Agenda packet — Silicon Valley Clean Energy Board of Directors, August 9, 2023 (part 1 of 4)

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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).

Gilroy, CA 95020
16870 Prospect Ave.

Thousand Island Park, NY 13692
Teleconference Meeting
Webinar:
https://cityofcupertino.zoom.us/j/94295848572
Telephone (Audio Only):

US: +1 669-900-6833
Webinar ID: 942 9584 8572
Members of the public may also attend this meeting in person, or 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 Board of Directors. The public will also have an opportunity to provide comments during the meeting. Members of the public participating remotely and 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 Board 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.

SILICON VALLEY <3/ CLEAN ENERGY

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AGENDA
Call to Order
Roll Call
Public Comment on Matters Not Listed on the Agenda
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 Board 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)
1a) Approve Minutes of the June 14, 2023, Board of Directors Meeting 1b) Approve Minutes of the June 14, 2023, Board of Directors Special Meeting
1c) Receive May and June 2023 Treasurer Report
1d) Ratify Broker Transaction Expenses for Past Commodity Purchases 1e) Adopt Resolution to Approve the Amended Energy Risk Management Policy
1f) Authorize the Chief Executive Officer to Modify Agreement with Power MC LLC
1g) Adopt Resolution Authorizing the Chief Executive Officer to Amend Master Agreement with Direct Energy Business Marketing, LLC 1h) Receive Q2 2023 Decarbonization Programs Update
1i) Executive Committee Report
1j) Finance and Administration Committee Report
1k) California Community Power Report
SILICON VALLEY <3/ CLEAN ENERGY

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George Tyson, Chair
Town of Los Altos Hills
Tina Walia, Vice Chair
City of Saratoga
Elliot Scozzola
City of Campbell
Sheila Mohan
City of Cupertino
Zach Hilton
City of Gilroy
Sally Meadows
City of Los Altos
Rob Rennie
Town of Los Gatos
Evelyn Chua
City of Milpitas
Bryan Mekechuk
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Margaret Abe-Koga
City of Mountain View
Larry Klein
City of Sunnyvale
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
1l) Legislative Response to Industry Transition 2023 Ad Hoc Committee Report
1m) Audit Committee Report
Regular Calendar
2) CEO Report (Discussion)
3) Authorize the Chief Executive Officer to Execute a 15-Year Power Purchase Agreement with Grace Orchard Solar II, LLC for Renewable Solar PV Supply (PCC1) and a 15-Year Energy Storage Service Agreement with Yellow Pine Solar III, LLC for Energy Storage, in Substantial Form and Any Necessary Ancillary Agreements and Documents (Action)
4) Provide Feedback on the FY 2023-24 Proposed Operating Budget and Updated Reserves Policy (Discussion)
Board Member Announcements and Direction on Future Agenda Items Public Comment on Closed Session
Closed Session

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: Chief Executive Officer

PUBLIC EMPLOYEE APPOINTMENT
Title: Chief Executive Officer

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Director Tyson, Board Chair, and Director Walia, Board Vice Chair
Unrepresented employee: Chief Executive Officer
CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(California Government Code Section 54956.9(d)(1))
Name of case: Central Coast Community Energy, a California joint powers authority; Silicon Valley Clean Energy Authority, a California joint powers authority v. Big Beau Solar, LLC, et al, Santa Clara County Superior Court Case No. 22CV398156
Adjourn
SILICON VALLEY <3/ CLEAN ENERGY

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Silicon Valley Clean Energy Authority
Board of Directors Meeting
Wednesday, June 14, 2023
7:00 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA
Administrative Conference Room, Gilroy City Hall
7351 Rosanna St.

Gilroy, CA 95020

DRAFT MEETING MINUTES
Call to Order:

Chair Tyson called the meeting to order at 7:02 p.m.

Roll Call

Present:

George Tyson (Chair), Los Altos Hills
Tina Walia (Vice Chair), Saratoga
Elliot Scozzola, Campbell
Sheila Mohan, Cupertino
Zachary Hilton, Gilroy (Participated via teleconference) Sally Meadows, Los Altos
Rob Rennie, Los Gatos
Evelyn Chua, Milpitas
Bryan Mekechuk, Monte Sereno
Yvonne Martinez Beltran, Morgan Hill (Participated via teleconference) Margaret Abe-Koga, Mountain View
Larry Klein, Sunnyvale
Otto Lee, Santa Clara County

Absent:

None.

Public Comment on Matters Not Listed on the Agenda
Bruce Karney, on behalf of Carbon Free Mountain View and Carbon Free Silicon Valley, recognized Director Martinez Beltran as a member of the “Five-Timers Club”, an acknowledgement for directors who have served five years on the SVCE board. Mr. Karney noted the certificate would be sent to Director Martinez Beltran by SVCE staff.

Consent Calendar
There were no questions or comments from the Board; there were no requests from the public to speak on any matter on the Consent Calendar.

Item 1a Draft Minutes: 6/14/23 SVCE Board of Directors Regular Meeting SILICON VALLEY \3/ CLEAN ENERGY

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1a) Approve Minutes of the May 10, 2023, Board of Directors Meeting 1b) Receive April 2023 Treasurer Report
1c) Approve Additional Funding of $250,000 for eHub Resources for a Not to Exceed Amount of $1.1M
1d) Authorize the Chief Executive Officer to Execute a Three-Year Agreement with the Sacramento Municipal Utility District (SMUD) for Electrification Concierge Consultant Services 1e) Authorize the Chief Executive Officer to Execute an Amendment to the Agreement with CLEAResult Consulting, Inc. for Electric Vehicle Charging Technical Assistance to Extend the Term of the Agreement for 15 months and Increase Compensation by $225,000 1f) Adopt a Resolution Authorizing the Chief Executive Officer to Execute Master Agreement with Citadel Energy Marketing LLC
1g) Adopt a Resolution Authorizing the Chief Executive Officer to Execute a Sole Source Contract with the San Jose Conservation Corps to Build the SVCE All-Electric Demonstration Home 1h) Authorize the Chief Executive Officer to Execute an Amendment to the 2022-2023 Climate Corps Fellowship Agreement with Strategic Energy Innovations 1i) Authorize the Chief Executive Officer to Execute Amendment to Agreement with PFM Asset Management for Investment Advisory Services to Allow SVCE to Enter into an Agreement with US Bank for Custodial Bank Services
1j) Executive Committee Report
1k) Finance and Administration Committee Report
1l) California Community Power Report
1m) Additional Committee Reports
MOTION: Director Mekechuk moved and Director Chua seconded the motion to approve the Consent Calendar, Items 1a through 1m.

The motion carried unanimously by verbal roll call vote.

Regular Calendar
2) CEO Report (Discussion)
CEO Girish Balachandran’s report included the following:
1) Summer readiness, and how SVCE is preparing for the heat in the summer months; 2) Upcoming publishing of high-level GHG metrics for each city; 3) Introduction of SVCE’s two newest members:

Juliette Pascual, Community Outreach Specialist, and
Karen Chang, Manager of Finance and Risk Controls
Both provided brief welcome comments;
4) An announcement of the departure of two SVCE employees, Charles Grinstead, Sr. Manager of Power Resources, and Kevin Armstrong, Deputy Director of Administrative Services. Deputy Director of Administrative Services Armstrong was present and thanked board members for their work in the organization and community.
5) A recap of the Casa Diablo-IV binary geothermal plant tour with staff and board members that occurred June 9, 2023 in Mammoth Lakes, CA.

Director Rennie and Mekechuk shared their experience in attending the geothermal power plant tour; Vice Chair Walia welcomed Juliette and Karen.

Item 1a Draft Minutes: 6/14/23 SVCE Board of Directors Regular Meeting

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Chair Tyson opened Public Comment.

No speakers.

Chair Tyson closed Public Comment.
3) SVCE Strategic Plan FY 24 Update (Discussion)
CEO Balachandran presented an update on the FY 24 SVCE Strategic Plan, which included information on the planning and budgeting process, and proposed five strategic Focus Areas for FY24:
• Expand Clean and Reliable Grid Actions
• Expand Customer Base & Interaction
• Accelerate Building & Transportation Electrification
• Implement Innovative Financing Solutions
• Attract & Retain Employees
Staff responded to questions and comments from board members on the strategic focus areas.

Chair Tyson opened Public Comment.

Colin Corbett had the following comments: 1) How will there be innovative programs when currently the programs do not pay out; 2) Suggestion of a report that shows success rate vs. refusal rate vs. deferment rate sorted by rebate programs, which may give people more confidence, 3) Homes are not getting hooked up fast enough because the incentives that are there do not pay out, 4) How will you expand your advocacy when most of the interactions as a rebate seeker are usually negative, 5) As SVCE looks to interact more with commercial customers, they will expect contracts with defined milestones and termination clauses so he would suggest SVCE adjust their rebates based upon a higher percentage of having to pay out, and 6) for storage, there is a significant lack of choices and the complexity is significant.

Chair Tyson closed Public Comment.
4) Results of Stress Test Analyses for FY2024-FY2028 Planning Horizon (Discussion) Amrit Singh, CFO and Director of Administrative Services, presented information on the stress test analyses which included an overview of the Enterprise Risk Management framework, construction of the stress test scenario, an overview of modeled price collapse, the results and implied reserve targets, and next steps.

CFO and Director of Administrative Services Singh responded to board member questions regarding the new illustrative reserve targets, a potential collapse in prices, and processes in price distribution building.

Chair Tyson opened Public Comment.

No speakers.

Chair Tyson closed Public Comment.
5) FY 2023-24 Budget Framework (Discussion)
CFO and Director of Administrative Services Singh presented information on the budget framework including revenue modeling, reserve targets, customer discount rate, additional funding for programs and set aside for reserves, power supply costs, and other cost drivers (building purchase).

CFO and Director of Administrative Services Singh responded to board member questions including one regarding the AB 205 trailer bill and longer-term potential rate decreases from PG&E.

Chair Tyson opened Public Comment.

Item 1a Draft Minutes: 6/14/23 SVCE Board of Directors Regular Meeting

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No speakers.

Chair Tyson closed Public Comment.

Board Member Announcements and Future Agenda Items
Vice Chair Walia announced she had the opportunity to attend the Silicon Valley Leadership Group’s 2023 Energy & Sustainability Summit on June 8, 2023 and enjoyed the speakers who included Jennifer Granholm, US Department of Energy Secretary, and Michael Raegan, US Environmental Protection Agency Administrator.

Director Martinez Beltran thanked Carbon Free Mountain View for their recognition of her five years of service on the SVCE board.

Public Comment on Closed Session
No speakers.

The Board of Directors convened to Closed Session at 8:46 p.m.

Closed Session
Public Employee Performance Evaluation
Title: Chief Executive Officer
Public Employee Appointment
Title: Chief Executive Officer
Conference with Labor Negotiators
Agency designated representatives: Director Tyson, Board Chair, and Director Walia, Board Vice Chair Unrepresented Employee: Chief Executive Officer
Report from Closed Session
Chair Tyson announced there was nothing to report from Closed Session.

Adjourn
Chair Tyson adjourned the meeting at 9:37 p.m.

ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1a Draft Minutes: 6/14/23 SVCE Board of Directors Regular Meeting

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Silicon Valley Clean Energy Authority
Board of Directors Special Meeting
Wednesday, June 14, 2023
5:30 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA

DRAFT MEETING MINUTES
Call to Order:

Chair Tyson called the meeting to order at 5:39 p.m.

Roll Call

Present:

Directors:

George Tyson (Chair), Los Altos Hills
Tina Walia (Vice Chair), Saratoga
Elliot Scozzola, Campbell
Sheila Mohan, Cupertino
Sally Meadows, Los Altos
Rob Rennie, Los Gatos
Evelyn Chua, Milpitas
Bryan Mekechuk, Monte Sereno
Larry Klein, Sunnyvale
Alternate Directors:

Hung Wei, Cupertino
Lisa Schmidt, Los Altos Hills
Pat Showalter, Mountain View

Absent:

Directors:

Zachary Hilton, Gilroy
Yvonne Martinez Beltran, Morgan Hill
Margaret Abe-Koga, Mountain View
Otto Lee, Santa Clara County
Alternate Directors:

Sergio Lopez, Campbell
Rebeca Armendariz, Gilroy
Pete Dailey, Los Altos
Rob Moore, Los Gatos
Carmen Montano, Milpitas
Item 1b Draft Minutes: SVCE Board of Directors June 14, 2023 Special Meeting SILICON VALLEY \3/ CLEAN ENERGY

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Burton Craig, Monte Sereno
Tanya Carothers, Morgan Hill
Chuck Page, Saratoga
Sylvia Arenas, Santa Clara County
Murali Srinivasan, Sunnyvale
Public Comment on Matters Not Listed on the Agenda
No speakers.

Regular Calendar
1) Study Session: Clean Power Standards and Reporting
Monica Padilla, COO and Director of Power Resources, and Maren Wenzel, Senior Manager of Policy & Regulatory Analysis presented the study session information on clean power standards and reporting which included information on how SVCE functions in the CAISO market, regulatory mechanisms, where SVCE is today, information on the power content label, SVCE’s product offering and challenges, clean standard pathways, information on a mechanism that matches supply with expected retail demand every hour of the day (24x7), Google’s CFE methodology, and next steps for SVCE.

Staff responded to questions from board members regarding small modular reactors, SVCE’s product offerings, incorporating a potential rare event when modeling (extreme weather related), 24x7 modeling, the future challenge of being affordable while also being clean and reliable, the demand for carbon-free resources, if there is any upcoming legislation on clean accounting, information on geothermal and reliability, and development of a pathway study and if any other agencies have conducted similar studies.

Chair Tyson opened Public Comment.

Bruce Karney identified a mathematical error on slide 10 and addressed a report that he develops, “How Green, How Cheap”, which is distributed to CCA advocates and staff. Mr. Karney noted SVCE and PCE are two of the cleanest CCAs, and commented because of a change in measurement reporting methodology, progress in meeting each City’s greenhouse gas goals may appear to go backward.

Chair Tyson closed Public Comment.

Board Member Announcements and Future Agenda Items
None.

Adjourn
Chair Tyson adjourned the meeting at 6:42 p.m.

ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1b Draft Minutes: SVCE Board of Directors June 14, 2023 Special Meeting 1 TREASURER REPORT
Fiscal Year to Date
As of June 30, 2023
(Preliminary & Unaudited)
Issue Date: August 9, 2023
Table of Contents
Page
Summary 2-3
Statement of Net Position 4
Statement of Revenues, Expenses & Changes in Net Position 5 Statement of Cash Flows 6-7
Actuals to Budget Report 8-10
Monthly Change in Net Position 11
Investments Report 12
Customer Accounts 13
Accounts Receivable Aging Report 13
Item 1c
©

SILICONVALLEY

CLEAN ENERGY
2

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Balance Sheet Highlights:
> SVCE operations resulted in a change in net position of $16.4 million for the month of June and $99.9 million for fiscal-year-to-date (FYTD).* > Total Net Position increased further to $312.6 M
> SVCE is investing ~94% of available funds generating FYTD interest/dividend income of $5 million. *Does not yet recognize unspent program dollars
**For reconciliation purposes, budget numbers include actual program expenses and depreciation, exclude GASP 87 expenses.

SVCE Yield-bearing Accounts:

Combined Ending Balance 254.2 M
Total Interest/Div. Earned FYTD 4.9 M
Average Return On Investments** 5.0%
* Includes River Bank accounts - Money Market, Collateral and ICS; CAMP; PFM Portfolio ** Average annualized Yield for the current month

SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights* ($ in millions)
June 30, 2023
223.3 M
312.6 M
-250 M
-150 M
-50 M
50 M
150 M
250 M
350 M
-16 M
-12 M
-8 M
-4 M
0 M
4 M
8 M
12 M
16 M
20 M
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Net Position Change in Net Position Change in Net Position*
Net Position (Right Y-Axes) MidYear Budget (Left Y-Axis)** Actual (Left Y-Axes) 169 178 180 176 186 197 206 216 225 0
50 100
150
200
250
300
350
400
450
500
Oct Nov Dec Jan Feb Mar Apr May June
Days Cash on Hand (DCOH)
DCOH* Maximum Reserves Target Reserves Minimum Reserves $ 4,993.4 K
$ 91.5 K$ 111.4 K$ 172.9 K
$ 549.1 K $ 547.0 K
$ 744.9 K
$ 826.5 K
$ 960.8 K
$ 989.4 K
$ 0 K
$ 700 K
$ 1,400 K
$ 2,100 K
$ 2,800 K
$ 3,500 K
$ 4,200 K
$ 4,900 K
$ 5,600 K
$ 0 K
$ 200 K
$ 400 K
$ 600 K
$ 800 K
$ 1,000 K
$ 1,200 K
$ 1,400 K
$ 1,600 K
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
Investment Income*
Actual Cumulative Budget Actual
River City Bank
Accounts
10%
California Asset Management
Program (CAMP)
90%
SVCE Accounts
*Includes investment income from SVCE Yield-bearing accounts plus interest on cash collateral *Adjusted to reflect Mid-year budget adjustments and additional program funding Item 1c
Ill
3

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Summary of Actual Results vs. Budget (includes allocated but unspent program dollars):
> FYTD operating margin of $111.1 million or ~32% is above amended budget expectations of 24% operating margin for the fiscal year to date. > FYTD Power Supply costs are -11% below mid-year budget. > Retail GWh sales for the month and FYTD landed -13% and -0.1% below budget respectively.

Variance Explanation:
$ in thousands Actual Budget % Dif Actual Budget % Dif Main Drivers:

Revenue 45.9 M 53.9 M -15.0% 348.5 M 353.1 M -1.3%
Power Supply Cost 28.2 M 30.5 M -7.7% 237.4 M 267.2 M -11.2% Operating Margin 17.7 M 23.4 M -24.4% 111.1 M 85.8 M 29.5% Operating Expenses (ex Power) 1.9 M 2.4 M -20.8% 14.9 M 20.7 M -28.3% Other Non-Op. Expen. (Income) -1.0 M -0.4 M 176.2% 111.1 M 85.8 M 29.5% Net Increase in Available Fund
Balance 16.8 M 21.4 M -21.4% 68.2 M 33.2 M 105.1%
Customer Load Statistics:

Total Accounts 278,095
Opt-Out Accounts (Month) 42
Opt-Out Accounts (FYTD) 740
Opt-Up Accounts (Month) (3)
Opt-Up Accounts (FYTD) (23)
Program Funds:

General Program Fund
CRCR Fund*
Electrification Discount Fund
* Customer Relief and Community Resilience Fund
** The financial results in this report are preliminary and subject to change pending closing of the books for the fiscal year. Any potential changes are not expected to be significant. 14% lower than budgeted customer load for the month of June

SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights** ($ in millions)
June 30, 2023
June Fiscal YTD
February, April & May- mainly reflects the below budget net power supply cost and saving in all categories of other operating expenses.

March - mainly reflects stronger revenues due to higher than anticipated customer load
June - lower than estimated customer load due to below
historic-average temperatures.

Beginning Balance End Balance YTD Contributions YTD Expenditures Lower net open position and environmental costs compared to the mid-year budget . This is driven largely by forward prices used for the mid-year budget. Prices have decreased significantly. $ - $ 9,500,000 $ 9,500,000 $ -
January - the variance mainly reflects a big drop in prices from December'22 to January'23 resulting in $21.5M net power cost savings comparing to MY Budget estimations
$ 28,536,229 $ 48,039,994 $ 21,165,000 $ 1,661,235
$ 7,982,993 $ 9,189,832 $ 3,600,000 $ 2,393,161
Staffing vacancies, underrunning professional services, and lower marketing expenses Reflects higher Interest Income
716 K 876 K 572 K
21,610 K
5,650 K
3,920 K
1,859 K
4,320 K
-4,583 K
-8,000 K
-3,000 K
2,000 K
7,000 K
12,000 K
17,000 K
22,000 K
Oct Nov Dec Jan Feb Mar Apr May June
Net Increase in Available Fund Balance
Comparing Actuals to Mid-Year Budget
250,207 250,563
27,507 27,532
92%
93%
94%
95%
96%
97%
98%
-
50,000
100,000
150,000
200,000
250,000
300,000
Oct Nov Dec Jan Feb Mar Apr May Jun
Customer Accounts and Participation Rate
Res Accounts Com Accounts Customer Participation (Right Y-Axes) -9%
-6%
-3%
0%
3%
6%
9%
12%
15%
-
50 100
150
200
250
300
350
400
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
Retail Sales - Actual vs Budget (GWh)
Retail Sales Actual (GWh)
Retail Sales Budget (GWh)
Load deviation from the Budget (Right Y-Axes)
Power Supply

93.3%
Personnel

2.8% Contract
Services

2.8%
G & A

1.0%
Depreciation

0.2%
YTD Operating Expenses
Item 1c
4 Current Assets
Cash & Cash Equivalents 271,233,191 $
Accounts Receivable, net of allowance 34,174,337
Accrued Revenue 32,100,348
Energy settlements receivable 840,467
Other Receivables 165,750
Prepaid Expenses 3,613,493
Deposits 26,892,325
Restricted cash 163,234
Total Current Assets 369,183,145
Noncurrent assets
Capital assets, net of depreciation 437,767
Lease asset, net of amortization 963,000
Deposits 45,130
Total Noncurrent Assets 1,445,897
Total Assets 370,629,042
Current Liabilities
Accounts Payable 979,575
Accrued Cost of Electricity 38,349,926
Other accrued liabilities 1,157,901
User Taxes and Energy Surcharges due to other gov'ts 1,395,733 Supplier securit deposits 8,051,250
Lease liability 501,963
Total Current Liabilities 50,436,348
Noncurrent Liabilities
Supplier security deposits 7,100,000
Lease liability 533,768
Total noncurrent liabilities 7,633,768
Total Liabilities 58,070,116
Net investment in capital assets 365,036
Restricted for security collateral 163,234
Unrestricted (deficit) 312,030,656
Total Net Position 312,558,926 $

NET POSITION

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF NET POSITION
As of June 30, 2023
ASSETS

LIABILITIES
Item 1c
5 OPERATING REVENUES
Electricity Sales, Net 346,938,483 $
GreenPrime electricity premium 1,092,567
Liquidated damages 1,134,600
Other income 35,656
TOTAL OPERATING REVENUES 349,201,306

OPERATING EXPENSES
Cost of Electricity 237,406,102
Contract services 7,640,221
Staff compensation and benefits 7,053,940
Other operating expenses 2,452,786
Depreciation 461,545
TOTAL OPERATING EXPENSES 255,014,594
OPERATING INCOME(LOSS) 94,186,712

NONOPERATING REVENUES (EXPENSES)
Grant income 716,553
Interest Income 4,993,407
Financing costs (21,268)
TOTAL NONOPERATING REVENUES (EXPENSES) 5,688,692
CHANGE IN NET POSITION 99,875,404
Net Position at beginning of period 212,683,522
Net Position at end of period 312,558,926 $

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF REVENUES, EXPENSES
October 1, 2022 through June 30, 2023

AND CHANGES IN NET POSITION
Item 1c
6 CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 368,712,203 $
Receipts from liquidated damages 1,134,600
Other operating receipts 27,539,496
Payments to suppliers for electricity (274,970,276)
Payments for other goods and services (11,193,033)
Payments for staff compensation and benefits (6,974,479) Tax and surcharge payments to other governments (6,215,473) Net cash provided (used) by operating activities 98,033,038

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Grant revenue received 716,553
Finance costs paid (1,905)
Net cash provided (used) by financing activities 714,648

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (180,441)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 4,993,407
Net change in cash and cash equivalents 103,560,652
Cash and cash equivalents at beginning of year 167,835,773 Cash and cash equivalents at end of period 271,396,425 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 271,233,191 $
Restricted cash 163,234
Cash and cash equivalents $ 271,396,425

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF CASH FLOWS
October 1, 2022 through June 30, 2023
Item 1c
7 Operating Income (loss) 94,186,712 $
Adjustments to reconcile operating income to net cash
provided (used) by operating activities
Depreciation expense 461,545
(Increase) decrease in net accounts receivable 21,488,884 (Increase) decrease in other receivables (84,036)
(Increase) decrease in accrued revenue (6,591,650)
(Increase) decrease in energy settlements receivable (840,467) (Increase) decrease in prepaid expenses (2,635,565)
(Increase) decrease in current deposits (6,327,003)
Increase (decrease) in accounts payable (28,233)
Increase (decrease) in accrued cost of electricity 2,382,614 Increase (decrease) in accrued liabilities (313,949)
Increase (decrease) in energy settlements payable (87,550) Increase (decrease) in taxes and surcharges due to other governments (298,264) Increase (decrease) in supplier security deposits (3,280,000) Net cash provided (used) by operating activities 98,033,038 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES

SILICON VALLEY CLEAN ENERGY AUTHORITY
STATEMENT OF CASH FLOWS (Continued)
October 1, 2022 through June 30, 2023
Item 1c
8 FYTD FYTD FY 2022-23 FY 2022-23 `
OPERATING REVENUES Actual Budget $ % Budget Remaining Budget Energy Sales $346,248,448 $352,215,288 -$5,966,840 -2% $522,853,000 $176,604,552 Green Prime Premium 1,092,567 813,132 $279,435 34% (37,567) 1,055,000 Liquidated damages 1,134,600 - $1,134,600 n/a - (1,134,600) Other Income 35,656 37,500 (1,844) -5% 50,000 14,344
TOTAL OPERATING REVENUES 348,511,271 353,065,920 (4,554,649) -1% 523,958,000 175,446,729

ENERGY EXPENSES
Power Supply 237,406,102 267,237,958 (29,831,856) -11% 392,436,000 155,029,898 Operating Margin 111,105,169 85,827,962 25,277,207 29% 131,522,000 20,416,831

31.9% 24.3%

OPERATING EXPENSES
Data Management 2,395,097 2,559,375 (164,278) -6% 3,413,000 1,017,903 PG&E Fees 883,988 1,102,500 (218,512) -20% 1,470,000 586,012 Salaries & Benefits 7,053,940 8,463,660 (1,409,720) -17% 11,285,000 4,231,060 Professional Services 2,337,064 6,080,944 (3,743,880) -62% 8,016,000 5,678,936 Marketing & Promotions 562,653 648,805 (86,152) -13% 862,000 299,347 Notifications 69,478 98,438 (28,960) -29% 131,000 61,522 Lease 388,303 393,750 (5,447) -1% 525,000 136,697
General & Administrative 1,186,391 1,392,851 (206,460) -15% 1,857,000 670,609 TOTAL OPERATING EXPENSES 14,876,914 20,740,323 (5,863,409) -28% 27,559,000 12,682,086 OPERATING INCOME/(LOSS) 96,228,255 65,087,639 31,140,616 48% 103,963,000 7,734,745

NON-OPERATING REVENUES
Investment Income 4,993,407 2,569,836 2,423,571 94% (1,123,407) 3,870,000 TOTAL NON-OPERATING REVENUES 4,993,407 2,569,836 2,423,571 94% (1,123,407) 3,870,000

NON-OPERATING EXPENSES
Financing 1,905 2,250 (345) -15% 3,000 1,095

CAPITAL EXPENDITURES, TRANSFERS,
& OTHER
Capital Outlay 180,442 150,000 30,442 20% 19,558 200,000 Transfer to Programs Fund 9,765,000 9,765,000 - 0% - 9,765,000 Nuclear Allocation 1,900,000 1,900,000 - 0% - 1,900,000 Multi Family Discount Programs 9,500,000 9,500,000 - 0% - 9,500,000 Electrification Discount Programs 9,500,000 9,500,000 - 0% - 9,500,000 Transfer to CRCR Fund 3,600,000 3,600,000 - 0% - 3,600,000 Transfer from CRCR Fund - customer bill relief (1,406,588) - (1,406,588) n/a - 1,406,588 TOTAL OTHER USES 33,038,854 34,415,000 (1,376,146) -4% 34,465,000 1,426,146

NET INCREASE(DECREASE) IN AVAILABLE
FUND BALANCE $68,180,903 $33,240,225 $34,940,678 105% $73,365,000 Variance

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGETARY COMPARISON SCHEDULE
October 1, 2022 through June 30, 2023
Item 1c
9 ADOPTED ACTUAL/

BUDGET ADOPTED
REVENUE & OTHER SOURCES: BUDGET ACTUAL REMAINING BUDGET Transfers in - General Programs 9,765,000 $ 9,765,000 $ - $ 100.0% Transfers in - Nuclear Allocation 1,900,000 $ 1,900,000 $ - $ 100.0% Transfers in - Multi-Family DI 9,500,000 $ 9,500,000 $ - $ 100.0% Total 21,165,000 $ 21,165,000 $ - $
EXPENDITURES & OTHER USES:

Program expenditures* 15,007,082 1,661,235 13,345,847 11.1% Net increase (decrease) in fund balance 6,157,918 $ $19,503,765 Fund balance at beginning of period 28,536,229
Fund balance at end of period $48,039,994

ADOPTED ACTUAL/

BUDGET ADOPTED
REVENUE & OTHER SOURCES: BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund 3,600,000 $ 3,600,000 $ - $ 100.0% EXPENDITURES & OTHER USES:

Customer bill relief credit 3,600,000 1,406,588 2,193,412 39.1% Other program expenditures 3,119,875 986,573 2,133,302 31.6% Total Program expenditures 6,719,875 2,393,161 4,326,714 Net increase (decrease) in fund balance (3,119,875) $ 1,206,839 Fund balance at beginning of period 7,982,993
Fund balance at end of period $9,189,832

ADOPTED ACTUAL/

BUDGET ADOPTED
REVENUE & OTHER SOURCES: BUDGET ACTUAL REMAINING BUDGET Transfer from Operating Fund * 9,500,000.00 $ 9,500,000.00 $ - $ 100.0% EXPENDITURES & OTHER USES:

Program expenditures * 100,000 - 100,000 0.0%
Net increase (decrease) in fund balance 9,400,000 $ 9,500,000 Fund balance at beginning of period -
Fund balance at end of period $9,500,000

ELECTRIFICATION DISCOUNT FUND

BUDGETARY COMPARISON SCHEDULE
October 1, 2022 through June 30, 2023

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGETARY COMPARISON SCHEDULE
October 1, 2022 through June 30, 2023

CUSTOMER RELIEF & COMMUNITY RESILIENCY FUND

PROGRAM FUND
BUDGETARY COMPARISON SCHEDULE*
October 1, 2022 through June 30, 2023
Item 1c
10 Net Increase (decrease) in available fund balance
per budgetary comparison schedule 68,180,903 $
Adjustments needed to reconcile to the changes
in net position in the Statement of Revenues,
Expenses and Changes in Net Position
Subtract depreciation expense (461,545)
Subract program expense not in operating budget (2,647,808) Add back GASB 87 expenses not in operating budget 358,412 Add back transfer to Program fund 34,265,000
Add back capital asset acquisition 180,442
Change in Net Position 99,875,404

SILICON VALLEY CLEAN ENERGY AUTHORITY

BUDGET RECONCILIATION TO STATEMENT OF

REVENUES, EXPENSES AND CHANGES IN NET POSITION
October 1, 2022 through June 30, 2023

OPERATING FUND
Item 1c
11 October November December January February March April May June July August September YTD

OPERATING REVENUES
Electricity sales, net 35,283,024 $ 33,596,659 $ 39,756,116 $ 42,320,931 $ 40,149,296 $ 40,246,959 $ 33,407,866 $ 37,591,795 $ 44,585,837 $ 346,938,483 $ Green electricity premium 133,572 123,147 130,539 120,693 101,229 127,670 107,631 116,789 131,297 1,092,567 Liquidated damages - - - - - - - - 1,134,600
Other Income 2,250 15,255 - 2,250 5,651 2,750 1,000 3,500 3,000 35,656 Total operating revenues 35,418,846 33,735,061 39,886,655 42,443,874 40,256,176 40,377,379 33,516,497 37,712,084 45,854,734 - - - 349,201,306

OPERATING EXPENSES
Cost of electricity 23,218,378 21,819,493 35,364,953 35,834,118 26,012,142 25,276,392 20,879,201 20,825,057 28,176,368 237,406,102 Staff compensation and benefits 656,536 673,219 792,543 742,292 723,137 787,636 861,508 945,539 871,530 7,053,940 Data manager 265,853 265,687 265,535 265,615 266,006 266,325 266,110 266,680 267,286 2,395,097 Service fees - PG&E 98,200 98,021 98,152 98,182 98,159 98,157 98,346 98,412 98,359 883,988 Consultants and other professional fees 410,507 374,917 575,873 298,921 372,763 700,446 514,729 561,112 551,868 4,361,136 Other operating expenses 200,337 182,040 881,981 206,710 (17,169) 220,350 210,747 167,925 399,865 2,452,786 Depreciation 50,510 50,510 50,449 50,397 50,866 50,927 51,428 53,208 53,250 461,545 Total operating expenses 24,900,321 23,463,887 38,029,486 37,496,235 27,505,904 27,400,233 22,882,069 22,917,933 30,418,526 - - - 255,014,594 Operating income (loss) 10,271,174 10,518,525 1,857,169 4,947,639 12,750,272 12,977,146 10,634,428 14,794,151 15,436,208 - - - 94,186,712

NONOPERATING REVENUES (EXPENSES)
Grant income - - - 716,553 - - - - - 716,553
Interest income 91,459 111,370 172,923 549,063 546,985 744,934 826,490 960,822 989,361 4,993,407 Financing costs (2,428) (2,359) (4,010) (2,251) (2,152) (2,083) (2,023) (2,078) (1,884) (21,268) Total nonoperating revenues (expenses) 89,031 109,011 168,913 1,263,365 544,833 742,851 824,467 958,744 987,477 - - - 5,688,692 CHANGE IN NET POSITION 10,607,556 $ 10,380,185 $ 2,026,082 $ 6,211,004 $ 13,295,105 $ 13,719,997 $ 11,458,895 $ 15,752,895 $ 16,423,685 $ - $ - $ - $ 99,875,404 $

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
October 1, 2022 through June 30, 2023
Item 1c
12 Ending Balance of SVCE Accounts: Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep River City Bank Accounts 208,116,692 $ 221,541,600 $ 227,161,983 $ 70,193,524 $ 66,497,950 $ 45,850,620 $ 23,833,640 $ 43,723,703 $ 26,483,735 $ - $ - $ - $ California Asset Management Program (CAMP) - $ - $ - $ 140,486,848 $ 140,996,992 $ 177,721,225 $ 216,512,539 $ 209,946,658 $ 244,922,370 $ - $ - $ - $ PFM Asset Management Investment Portfolio - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total Ending Balance 208,116,692 $ 221,541,600 $ 227,161,983 $ 210,680,372 $ 207,494,943 $ 223,571,844 $ 240,346,179 $ 253,670,362 $ 271,406,105 $ - $ - $ - $ Return On Investments:

Annual % Yield Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep River City Bank Accounts 0.50% 0.58% 0.85% 1.07% 1.44% 2.39% 2.77% 2.85% 2.97% California Asset Management Program (CAMP) 0.00% 0.00% 0.00% 4.53% 4.73% 4.80% 4.97% 5.16% 5.24% PFM Asset Management Investment Portfolio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Average Return On Investments: 0.50% 0.58% 0.85% 3.38% 3.68% 4.31% 4.75% 4.76% 5.02% Interest Earned Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep River City Bank Accounts 67,811 $ 86,193 $ 139,716 $ 54,891 $ 36,841 $ 13,057 $ 24,386 $ 15,153 $ 13,649 $ - $ - $ - $ California Asset Management Program (CAMP) - $ - $ - $ 486,848 $ 510,145 $ 724,233 $ 791,314 $ 934,120 $ 975,711 $ - $ - $ - $ PFM Asset Management Investment Portfolio - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Total Interest/Div. Earned 67,811 $ 86,193 $ 139,716 $ 541,738 $ 546,985 $ 737,290 $ 815,701 $ 949,273 $ 989,361 $ - $ - $ - $ CAMP Portfolio Statistics
As of June 30, 2023
Beginning of the Month Market Value $ 209,946,658
Ending of The Month Market Value $ 244,922,370
Yield at Market 5.24% Weighted Average Maturity (days) 26

SILICON VALLEY CLEAN ENERGY AUTHORITY

INVESTMENTS SUMMARY
October 1, 2022 through June 30, 2023
Repurchase
Agreements,

38.5%
Certificates of
Deposit, 24.7%
Commercial
Paper, 28.8% US Agencies ,

0.3%
US Treasuries,

4.7%
Money Market
Funds, 1.6%
Corporate
Notes, 1.4%
Camp Pool Composition (based on market value) Comparison to Benchmark Chart will be included once we have 3 months of
return data with PFM
Item 1c
1 Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept YTD Retail Sales Actual (GWh) 307 311 341 341 311 334 287 306 297 2,835 Retail Sales Budget (GWh) 315 308 331 336 295 309 290 313 340 358 369 342 2,838 Load deviation from the Budget (Right Y-Axes) -2.5% 1.1% 3.1% 1.3% 5.3% 8.2% -1.1% -2.3% -12.7% -0.1% Customer Participation Rate Res 96.4% 96.4% 96.4% 96.4% 96.3% 96.3% 96.3% 96.3% 96.3% Customer Participation Rate Com 96.7% 96.7% 96.7% 96.7% 96.7% 96.7% 96.7% 96.7% 96.7% Total Accounts 277,714 277,867 277,956 277,950 278,041 278,106 278,068 278,120 278,095 Opt-Out Accounts 74 62 99 126 137 69 77 54 42 740
Opt-Up Accounts -3 4 -6 -36 8 24 -7 -4 -3 -23

0.08 27.76
SVCE Arrearager Total for customers 31+ days late and 120+ days late Age Summary (as of 7/1/2023) Date Amount
<30 days $32,599,809 High 11/29/2021 $7.99M
<60 days $1,876,138 Low 4/17/2020 $2.54M
<90 days $1,033,582 Current 5/1/2023 $7.2 M
<120 days $693,571
Older $3,645,156
June 2023 FYTD
Accounts Receivable Days
28 Days
$39,848,255

SILICON VALLEY CLEAN ENERGY AUTHORITY

RETAIL SALES, CUSTOMER ACCOUNTS AND AGING REPORT
Bad Debt % (Actual)

0.22%

TOTAL DUE
Bad Debt % (Budget)

0.90%
• Green arrow indicates
receipt of $1.3M in Federal
CAPP funds.
• An additional $717K in
CAPP funding provided in Winter 2023.
• Growth at red arrow
indicates short-term PG&E
billing-hold issue in Fall
2022 that was quickly
resolved.
'17-'18 '18-'19 '19-'20 '20-'21 21-'22 22-'23 YTD
Total (L Axes) $308,552 $417,275 $415,187 $639,455 $885,995 $770,245 % Revenue 0.12% 0.14% 0.14% 0.25% 0.23% 0.22%
Av./Month (R Axes) $25,713 $34,773 $34,599 $53,288 $73,833 $64,187 $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000 SVCE Write-offs By Fiscal Year
Item 1c
IV§S’•s IUJ + S’
1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 7/1/2021 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022 3/1/2022 4/1/2022 5/1/2022 6/1/2022 7/1/2022 8/1/2022 9/1/2022 10/1/2022 11/1/2022 12/1/2022 1/1/2023 2/1/2023 3/1/2023 4/1/2023 5/1/2023 6/1/2023 7/1/2023 1

Page 1 of 2 ends

Staff Report – Item 1d
Item 1d: Ratify Broker Transaction Expenses for Past Commodity Purchases From: Girish Balachandran, CEO
Prepared by: Zakary Liske, Senior Manager of Power Operations Monica Padilla, COO and Director of Power Resources
Date: 8/9/2023

RECOMMENDATION
Approval of Resolution No. 2023-12 ratifying broker expenses with Tullett Prebon, Equus Energy Group, and Karbone Inc. (“Brokers”) for past commodity transactions, in an amount totaling $390,024.55.

BACKGROUND
In order to effectively procure energy, resource adequacy and environmental attributes, SVCE has engaged various commodity brokers to facilitate transactions over the past four years. Each broker charges fees to facilitate the transactions, sometimes billing SVCE separately, and sometimes wrapped into the full commodity transaction cost.

To date, SVCE has incurred the following amounts with various Brokers:

Fees Paid Fiscal Year
Vendor 2019 2020 2021 2022 2023 Grand Total

EQUUS ENERGY
GROUP $3,123.12 $18,808.48 $1,496.25 $23,427.85
KARBONE INC. $12,125.00 $7,000.00 $19,125.00
TULLETT PREBON $53,406.00 $294,065.70 $347,471.70
Grand Total $12,125.00 $7,000.00 $3,123.12 $72,214.48 $295,561.95 $390,024.55 During recent discussions with general counsel around these broker-facilitated transactions, staff were advised that these prior payments to Brokers, when considered in aggregate, exceeded of the authority granted to the CEO through the Purchasing and Energy Risk Management policies.

ANALYSIS & DISCUSSION
During these discussions, General Counsel directed staff to notify the Executive Committee and Board of these breaches of policy. As the broker charges detailed in this item were known and agreed to by staff and the CEO at the respective times of the transactions but were not correctly accounted for in aggregate and presented to the Board for authorization, staff requests that the Board ratify these past expenses and certify their validity for SVCE’s records. On June 23, 2023, the Executive Committee recommended a resolution to be put on the Board of Directors Consent Calendar for the August 9, 2023 meeting. Between the Executive Committee meeting and Board of Directors meeting, several additional broker expenses were recognized to raise the total requested ratification from $357,515.55 to $390,024.55, which is reflected in the attached resolution.

In order to avoid future breaches of policy and clarify the cost of broker-facilitated commodity transactions, staff is also bringing to the Board in August updates to the Energy Risk Management Policy to clarify CEO Item 1d
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1d Agenda Date: 8/9/2023

Page 2 of 2 ends

authority to execute broker-facilitated commodity transactions and pay any associated broker fees up to a specified not-to-exceed dollar limit per broker per fiscal year.

STRATEGIC PLAN
The proposal supports SVCE’s 2022-2023 Strategic Plan Goal 18, to “Commit to maintaining a strong financial position”, by recognizing actual expenses incurred and improving project oversight processes.

ALTERNATIVE
The Board may elect to not ratify the broker transactions exposing SVCE to operational risk. No other alternatives are known.

FISCAL IMPACT
This action will have no financial impact, as funds have already been paid to Brokers to facilitate commodity transactions.

ATTACHMENTS

1. Resolution No. 2023-12 Approving Broker Expenses for Equus Energy Group, Karbone Inc., And Tullett Prebon and Ratifying All Prior Actions Taken In Connection Therewith Item 1d
-1-

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2023-12

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON VALLEY

CLEAN ENERGY AUTHORITY APPROVING BROKER EXPENSES FOR EQUUS ENERGY GROUP, KARBONE INC., AND TULLETT PREBON AND RATIFYING

ALL PRIOR ACTIONS TAKEN IN CONNECTION THEREWITH

THE BOARD OF DIRECTORS OF THE SILICON VALLEY CLEAN ENERGY AUTHORITY HEREBY RESOLVES AS FOLLOWS:

WHEREAS, the Silicon Valley Clean Energy Authority (“SVCE”) was formed on March 31, 2016, pursuant to a Joint Powers Agreement to promote, develop, conduct, operate, and manage energy programs in Santa Clara County; WHEREAS, in order to effectively procure energy, resource adequacy and environmental attributes, SVCE has engaged various commodity brokers to facilitate transactions over the past four years, with each broker charging fees to facilitate the transactions, sometimes billing SVCE separately, and sometimes wrapped into the full commodity transaction cost;
WHEREAS, SVCE has incurred the following fees with the following brokers, over the last four years: Equus Energy Group in the amount of $23,427.85, Karbone Inc. in the amount of $19,125.00, and Tullett Prebon in the amount of $347,471.70 (collectively, the “Broker Expenses”); and
WHEREAS, to the extent that the Broker Expenses exceed the Chief Executive Officer’s authority, the Executive Committee has recommended that the Board approve such Broker Expenses and ratify all actions taken in connection with such Broker Expenses.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. The Board hereby approves the Broker Expenses and ratifies all actions previously taken in connection with such Broker Expenses.

ADOPTED AND APPROVED this 9
th day of August 2023, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Mohan
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Item 1d
Attachment 1
-2-
Town of Los Gatos Director Rennie
City of Milpitas Director Chua
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Abe-Koga
County of Santa Clara Director Lee
City of Saratoga Director Walia
City of Sunnyvale Director Klein
________________________________
Chair
ATTEST:
__________________________________
Clerk
Item 1d
Attachment 1

Page 1 of 3 ends

Staff Report – Item 1e
Item 1e: Adopt Resolution to Approve the Amended Energy Risk Management Policy From: Girish Balachandran, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Karthik Rajan, Senior Risk Manager
Date: 8/9/2023

RECOMMENDATION
Staff recommends that the Board adopt Resolution 2023-13 approving revisions to SVCE’s Energy Risk Management (ERM) Policy.

COMMITTEE RECOMMENDATIONS
The Executive Committee reviewed the changes to the ERM Policy at its June 26, 2023, meeting. The Committee asked clarifying questions about the proposed revisions and after discussion with Staff voted unanimously to recommend that the Board approve the revised Policy. Subsequent to the Executive Committee and based on Committee member recommendations to account for both existing transactions and potential brokered transactions in the future, SVCE staff revised the delegation of authority to the CEO for brokered transactions from $300K per broker per fiscal year to $500K per broker per fiscal year.

BACKGROUND
The purpose of the ERM Policy is to set the framework for managing market and credit risks associated with the energy procurement activities. The ERM Policy designates responsibility for risk identification, measurement, management, and reporting. It establishes the framework to ensure risks are appropriately managed and that SVCE achieves its mission and adheres to policies established by the SVCE Board of Directors.

The ERM Policy (Policy) requires that it be reviewed and updated as needed at least every two calendar years.

The last formal review of the policy occurred on November 10, 2021.

ANALYSIS & DISCUSSION
SVCE staff found that the current Policy is comprehensive but recommends the following changes to further strengthen risk management controls, clarify existing policy, and reflect current energy procurement activities.

Section 6.1 - Trader Authorization Process
Change: Add requirement that trading personnel must sign the trader integrity attestation.

Justification: To reduce operational risks and streamline process for acknowledgement of policy, conflict of interest and trader integrity attestation. New trading personnel would attest prior to trading while current employees would sign the acknowledgement once every two years or with major updates to the policy, whichever is earlier.

Item 1e
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1e Agenda Date: 8/9/2023

Page 2 of 3 ends

Section 6.3 - Approved Transactions
Change: Refine the list of products to reflect current market conditions and SVCE hedging needs to include board-approved natural gas tolling deals.

Justification: Existing ERM Policy allows for tolling agreements. However, it is not explicit for gas tolling agreements and natural gas hedging transactions to manage the risk from the underlying gas position.

Section 6.3 - Approved Transactions
Change: Clarify the definition of allowed transactions to include both physical gas hedges and financially settled gas hedges needed to manage gas price risk from any board-approval natural gas tolling transactions.

Justification: Natural gas hedges are often financially settled transactions.

Section 6.5.2 - Authority Delegated to the CEO by the Board - Change: Update the delegation to include natural gas purchases needed to manage risks from board-approved gas tolls Justification: Enable the execution of natural gas hedges.

Section 6.5.2 - Authority Delegated to the CEO by the Board - Change: Include the authority delegated to the CEO by the board for brokered transactions Justification: SVCE needs to engage with brokers to enter into energy transactions especially for Resource Adequacy (RA) products which are often difficult to find given the tight RA market. Broker fees are often interwoven with energy product negotiations and are better addressed in this policy than in the Purchasing Policy (FP6). The fees for brokered transactions can exceed the $100k/ fiscal year allowed in the purchasing policy.

Section 6.5.4 - Limits of Authority Delegated to Authorized Personnel by the CEO Change: Notional value limits are inclusive of broker fees Justification: Broker fees are often combined with the payment for energy transactions.

Section 8 - Appendix A – Conflict of Interest to “Acknowledgement of ERM Policy, Declaration of Conflict of Interest and Trader Integrity Attestation”
Change: Consolidating policy acknowledgement, conflict of interest and trader integrity attestation into one document
Justification: Streamlining the process for authorized personnel acknowledgements.

STRATEGIC PLAN
The Policy supports the goals of the Board adopted Strategic Plan. Specifically, the Policy strongly supports:
• Acquire clean and reliable electricity in a cost effective, equitable, and sustainable manner. • Manage and optimize power supply resources to meet affordability, GHG reduction and reliability objectives.

Item 1e
Agenda Item: 1e Agenda Date: 8/9/2023

Page 3 of 3 ends

ALTERNATIVE
N/A

FISCAL IMPACT
Implementing the proposed updates to the Policy is not expected to have a fiscal impact.

ATTACHMENTS

1. Resolution 2023-13 Approving Revised Energy Risk Management Policy

2. Energy Risk Management Policy (Clean- No Redline)

3. Energy Risk Management Policy (Redline)
Item 1e
Resolution 2023-13 -1-

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2023-13

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON VALLEY CLEAN ENERGY AUTHORITY AMENDING THE AUTHORITY’S ENERGY RISK

MANAGEMENT POLICY

THE BOARD OF DIRECTORS OF THE SILICON VALLEY CLEAN ENERGY AUTHORITY HEREBY RESOLVES AS FOLLOWS:

WHEREAS, the Silicon Valley Clean Energy Authority (“SVCE”) was formed on March 31, 2016, pursuant to a Joint Powers Agreement to promote, develop, conduct, operate, and manage energy programs in Santa Clara County; WHEREAS, launch of service for Phase I occurred in April 2017, and launch of service for the remaining Phases occurred in July 2017; WHEREAS, SVCE first adopted an Energy Risk Management Policy in February 2017, which allowed SVCE to transact in the California Independent System Operator (CAISO) congestion market;
WHEREAS, On May 10, 2017, the Board approved an updated and expanded Energy Risk Management Policy (“Policy”) to incorporate other provisions to address key issues such as trading authority, credit risk and hedging; WHEREAS, On January 9, 2019, the Board approved further revisions to the Policy to clarify the purpose of the Policy, simplify the document by eliminating operational items, and provide clear delegation of authority within the Policy; WHEREAS, by Resolution No. 2019-03 the Board delegated the authority to the CEO to execute confirmation agreements pursuant to Board-approved Master Agreements with several electricity suppliers, including (a) granting the Chief Executive Officer (“CEO”) authority to enter into confirmations for terms not greater than 60 months and (b) limiting the CEO’s transaction authority to purchases of product consistent with forecasted load and within the Energy Net Open Position Tolerance Bands as defined in the Policy and further directed by that Policy; WHEREAS, by Resolution No. 2019-08 the Board delegated authority to the CEO to execute a Cost-Sharing And Reimbursement Agreement (“Cost Sharing Agreement”) between five community choice aggregators (CCAs) including SVCE, Peninsula Clean Energy Authority, the City of San Jose, East Bay Community Energy Authority and Monterey Bay Community Power Authority; and to execute an Addendum for Resource Adequacy (RA) Services with the Alliance for Cooperative Energy Services Power Marketing LLC (ACES). Under the Cost Sharing Agreement and ACES Addendum, the five CCAs will receive aggregated resource adequacy management, procurement and regulatory compliance services in an effort to improve buying power and better meet California’s RA compliance requirements; Item 1e
Attachment 1
Resolution 2023-13 -2-
WHEREAS, On June 12, 2019, the Board approved further revisions to the Policy to clarify authority delegated to the CEO under Board-approved Master Agreements, to delegate expanded authority to the CEO to transact RA products with non-Master Agreement counterparties for up to 60 months and to limit CEO’s authority to set a maximum term limit for final delivery from date of execution; WHEREAS, On November 10, 2021, the Board approved further revisions to the Policy to update hedging tolerance bands, clarify portfolio management objectives, enhance reporting exceptions to compliance with Policy, add requirements to conduct stress tests, streamline the Resource Adequacy board delegation section, add requirements for staff to acknowledge Policy and declare conflict of interest; WHEREAS, Staff has provided to the Board, and the Board has reviewed, the attached revisions to the Policy that further strengthen risk management controls, clarify existing policy and, updates it for current energy procurement activities;

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. The Board hereby amends the Energy Risk Management Policy as provided for in Exhibit A.

ADOPTED AND APPROVED this 9
th day of August 2023, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Mohan
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Chua
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Abe-Koga
County of Santa Clara Director Lee
City of Saratoga Director Walia
City of Sunnyvale Director Klein
________________________________
Chair
ATTEST:
__________________________________
Secretary
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Energy Risk Management Policy
Adopted: August 9,2023
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SILICON VALLEY

CLEAN ENERGY
2 Proposed for Adoption: August 2023
Table of Contents
Contents
1 General Provisions .................................................................................................3

1.1 Background and Purpose of Policy .....................................................................3

1.2 Scope of Business and Related Market Risks .......................................................3

1.3 Policy Administration .......................................................................................4

1.4 Policy Distribution ...........................................................................................4

1.5 Acknowledgement of ERM ................................................................................4 2 Risk Management Goals..........................................................................................4 3 Definition of Market Risks .......................................................................................5

3.1 Mark-to-Market Risk ........................................................................................5

3.2 Market Price Risk ............................................................................................5

3.3 Net Revenue Risk............................................................................................6

3.4 Counterparty Credit and Performance Risk.................................................................6

3.5 Load and Generation Volumetric Risk .................................................................7

3.6 Operational Risk..............................................................................................7

3.7 Liquidity Risk ..................................................................................................7

3.8 Regulatory/Legislative Risk...............................................................................8 4 Internal Control Principles .......................................................................................8

4.1 Segregation of duties.......................................................................................8

4.2 Additional Internal Controls ..............................................................................9 5 Risk Management Business Practices ...................................................................... 10

5.1 Risk Measurement Metrics and Reporting ......................................................... 10

5.2 Mark-to-Market Risk ...................................................................................... 11

5.3 Market Price Risk .......................................................................................... 11

5.4 Net Revenue Risk.......................................................................................... 12

5.5 Counterparty Credit and Performance Risk ....................................................... 12

5.6 Load and Generation Volumetric Risk ............................................................... 12

5.7 Operational Risk............................................................................................ 12

5.8 Liquidity Risk ................................................................................................ 13

5.9 Regulatory/Legislative Risk............................................................................. 13

5.10 Reporting..................................................................................................... 13 6 Authorized Transaction and Trading Limitations ....................................................... 13

6.1 Trader Authorization Process .......................................................................... 13

6.2 Approved Markets ......................................................................................... 14

6.3 Approved Transactions................................................................................... 14

6.4 Tolerance Bands ........................................................................................... 14

6.5 Authorized Trading Limits............................................................................... 15

6.5.1 Transacting Authority Retained by the Board .............................................. 15

6.5.2 Authority Delegated to the CEO by the Board ............................................. 15

6.5.3 Resource Adequacy Authority Delegated to the CEO by the Board ................. 16

6.5.4 Limits of Authority Delegated to Authorized Personnel by the CEO ................. 16

6.6 Conflict of Interest............................................................................................ 17 7 Risk Management Policy Governance ...................................................................... 18

7.1 SVCE Board of Directors................................................................................. 18

7.2 Risk Oversight Committee .............................................................................. 18

7.3 Internal Risk Oversight Committee .................................................................. 18 8 Appendix A: Notice of Conflict of Interest................................................................ 19 Item 1e
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1 General Provisions

1.1 Background and Purpose of Policy
Silicon Valley Clean Energy’s (SVCE) mission is to reduce dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs for the SVCE community.

This Energy Risk Management Policy (Policy) has been developed to help ensure that SVCE achieves its mission and adheres to policies established by the SVCE Board of Directors (Board), power supply and related contract commitments, good utility practice, and all applicable laws and regulations. SVCE is not engaged in the power supply business for profit and is, therefore, precluded by this Policy from engaging in many of the risk-taking activities typical to an organization orientated solely toward profit maximization.

This Policy defines SVCE’s general energy risk management framework and provides management with the authority to establish processes for monitoring, measuring, reporting, and controlling market and credit risks to which SVCE is exposed in its normal course of business.

1.2 Scope of Business and Related Market Risks
SVCE provides energy to retail customers in its service territory that entails business activities such as; bilateral purchases and sales of electricity under short-, medium- and long-term contracts; scheduling of load and generation of electricity into California Independent Systems Operator (CAISO) markets; retail marketing of electricity to consumers within its service territory; compliance with voluntary objectives and regulatory requirements as it relates to carbon free and renewable portfolio standard (RPS) compliant energy; participation in CAISO Congestion Revenue Rights (“CRRs”) market; managing the balance of load and generation over short, medium and long term horizons; and compliance with California Public Utilities Commission (CPUC) Resource Adequacy (RA) requirements.

Examples of energy market risks include, but are not limited to, the following:
• Mark-to-Market Risk
• Market Price Risk
• Net Revenue Risk
• Counterparty Credit and Performance Risk
• Load and Generation Volumetric Risk
• Operational Risk
• Liquidity Risk
• Regulatory/Legislative Risk
This Policy focuses on the following:
• Risk Management Goals and Principles
• Definitions of Risks
• Internal Control Principles
• Risk Management Business Practices
• Authorized Transaction and Trading Limitations
• Risk Management Governance
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This Policy does not address the following types of general business risk, which are treated separately in other official policies, ordinances, and regulations of SVCE: fire, accident and casualty; health, safety, and workers’ compensation; cybersecurity, general liability; and other such typically insurable perils. The term “risk management,” as used herein, is therefore understood to refer solely to energy market risks as herein defined, and not those other categories of risk.

1.3 Policy Administration
This Energy Risk Management Policy (Policy) is adopted by the SVCE Board of Directors and will be reviewed and updated as needed at least every two calendar years by SVCE’s Board.

The CEO is responsible for implementation of the Policy. The CEO is also responsible to develop Energy Risk Management Guidelines (Guidelines), which is required for staff to implement the Policy.

1.4 Policy Distribution
This Policy shall be distributed to all SVCE employees and third-party contractors who are engaged in the planning, procurement, sale and scheduling of electricity on SVCE’s behalf and/or in other SVCE departments providing oversight and support for these activities.

1.5 Acknowledgement of ERM
All SVCE staff participating in any activity or transaction within the scope of the ERM shall sign, upon joining or upon any material revision of the ERM policy, that such SVCE representative has:

Read the ERM;
Understands the terms and agreements of said ERM;
Will comply with said ERM;
SVCE employees who are within the scope of the ERM understand that any violation of said ERM may subject the employee to discipline up to and including termination of employment; 2 Risk Management Goals
Although SVCE does not engage in risk-taking activities typical in a for-profit organization, certain risks are incidental to the normal power supply operations and hedging activities.

SVCE’s policy is to manage risk inherent with serving load, including the risks associated with normal cost-hedging activities, those associated with participation in wholesale markets in general and the CAISO in particular.

The goals of energy risk management shall be to:

1. assist in achieving the business objectives in the Strategic Plan, Integrated Resource Plan (IRP) and Cash Reserve Policy including retail rate stability and competitiveness and the accumulation of financial reserves;

2. avoid losses and excessive costs which would materially impact the financial condition of SVCE;

3. establish the parameters for energy procurement and sales activity to obtain the best possible price while ensuring compliance with Board-approved policies;

4. identify specific cost, regulatory and legislative risks that could adversely affect SVCE’s ability to achieve its business objectives, and to the extent possible, quantify and measure performance against those risks;
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5. assist in assuring that market activities and transactions are undertaken in compliance with established procurement authorities, applicable laws, regulations and orders;

6. encourage the development and maintenance of a corporate culture at SVCE in which the proper balance is struck between control and facilitation and in which professionalism, discipline, technical skills and analytical rigor come together to achieve SVCE objectives; and

7. manage business risks to acceptable levels consistent with retail rate-setting, resource procurement and cash reserve management.

SVCE manages its energy resources and transactions to provide its customers with low-cost renewable, carbon free and other energy while at the same time minimizing risks. The risk management principles that SVCE will use include:

1. Undue exposure to CAISO or bilateral energy market volatility for the purpose of potentially achieving lower costs but at the risk that costs may, in fact, be much higher, will not be accepted.

2. Procurement and hedging strategy will be determined by analytical methods supplemented by experienced judgement. SVCE will use that experienced judgement and its analytical tools to assess system cost drivers such as weather, short term energy prices, load variation and operational constraints to manage timing and quantity of purchases and sales of energy and related services, consistent with the limits identified in this Policy.

3. When actions are taken that are consistent with this Policy and for the combined goal of low costs and optimized risk, those actions are considered to be consistent with the objectives of this Policy.

4. SVCE will not engage in transactions, without proper authorization, whose purpose is not tied to managing costs and risks or are outside of the limits identified in this Policy.
3 Definition of Market Risks
The term “market risks,” as used here, refers specifically to those categories of risk which relate to SVCE’s participation in wholesale and retail markets as a Load Serving Entity (LSE) and its interests in long-term contracts. Market risks include market price risk, counterparty credit and performance risk, load and generation volumetric risk, operational risk, liquidity risk, and regulatory and legislative risk. These categories are defined and explained as follows.

3.1 Mark-to-Market Risk
Mark-to-Market risk is the risk that wholesale trading positions, long-term supply contracts and generation resources may move “out of the money,” that is, become less valuable in comparison with similar positions, contracts, or resources obtainable at present prices.

These same positions can also be “in the money” if they become more valuable in comparison to similar positions, contracts, or resources obtainable at present market prices.

This valuation methodology is commonly referred to as “Mark-to-Market.” If SVCE is “out of the money” on a substantial portion of its contracts, it may have to charge higher retail rates. This may erode SVCE’s competitive position and market share if other market participants (e.g., Direct Access providers or PG&E) are able to procure power at a lower cost and offer lower retail electricity rates.

3.2 Market Price Risk
Market Price risk is the risk that market prices change, resulting in changes to energy Item 1e
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procurement cost. For example, the cost for the unhedged portion of a supply portfolio (net open position) will increase when market prices increase. Conversely, if resources are in excess to needs and market prices fall, the revenue expected from the sale of the surplus resources will decrease. In addition, uncertain market price relationships (locational risk) affect SVCE’s procurement costs.

A subcomponent of market price risk is market liquidity. Illiquid markets make it more difficult to buy or sell a commodity and can result in higher premiums on purchases or deeper discounts on sales.

Another dimension of market price risk is congestion risk. Congestion risks arise from the difference between the prices SVCE pays the CAISO to schedule its load and the prices SVCE receives from the CAISO for energy delivered by SVCE’s suppliers.

3.3 Net Revenue Risk
Net Revenues are the total of all revenues received (from retail sales to customers and from the sale of any energy products that were surplus or unneeded) less the total costs (including the costs of long-term contracts, forward transactions, and spot market purchases plus all other operating costs). Net Revenue Risk is the risk that any of those factors—revenues or costs—changes (e.g. changes in market prices or retail sales volumes, or failures of counterparties). Net Revenue is the “bottom line” for SVCE as it determines the financial viability of the authority.

One of the main components of net revenue risk is on the retail revenue side, which is at risk when customers opt out from service by SVCE and return to PG&E, or if customers choose to find another supplier through direct access opportunities that may arise. In addition, when the Power Charge Indifference Adjustment (PCIA) is changed, it directly affects SVCE’s bottom line if SVCE compensates by changing its retail rates.

3.4 Counterparty Credit and Performance Risk
Performance and credit risk refers to the inability or unwillingness of a counterparty to perform according to its contractual obligations or to extend credit. Failure to perform may arise if an energy supplier fails to deliver energy as agreed. There are four general performance and credit risk scenarios:

1. counterparties and wholesale suppliers may fail to deliver energy or environmental attributes, requiring SVCE to purchase replacement products elsewhere, possibly at a higher cost;

2. counterparties may fail to take delivery of energy or environmental attributes sold to them, necessitating a quick resale of the product elsewhere, possibly at a lower price;

3. counterparties may fail to pay for energy or environmental attributes delivered; and

4. counterparties and suppliers may refuse to extend credit to SVCE, possibly resulting in higher collateral posting costs impacting SVCE’s cash and bank lines of credit.

An important subcategory of credit risk is concentration risk. When a portfolio of positions and resources is concentrated in one or a very few counterparties, sources, or locations, it becomes more likely that major losses will be sustained in the event of non-performance by a counterparty or supplier or as a result of price fluctuations at one location.

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3.5 Load and Generation Volumetric Risk
Energy deliveries must be planned for based upon forecasted load adjusted for distribution line losses. SVCE forecasts load over the long and short term and enters into long- and short-term fixed-price energy contracts to hedge its load.

Load forecasting risks arises from inaccurate load forecasts and can result in the over or under procurement of energy and/or revenues that deviate from approved budgets. Energy delivery risk occurs if a generator fails to deliver expected or forecast energy. Variations in wind speed and cloud cover can also impact the amount of electricity generated by solar and wind resources, and occasional oversupply of power on the grid can lead to curtailment of energy deliveries or reduce revenue as a result of low or negative prices at energy delivery points. Weather is an important variable that can result in higher or lower electricity usage due to heating and cooling needs.

In the CAISO markets this situation can result in both oversupply and undersupply of electricity relative to SVCE’s load and the over or under scheduling of generation or load into the day ahead market relative to actual energy consumed or delivered in the real time market. Load and generation volumetric risk may result in unanticipated open positions and imbalance energy costs. Imbalance energy costs result from differences in the price or volume of generation or load scheduled into the day ahead market when compared to the price or volume of generation or load occurring in the real time market during that time period.

3.6 Operational Risk
Operational risk consists of the potential for failure to act effectively to plan, execute and control business activities. Operational risk includes the potential for:

1. organizational structure that is ineffective in addressing risk (i.e., the lack of sufficient authority to make and execute decisions, inadequate supervision, ineffective internal checks and balances, incomplete, inaccurate and untimely forecasts or reporting, failure to separate incompatible functions, etc.);

2. absence, shortage or loss of key personnel or lack of cross functional training;

3. lack or failure of facilities, equipment, systems and tools such as computers, software, communications links and data services;

4. exposure to litigation or sanctions resulting from violating laws and regulations, not meeting contractual obligations, failure to address legal issues and/or receive competent legal advice, not drafting and analyzing contracts effectively, etc.; and

5. errors or omissions in the conduct of business, including failure to execute transactions, violation of guidelines and directives, etc.

3.7 Liquidity Risk
Liquidity Risk is the risk that SVCE will be unable to meet its financial obligations. This can be caused by unexpected financial events and/or inaccurate pro forma calculations, rate analysis, and debt analysis. Some unexpected financial events impacting liquidity could include:

1. breach of SVCE credit covenants or thresholds; SVCE has credit covenants included in its banking and several short-term energy contracts. Breach of credit covenants or thresholds could result in the withdrawal of SVCE’s line of credit or trigger the requirement to post collateral;

2. calls for collateral from the CAISO or SVCE’s counterparties based on terms of Item 1e
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transacting agreements; and

3. from time-to-time SVCE may be the subject of legal or other claims arising from the normal course of business. Payment of a claim by SVCE could reduce SVCE’s liquidity if the cause of loss is not covered by SVCE’s insurance policies.

3.8 Regulatory/Legislative Risk
Regulatory risk encompasses market structure and operational risks associated with shifting state and federal regulatory policies, rules, and regulations that could negatively impact SVCE. Some examples are the potential increase of exit fees for customers served by Community Choice Aggregators such as SVCE that would result in higher electricity rates for SVCE’s customers, and the risk that the customers would select another supplier through an expanded Direct Access program.

Legislative risk is associated with actions by federal and state legislative bodies, such as any adverse changes or requirements that may infringe on SVCE’s autonomy, increase its costs, impact its customer base, or otherwise negatively impact SVCE’s ability to fulfill its mission. 4 Internal Control Principles
Internal controls shall be based on proven principles that meet or exceed the requirements of financial institutions and credit rating agencies and good utility practice. The required controls shall include all customary and usual business practices designed to prevent errors and improprieties, ensure accurate and timely reporting of results of operations and information pertinent to management, and facilitate attainment of business objectives.

These controls are currently and shall remain fully integrated into all activities of the business and shall be consistent with stated objectives.

4.1 Segregation of duties
One of the main aspects of internal controls is the segregation of duties to ensure that the staff person that executes a transaction is not the same person that evaluates or settles the transaction. Appropriate segregation of duties is to be established and maintained throughout the system of controls over financial risks. Senior management must be diligent in ensuring that appropriate segregation of duties is adhered to within the context of organizational changes, while considering staffing limitations, SVCE’s business model as a cost hedger, and the overall level of transactions with counterparties. Segregation of duties and functions between front, middle, and back-office activities is generally as follows:
• The Front Office is directly involved in resource planning, product procurement and sales transactions and implementation of strategies within authorized limits. • The Middle Office’s functions are related to risk management and counterparty credit. The primary responsibility is ensure that all products utilized and transaction activities are undertaken in compliance with current policy. • The Back Office is comprised of those functions responsible for verification, validation accounting, processing, reconciling, and settling all transactions.

Controls over inputs and systems operations are of particular importance in ensuring the integrity of data used in risk control and management. In all cases, there will be an appropriate segregation of duties or oversight to reduce the risk of error and/or fraud.

To the maximum extent practicable given SVCE’s business model and level of staffing, Front-Office activities will be functionally independent from Middle and BackOffice activities.

As a result, the Front Office will generally neither perform nor supervise Middle-Office Risk Management activities, or Back Office financial accounting or settlements. The Director of Item 1e
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Power Resources is responsible for ensuring the Front Office’s ability to perform tasks in compliance with this Policy. This arrangement will provide independent and regular management oversight for both risk-taking and risk-control activities. It will also allow for a clear separation of duties between the Front-Office transacting and Middle Office risk-control functions.

To the maximum extent practicable given SVCE’s business model and level of staffing, Middle Office activities will be functionally independent from all Front Office and Back Office activities. The Middle Office will have primary responsibility for risk management oversight and policy development and compliance. If there are not adequate resources necessary to fully support a Middle Office, this function may be combined with another function, or be supported by qualified third party advisors, provided that appropriate segregation of duties or sufficient internal controls are maintained at all times.

To the maximum extent practicable given SVCE’s business model and level of staffing, Back Office settlement activities will be functionally independent from all Front Office and Middle Office activities. The Back Office will have primary responsibility for all transaction confirmation, accounting, and reconciliation processes. If there are not adequate resources necessary to fully support a Back Office, this function may be combined with another function, or be supported by qualified third party advisors, provided that appropriate segregation of duties or sufficient internal controls are maintained at all times.

4.2 Additional Internal Controls
Besides segregation of duties, additional required operational control principles include the following, which the CEO shall implement by incorporating them into the ERM Guidelines and procedures:

1. Delegation of authority that is commensurate with responsibility and capability, and relevant training to ensure adequate knowledge to operate in and comply with rules associated with the markets in which they transact (e.g., CAISO). Contract origination, commercial approval, legal review, invoice validation, and transaction auditing shall be performed by separate staff or contractor for any single transaction.

No single staff member shall perform all these functions on any transaction.

2. Defining authorized products and transactions (see Section 6.3).

3. Defining procurement authority for any transactions for which procurement authority has not already been explicitly granted as set forth in SVCE’s Purchasing Policy and any Board Resolution delegating energy procurement authority (e.g. Resolution 2016-15 which delegates authority to the CEO to execute confirmation agreements with energy service providers with whom SVCE has executed Master Agreements).

4. Defining proper trade capture process for executing power supply contracts.

5. Complete and precise capture of transaction and other data, with standardization of electronic and hard copy documentation.

6. Meaningful summarization and accurate reporting of transactions and other activity at regular intervals.

7. Consultation with legal counsel on all legal issues related to this Policy.

8. Timely and accurate risk and performance measurement at regular intervals.

9. Regular compliance review to ensure that this Policy and the Guidelines are adhered to, with specific guidelines for resolving instances of noncompliance.

10. Active participation by senior management in risk management processes.

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5 Risk Management Business Practices

5.1 Risk Measurement Metrics and Reporting
A vital element of this Policy is the regular identification, measurement, and communication of risk. To effectively communicate risk, all risk management activities must be monitored on a frequent basis using risk measurement methodologies that quantify the risks associated with SVCE’s procurement-related business activities and performance relative to goals. SVCE measures and updates its risks using a variety of tools that model programmatic financial projections, market exposure and risk metrics, as well as through short term budget updates.

SVCE seeks to minimize financial exposure to higher-volatility spot market wholesale electricity using rolling hedges and net open position percentage bands. Financial exposure creates budget uncertainty. To mitigate the financial exposure to short-time horizon price volatility, SVCE continually reduces its financial exposure by reducing the quantity of energy in either open long or short positions.

The following items are measured, monitored, and reported:

1. Reserve Requirement Targets – on no less than an annual basis, SVCE staff will monitor SVCE’s reserves to ensure that they meet the targeted thresholds as outlined in SVCE’s Cash Reserve Policy.

2. Mark-to-Market Valuation – marking to market is the process of determining the current value of contracted supply. A mark-to-market valuation shall be performed at least on a monthly basis.

3. Exposure Reporting – calculates the notional dollar and/or probabilistic-based risk exposure of open portfolio positions at current market prices. The exposure risk calculation shall be performed at least on a monthly basis.

4. Open Position Monitoring – on a monthly basis, SVCE shall calculate/monitor its open positions for all energy and capacity products.

Consistent with the above, the Middle Office will develop reports and provide feedback to the Risk Oversight Committee. Risk measurement methodologies shall be re-evaluated on a periodic basis to ensure SVCE adjusts its methods to reflect the evolving competitive landscape.

In addition to ensuring the portfolio is within the approved hedge bands, portfolio management decisions are supported by risk metrics from simulations of future market conditions, loads, and other material risk drivers for the portfolio. The following probabilistic risk metrics are regularly calculated and reported:
• Net Revenue at Risk: Potential adverse changes in net revenues for a given time period and confidence level.
• Reserve Requirements at Risk: Potential adverse change in reserves for a given time period and confidence level.
• Potential Future Exposure for counterparty credit risk: Maximum Mark-to-market counterparty exposures for a given time period and confidence level. • Potential Collateral Exposure: Maximum of collateral that SVCE may have to post for a given time period and time horizon with a given counterparty.

Stress tests will used to understand the potential variability in SVCE’s projected procurement costs, and resulting retail rate impacts and competitive positioning, associated Item 1e
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with adverse scenarios of material risk drivers. The IROC will develop, and update as necessary, a set of plausible and forward-looking stress-tests based on SVCE’s portfolio and expected market conditions. The stress test analysis will complement other probabilistic metrics used to manage portfolio risks and its results will be distributed on at least an annual basis to the ROC.

5.2 Mark-to-Market Risk
SVCE manages its mark-to-market risk by comparing the current value of any wholesale trading positions and long-term supply contracts to the cost of the contracts. This is important if there are trading restrictions for entering into new transactions with certain counterparties based on the terms of the agreements and to counterparty credit limits.

Being aware of the Mark-to-Market of the portfolio is important as it provides an indication of the competitiveness of the portfolio.

5.3 Market Price Risk
SVCE manages market price risk by determining its Load and Resource Balance which defines forecasted load, energy under contract and SVCE’s open positions in various energy product types including renewable energy, carbon free energy, system power, and SVCE’s procurement targets.

SVCE determines its NOP by comparing the forecasted use to supply resources on a monthly basis. The NOP is exposed to potentially volatile market prices. The quantity of energy SVCE will contract for in each year is guided by the NOP tolerances. Market price risk is determined by evaluating how costs could increase (or decrease) if market prices were to reach high (or low) values.

SVCE minimizes financial exposure to higher-volatility spot market wholesale electricity prices by hedging its NOP according to the NOP tolerance bands in Section 6.4. To reduce this exposure, SVCE’s practice is to close its NOP (hedge at close to 100%) for the prompt month and quarter. The relatively tight prompt year tolerance band provides a high level of budget certainty. However, SVCE will continue to have some exposure to spot market prices due to the load changes and the difference between forecasted and actual load.

These differences result in a need to purchase or sell energy in the short-term markets.

In general, SVCE will seek to spread out its long-term purchases of renewable energy to diversify exposure to market conditions and reduce the risk of concentrating purchases in any one year.

For products generally purchased through short- and medium-term contracts, SVCE follows a similar strategy of diversifying contracting over the delivery horizon.

As predominantly a net buyer, SVCE manages its market liquidity risk through purchasing at different intervals and maintaining a diverse set of counterparties to transact with.

Congestion risk is managed through the contracting process with a preference for day ahead scheduling and energy delivery at the NP 15 trading hub and through resource assessment and selection. Once energy is procured SVCE manages congestion risks through the prudent management of Congestion Revenue Rights (CRRs). CRRs are financial instruments used to hedge against transmission congestion costs encountered in the CAISO day-ahead market.

SVCE uses a third-party scheduling coordinator to manage its CRR portfolio. SVCE uses CRRs to reduce its exposure to congestion and other CAISO charges and will not use CRRs for speculative purposes.

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5.4 Net Revenue Risk
SVCE manages net revenue risk by managing each of its contributing factors as described in other sections in this Policy—market price risk, load and generation volumetric risk, counterparty performance, etc. In addition, SVCE strives to provide competitively priced products that are valued by its customers to minimize opt out rates. Net revenue is monitored closely so that trend changes can be identified as early as possible and corrective action can be taken as appropriate.

5.5 Counterparty Credit and Performance Risk
SVCE evaluates and monitors the financial strength of service and energy providers.

Generally, SVCE manages its exposure to energy suppliers through a preference for counterparties with Investment Grade Credit ratings as determined by Moody’s or Standard and Poor’s and through the use of security requirements in the form of cash and letters of credit. SVCE measures its mark-to-market counterparty credit exposure consistent with industry best practices. Additionally, SVCE manages counterparty credit risk by monitoring and controlling collateral, letters of credit and other forms of credit calls on the agency as well as paying bills in a timely fashion to avoid defaulting on any term of an agreement.

5.6 Load and Generation Volumetric Risk
SVCE manages energy delivery risks by ensuring that contracts include appropriate contractual penalties for non-delivery, acquiring energy from a geographically and technologically diverse portfolio of generating assets with a range of generation profiles.

SVCE manages load forecasting and related weather risks by contracting with qualified data management and scheduling coordinators who together provide the systems and data necessary to forecast and schedule load using good utility practice. SVCE’s load scheduling strategy, as executed by its scheduling coordinator, ensures that price risk in the day ahead and real time CAISO markets is managed effectively and is consistent with good utility practice.

SVCE has contracted for long-term electricity resources including large hydroelectricity, renewable energy and storage to meet its RPS and clean goals. For many of these contracts, SVCE has scheduling coordination responsibilities and intends to work with Central Coast Community Energy (CCCE) to manage these resources.

SVCE’s generation scheduling strategy, as executed by its scheduling coordinator and in coordination with CCCE when necessary, ensures that the resources are scheduled to produce needed PCC1 renewable energy certificates; manage curtailment risk; meet the regulatory requirements for Resource Adequacy; and optimize energy value either in the day-ahead or real time market. To effectively manage these resources, SVCE will delegate limited authority to its scheduling coordinator within the guidelines of the board-approved operating agreement. The CEO will approve an operating plan for management of each of its Power Purchase Agreements.

5.7 Operational Risk
Operational risks are managed through:
• Adherence to this Policy and oversight of procurement activity; • Conformity to Employee Handbook;
• Staff resources, expertise and/or training reinforcing a culture of compliance; Item 1e
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• Ongoing and timely internal and external audits; and
• Cross-training amongst staff
• Authorized traders and others involved in any phase of transacting are prohibited to own stock in a current or potential counterparty to avoid a conflict of interest

5.8 Liquidity Risk
SVCE manages liquidity risk through adherence to its loan and power purchase agreement credit covenants, limiting commitments to provide security consistent with the Guidelines, ensuring it has adequate loan facilities, prudent cash and investment management, and adherence to its Cash Reserve Policy. SVCE monitors its liquidity (defined as unrestricted cash, investments and unused bank lines of credit) no less than weekly. SVCE utilizes scenario and sensitivity analyses while preparing budget, rate, and pro forma analyses in order to identify potential financial outcomes and ensure sufficient liquidity under adverse conditions.

5.9 Regulatory/Legislative Risk
SVCE manages its regulatory and legislative risk through active participation in working groups and advocacy coalitions such as the California Community Choice Association. SVCE regularly participates in regulatory rulemaking proceedings and legislative affairs to protect SVCE’s interests.

5.10 Reporting
Reporting of critical information to relevant parties is a key component of energy risk management. Periodic reports will be provided to the ROC that shall provide sufficient details on SVCE’s transactions, NOP, market exposure, credit exposure, counterparty credit ratings, transaction compliance, and other relevant data. The frequency and content of the reports for each oversight body shall be prescribed in the Energy Risk Management Guidelines.

Compliance exceptions are actions which violate the limits, and/or the procedures developed and approved by the ROC. For example, the risks associated with the portfolio or a specific transaction within the portfolio may fall outside of any established risk limit at a given point in time.

In the event a compliance exception occurs, the CEO is responsible for notifying the ROC within 24 hours via email after it is identified and ensure that the Front Office prepares a report (Exception Report) for the ROC at its next meeting. The Report shall identify the issue or violation, and discuss the alternative remedial actions, document the action taken in response, and describe the steps that will be taken to prevent a reoccurrence of the event.
6 Authorized Transaction and Trading Limitations

6.1 Trader Authorization Process
The Front Office shall request that the Middle Office begin the trader authorization process.

The Middle Office shall verify that the trader’s background and experience is sufficient to transact on behalf of SVCE. Before authorizing personnel to transact, the Middle Office shall:

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• Determine that the trader has sufficient understanding and experience of the energy markets in which SVCE participates.

Before commencing transaction on behalf of SVCE, every trader must sign the trader integrity attestation (see Appendix A) to:
• affirm that they are not currently under investigation for market manipulation • affirm that they have not been previously investigated for market manipulation.

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In addition to that, traders are expected to complete any energy risk management related training put forth by the Middle Office.

The Middle Office shall ,as part of the ERMGuidelines, maintain a list of the authorized trading personnel and records for each trader of:
• Acknowledgement of ERM Policy
• Declaration of Conflict of Interest and;
• Trader Integrity Attestation.

6.2 Approved Markets
Approved markets in which SVCE authorized traders can participate are as follows:
• California Independent System Operator (CAISO);
• Bilateral energy, attributes and capacity market;
• Western Electricity Coordinating Council (WECC); and
• California Air Resources Board (CARB) emissions/carbon auctions

6.3 Approved Transactions
Authorized transactions which SVCE authorized traders can utilize must be consistent with this Policy. Transactions must be directly related to the procurement and/or administration of:
• electric energy,
• Resource adequacy products,
• Storage capacity,
• Transmission products,
• ancillary services,
• congestion revenue rights (CRRs),
• renewable energy,
• Carbon-free energy and/or attributes
• renewable energy certificates (RECs),
• basis transactions,
• greenhouse gas emissions allowances,
• tolling agreements, & natural gas tolling agreements specifically approved by the board, • natural gas hedges needed to manage risks associated with board approved natural gas tolling agreements. This includes use of both physical and financially settled natural gas hedges and
• bilateral purchases of energy products.

Prohibited transactions are those transactions that are not related to serving retail electric load and/or reducing financial exposure. Speculative buying and selling of energy products is prohibited, including the use of financial derivatives such as but not limited to futures, swaps, options, and swaptions. Speculation is defined as buying energy more than forecasted load plus reasonable planning reserves or selling energy or environmental 14 15
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attributes that are not yet owned by SVCE. In no event shall speculative transactions be permitted.

6.4 Tolerance Bands
Hedging its load obligation is a key function for SVCE. The primary responsibility of the Front Office is to manage the energy portfolio by purchasing energy to hedge the cost of SVCE’s load obligation and managing SVCE’s portfolio of power resources to optimize value and load obligations. As described in Section 5.3 (Market Price Risk), SVCE ladders its energy purchases over time to access the market at different times. Every six months, the Front Office produces a Portfolio Management Plan that must be approved by the CEO. The Portfolio Management Plan must describe the current portfolio position, expected generation and variability, the recommended hedging transactions, the portfolio position after the transactions, and how the portfolio will remain within the Tolerance Bands in Table 1.Energy Hedging
SVCE will maintain Net Open Position (NOP) portfolio hedge levels within the tolerances outlined in Table 1 below:

Table 1 Calendar Year Energy NOP Tolerance Bands
Period* Minimum
Tolerance
Maximum
Tolerance
Prompt Quarter 85% 110%
Current Balance
of Year
80% 110%
Year 2 70% 90%
Year 3 55% 80%
Year 4 50% 80%
Year 5 50% 80%
*For example, if the current year calendar year is 2023, then Year 2 is 2024.

Resource Adequacy
SVCE must comply with the regulatory requirements for procurement of capacity products forResource Adequacy (RA) needs. SVCE endeavors to purchase RA products over time to meet its obligation and to diversify itspurchases between suppliers and market conditions.

Renewable Portfolio Standard and Carbon-free
With respect to purchases to meet the Renewable Portfolio Standard (RPS), SVCE is guided by its Strategic Plan, which states that purchases shall meet legislative and regulatory requirements, Board directives and shall be staggered to accommodate regulatory uncertainty, changes in load and supply price risks and that the RPS portfolio should be diversified with respect to technologies.

6.5 Authorized Trading Limits

6.5.1 Transacting Authority Retained by the Board
The Board retains the authority to approve:
• All transactions with terms of over 12 months unless it has explicitly delegated authority to the CEO;
• All transactions with terms of over 5 years; and
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6.5.2 Authority Delegated to the CEO by the Board
Under the Board-approved Purchasing Policy, the CEO is delegated the authority to approve and execute contracts for Energy Procurement for terms of less than or equal to 12 months, which the CEO shall timely report to the Board. In addition, under Resolution 2019-03, the Board delegates to the CEO the authority to enter into Confirmations for terms not greater than 60 months and limited to authorized transactions consistent with forecasted load and withinthe Energy Hedge Tolerance Bands (as defined in the ERM Policy).

Table 2 below lists the authorized trading limits to transact on behalf of SVCE for all non-resource adequacy related products. If the CEO delegates some of his authority, he must document any such delegations in the Energy Risk Management Guidelines. Table 3 below lists the authorized annual trading limits for broker fees per broker.

Table 2: Authority Delegated to the CEO by the Board
Product Term LimitMaturity
Limit
Volume Limit Counterparty
Limits
Who
Energy,
Capacity, and
CAISO Ancillary
Services
Day
Ahead
and
Real
Time
N/A As needed to
meet SVCE’s
expected load
obligations with
the CAISO
Any
counterparty
CEO
Gas Daily N/A As needed to
meet SVCE’s
obligations for
gas tolls*
Through the
counterparty
associated
with the toll
CEO
Energy(Power)
Gas,Capacity,
CRRs,and
Environmental
Products
Up to 12
months
18 months As needed to
meet SVCE’s
expected
load/gas toll
*needs
(per Purchasing
Policy)
Any
counterparty
CEO
Up to 60
months
72 months As needed to
meet SVCE’s
expected
load/gas toll*
needs
Board-approved
Master
Agreements
CEO
Over 60
months
As approved
by Board
As approved by
the Board
As approved by
the Board
Board
*natural gas hedges needed to manage risks associated with board approved natural gas tolling agreements
Table 3: Authority Delegated to the CEO by the Board for Brokered Transactions Transaction Type Fiscal Year Limit
Brokered Transactions Fees $500K of broker fee expense
per broker
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6.5.3 Resource Adequacy Authority Delegated to the CEO by the Board The CEO has the authority to meet resource adequacy requirements based on CPUC and CAISO guidelines. Failure to meet California’s RA compliance obligations may subject SVCE to hefty penalties.

To adequately and effectively meet RA requirements, the CEO needs a broad authority to transact for terms of up to five years and with a broad set of suppliers, including counterparties not under a Master Agreement. Table 4 lists the CEO’s authority for RA transactions, which may be delegated provided proper documentation is established by the CEO.

Table4: Resource Adequacy Authority Delegated to the CEO by the Board Product Term Limit Maturity Limit Volume Limit Counterparty Limit
Who
Resource
Adequacy
Up to 60
months
72 months As required to
comply
Any
counterparty
CEO

6.5.4 Limits of Authority Delegated to Authorized Personnel by the CEO The Front Office periodically prepares a needs assessment and develops a Portfolio Plan, which defines the transactions required to meet SVCE’s needs and to remain within the Tolerance Bands of Section 6.4. The CEO must approve the Portfolio Plan and may delegate some of his authority to Authorized Personnel (as determined according to the process described in Section 6.1).

Although the CEO may delegate some of his authority to Authorized Personnel, the Board limits the authority he can delegate as shown in Table 5 below:

Table 5: Limits of Authority Delegated to Authorized Personnel by the CEO Product Term Limit Notional Value Limit*
Energy, Capacity, and CAISO
Ancillary Services
Day Ahead and Real
Time
As needed to meet SVCE’s
obligations with the CAISO
Energy
Balance of the month $5 Million
Prompt month $7.5 Million
Up to 12 months $25 Million
Resource Adequacy Products,
CRRs
Prompt month As needed to meet SVCE’s
obligations
Balance of compliance
year
As needed to meet SVCE’s
obligations
Up to 12 months $15 Million
Environmental Products (Carbon Free
and Renewable Energy Resources)
Up to 12 months $15 Million
*Notional value limits are inclusive of broker fees

6.6 Conflict of Interest
All SVCE employees who are involved in any aspect of transacting for energy or energy-related resources are prohibited from investing in any company with whom SVCE transacts, including those with whom it has executed enabling agreements. Prior to engaging in evaluation of, negotiation with, transacting with, or oversight of a transaction or potential Item 1e
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transaction with any company, all involved employees must ensure that they are divested in direct holdings with that company. The ban on investment and requirement to divest is regardless of whether the investment would require disclosure on the employee’s FPPC Form 700.

SVCE employees will sign notice acknowledging policy regarding conflict of interest and report any existing or potential conflicts of interest (see Appendix A). 7 Risk Management Policy Governance

7.1 SVCE Board of Directors
The SVCE Board is responsible for adopting this Policy and reviewing it as needed every two calendar years. The Board also approves SVCE’s annual budget, contracting authorities and delegates responsibilities for the management of SVCE’s operations to its CEO.

7.2 Risk Oversight Committee
SVCE’s CEO formed the Risk Oversight Committee (ROC) and is responsible to inform the ROC about any risk management issues and to provide assurance that this Policy is implemented. The CEO shall provide the ROC information and analysis that illustrate that all transactions are consistent with the risk tolerances and that risk management controls and practices are sufficient to monitor and manage risks that SVCE is exposed to.

The ROC shall meet at least once per calendar quarter, or as otherwise called to order by the CEO.

The ROC shall from time to time review the Energy Risk Management Guidelines defining in detail the internal controls, strategies and processes for managing market risks incurred through or attendant upon wholesale trading, retail marketing, long-term contracting, CRR trading and load and generation scheduling. The ROC shall receive and review information and reports regarding risk management, wholesale trading transactions, and the administration of supply contracts. The ROC will also review counterparty credit lines and cash reserves to ensure proper levels are maintained for credit, operations and liquidity. In addition, the ROC shall review any instances of non-compliance with any provisions of the Policy or Guidelines.

7.3 Internal Risk Oversight Committee
The CEO formed the Internal Risk Oversight Committee (IROC) to review in more detail any risk management issues that arise. The IROC comprises members of the Front, Middle, and Back Office and is used to coordinate any activities related to transacting. The IROC regularly reviews SVCE’s risks and risk management strategies and assists the CEO to ensure that proper controls are in place. The IROC is responsible to develop, approve and update Energy Risk Management Guidelines that implement the Energy Risk Management Policy.

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8 Appendix A: Acknowledgement of ERM Policy,
Declaration of Conflict of Interest and Trader
Integrity Attestation
To:______________
Acknowledgement of ERM Policy
I acknowledge that I’ve read, understand, and will comply with SVCE’s Energy Risk Management Policy.

Declaration of Conflict of Interest
I understand that I am obligated to give notice in writing to Silicon Valley Clean Energy of any interest or relationship that I may have in any counterparty that seeks to do business with Silicon Valley Clean Energy, and to identify any real or potential conflict of interest such counterparty has or may have with regard to any existing or potential contract or transaction with Silicon Valley Clean Energy, within 48-hours of becoming aware of the conflict of interest.

I would like to declare the following existing/potential conflict of interest situation arising from the discharge of my duties concerning Silicon Valley Clean Energy activities covered by the scope of the ERM:
a) Persons/companies with whom/which I have official dealings and/or private interests:
b) Brief description of my duties which involved the persons/companies mentioned in item a) above.

Trader Integrity Attestation – Please complete this section if you trade on behalf of SVCE Yes No : Are you currently under investigation for market manipulation? Yes No : Were you previously investigated for market manipulation ? Position and Name:

Signature:

Date:

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Energy Risk Management Policy
Adopted: Adopted:

November 10th,
2021August 9,2023
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SILICON VALLEY

CLEAN ENERGY
2 Adopted: November 10, 2021
Proposed for Adoption: August 2023
Table of Contents
Contents
1 General Provisions .................................................................................................3