Presentations — Silicon Valley Clean Energy Executive Committee, November 27, 2023

New SV Clean Energy
PowerPoint Template
Subtitle
Item 4 - Amended

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
Budget Update and 2024 Customer
Rate Setting and Any Additional
Expenditure Discussion
Amrit Singh
Executive Committee
November 27, 2023
Item 4 - Amended

PRESENTATION
Purpose
Review updated budget projections
and provide guidance on additional
funding scenarios
Main Areas of Discussion

1. Recap of assumptions used in
setting the adopted budget
and an update on the budget
forecast using the recent
PG&E Rate forecast

2. Comparison of Adopted and
Updated Budget

3. Updated Reserve Projection

4. Discussion on Additional
Funding Scenarios

5. Accounting True-Up of
Programs Fund Balance
Item 4 - Amended

PRESENTATION
FY23-24 Budget Development Timeline
May May/June August 1 August 9
BOD adopts the budget and
agrees to revisit additional
expenditures later in the
year when there would be
more certainty on PG&E
rates
Executive Committee and Finance
and Admin Committee review the
updated budget based on the
revised PG&E rate filing and
provide feedback on any
additional expenditures
BOD reviews and adopts
amendments to the budget
incorporating any additional
expenditures
Mid-Year Budget
Review / Adjustment
3 Recap of Adopted Budget Assumptions
• Conservative assumptions used in estimating revenues
• CPUC’s updating of RA and RPS prices in setting the Market Price Benchmark (MPB) was highly uncertain
• MPB prices are used in calculating PCIA and PG&E generation rates • Staff had estimated a potential increase in revenues of $100 million if higher RPS and RA prices were adopted in MPB • Budget maintained the current 4% discount to the end of December 2023
• Budget set the initial discount starting in January 2024 to 1 %, with an additional 1% offered as bill credits to low-income customers • The board agreed to revisit the customer discount and any additional expenditures, including those for programs and an SVCE office building, when there would be more
certainty on PG&E rates
Highlights of the Updated Budget Using PG&E’s Recent
ERRA Forecast that Incorporates the New MPBs
• CPUC’s updated MPB account for a substantial
increase in RA and RPS prices
• SVCE’s forecasted revenues are higher by about $127
million
• Updating for revenues and power supply expenses, the
net contribution to reserves increases from the adopted budget forecast of $7.7 million to $127.9 million
• Without any additional expenditures, reserves increase above the target days of cash on hand of 300 to 334 but below the maximum target of 490
Item 4 - Amended

PRESENTATION
Key Messages
•
•
•
•
•
•
•
•
•
•
Item 4 - Amended

PRESENTATION
CPUC issued Market Price
Benchmarks (MPB) reflecting higher
RPS and RA prices relative to budget
assumptions.

RPS prices for 2023/2024 have
increased 140%/154%.

RA prices for 2023/2024 have
increased 94%/79%.

PG&E’s updated rate forecast,
incorporating MPB prices, shows
rates in January increasing on
average by 8% from current rates
and then dropping in July by ~ 4.5%.

PCIA up from 0.28 to 0.55 (f/kWh.

Relative to budget assumptions,
SVCE’s margins on average,
improved by ~44%. Resulting in a
~$127 million increase in revenues.

Rates are not final until CPUC’s
decision at the 12/14 meeting.

CPUC may prefer one blended rate
increase and moderate or remove
some of the proposed rate increases.

Significant changes from CPUC are
not expected.

CPUC is expected to issue a
Proposed Decision on11/29.

PG&E ERRA Rate Forecast Update**
PG&E Gen Rate:
5 Average Jan-Sep 2024 Rate
Higher PG&E Rate Forecast Improving SVCE
Revenue Projections by ~$127 million
PG&E Gen Rate:

15.48 <t/kWh
Adopted
Budget 2024
Rate***
* Source: PG&E 2023 Average Rate, effective January 7, 2023 (Weighted for SVCE Portfolio Load) PG&E 2024 ERRA Forecast Update, released in October,2023 (Weighted for SVCE Portfolio Load) *** Using NewGen Model with 7/7/2023 Forward Curves and 10% modeling error haircut Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) PG&E Gen Rate:

16.20 e/kWh
Tl^SVCEdiscount
Jul-Dec 2024
Rate
Current 2023
Rate*
Jan-Jun 2024
Rate
($ in thousands)
FY 2023-24 FY 2023-24

ADOPTED ADJUSTED
DESCRIPTION BUDGET BUDGET $ %
Energy Revenues 440,404 567,585 127,181 28.9%
Power Supply Expense 391,624 399,546 7,922 2.0%
Operating Margin 48,780 168,038 119,259 244.5%
Operating Expenses 32,361 32,361 0 0.0%
Non-Operating Revenue (Expense) 5,498 6,431 932 17.0%
Annual Transfers and Other Expenses
Program Fund 8,874 8,874 0 0.0%
Nuclear Allocation 2,188 2,188 0 0.0%
Multi Family Direct Install Program 0 0 0 -
Electrification Discount Program 0 0 0 -
Customer Bill Relief 3,136 3,136 0 0.0%
Building Fund 0 0 0 -
Other 50 50 0 0.0%
BALANCE AVAILABLE FOR RESERVES $7,669 $127,860 $120,191 1567.1% Change
Item 4 - Amended

PRESENTATION
O FY 24 Adopted and Updated Budget
Primarily Revenues and Power Supply Expenses are Updated 6 •
•
•
•
•
Item 4 - Amended

PRESENTATION
Reserve Projection
Projected End of FY Reserves
without additional Expenditure:
$405 Million
334 Days of Cash on Hand
(DCOH)
Based on a forecast of
program expenditures
Unspent program dollars
count toward reserves
"292 DCOH if unspent
program dollars are removed
from reserves

SILICON VALLEY

CLEAN ENERGY
Reserve Forecast
$700
$600
490 days
$500
«$400
300 days
^$300
c
$200
120 days
$100
$0
FY 2023-24
Total Adjusted Ending Reserves "Target Reserves Maximum Reserves Minimum Reserves 7 •
•
•
•
•
•
Item 4 - Amended

PRESENTATION
Discussion: Balancing Priorities
1% customer discount over 12 months of 2024
is ~$5.7 million*
1% discount over 9 months (Jan -Sep 2024)
~$4.3 million*
Monthly Average Bill Savings of 1%* Discount:

Residential - ^$0.78
Small Commercial - ~$2.80
Medium Commercial -~$30.87
* Based on October PG&E ERRA Forecast
To initiate discussion, on the next slide, staff is proposing the following funding items:

1. Increasing customer discount

2. Trueing up the intended1% bill credit to low-income customers to account for higher rates than anticipated in the original budget

3. Setting aside funds for an SVCE office building

4. Setting aside funds to maintain higher customer discounts over the next two years

5. Increasing funding for programs that include decarbonization grants for cities

SILICON VALLEY
CLEAN ENERGY 8
$ Million
Additional Expenditures

1. General Customer Rate Discount Level 1% - 4% 12.90 4% 12.90 4% 12.90

2. True-up 1% Bill Credit to Reflect Higher Rates 1.16 1.16 1.16 1.16

3. Transfer to Building Fund 20.00 20.00 20.00 20.00

4. Set Aside to Fund 4% Discount for 2 Additional Years 34.20 34.20

5. Additional Program Expenditures Including Grant to Cities 20.00

21.16 34.06 68.26 88.26
**Resulting Financial Forecast Reserve Level (DCOH*)
- End of Fiscal Year 333 322 322 322
- High-Level Estimate*** Reserve 3 years out 350 340 312 312 - High-Level Estimate*** Reserve 5 years out 379 369 341 324 * Days cash on hand.

2. Increase
Rate Discount

3. Longer-term
Affordability

4. Add'l Set Aside
for Programs

1. Build
Reserves
Funding Scenarios
**Not expected to have any significant impact on forecast of the current fiscal year financialreserves since expenditure is likely delayed to future years.

Item 4 - Amended

PRESENTATION
Funding Scenarios
All scenarios maintain projected reserves above the target level of 300 DCOH* and well below the maximum level of 490 DCOH over the next 5 years
9 Staff recommends funding scenario 4.

SILICON VALLEY

CLEAN ENERGY
$ Million
Additional Expenditures

1. General Customer Rate Discount Level 4% 12.90 7.2% 26.66 7.2% 26.66

2. True-up 1% Bill Credit to Reflect Higher Rates 1.16 1.16 1.16

3. Transfer to Building Fund 20.00 20.00 20.00

4. Set Aside to Fund at least 4% Discount for 2 Additional Years 34.20 34.20 34.20

5. Additional Program Expenditures Including Grant to Cities 20.00 6.24 20.00

88.26 88.26 102.02
**Resulting Financial Forecast Reserve Level (DCOH*)
- End of Fiscal Year 322 311 311
- High-Level Estimate*** Reserve 3 years out 312 300 300 - High-Level Estimate*** Reserve 5 years out 324 324 313

5. Keep Rates
Unchanged

6. Rates Unchanged with
Lower 5th Yr Reserves
Funding Scenarios

4. Add'l Set Aside
for Programs
Item 4 - Amended

PRESENTATION
Funding Scenarios - Continued
SILICON VALLEY <3/ CLEAN ENERGY 10
•
•
•
•
•
•
•
Item 4 - Amended

PRESENTATION
Accounting True-up of Program Dollars
Clarify that unspent program dollars were to roll into the program funds when it was created Program fund was created in the fiscal year 2019-2020
Prior to funds creation, the Board allocated funds in each fiscal year’s operating budget The net amount allocated, including adjustments for some grants received, was $10,125 million When the program fund was created, the intent was to rollover the $10,125 million into the fund Staff requests the Board to explicitly authorize the rollover of $10,125 to the program’s fund The reserve projections in the prior slides account for this rollover After the Board’s approval, the accounting records and the program fund balance shown in the Treasurer’s Report will be updated

SILICON VALLEY
CLEAN ENERGY 11
Item 4 - Amended

PRESENTATION
Thank you! / Questions?
12 •
•
Item 4 - Amended

PRESENTATION
With the recommended
4% customer discount,
SVCE’s customer
generation rates, on
average, are expected to
increase by about 3.5%,
inclusive of PCIA.

A 7.2% discount on
average is
expected to keep
SVCE’s customer
generation rates
unchanged,
inclusive of PCIA.

PG&E Gen Rate:
13 Average Jan-Sep 2024 Rate
Rate Comparison with the Recommended 4%
Customer Discount
* Source: PG&E 2023 Average Rate, effective January 1, 2023 (Weighted for SVCE Portfolio Load) " PG&E 2024 ERRA Forecast Update, released in October,2023 (Weighted for SVCE Portfolio Load) *** Using NewGen Model with 7/7/2023 Forward Curves and 10% modeling error haircut Above margin analyses ignores minor reductions for franchise fees (0.09 cf/kWh) Adopted
Budget 2024
Rate***
PG&E ERRA Forecast Update**
Jul-Dec 2024
Rate
Current 2023
Rate*
Jan-Jun 2024
Rate
Units 2023 2024 2023 2024 2023 2024
On-Peak Energy MPB* $/MWh 75.14 77.99 68.28 72.88 -9% -7% Off-Peak Energy MPB* $/MWh 65.89 69.57 62.23 65.77 -6% -5% Average ATC Energy MPB* $/MWh 71.08 74.29 65.62 69.76 -8% -6% RPS MPB** $/MWh 12.63 12.50 30.30 31.73 140% 154%
System RA MPB** $/kW-Month 7.39 8.50 14.37 15.23 94% 79% Local RA MPB** $/kW-Month 6.93 8.46 8.38 9.52 21% 13%
Flex RA MPB** $/kW-Month 7.15 8.38 7.82 9.12 9% 9%
** Based on PG&E's 2024 forecast update testimony, released on October 16th, 2023 Adopted Budget Revised Budget % Change
*CY 2023 rates are based on average NP-15 market prices (actual+forward); 2024 rates were set as Market Benchmarks for 2024 per PG&Es October 16th, 2023 filing.

Item 4 - Amended

PRESENTATION
CD Updated Market Price Benchmark
14 •
•
•
•
•
•
•
•
•
•
•
Currrent Lease Details
Monthly Lease Cost 5.30 $/sf
Size 7,900 sf
New Lease Assumptions
New Monthly Lease Cost 7.50 $/sf (est)
Purchase Assumptions
Purchase Cost 700 $/sf (est)
Improvement Cost 100 $/sf (est)
Office Assumptions
Size 20,000 sf (est)
Location for Comps*
* further analyses to include broader service territory Sunnyvale, Mtn View, Santa
Clara, San Jose
Item 4 - Amended

PRESENTATION
SVCE Office Space - Lease vs Buy
Issue: Financial Stewardship Staff Recommendation Implications/Reasons SVCE’s current lease runs
through Sept. 2025
Need time to explore
the alternatives of
buying or leasing new
space
SVCE should be prepared to
pursue attractive property
opportunities as they arise
Research alternatives
and establish an ad hoc
Committee to advise staff
and evaluate property
and financing options
Staff to continue
assessing market
opportunities and return
to the Board with a
purchase or lease
analysis
$16MM (based on
current
assumptions) + 25%
contingency =
$20MM set aside
Buying may be a cheaper
longer-term option
Initial back-of-the-envelope analysis
indicates a roughly 10-
year breakeven period
compared to leasing
SVCE is growing and requires
more space for employees and
expanded programs
Purchasing also enables
customization to suit the hybrid
work environment
Flexible workspace for
collaborative work
15 •
Item 4 - Amended

PRESENTATION
CD Program Fund Budget Allocation
Programs Fund Over Time
FY23 Snapshot
Future / Still Planning ($11M)
Planned to Go Live in Coming
~6 Months ($20M)
Live I Available Now to
Customers ($31M)
Customer-Reserved
Incentives ($11M)
Spent ($12M)
16 Item 4

PRESENTATION
Purpose
Review updated budget projections
and provide guidance on additional
funding scenarios
Main Areas of Discussion

1. Recap of assumptions used in
setting the adopted budget
and an update on the budget
forecast using the recent
PG&E Rate forecast

2. Comparison of Adopted and
Updated Budget

3. Updated Reserve Projection

4. Discussion on Additional
Funding Scenarios

5. Accounting True-Up of
Programs Fund Balance
Item 4

PRESENTATION
FY23-24 Budget Development Timeline
May May/June August 1 August 9
BOD adopts the budget and
agrees to revisit additional
expenditures later in the
year when there would be
more certainty on PG&E
rates
Executive Committee and Finance
and Admin Committee review the
updated budget based on the
revised PG&E rate filing and
provide feedback on any
additional expenditures
BOD reviews and adopts
amendments to the budget
incorporating any additional
expenditures
Mid-Year Budget
Review / Adjustment
3 Recap of Adopted Budget Assumptions
• Conservative assumptions used in estimating revenues
• CPUC’s updating of RA and RPS prices in setting the Market Price Benchmark (MPB) was highly uncertain
• MPB prices are used in calculating PCIA and PG&E generation rates • Staff had estimated a potential increase in revenues of $100 million if higher RPS and RA prices were adopted in MPB
• Budget maintained the current 4% discount to the end of December 2023
• Budget set the initial discount starting in January 2024 to 1 %, with an additional 1% offered as bill credits to low-income customers • The board agreed to revisit the customer discount and any additional expenditures, including those for programs and an SVCE office building, when there would be more
certainty on PG&E rates
Highlights of the Updated Budget Using PG&E’s Recent
ERRA Forecast that Incorporates the New MPBs
• CPUC’s updated MPB account for a substantial
increase in RA and RPS prices
• SVCE’s forecasted revenues are higher by about $127
million
• Updating for revenues and power supply expenses, the
net contribution to reserves increases from the adopted budget forecast of $7.7 million to $127.9 million
• Without any additional expenditures, reserves increase above the target days of cash on hand of 300 to 334 but below the maximum target of 490
Item 4

PRESENTATION
Key Messages
•
•
•
•
•
•
•
•
•
•
Item 4

PRESENTATION
CPUC issued Market Price
Benchmarks (MPB) reflecting higher
RPS and RA prices relative to budget
assumptions.

RPS prices for 2023/2024 have
increased 140%/154%.

RA prices for 2023/2024 have
increased 94%/79%.

PG&E’s updated rate forecast,
incorporating MPB prices, shows
rates in January increasing on
average by 8% from current rates
and then dropping in July by ~ 4.5%.

PCIA up from 0.28 to 0.55 (f/kWh.

Relative to budget assumptions,
SVCE’s margins on average,
improved by ~44%. Resulting in a
~$127 million increase in revenues.

Rates are not final until CPUC’s
decision at the 12/14 meeting.

CPUC may prefer one blended rate
increase and moderate or remove
some of the proposed rate increases.

Significant changes from CPUC are
not expected.

CPUC is expected to issue a
Proposed Decision on11/29.

PG&E ERRA Rate Forecast Update**
PG&E Gen Rate:
5 Average Jan-Sep 2024 Rate
Higher PG&E Rate Forecast Improving SVCE
Revenue Projections by ~$127 million
PG&E Gen Rate:

15.48 <t/kWh
PG&E Gen Rate:

16.20 e/kWh
Tl^SyCEdjscount
Adopted
Budget 2024
Rate***
* Source: PG&E 2023 Average Rate, effective January 7, 2023 (Weighted for SVCE Portfolio Load) PG&E 2024 ERRA Forecast Update, released in October,2023 (Weighted for SVCE Portfolio Load) *** Using NewGen Model with 7/7/2023 Forward Curves and 10% modeling error haircut Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) Jul-Dec 2024
Rate
Current 2023
Rate*
Jan-Jun 2024
Rate
($ in thousands)
FY 2023-24 FY 2023-24

PRESENTATION
Primarily Revenues and Power Supply Expenses are Updated ® FY 24 Adopted and Updated Budget
6 •
•
•
•
•
Item 4

SILICON VALLEY

1. Increasing customer discount

2. Trueing up the intended1% bill credit to low-income customers to account for higher rates than anticipated in the original budget

3. Setting aside funds for an SVCE office building

4. Setting aside funds to maintain higher customer discounts over the next two years

5. Increasing funding for programs that include decarbonization grants for cities

SILICON VALLEY
CLEAN ENERGY 8
$ Million
Additional Expenditures

1. General Customer Rate Discount Level 1% - 4% 12.90 4% 12.90 4% 12.90

2. True-up 1% Bill Credit to Reflect Higher Rates 1.16 1.16 1.16 1.16

3. Transfer to Building Fund 20.00 20.00 20.00 20.00

4. Set Aside to Fund 4% Discount for 2 Additional Years 34.20 34.20

5. Additional Program Expenditures Including Grant to Cities 20.00

2. Increase
Rate Discount

3. Longer-term
Affordability

4. Add'l Set Aside
for Programs

1. Build
Reserves
Funding Scenarios
**Not expected to have any significant impact on forecast of the current fiscal year financialreserves since expenditure is likely delayed to future years.

Item 4

SILICON VALLEY

CLEAN ENERGY
•
•
•
•
•
•
•
Item 4

PRESENTATION
Accounting True-up of Program Dollars
Clarify that unspent program dollars were to roll into the program funds when it was created Program fund was created in the fiscal year 2019-2020
Prior to funds creation, the Board allocated funds in each fiscal year’s operating budget The net amount allocated, including adjustments for some grants received, was $10,125 million When the program fund was created, the intent was to rollover the $10,125 million into the fund Staff requests the Board to explicitly authorize the rollover of $10,125 million to the program’s fund The reserve projections in the prior slides account for this rollover After the Board’s approval, the accounting records and the program fund balance shown in the Treasurer’s Report will be updated

SILICON VALLEY
CLEAN ENERGY 10
Item 4

PRESENTATION
Thank you! / Questions?
11 •
•
Item 4

PRESENTATION
With the recommended
4% customer discount,
SVCE’s customer
generation rates, on
average, are expected to
increase by about 3.5%,
inclusive of PCIA.

A 5.5% discount on
average is
expected to keep
SVCE’s customer
generation rates
unchanged,
inclusive of PCIA.

PG&E Gen Rate:
12 Average Jan-Sep 2024 Rate
Rate Comparison with the Recommended 4%
Customer Discount
* Source: PG&E 2023 Average Rate, effective January 1, 2023 (Weighted for SVCE Portfolio Load) " PG&E 2024 ERRA Forecast Update, released in October,2023 (Weighted for SVCE Portfolio Load) *** Using NewGen Model with 7/7/2023 Forward Curves and 10% modeling error haircut Above margin analyses ignores minor reductions for franchise fees (0.09 cf/kWh) Adopted
Budget 2024
Rate***
PG&E ERRA Forecast Update**
Jul-Dec 2024
Rate
Current 2023
Rate*
Jan-Jun 2024
Rate
Units 2023 2024 2023 2024 2023 2024
On-Peak Energy MPB* $/MWh 75.14 77.99 68.28 72.88 -9% -7% Off-Peak Energy MPB* $/MWh 65.89 69.57 62.23 65.77 -6% -5% Average ATC Energy MPB* $/MWh 71.08 74.29 65.62 69.76 -8% -6% RPS MPB** $/MWh 12.63 12.50 30.30 31.73 140% 154%
System RA MPB** $/kW-Month 7.39 8.50 14.37 15.23 94% 79% Local RA MPB** $/kW-Month 6.93 8.46 8.38 9.52 21% 13%
Flex RA MPB** $/kW-Month 7.15 8.38 7.82 9.12 9% 9%
** Based on PG&E's 2024 forecast update testimony, released on October 16th, 2023 Adopted Budget Revised Budget % Change
*CY 2023 rates are based on average NP-15 market prices (actual+forward); 2024 rates were set as Market Benchmarks for 2024 per PG&Es October 16th, 2023 filing.

Item 4

PRESENTATION
CD Updated Market Price Benchmark
13 •
•
•
•
•
•
•
•
•
•
•
Currrent Lease Details
Monthly Lease Cost 5.30 $/sf
Size 7,900 sf
New Lease Assumptions
New Monthly Lease Cost 7.50 $/sf (est)
Purchase Assumptions
Purchase Cost 700 $/sf (est)
Improvement Cost 100 $/sf (est)
Office Assumptions
Size 20,000 sf (est)
Location for Comps*
* further analyses to include broader service territory Sunnyvale, Mtn View, Santa
Clara, San Jose
Item 4

PRESENTATION
Purpose
Review updated budget projections
and provide guidance on additional
funding scenarios
Main Areas of Discussion

1. Recap of assumptions used in
setting the adopted budget
and an update on the budget
forecast using the recent
PG&E Rate forecast

2. Comparison of Adopted and
Updated Budget

3. Updated Reserve Projection

4. Discussion on Additional
Funding Scenarios

5. Accounting True-Up of
Programs Fund Balance
Item 4

PRESENTATION
FY23-24 Budget Development Timeline
May May/June August 1 August 9
BOD adopts the budget and
agrees to revisit additional
expenditures later in the
year when there would be
more certainty on PG&E
rates
Executive Committee and Finance
and Admin Committee review the
updated budget based on the
revised PG&E rate filing and
provide feedback on any
additional expenditures
BOD reviews and adopts
amendments to the budget
incorporating any additional
expenditures
Mid-Year Budget
Review / Adjustment
3 Recap of Adopted Budget Assumptions
• Conservative assumptions used in estimating revenues
• CPUC’s updating of RA and RPS prices in setting the Market Price Benchmark (MPB) was highly uncertain
• MPB prices are used in calculating PCIA and PG&E generation rates • Staff had estimated a potential increase in revenues of $100 if higher RPS and RA prices were adopted in MPB
• Budget maintained the current 4% discount to the end of December 2023
• Budget set the initial discount starting in January 2024 to 1 %, with an additional 1% offered as bill credits to low-income customers • The board agreed to revisit the customer discount and any additional expenditures, including those for programs and an SVCE office building, when there would be more
certainty on PG&E rates
Highlights of the Updated Budget Using PG&E’s Recent
ERRA Forecast that Incorporates the New MPBs
• CPUC’s updated MPB account for a substantial
increase in RA and RPS prices
• SVCE’s forecasted revenues are higher by about $127
million
• Updating for revenues and power supply expenses, the
net contribution to reserves increases from the adopted budget forecast of $7.7 million to $127.9 million
• Without any additional expenditures, reserves increase above the target days of cash on hand of 300 to 334 but below the maximum target of 490
Item 4

PRESENTATION
Key Messages
•
•
•
•
•
•
•
•
•
•
Item 4

PRESENTATION
CPUC issued Market Price
Benchmarks (MPB) reflecting higher
RPS and RA prices relative to budget
assumptions.

RPS prices for 2023/2024 have
increased 140%/154%.

RA prices for 2023/2024 have
increased 94%/79%.

PG&E’s updated rate forecast,
incorporating MPB prices, shows
rates in January increasing on
average by 8% from current rates
and then dropping in July by ~ 4.5%.

PCIA up from 0.28 to 0.55 (f/kWh.

Relative to budget assumptions,
SVCE’s margins on average,
improved by ~44%. Resulting in a
~$127 million increase in revenues.

Rates are not final until CPUC’s
decision at the 12/14 meeting.

CPUC may prefer one blended rate
increase and moderate or remove
some of the proposed rate increases.

Significant changes from CPUC are
not expected.

CPUC is expected to issue a
Proposed Decision on11/29.

PG&E ERRA Rate Forecast Update**
PG&E Gen Rate:
5 Average Jan-Sep 2024 Rate
Higher PG&E Rate Forecast Improving SVCE
Revenue Projections by ~$127 million
PG&E Gen Rate:

15.48 <t/kWh
PG&E Gen Rate:

PRESENTATION
Primarily Revenues and Power Supply Expenses are Updated ® FY 24 Adopted and Updated Budget
6 •
•
•
•
•
Item 4

SILICON VALLEY

1. Increasing customer discount

2. Trueing up the intended1% bill credit to low-income customers to account for higher rates than anticipated in the original budget

3. Setting aside funds for an SVCE office building

4. Setting aside funds to maintain higher customer discounts over the next two years

5. Increasing funding for programs that include decarbonization grants for cities

SILICON VALLEY
CLEAN ENERGY 8
$ Million
Additional Expenditures

1. General Customer Rate Discount Level 1% - 4% 12.90 4% 12.90 4% 12.90

2. True-up 1% Bill Credit to Reflect Higher Rates 1.16 1.16 1.16 1.16

3. Transfer to Building Fund 20.00 20.00 20.00 20.00

4. Set Aside to Fund 4% Discount for 2 Additional Years 34.20 34.20

5. Additional Program Expenditures Including Grant to Cities 20.00

2. Increase
Rate Discount

3. Longer-term
Affordability

4. Add'l Set Aside
for Programs

1. Build
Reserves
Funding Scenarios
**Not expected to have any significant impact on forecast of the current fiscal year financialreserves since expenditure is likely delayed to future years.

Item 4

SILICON VALLEY

CLEAN ENERGY
•
•
•
•
•
•
•
Item 4

SILICON VALLEY
CLEAN ENERGY 10
Item 4

PRESENTATION
Thank you! / Questions?
11 •
•
Item 4

PRESENTATION
With the recommended
4% customer discount,
SVCE’s customer
generation rates, on
average, are expected to
increase by about 3.5%,
inclusive of PCIA.

A 5.5% discount on
average is
expected to keep
SVCE’s customer
generation rates
unchanged,
inclusive of PCIA.

Item 4

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
Item 5

PRESENTATION
(2) Purpose
Review the selection process and timeline for 2024 SVCE appointments of Chair, Vice Chair, and committees.
•
•
Item 5

PRESENTATION
O Selection Process
January BOD Meeting
Chair/Vice Chair
Appointments
Executive Committee
Appointments
December 15th:

Letters of Interest requested for Chair/Vice
Chair
Notification of Executive Committee interest
requested
Selections made at annual meeting on January
10, 2024
Item 5

PRESENTATION
O Selection Process (Cont.)
February
All other Committee
Appointments (Audit,
Finance and
Administration, 2024
Legislative Ad Hoc
Committee)
January 11th:

Request for members to notify Board
Clerk of interest in serving on
remaining Committees
Selections made at February 14, 2024
Board of Directors Meeting.

Item 5

PRESENTATION
CD Timeline Snapshot
Dec
Jan
Feb
13th: SVCE BOD Meeting Info item
15th: Requests for Chair/Vice Chair letters and Executive Committee interest emailed
3rd: Chair/Vice Chair Interest Letters & Executive Committee notification of interest due
10th: Selections made at BOD meeting
11th: Written information for committee interests distributed 2nd: Interest responses for committees due
14th: Remaining committee assignments made at BOD meeting 5 Item 5

PRESENTATION
Thank you
6 • Subtitle
New SV Clean Energy
PowerPoint Template
Item 6

PRESENTATION

SILICON VALLEY

CLEAN ENERGY
Go Electric Advisor
Electrification Concierge Service
Executive Committee Meeting
November 27, 2023
•
•
Item 6

PRESENTATION
® Go Electric Advisor
Provide a comprehensive, white-glove advisory service helping customers access the myriad of electrification programs and resources offered by SVCE and other entities.

Objectives:

Help customers better leverage electrification rebates & complementary SVCE offerings
Address key knowledge gaps, such as electrification planning or technology inquiries
Target Audience: Residential
2 •
•
•
Item 6

PRESENTATION
Advisor Offering
Budget: $892k (3-year horizon, depends on uptake)
SMUD selected as vendor - customer service, expertise, flexibility Phone hotline & web interface
Item 6

PRESENTATION
CD Key design decisic
Goals
Seamless customer support
Impartial technical assistance
Promote efficient electrification
Equity & accessibility
Program Elements
Single point of contact model,
extensive program database
SMUD in-house energy experts, vetted
FAQs, meet people where they are
Resources & guidance to avoid service
upgrades; weatherization
Multiple access channels, call center
with extensive language support, staff
with low-income program experience
Item 6

PRESENTATION

Silicon Valley Clean Energy Executive CommitteeNovember 27, 2023

Silicon Valley Clean Energy Executive Committee
November 27, 2023