst Assistant
Analyst Data Analyst Analyst F&A F&A
4PRO 4PRO 4PRO
Regulatory Human
I Full-Time I Analyst Resources
4PRO Generalist
I Part-Time I F&A
I VACANT I Interim
Administrative
I NEW I Assistant
F&A 28
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PRESENTATION
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Board Clerk / Director of Energy
Executive Services and
Assistant Community Relations

CEO ESCR
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I I I
Energy Services Energy Services Communications
Lead Lead Manager

ESCR ESCR ESCR
Energy Services Energy Services Senior Marketing
Specialist Specialist Specialist

ESCR ESCR ESCR
Marketing Specialist
ESCR
Marketing Specialist
ESCR
Full-Time
Part-Time
VACANT
NEW
CEO I
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Internal Operations
Program Manager
CEO
I
Interim Com!!1unications
Manager
ESCR
__J
Senior Communications
- Specialist
ESCR
L
ClimateCorps -
Community Outreach
Fellow
ESCR
Outreach Specialist
ESCR
I
Manager of
Community Programs
DPP
Program
Implementation
Manager
DPP
Senior Programs
Specialist
DPP
Senior Programs
Specialist
DPP
Senior Programs
Specialist
DPP
Programs
Specialist
DPP
I
Director of Decarbonization
Programs and Policy
DPP
I
I I
Senior Data Deputy Director of
Analyst Decarbonization Programs &
DPP Policy
DPP
~
Data Senior Public Sector Services
Engineer Manager
DPP r-- DPP
Energy Services Specialist
DPP r--
ClimateCorps - Funding and
Finance Fellow r-- DPP
29 • Director
• Programs-focused team (3
staff)
• Policy and government
support team (3 staff)
• Data team (1 staff, hiring
another now)
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Item 3

PRESENTATION
© Decarb Programs and Policy Staffing - today
Current Staff Recent Re-org
Consolidated staff working to design and manage
programs
Emphasized tie-in for programs to support local
government initiatives and policy
Double Down
Direction from Board to increase efforts 2X over next
few years
Major scale-up in program scope and local policy
support
On top of ongoing and planned current efforts
30 • Need to go from
~$2M/year to ~20M/year
for next three years
• Need to go from hundreds
of rebates to thousands
• Need to meet more with
local agencies to explore
options and provide
support
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Item 3

PRESENTATION
© Decarb Programs and Policy Staffing - future
Significant Increase in
Efforts
More Staff Required
Build capacity for managing additional, larger
programs
Ensure time available for analysis, review and
optimizing efforts
Developing relationships is labor intensive
Tools Required
Simplify and streamline budgeting, tracking and
reporting
Facilitate increased volume of applications
31 •
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Item 3

PRESENTATION
© Decarb Programs and Policy Staffing - needs
Known
Data analysis support - further inform program approaches and respond to policy questions from cities (hiring Data Engineer now)
Program roll-out capacity - move planned but de-prioritized projects forward, add ability to handle new projects that arise, and increase ability to dig deeper into program details to improve the offerings we have (requesting Sr Programs Specialist) Government and policy support - allow for more concurrent analysis of requests from different cities, ramp up conversations sooner, and deeply participate in key state-level proceedings impacting decarbonization (requesting Programs Specialist) Currently Unknown - will evolve over coming 12 months
To reach necessary scale of programs, do we need more staff? Consultants? What is the level of uptake from our cities in policy experimentation and exploration? How much effort is required to implement new tools? Once in place, how much time do they free up? 32
Year COLA
FY17-18 3%
FY18-19 4%
FY19-20 4%
FY20-21 0%
FY21-22 5%
FY22-23 (6 mo
trailing CPI) -
proposed 5.3%
Item 3

PRESENTATION
Proposed 5.3% COLA based on SF Bay Area CPI; smoothed over trailing months Add'I Merit/promotional increases at CEO discretion
Cha.rt 1. Ov,er-the-yea.r percent change in CPl-11.J, San Fra.ncisco-Oa.klla.nd-Haywa.rd, CA, June 20,19-June 2.022
--All ite ms
Percent change - - - - All ite ms less food and energy
8_0 .---------------------------~
7_0 >---------------------------------1
6,_ 0 1-----------------------------#----i
3_0
o_o 1-----+------1--+----+--+-----+---+----+--+----+--+----+------11----+----+--+-----+-----t J un Aug1 Oct Dec Fe b Apr Jun Aug1 Oct Dec Fe b Apr Jun Aug Oct Dec Fe b Apr Jun 2019 2020 2021 2022
Source: U_S_ Bureau of Labor Statistics_
Consumer Price Index, San Francisco Area - U.S. Bureau of Labor Statistics (bis.gov) 33 Headcount Base Salary Cost* COLA (5.3%) Merit (5% avg) Total Annual Salary Cost* 39 $6,582,670 $348,882 $329,134 $7,260,685
*Salary, not including benefits or contingency
Item 3

PRESENTATION
© Budget Impact of COLA & Merit Increase Proposals
Proposed 5.3% COLA to be based on SF Bay Area CPI; smoothed over trailing 6 months Merit increases at CEO discretion
34 Benefit Current Proposed
Total Added Annual
Cost
% of Personnel
Budget Supporting Detail
Health Reimbursement
Account (HRA) Cap $6000 / year Cap @ $18k (3x annual) $0 0% SVCE leading (3CE offers $3600 /
year), but balances growing beyond
useful limits.

Cash In Lieu of Health Benefits $250 / mo $600 / mo $37,800 0.31% CCA range ($250 - $750) ** Monthly Premium
Contribution $1200 / mo $1500 / mo $144,000 1.20% CCA range ($1200 - $1891) Phone / Internet Allowance
$50 / mo (phone
only) $120 / mo $41,160 0.34%
CCA range ($50 - $150) – combine
into a single “remote technology”
allowance **
Paid Parental Leave (bonding) none
120 hours during 1st year after
birth $84,000 0.70% Offered by MCE and PCE
Employee Participation in
Program Incentives none $2500 / FTE $61,250 0.51%
Recommend setting up a budget
amount for staff to benefit from
similar decarbonization incentives as
customers, but separated to avoid
issues of unfair access. Assumes 50%
utilization.**
TOTAL $368,210 3.06%
** Benefit may be taxable to employees; SVCE confirming tax status Item 3

PRESENTATION
SVCE is proposing benefit increases to remain competitive with peer CCAs 35 HRA Balance # of FTEs
Above $18k 6
$10k - $18k 5
$5k - $10k 10
Under $5k 4
Item 3

PRESENTATION
© Staffing I Benefits - Fiscal Impacts
HRA Levels by# of FTEs
36 Since March 2020, the overall arrearage amounts have grown roughly 2.5x.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
31+ Days
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Item 3

PRESENTATION
SVCEs Arrearage Total for customers 31+ days late
31+ Days Date Amount
High 11/29/2021 $7.99M
Low 4/17/2020 $2.54M
Current 5/30/2022 $6.45M
Green arrow indicates receipt of
$1.3M in Federal CAPP funds
A second round of CAPP funding is
expected for late summer/fall 2022
Growth at red arrow indicates short-term growth in 31-60 day aging 37 bucket only - will likely decrease
Low Medium High
2022 Additional $660,895 $1,982,290 $3,964,579
2019 Ordinary Loss $414,580 $414,580 $414,580
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
SVCE 2022 Customer Debt Write-off Bookends
• 2019 Average 31+ Day Arrearage of $2.5M
yielded $415k in Write-offs (16.7% of total)
• 2022 Arrearage is $3.9M higher than 2019 after
receiving $1.3M in CAPP payments in March 2022
• Remaining $3.9M used as basis for the following
write-off scenarios:
$1,075,475
$2,396,869
$4,379,159
Item 3

PRESENTATION
f: [ [
Scenario Assumptions
Low 16.7% of $2.5M PLUS 16.7% of $3.9M-same as 'normal' year Medium 16.7% of $2.5M PLUS 50% of $3.9M
High 16.7% of $2.5M PLUS 100% of $3.9M
Data Current 5/30/2022 38

CURRENT STATE

1. Small group of people managing multiple
large transactions (~$275MM annually)

2. Leveraging many consultants & outside
experts

3. Adapting to new regulations continuously

4. Manual and labor-intensive processes
create operational and business
continuity risks

5. Non-integrated data impedes ability to
efficiently and effectively make insightful
data-driven decisions
Item 3

PRESENTATION
BPO is a key initiative under the strategic focus area: Internal Operations & Cyber Risk Management Auditable
Integrated
Data, systems, standards and
processes are audltable, documented,
and incorporate proper controls Automated
Integrated, single source of truth;
common assumptions/Inputs,
connections between functions
Engaged
Full staff engagement, "buy-Inn,
efficacy and efficiency; tools responsive
to needs; appropriate training;
embedded 1n culture
Adaptable
The system Is adaptable to
accommodate changes to business
requirements and technology
Processes, analyses and reporting
are automated, streamlined and
efficient
Secure
Data and systems are centralized
and secure; users have appropriate
levels of access
Right-Sized
The system 1s right-sized for our org
but scalable and extensible to
accommodate ant1c1pated needs
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Item 3

PRESENTATION
Current: Phase 1 of the project focuses on Deal
Capture and Settlements
$500k year 1 license
$600k implementation
$275k contingency
Phase 2 will focus on portfolio and risk
management integrations
Phase 3 will be defined later but could include:

Customer Relationship Management Including
Program Design and Implementation
Meter Data Forecasting and Analysis
Financial Management and Modeling
ETRM & Regulatory Complianice Mgmt.

Integrated, Automated, and Auditable Business Process
Met•r Dlt•
Foru.t$tin1 • nd
A,..1.,.1,
Fin•rw::i•I
M• n•prnt:nt •nd
A«ounti"'I
Input SV!lems, A1rnlyticijl MQl!el.li &
Models & Flies fool.li I&\ r;:::::==========;-i
Users
Dashboards
Alerts, Metrics, & Reports
Including Compliance
40 Item 3

PRESENTATION
© BPO - Next Steps for Deal Capture and Settlements
System
June/July 2022 • Contract negotiation
• Seek BOD approval
Aug. & Sep. 2022 • Work commences
• Project timeline
• Vendor proposals indicate a 6-12-month implementation plan • Implementation complete
41 •
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Bilateral Settlements
# of PPAs 13
# of Data Points (Price, Quantity, Amount) 3
# of Intervals per Hour 12
# of Hours per Day 24
# of Days per Month 31
Total Intervals of Data 348,192
CAISO Settlements
# of Relevant CAISO Charge Codes 20
# of Settlement Versions 5
Total Intervals of CAISO Data 34,819,200
Contract Costs Paid to Suppliers $25,000,000
Absolute Value of CAISO Settlements per Month $50,000,000 Total Dollars Settled per Month $75,000,000
Item 3

PRESENTATION
© Value of Deal Capture and Settlements
Scale of SVCE's Wholesale Portfolio
SVCE's wholesale portfolio is scheduled and settled at an hourly and sub-hourly basis
Monthly settlements with suppliers are payables of over $25M per month and based on over 348K rows of data
CAISO settlements have approximately 20 highly
relevant charge codes applicable to SVCE's portfolio and CAISO settles each trading day 5 times resulting in nearly 35M rows of data per month and over $SOM in total
costs and revenues
Sheer magnitude of portfolio requires a Deal Capture and Settlements system
Not manageable with spreadsheets (Excel limit is N1M rows) Significant operational risk if SVCE operates without a scalable system
System is basis for confidence in accuracy of SVCE's portfolio costs and revenues
42 SILICON VALLEY CLEAN ENERGY
FY 2022-23 OPERATING BUDGET
($ in thousands)
FY 2022-23

DESCRIPTION

PROPOSED
BUDGET

ENERGY REVENUES
Energy Sales 482,930
Green Prime 931
TOTAL ENERGY REVENUES 483,860

ENERGY EXPENSES
Power Supply 325,296
OPERATING MARGIN 158,564

OPERATING EXPENSES
Data Management 3,413
PG&E Fees 1,470
Salaries and Retirement 12,024
Professional Services 7,922
Marketing & Promotions 862
Notifications 131
Lease 525
General & Administrative 1,857
TOTAL OPERATING EXPENSES 28,204
OPERATING INCOME (LOSS) 130,360

NON-OPERATING REVENUES
Other Income 50
Interest Income 592
Grant Income 0
TOTAL NON-OPERATING REVENUES 642

NON-OPERATING EXPENSES
Financing 3
Interest 0
TOTAL NON-OPERATING EXPENSES 3

TOTAL NON-OPERATING INCOME
(EXPENSES) 639
CHANGE IN NET POSITION 130,999

CAPITAL EXPENDITURES, INTERFUND

TRANSFERS & OTHER
Capital Outlay 200
Transfer to CRCR Fund 0
Transfer to Program Fund 9,765
Nuclear Allocation 1,900
Add'l Programs Allocation 0
Add'l Customer Bill Relief 3,600
Other 0

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER $15,465
BALANCE AVAILABLE FOR RESERVES $115,534
Item 3

PRESENTATION
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• Subtitle
New SV Clean Energy
PowerPoint Template
Item 4

PRESENTATION
Item 4

PRESENTATION

1. Provide a quick status update

PRESENTATION
New Activities and Upcoming Priorities
New Activities:

Initial SVCE 1:1 Technical
Presentation to West Valley Council/ Board Consultation Jurisdiction Boardmember and Signed LOI upported Outrea Mayors and Managers Staff Meetings Item Agendized ch w/ Consultants
Gilroy and Los Gatos Council
information session Recommended Optional
Campbell X X
1:1 meetings with Los Altos, Cupertino X X
Los Altos Hills, Milpitas, Gilroy X X X
Morgan Hill Los Altos X X X X
Los Altos Hills X X X
Los Gatos X X
Upcoming Priorities: Milpitas X X
Agendize vote Monte Sereno X X X
Morgan Hill X X
Hold council information Mountain View X X X
. sessions Santa Clara Co. X X
Request SVCE meet with Saratoga X X
additional council members Sunnyvale X X X 3
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Item 4

SVCE can provide
technical assistance and
outreach support
throughout the process.

Action
Attend first meeting w/SVCE staff
Identify your ideal level of reach
(your goal)
Confirm appropriate staff are
engaged and aware of your goals
Confirm council info sessions and
vote sessions are agendized
Confirm City Manager signed LOI
Vote
Suggested
Completion Done?
Date
2/1/2022
3/31/2022
3/31/2022
4/30/2022
4/30/2022
10/31/2022 4
Item 4

PRESENTATION
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Item 4

New Construction Energy Code (Part 6)
Electric heat pumps are prescribed for:

Residential HVAC
Nonresidential - most include one or both of water heating and HVAC, depending on building type
Residential
Performance credit for all-electric buildings
Required higher ventilation rate for gas stoves
Pre-wiring required for residential dwellings
Energy storage readiness
Nonresidential - Solar PV and Battery Storage required
6 Item 4

PRESENTATION
A gas range is not just a gas range. It is the tailpipe of a complex system.

Source: The Gas Index, 2020
Gas Supply Chain Leaks
PAO~::

PLANT
.. J ~ ■
■
■
•
■
■

GAS TRANSMISSION

PIPELINES

DISTRIBUTION RESIDENTIAL

PIPELINES USERS
7 •
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Item 4

PRESENTATION
Any natural gas appliances installed today becomes a costly stranded assets •
Illustrative example:

Assume 3500 new housing units are built per year for the next three years with gas cooking and gas water heating. A future incentive program to replace these appliances would cost:
$5.25M for cooktops ($500 incentive)
$21M for water heaters ($2000 incentive)
Plus: Building all-electric today can be less expensive than building mixed fuel. 8 Item 4

PRESENTATION
Type
Building
Electric
Preferred
Mostly-Electric
All-Electric
Gas Ban
No Reach
How it works
Allows mixed-fuel buildings with high energy
performance. Electrification-ready panel and wiring
in mixed-fuel buildings.

Water and space heating must be electric,
exemptions for other appliances. Electrification-ready panel and wiring in mixed-fuel buildings.

All appliances must be electric, with very limited
exemptions.

No gas hookup (via municipal ordinance). Limited
exceptions.

Meet state code minimum requirements.

SVCE Members
2 - Milpitas, Monte Sereno
4 - Campbell (res), Los Altos, Los Altos
Hills (res), Saratoga
5 - County of Santa Clara, Cupertino,
Los Gatos (res), Mountain View,
Sunnyvale
1 - Morgan Hill
1 - Gilroy
9 •
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Item 4

PRESENTATION
© 2022 Model Reach Codes - New Buildings
Code Approach
All-Electric Municipal
Ordinance
CALGreen - All-Electric amendment
Benefits
Avoids CEC review and
approval
Flexible (i.e., time-certain or
existing buildings policies can
be included)
Avoids triennial cycle
Avoids CEC review and
approval
Considerations
Must exceed future code updates to
stay relevant (i.e., most effective for
all-electric with limited exceptions)
Requires triennial update or more if
intervening cycle
Model code language for both approaches can be found at BayAreaReachCodes.org 10 •
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Item 4

PRESENTATION
Our 2022 model code is all-electric to help our communities to prepare for an all-electric future.

Member jurisdictions can tailor the codes with exceptions as they deem appropriate.

The model code includes both an energy code amendment and the municipal ordinance option.

Your efforts matter. We look forward to supporting you. 11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
LOI
Conduct Outreach
Effective
Vote
Potential CEC Submittals
Define Goals
Agendize
Engage Staff
Define Approach
Write Code Language
Council Info Sessions
Item 4

PRESENTATION
Orange text
indicates a
Boardmember task
Goals and Approach Defined
Reach Codes Agendized
City Manager LOI Signed
Staff Responsibilities Defined
Proposed Code language complete
Outreach conducted
Council informed
Final code language complete
Vote complete, same meeting as
state code adoption
Documentation done 12

Silicon Valley Clean Energy Board of DirectorsAugust 10, 2022

Silicon Valley Clean Energy Board of Directors
August 10, 2022